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CRYPTO CURRENCY DICTIONARY

TERMS COMMONLY USED IN THE WORLD OF BLOCKCHAIN AND CRYPTOCURRENCY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Exchange-Traded-Fund (ETF)

An exchange-traded fund (ETF) is a pooled investment asset that functions similarly to a mutual fund. ETFs often follow a specific index, sector, commodity, or other asset, but unlike mutual funds, ETFs may be bought and sold on a stock market in the same way that conventional stocks can. An ETF can be designed to follow anything from the price of a single commodity to a huge and varied group of commodities. ETFs can even be designed to follow certain investing strategies.

Other Important Terms

Shares

Shares are equity ownership units in a firm. Shares exist as a financial asset for certain firms, providing for an equitable distribution of any residual earnings, if any are declared, in the form of dividends. Shareholders of a stock that does not pay dividends are not entitled to a profit distribution.

Recurring Buy

Randomized block selection is a mechanism used on Proof of Stake blockchains to pick nodes for block validation. When selecting which node will authorize a block, the Proof of Stake consensus process takes into account nodes' interests in a given coin. Higher stake nodes are thought to be more dedicated to the blockchain and, as a result, less likely to engage in harmful behavior, such as fraudulently confirming transactions. Blockchains apply the Proof of Stake consensus technique in a variety of ways. Blockchains that use the randomized block selection approach select nodes based on a mathematical formula that takes into account each node's stake as well as the lowest hash value.

Cardano

Cardano is a blockchain platform that is open source and uses the Proof of Work consensus process. ADA is its native cryptocurrency. Cardano was founded in 2017 by Ethereum co-founder Charles Hoskinson. Cardano is developed in Haskell, a programming language that uses pure functions. Cardano is a third-generation platform that was created with an evidence-based approach. The Cardano blockchain is composed of two layers: the Cardano settlement layer, which monitors balances and transactions, and the Cardano computational layer, which is used for smart contracts and applications. Furthermore, a key component of Cardano's protocol is its Proof of Stake consensus mechanism, Ouroboros, which is built for long-term sustainability and scalability. Cardano is expected to deploy other updates, such as the layer-2 solution Hydra, in the near future at the time of writing.

Mainnet

A mainnet is a fully functional, active blockchain. Mainnet blockchains properly validate transactions and consist of immutable, distributed ledgers that everyone can examine openly. Mainnets are operational and trade "actual" cryptocurrencies having monetary value, as opposed to testnets, which exchange symbolic, worthless coins. After testing and revising their projects and updates on testnets, developers launch them to mainnets. The principal blockchains of Ethereum and Bitcoin are both examples of mainnets.

Phishing

Phishing is a scam in which a scammer impersonates a respected organization or individual in order to get access to confidential material, such as banking credentials and passwords, in order to steal digital assets. Phishers frequently target individuals by sending emails or text messages that appear to be real. Because fraudsters utilize human psychology rather than technology, phishing is better defined as a social engineering attack rather than a cyberattack. In the cryptocurrency world, phishers attempt to steal bitcoin from individuals by impersonating legitimate crypto exchanges or wallets. One example is the trading of lookalikes. A phisher delivers a bogus link to a website that looks very similar to a valid exchange web address. The receiver is then asked to provide their private key or exchange log-in information, which the fraudster subsequently uses to take their money, Individuals should read emails and messages with caution and set two-factor authentication on their accounts to avoid phishing.

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