Bitcoin for Beginners

jason.yamada

Bitcoin (₿) is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its implementation was released as open-source software.It is a decentralized digital currency without a central bank or single administrator that can be sent from user to Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. Bitcoin has been praised and criticized. Critics noted its use in illegal transactions, the large amount of electricity used by miners, price volatility, and thefts from exchanges. Some economists, including several Nobel laureates, have characterized it as a speculative bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.


BITCOIN

FOR

BEGINNERS

w w w . D r J C a r e s . c o m


www.DrJCares.com

BITCOIN

FOR

BEGINNERS



INTRODUCTION

Bitcoin () is a cryptocurrency invented in 2008 by an

unknown person or group of people using the name

Satoshi Nakamoto and started in 2009 when its

implementation was released as open-source software.It

is a decentralized digital currency without a central bank

or single administrator that can be sent from user to

Transactions are verified by network nodes through

cryptography and recorded in a public distributed ledger

called a blockchain. Bitcoins are created as a reward for

a process known as mining. They can be exchanged for

other currencies, products, and services. Research

produced by the University of Cambridge estimates that

in 2017, there were 2.9 to 5.8 million unique users using a

cryptocurrency wallet, most of them using bitcoin.

Bitcoin has been praised and criticized. Critics noted its

use in illegal transactions, the large amount of electricity

used by miners, price volatility, and thefts from

exchanges. Some economists, including several Nobel

laureates, have characterized it as a speculative bubble.

Bitcoin has also been used as an investment, although

several regulatory agencies have issued investor alerts

about bitcoin.

Page 01


HISTORY - CREATION

The domain name "bitcoin.org" was registered

on 18 August 2008. On 31 October 2008, a link

to a paper authored by Satoshi Nakamoto titled

Bitcoin: A Peer-to-Peer Electronic Cash System

was posted to a cryptography mailing list.

Nakamoto implemented the bitcoin software as

an open-source code and released it in January

2009. Nakamoto's identity remains unknown.On

3 January 2009, the bitcoin network was

created when Nakamoto mined the starting

block of the chain, known as the genesis block.

Embedded in the coinbase of this block was

the text "The Times 03/Jan/2009 Chancellor

on brink of second bailout for banks". This note

references a headline published by The Times

and has been interpreted as both a timestamp

and a comment on the instability caused by

fractional-reserve banking.

The receiver of the first bitcoin

transaction was cypherpunk Hal

Finney, who had created the first

reusable proof-of-work system

(RPoW) in 2004. Finney downloaded

the bitcoin software on its release

date, and on 12 January 2009

received ten bitcoins from

Nakamoto. Other early cypherpunk

supporters were creators of bitcoin

predecessors: Wei Dai, creator of b-

BRAND

POSITIONING AND

TARGET MARKETS

money, and Nick Szabo, creator of

bit gold. In 2010, the first known

commercial transaction using bitcoin

occurred when programmer Laszlo

Hanyecz bought two Papa John's

pizzas for 10,000.Blockchain

analysts estimate that Nakamoto

had mined about one million bitcoins

before disappearing in 2010 when he

handed the network alert key and

control of the code repository over

to Gavin Andresen. Andresen later

became lead developer at the

Bitcoin Foundation. Andresen then

sought to decentralize control. This

left an opportunity for controversy to

develop over the future

development path of bitcoin, in

contrast to the perceived authority of

Nakamoto's contributions.

Page 02


UNDERSTANDING BITCOIN

Bitcoin is a collection of computers, or nodes, that all

run Bitcoin's code and store its blockchain. A

blockchain can be thought of as a collection of blocks.

In each block is a collection of transactions. Because all

these computers running the blockchain have the

same list of blocks and transactions and can

transparently see these new blocks being filled with

new Bitcoin transactions, no one can cheat the system.

