Glosary

A

 

Algorithm: Set of steps and logical methods that in a computer network your participants must follow to execute a command or solve a problem. In the blockchain field it refers to the methods used by mining to verify transactions. Some of them are SHA-256, CryptoNight and Scrypy.

 

Altcoin: Term used to refer to cryptocurrencies or blockchain chips alternative to Bitcoin; as Litecoin, Ethereum, Dash, Monero, Zcash, Feathercoin and PPcoin, among others.

 

Block height: Number of blocks that precede another blockchain platform.

 

AML: Acronyms for “Anti-Money Laundering”, which refer to the legal framework created by the governments of each country to combat money laundering. During the last years the authorities have tried to adapt these policies to the commercial activity of cryptocurrencies.

Anoncoin: Term referring to cryptocurrencies whose transactions are private and can not be tracked, such as Zcash and Monero.

 

Leverage: use of borrowed capital, usually through exchange houses, to enhance potential profits. In the cryptocurrency market, leverage rates of 2 to 5 times the investment in exchange houses such as Kraken or Poloniex are achieved.

 

51% attack: In theory, a computer attack that could be perpetrated by a mining entity or group that owns the majority of the transaction processing of the blockchain network (51% or more) to prevent new transactions from being confirmed.

 

ATH (All Time High): Acronym in English for ‘Maximum Price History’, denoting that the price of a cryptoactive reached its maximum price ever achieved.

 

Atomic Swaps: Atomic Exchanges. It refers to the transactional protocol that allows one currency to be exchanged for another without using a centralized service such as a house of exchange.

 

ASIC: The Integrated Application Specific Circuit (ASIC) is a chip designed to fulfill a specific task. In the world of Bitcoin and cryptocurrencies, it is used to solve hashing problems and thus generate new cryptocurrencies, which is known as “cryptocurrency mining.

 

 

B

 

Bech32: Format of the hash addresses of the SegWit protocol, specified by the BIP 0173 proposal and consisting of 90 alphanumeric characters.

 

Bifurcation: Version of the block chain alternative to the current one. It can originate maliciously if a miner gets too much computing power, accidentally in case of an error in the system, or intentionally if a protocol modification is introduced, however, for a fork to succeed it is necessary that count on the support of enough miners to obtain the longest chain within the block chain.

 

Bitcoin (with a capital B): It is used to describe the concept of Bitcoin, the entire blockchain network that supports the cryptocurrency and the protocol that is executed on it.

bitcoin (with lowercase b): Refers to the cryptocurrency unit based on the homonymous blockchain network, which can be used in singular and plural (bitcoin and bitcoins). It is abbreviated as BTC, and sometimes as XBT, although the latter has progressively fallen into disuse.

 

Bitcoin Investment Trust: Financial investment fund whose capital assets are based on the cryptocurrency of the Bitcoin network. Bitcoin Market Potential Index (BMPI for its acronym in English): Statistical indicator of more than 40 variables that classifies 178 countries according to their respective Bitcoin adoption potential as cryptocurrency.

 

Bitcoin Whitepaper: document that describes the Bitcoin technology in detail and with which the fundamentals of this one were established as payment method. It was written by ‘Satoshi Nakamoto’ and was published in 2008.

BitPay: Payment processor with bitcoins. It allows merchants to accept bitcoins as a form of payment, obtaining at the end of the transaction the cryptocurrency or fiduciary money according to their preference. It also offers bitcoins portfolio services.

 

Blockchain: name that currently receives Bitcoin technology and its bifurcations, but that refers specifically to the sequence of blocks that store information and that have been verified by the users of the network since its inception. The term blockchain (whose literal translation is “chain of blocks”) comes from the fact that each block contains a hash pointer to its predecessor block, creating an interconnected network. It is important to note that there is a company called Blockchain and whose main product is a block explorer that has the same name.

 

Obsolete block: Information block that is not part of the distributed network. It is created when two or more miners produce blocks at almost the same time but one of them is propagated by the network faster and accepted by the nodes, leaving the others out of the chain.

 

Genesis block: Name given to the first block created and verified from the blockchain of a cryptocurrency.

 

Orphaned block: Block that points as a previous block to an unknown address, being impossible to validate it.

 

Reward block: Benefit that a miner gets by successfully solving a hash puzzle and creating a block. The Bitcoin network currently grants 12.5 bitcoins for each block undermined.This reward is reduced by half when a certain number of blocks has been extracted. In the case of Bitcoin, the change occurs every 210,000 blocks.

BTC: Abbreviation to refer to bitcoin units.

