Cryptocurrency addresses are required to send or receive cryptocurrencies. It is important to make sure the address you use is correct to avoid lost of funds.
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern.
Stands for Application Specific Integrated Circuit. It refers to chips specifically designed to do a specific task; In the cruypto context it ususally refers to chips specifically designed to mine cryptocurrenies.
The bear flag is an upside down version of the bull flat. It has the same structure as the bull flag but inverted. The flagpole forms on an almost vertical panic price drop as bulls get blindsided from the sellers, then a bounce that has parallel upper and lower trendlines, which form the flag.
The smallest verifiable and unforgeable unit on the blockchain. It contains various data to prove it's consensus as well as transactions
Bullish flag formations are found in stocks with strong uptrends. They are called bull flags because the pattern resembles a flag on a pole. The pole is the result of a vertical rise in a stock and the flag results from a period of consolidation.
The number of coin/token in circulation. This is different from maximum supply as coins/token would be minted overtime. Sometimes when certain coins/tokens are being locked up, the circulating supply would be less than the total supply.
Refers to investment in contracts of companies that have already invested in mining equipments.
Consensus mechanism in the context of cryptocurrencies refers to the methodology used to achieve consensus around the information recorded on the blockchain. Consensus mechanisms allow secure updating of a distributed shared state. It has to be resilient to failures of nodes, partitioning of the network, message delays, messages reaching out-of-order and corrupted messages. They also have to deal with selfish and deliberately malicious nodes.
Decentralised Autonomous Organisations are organisations that run without any human intervention and purely based on the rules set out in the smart contract.
Decentralized Application ("Dapp") / Smart Contract
dApps are a ‘blockchain enabled’ website, where the Smart Contract is what allows it to connect to the blockchain. The easiest way to understand this is to understand how traditional websites operate.
A descending channel is used in technical analysis to show a downward trend in a security’s price series. It is formed from two negative sloping trendlines drawn above and below a price series.
The ERC 20 Token Standard is a set of rules which tokens launched on top of the Ethereum protocol must follow in order to operate within the Ethereum network. Through the use of the ERC 20 standard, Ethereum-based projects can issue unique and independent tokens that functions as cryptocurrencies.
ERC721, is an Ethereum Improvement Proposal introduced by Dieter Shirley in late 2017. It’s a proposed standard that would allow smart contracts to operate as tradeable tokens similar to ERC20. ERC721 tokens are unique in that the tokens are non-fungible.
Fungibility is, essentially, a characteristic of an asset, or token in this case, that determines whether items or quantities of the same or similar type can be completely interchangeable during exchange or utility.
Simply put, ERC721 tokens can be used to represent unique assets/collectible items which have different characteristics. ERC721 tokens can be used in any exchange, but their value is a result of the uniqueness and rareness associated with each token.
Fifty One Percent Attack
51% attack refers to an attack on a blockchain by a group of miners controlling more than 50% of the network's mining hashrate (or computing power). The attackers would be able to prevent new transactions from gaining confirmations, allowing them to halt payments between some or all users. They would also be able to reverse transactions that were completed while they were in control of the network, which enables them to double spend the coins.
It is the creation of a new blockchain based on an existing blockchain. The two blockchain will contain the same record/history up until the point of fork. This creates two parallel blockchains.
Hard fork is a permanent divergence in the blockchain. It happens when there is a change/update in the protocol which makes the older versions of the blockchain invalid. A divergent would occur as the upgraded nodes would run the new protocol and the non-upgraded nodes can’t validate blocks created by upgraded nodes that follow newer consensus rules.
In simple terms, hashing means taking an input string of any length and giving out an output of a fixed length. In the context of cryptocurrencies like Bitcoin, the transactions are taken as an input and run through a hashing algorithm which gives an output of a fixed length.
Hash rate basically means how fast hashing operations are taking place while mining. A high hash rate means more people and software machines are taking part in the mining process and as a result, the system is running smoothly. If the hash rate is too fast the difficulty level is increased. If the hash rate becomes too slow then the difficulty level is decreased.
Blockchain interoperability concerns how different blockchains communicate with each other.
There are two types of chain interoperability:
• Relaying messages about the state of one chain to another. This includes synthetic tokens (AKA one-to-one pegs, two-way pegs, or sidechains).
• Cross-chain atomic swaps. The exchange of tokens between users across chains, without trusting a third-party.
The Lightning Network is a decentralized system designed for instant, high-volume micropayments without delegating custody of funds to a trusted third party.
The Network uses an off-chain protocol which allows for low-cost and instant transactions.
The Lightning Network is one of the proposed solutions to the scalability problems of Bitcoin and is a solution still under development.
A computer on a blockchain network that only verifies a limited number of transactions relevant to its dealings
The main network wherein actual transactions take place on a distributed ledger; this is in contrast to the testnet.
The basic idea behind Merkle tree is to have some piece of data that is linked to another. You can do this by linking things together with a cryptographic hash. The content itself can be used to determine the hash.
In simple language, miners in the crypto world are participants that help verify the transactions in the network and ensuring that they are not false. The miners are the ones that keep the network running. To verify transaction, these miners will follow the consensus mechanism of the particular token and verify the authenticity of the transactions. The reward for the verification work is usually the native token of the blockchain. This process is also known as mining.
Oracles refers to the process of obtaining data/state of event of the external world for the use of smart contract.
Peer to Peer Network
In its simplest form, a peer-to-peer ("P2P") network is created when two or more computers are connected and share resources without going through a separate server computer. All computer in the network share equivalent responsibility for processing data.
A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures (like a cone). The slope is usually neutral. Sometimes there will not be specific reaction highs and lows from which to draw the trend lines and the price action should just be contained within the converging trend lines.
Public Key Private Key
When someone sends you cryptocoins over the Blockchain, they are actually sending them to a hashed version of what’s known as the “Public Key”. There is another key which is hidden from them, that is known as the “Private Key.” This Private Key is used to derive the Public Key.
The Private Key is used to generate a signature for each blockchain transaction a user sends out. This signature is used to confirm that the transaction has come from the user, and also prevents the transaction from being altered by anyone once it has been issued. In short, you sign the cryptocurrencies you send to others using a Private Key. If someone were to obtain your private key, they would be able to send your cryptocurrencies to themselves.
The Private Key is used to mathematically derive the Public Key, which is then transformed with a hash function to produce the address that other people can see. You receive cryptocurrencies that others send to your address.
The smallest verifiable and unforgeable unit on the blockchain. It contains various data to prove it's consensus as well as transactions.
A sidechain is a separate blockchain that is attached to its parent blockchain using a two-way peg. The two-way peg enables interchangeability of assets at a predetermined rate between the parent blockchain and the sidechain. The original blockchain is usually referred to as the ‘main chain’ and all additional blockchains are referred to as ‘sidechains’.
A soft fork happens when is a temporary divergence in the blockchain. It happens when there is a software upgrade and the upgrade is backward compatible with the older version. This means nodes that did not upgrade to the new software will still be able to participate in validating and verifying transactions. However, the non-upgraded nodes’ functionality would be impacted.