Anyone, whether they run a Bitcoin "node" or not, can

see these transactions occurring live. In order to

achieve a nefarious act, a bad actor would need to

operate 51% of the computing power that makes up

Bitcoin. Bitcoin has around 47,000 nodes as of May

2020 and this number is growing, making such an

attack quite unlikely.In the event that an attack was to

happen, the Bitcoin nodes, or the people who take part

in the Bitcoin network with their computer, would likely

fork to a new blockchain making the effort the bad

actor put forth to achieve the attack a waste.Bitcoin is a

type of cryptocurrency. Balances of Bitcoin tokens are

kept using public and private "keys," which are long

strings of numbers and letters linked through the

mathematical encryption algorithm that was used to

create them. The public key (comparable to a bank

account number) serves as the address which is

published to the world and to which others may send

bitcoins. The private key (comparable to an ATM PIN) is

meant to be a guarded secret and only used to

authorize Bitcoin transmissions. Bitcoin keys should not

be confused with a Bitcoin wallet, which is a physical or

digital device which facilitates the trading of Bitcoin

and allows users to track ownership of coins. The term

"wallet" is a bit misleading, as Bitcoin's decentralized

nature means that it is never stored "in" a wallet, but

rather decentrally on a blockchain."

Page 03


INVESTING IN

BITCOIN

UNDERSTANDING

BITCOIN

There are many Bitcoin supporters who

believe that digital currency is the

future. Many of those who endorse

Bitcoin believe that it facilitates a much

faster, low-fee payment system for

transactions across the globe. Although

it is not backed by any government or

central bank, bitcoin can be exchanged

for traditional currencies; in fact, its

exchange rate against the dollar attracts

potential investors and traders

interested in currency plays. Indeed, one

of the primary reasons for the growth of

digital currencies like Bitcoin is that they

can act as an alternative to national fiat

money and traditional commodities like

gold.In March 2014, the IRS stated that

all virtual currencies, including bitcoins,

would be taxed as property rather than

currency. Gains or losses from bitcoins

held as capital will be realized as capital

gains or losses, while bitcoins held as

inventory will incur ordinary gains or

losses. The sale of bitcoins that you

mined or purchased from another party,

or the use of bitcoins to pay for goods or

services are examples of transactions

which can be taxed.9 Like any other

asset, the principle of buying low and

selling high applies to bitcoins. The most

popular way of amassing the currency is

through buying on a Bitcoin exchange,

but there are many other ways to earn

and own bitcoins.

Though Bitcoin was not designed as a

normal equity investment (no shares

have been issued), some speculative

investors were drawn to the digital

money after it appreciated rapidly in May

2011 and again in November 2013. Thus,

many people purchase bitcoin for its

investment value rather than as a

medium of exchange. However, their

lack of guaranteed value and digital

nature means the purchase and use of

bitcoins carries several inherent risks.

Many investor alerts have been issued

by the Securities and Exchange

Commission (SEC), the Financial Industry

Regulatory Authority (FINRA), the

Consumer Financial Protection Bureau

(CFPB), and other agencies. The concept

of a virtual currency is still novel and,

compared to traditional investments,

Bitcoin doesn't have much of a longterm

track record or history of credibility

to back it. With their increasing

popularity, bitcoins are becoming less

experimental every day; still, after 10

years, they (like all digital currencies)

remain in a development phase and are

consistently evolving. "It is pretty much

the highest-risk, highest-return

investment that you can possibly make,”

says Barry Silbert, CEO of Digital

Currency Group, which builds and

invests in Bitcoin and blockchain

companies.

Page 04


BITCOIN REGULATORY

RISK

Investing money into Bitcoin in any of its many

guises is not for the risk-averse. Bitcoins are a

rival to government currency and may be used

for black market transactions, money

laundering, illegal activities or tax evasion. As a

result, governments may seek to regulate,

restrict or ban the use and sale of bitcoins, and

some already have. Others are coming up with

various rules. For example, in 2015, the New

York State Department of Financial Services

finalized regulations that would require

companies dealing with the buy, sell, transfer

or storage of bitcoins to record the identity of

customers, have a compliance officer and

maintain capital reserves. The transactions

worth $10,000 or more will have to be recorded

and reported. The lack of uniform regulations

about bitcoins (and other virtual currency)

raises questions over their longevity, liquidity,

and universality.