 

Buttonwood: Online movement founded by enthusiast Josh Rossi, who promotes the public and free exchange of bitcoins for dollars. It is named after the Buttonwood agreement, which was a fundamental agreement for the New York Stock Exchange in 1792.

 

 

 

C

 

Block Header: Component of a block where the following information is included: Bitcoin software version, Hash address of the previous block, Merkle tree, time or time stamp, Difficulty objective, Nonce number,

Cryptocurrency ATM: Cryptocurrency ATM. It is a device that allows you to exchange cryptocurrencies for fiduciary money in cash and vice versa.

 

Portfolio: Blockchain address that stores, sends and receives cryptoactives. It is accessed through digital or physical interfaces, from mobile devices, desktops, ATMs or online.

 

Cold wallet: Hardware device designed to store cryptoactives safely and isolated from the Internet.

 

Exchange house: Exchange operator of cryptocurrencies by fiduciary coins of legal tender and official issue, or by other cryptocurrencies.

 

Casper: Consensual protocol in which the nodes deposit a quantity of cryptoactive guarantors of their participation in the consensus and the processing of blocks of a network. If a validator node attempts to approve any block not cleared by Casper, the deposit and authorization to participate are withdrawn to the node.

 

Child Pays for Parent: Critic of selection of transactions of the Bitcoin protocol for its processing used by the miners, in which the commissions of the transactions ‘father’ are taken into account to process them together with a transaction ‘son’, generating a greater profitability and speed.

 

Public Key: Alphanumeric text from which an address known by all users is obtained. When known, anyone can send bitcoins to the associated address, but only those with the private key can access them and move them.

 

Private Key: Alphanumeric text associated mathematically with an address and that must be known only by its owner, thus allowing him to perform bitcoin transactions.

Client: Software application that allows access to a blockchain node through an interface and perform transactions, mining or storing information.

 

Light Client: Client that only downloads a small portion of a blockchain, allowing to execute their tasks without consuming so much memory space in their device.

 

Collusion: Confabulation, plot. Term referred to when a number of network participants act in coordination or conspire to change the rules of the blockchain to their own benefit.It bears similarity to a 51% percent attack.

 

Coinbase: entry of cryptocurrency generation transactions in blocks of the blockchain made by the creator miner of the last block and that may contain arbitrary text. The word Coinbase is also the name of a popular cryptocurrency exchange house.

 

Co-signer: Entity or person that is partially owner of a portfolio of cryptoactives.

 

Consensus: Agreement reached by the majority of participating nodes of a network regarding the status of this and its protocol.

 

Guarantee contract: Contract in which two parties place the funds in a multifirm exit transaction to avoid that none of them spend the funds without prior agreement.

 

Intelligent Contract: Blockchain address programmed to execute a task according to the instructions previously introduced.

 

Confirmation: Verification by the nodes of the network that a block contains only valid transactions made with cripmonedas that had never been used before. The confirmation time in the Bitcoin network varies from 10 to 60 minutes, generally.

 

Consensus: When most of the nodes of a network accept the validity of the blocks of a chain and its normative protocol.

 

Incentive Compatibility: A protocol is compatible with incentives if its participants are concerned with following its rules instead of trying to cheat the network, unless they agree to do so.

 

Cryptography: Set of mathematical techniques and methods that protect the information of the data recorded in the blockchain, providing them with security and guaranteeing their immutability.

 

Cryptoactive: Cryptographic file that is issued and marketed on a blockchain platform. The term is coined and popularized by the expansion of the rounds of financing and initial sale of currencies (ICO) and the establishment of new financial dynamics in exchange houses.

 

Cryptocurrency: currency based exclusively on cryptography. Unlike coins issued by governments and central banks, it is generated with the resolution of mathematical problems based on cryptography. Its value, however, is subject to price variation depending on the supply and demand in the markets.

 

D

 

DDoS (attack): computer attack consisting of making simple requests to a server to saturate it and affect its availability. The acronym stands for: Denial of Distributed Service.

 

Deflation: reduction of prices in an economy during a given period of time.

 

Difficulty: number that determines the complexity of the hash puzzle to be solved in each block. It varies according to the calculation power of the miners in the network and automatically adjusts every certain number of mine blocks. In the case of Bitcoin, blocks are adjusted every 2016.

 

Address: Sequence of alphanumeric characters that indicates the location of a portfolio to which the desired amount of cryptocurrencies can be sent.

 

Dogecoin: Cryptocurrency created as a humorous joke in 2013 and that reached prices and market capitalization of millions of dollars.

 

Double expense: act of making two payments with the same cryptocurrency. It supposes a fraudulent operation and, although it is not easy to do in the Bitcoin network, it is avoided by waiting for at least one confirmation from the network before terminating the transaction.

DYOR (Do your own research): Acronym in English for ‘Do your own research’.

 

E

 

Age: refers to the elapsed time in which a certain amount of cryptocurrencies are stored in one direction.

 

Scalability: Property of the blockchain technology as a whole that indicates its ability to adapt to new challenges and to evolve in a fluid way.

 

Ethereum: Decentralized platform released from the Bitcoin network and allowing the execution of intelligent contracts. Its cryptocurrency (ether) is one of the most popular and most capitalized market.

 

Etherem Virtual Machine: It is a virtual machine where the intelligent contracts and Ethereum protocols can be executed safely.

 

 

F

 

Faketoshi: Term used by the blockchain community in social networks to refer sarcastically to personalities who have proclaimed themselves to be Satoshi Nakamoto, creator of bitcoin, without offering convincing and reliable evidence in this regard.

 

Digital signature: mathematical process that allows verifying the authenticity of the sender of bitcoins. Hasheando together the public key and the private key of the sender, the recipient can verify that the payment was made by that sender and that, in addition, was not altered by anyone else.

 

FinCEN (Financial Crimes Enforcement Network): is an agency within the Department of the Treasury of the United States, which has been highlighted in recent years as the government agency that has begun to regulate commercial exchanges with cryptocurrencies.

 

FinTech: In English, abbreviation for Financial Technology. The term is used both for the industry and ecosystem and to denote hardwares and softwares whose main focus is to optimize financial, monetary and banking operations through technology.

 

FUD (Fear Uncertainly Doubt): Anglophone acronym for Fear, Uncertainty and Doubt, three reactions that some entities seek to generate in investors to influence the markets of cryptoactive

 

 

G

 

Gigahashes / sec: The number of possible hash attempts in a second given, measured in billions of hashes (thousands of megahashes).

 

Tap (faucet): A technique that is used when an altcoin is first started. A certain number of coins are pre-mined, and delivered for free, to encourage people to take interest in the currency and begin their extraction themselves.

 

GPU: Graphic processing unit. Silicon chip designed specifically to perform complex mathematical calculations necessary to interpret the visual graphics of computer games. They are very suitable for making cryptographic calculations necessary in cryptocurrency mining.

 

 

H

 

Hash: Algorithmic function that emits an alphanumeric address that summarizes and protects the information inserted through an entry. They also serve to guarantee the immutability of an information unit, hide a password or serve as a digital signature.

 

Signature Hash: In Bitcoin, a hash that indicates which parts of the transaction are signed and therefore, unmodifiable. By default, a transaction is tagged with the signal SIGHASH ALL.

 

Hash rate: is the processing power unit of the Bitcoin network, that is, it is related to the number of hash values ​​that can be made in a given period of time. It is also known as hash speed.

 

 

I

 

Digital Identity: In blockchain, digital identity is formed by signing cryptographically verified transactions with the same public key.

 

Bitcoin price index (BPI): The Bitcoin Price Index is an average of bitcoin prices in the main world stock exchanges. It is published by CoinDesk.

 

Input (input): refers to the origin of a transaction. It is usually the address belonging to the issuer of the payment, except in the case of a transaction to reward mining.

 

Exchange OTC: is a bilateral exchange, in which two individuals or users make proposals directly, without any type of mediator.

 

 

J

 

JOMO: Acronym for “Joy Of Missing Out”, or in Spanish, “Alegría de Quedarse Fuera”. It refers to the moment when the investors of the crypto-active market are happy not to participate in a certain day of investment.

 

Digital Identity: In blockchain, digital identity is formed by signing cryptographically verified transactions with the same public key.

 

Bitcoin price index (BPI): The Bitcoin Price Index is an average of bitcoin prices in the main world stock exchanges. It is published by CoinDesk.

 

Input (input): refers to the origin of a transaction. It is usually the address belonging to the issuer of the payment, except in the case of a transaction to reward mining.

 

Exchange OTC: is a bilateral exchange, in which two individuals or users make proposals directly, without any type of mediator.

 

 

K

 

Kilohashes / sec: is the number of possible hash attempts in a second given, measured in thousands of hashes.

 

KYC (Know Your Costumer): o “Know your customer” in Spanish, it is a process through which the companies or entities that make a business or transaction must identify the counterparty with which they perform it. The purpose is to verify the legitimacy and existence of the client.

 

 

L

 

Lambo: is one of the most recognized terms in the ecosystem, portrayed in many memes and jokes. It is the abbreviation of the well-known sports car brand Lamborghini, one of the first signatures to accept payments in crypto-active. In addition, it is one of the preferred investments by the millionaires of the ecosystem. Lambo also refers to large profits that allow you to buy a Lamborghini of one million dollars.

 

Liquidity: the ability to buy and sell or exchange an asset in a fluid and efficient way, without giving time to the loss of its value.

 

 

M

 

mBTC: 1 thousandth Bitcoin share (BTC 0.001).

 

Megahashes / sec: The number of possible hash attempts in a second given, measured in millions of hashes (thousands of Kilohashes).

 

Metropolis: Third phase of Ethereum development activated in October 2017. Metropolis adds new user interfaces and a decentralized application store to Ethereum. It is formed by the Byzantium phase and the Constantinople phase, soon to be activated.

 

Mixer: is a service that mixes the bitcoins of two or more individuals making multiple money transfers in the form of said cryptocurrency, through several inputs and outputs. It is an operation that makes it difficult to trace capital in bitcoin.

 

Microtransaction: is the transmission of a small amount of bitcoins from one direction to another.

 

Mining: is the act of solving a block, validating all the transactions it contains.

 

Moon (Moon): refers to an extreme bullish movement of the price of a cryptoactive. Generally, the phrase “to the moon!” Is used, in Spanish, “Towards the moon!”.

 

Mount Gox: commonly known as Mt. Gox, is one of the first exchange of bitcoins, as well as one of the most used. It is based in Japan and was created in 2010 by Jed McCaleb.

 

 

N

 

Node: is a computer connected to the Bitcoin network that transmits transactions to others.

 

Namecoin: is an altcoin designed to function as an alternative to the traditional domain name system (DNS). With namecoin, a user can register a domain through a proxy server.

 

 

O

 

Objective: A 256-bit number included in the header of the block that establishes the current cryptographic difficulty for the block to be processed by the miners and accepted in the network.

 

Output (output): is the destination of a transaction. The most common is that it is an address, but there may also be transactions with more than one destination address and, therefore, several exits.

 

Oracle: Computational device that can take reliable and unalterable data from the real world, outside a computer environment, to execute some internal blockchain protocol. They are extremely useful for executing smart contracts in Internet of Things devices, so some companies are already using them.

 

OP_Return: Command inserted in the output of a transaction in the Bitcoin Core 0.9.0 protocols onwards that adds metadata to the transaction and avoids spending it again. This command can be used to burn bitcoins.

 

OCD: Initials of ‘Obsessive Cryptocurrency Disorder’, translated as ‘Obsessive Disorder of Cryptocurrency’, referring humorously to the presumed psychiatric disorder suffered by those who can not stop verifying the prices of cryptoactives.

 

 

P

 

P2SH² (P2SH ^ 2): Proposal so that the additional information registered in a block of the network is difficult to change.

 

P2P: refers to a peer-to-peer network, that is, a decentralized network where all the parties interact with each other.

 

Ethereum Yellow Paper: Document written by Gavin Wood, co-founder of Ethereum, where technical specifications on the Ethereum blockchain are included in addition to those displayed on the white paper of this platform.

 

Parity: Ethereum client implemented in the Rust programming language. It is one of Ethereum’s main clients, used for both portfolio services and decentralized applications.

 

Pyramid: Scheme of investment of pyramidal structure, where the investors are creating networks of subordinates or referrals whose money rewards the participation of who is located in the upper levels of the pyramid.

 

Mining pool: is the grouping of two or more miners who join their computing power to raise the chances of solving a block and get a reward. In the mining pools, the reward is divided internally according to the amount of hashes contributed by each one of its members.

 

Protocol: Consensual and official rules under which the participants of a decentralized network interact, connect with each other and share different information about the network.

 

Proof of Participation (PoS): Distributed blockchain consensus protocol in which transactions are processed by proving ownership of the cryptocurrencies themselves. The possibility of a participant finding a block and deciphering it is proportional to the amount of cryptocurrencies stored by it in the network.

 

Burning Test (PoB): Distributed blockchain consensus protocol in which a number of chips are burned, that is, sent to an address that in turn can not spend them. This test does not consume as much energy as the work test, but only the chips in question.

 

Work Test (PoW): Distributed blockchain consensus protocol consisting of solving mathematical problems, a hash sequence, which has a variable that makes it difficult. Solving the test successfully requires time and energy, therefore, ultimately, this system conditions the mining capacity to the computational power of the user.

 

Pump: an accelerated movement in the price increase of cryptocurrencies.

 

Pump and Dump: cycle in which the market drives the price of a cryptocurrency to exceed its resistance and at its highest point this price drop precipitously. First, a high volume of purchase increases the price of a cryptoactive. When this value stabilizes in a same value during a relative period of time, the volume of sales increases again causing this value to fall precipitously. It is a phenomenon frequently seen in the markets of altcoins and cryptoactives of little monetary value.

 

 

R

 

RBF: initials for “Replace-By-Fee”, translated as “Replace with the Commission”. It refers to a protocol in which users interested in a transaction being confirmed faster by the network, can retransmit it by inserting a higher rate, overwriting the old transaction with the new one.

 

Test Network: Test environment where developers can generate and spend fake cryptoactives in a blockchain network similar to the real one.

 

Rekt: Term referred to the word “wrecked”, originated from a misspelling of a user, which means “ruined” and refers to when an investor loses all their money because of the price drop of a cryptoactive.

 

Reorganization: is the name given to the process by which the chain of a block that is being worked on ceases to lengthen. The blocks of the old bifurcation become orphaned blocks and lose their validity.

 

Initial Financing Round: A day in which developers of blockchain platforms offer investors a certain amount of cryptocurrencies in exchange for capital financing to execute their project.

 

 

S

 

Multi-Signature Output: Blockchain address that includes two public keys necessary to sign any outgoing transaction.

 

Change Output: Blockchain address that in its output can return bitcoins to the sender if the amount stipulated to pay the commission of the network was higher than what was needed

 

Satoshi: is the smallest subdivision you can get from a bitcoin, namely: 0.00000001 BTC.

 

Satoshi Nakamoto: is the pseudonym used by the person or group of people who developed the Bitcoin protocol. He has been retired since 2010.

 

Scamcoin: digital currency usually not supported by blockchain whose financial scheme is fraudulent and tends to steal funds from investors and participants.

 

Scrypt: Type of cryptographic algorithm used by the Litecoin platform. It is faster and uses less processing power than the SHA-256 algorithm.

 

Silk Road: was an online market (located on the Deep web) used to purchase illicit products and in which, the main form of payment was bitcoin. It was closed at the end of 2013 after the FBI arrested its owner, Ross Ulbricht.

 

SHA-256: is the cryptographic function used as the basis for the work test that allows mining bitcoins and other cryptocurrencies.

SPV (Simplified Payment Verification): it is an element present in the Bitcoin protocol which dictates that the nodes verify each operation making use of the block headers. With this, the nodes can verify without downloading the entire chain of blocks.

 

 

T

 

Tangle: Protocol and alternative decentralized proposal to blockchain known as Acíclico Direct Graph (DAG) in which a transaction requires two other transactions to be confirmed. It was introduced and explained by the IOTA project on its white paper. In this protocol, the nodes do not require knowing the total amount of the network to process transactions, but a small part of it.

 

Transaction fee: A small fee imposed on some transactions sent through the Bitcoin network. The transaction fee is given to the mining company that hashes the block containing the corresponding transaction.

 

Hash rate: is a measure that denotes the number of hashes that a miner can perform in a given period of time (usually in a second).

 

U

 

User Activated Soft Fork (UASF): Soft bifurcation activated by the user. It is a branch of the network activated by the nodes and their clients instead of by the miners.

my college paper

  • bitcoinBitcoin (BTC) $ 10,824.00 3.64%
  • ethereumEthereum (ETH) $ 221.50 2.25%
  • rippleXRP (XRP) $ 0.315471 1.66%
  • bitcoin-cashBitcoin Cash (BCH) $ 334.52 3.68%
  • litecoinLitecoin (LTC) $ 94.69 1.69%
  • eosEOS (EOS) $ 4.28 3.5%
  • tetherTether (USDT) $ 0.999489 0.09%
  • cardanoCardano (ADA) $ 0.057610 0.05%
  • stellarStellar (XLM) $ 0.082238 0.08%
  • moneroMonero (XMR) $ 86.07 3.58%
  • tronTRON (TRX) $ 0.021723 0.66%
  • dashDash (DASH) $ 107.17 2.4%
  • neoNEO (NEO) $ 11.87 2.6%
  • iotaIOTA (MIOTA) $ 0.287997 0.06%
  • ethereum-classicEthereum Classic (ETC) $ 5.86 0.24%
  • dogecoinDogecoin (DOGE) $ 0.002922 0.8%
  • bitcoin-goldBitcoin Gold (BTG) $ 17.89 1.35%
  • bitcoin-diamondBitcoin Diamond (BCD) $ 0.794998 2.28%