If a thief gains access to a Bitcoin owner's computer

hard drive and steals his private encryption key, he

could transfer the stolen Bitcoins to another account.

(Users can prevent this only if bitcoins are stored on a

computer which is not connected to the internet, or else

by choosing to use a paper wallet – printing out the

Bitcoin private keys and addresses, and not keeping

them on a computer at all.) Hackers can also target

Bitcoin exchanges, gaining access to thousands of

accounts and digital wallets where bitcoins are stored.

One especially notorious hacking incident took place in

2014, when Mt. Gox, a Bitcoin exchange in Japan, was

forced to close down after millions of dollars worth of

bitcoins were stolen. This is particularly problematic

once you remember that all Bitcoin transactions are

permanent and irreversible. It's like dealing with cash:

Any transaction carried out with bitcoins can only be

reversed if the person who has received them refunds

them. There is no third party or a payment processor, as

in the case of a debit or credit card – hence, no source of

protection or appeal if there is a problem.

SECURITY RISK OF

BITCOINS

Most individuals who own and use

Bitcoin have not acquired their

tokens through mining operations.

Rather, they buy and sell Bitcoin

and other digital currencies on any

of a number of popular online

markets known as Bitcoin

exchanges. Bitcoin exchanges are

entirely digital and, as with any

virtual system, are at risk from

hackers, malware, and operational

glitches.

Page 05


INSURANCE RISK

Some investments are insured through the Securities

Investor Protection Corporation. Normal bank accounts

are insured through the Federal Deposit Insurance

Corporation (FDIC) up to a certain amount depending on

the jurisdiction. Generally speaking, Bitcoin exchanges

and Bitcoin accounts are not insured by any type of

federal or government program. In 2019, prime dealer

and trading platform FOX announced it would be able to

provide Bitcoin investors with FDIC insurance, but only

for the portion of transactions involving cash.

RISK OF BITCOIN

FRAUD

While Bitcoin uses private key encryption to verify

owners and register transactions, fraudsters and

scammers may attempt to sell false bitcoins. For

instance, in July 2013, the SEC brought legal action

against an operator of a Bitcoin-related Ponzi scheme.

There have also been documented cases of Bitcoin

price manipulation, another common form of fraud.

Page 06


MARKET RISK

BITCOIN FORKS

Like with any investment, Bitcoin values can

fluctuate. Indeed, the value of the currency has

seen wild swings in price over its short

existence. Subject to high volume buying and

selling on exchanges, it has a high sensitivity to

“news." According to the CFPB, the price of

bitcoins fell by 61% in a single day in 2013, while

the one-day price drop record in 2014 was as

big as 80%.If fewer people begin to accept

Bitcoin as a currency, these digital units may

lose value and could become worthless.

Indeed, there was speculation that the "Bitcoin

bubble" had burst when the price declined

from it's all-time high during the

cryptocurrency rush in late 2017 and early 2018.

There is already plenty of competition, and

though Bitcoin has a huge lead over the

hundreds of other digital currencies that have

sprung up, thanks to its brand recognition and

venture capital money, a technological breakthrough

in the form of a better virtual coin is

always a threat.

BITCOIN TAX RISK

In the years since Bitcoin launched, there

have been numerous instances in which

disagreements between factions of miners

and developers prompted large-scale

splits of the cryptocurrency community. In

some of these cases, groups of Bitcoin

users and miners have changed the

protocol of the Bitcoin network itself. This

process is known as "forking" and usually

results in the creation of a new type of

Bitcoin with a new name. This split can be a

"hard fork," in which a new coin shares

transaction history with Bitcoin up until a

decisive split point, at which point a new

BRAND

POSITIONING AND

TARGET MARKETS

token is created. Examples of

cryptocurrencies that have been created as

a result of hard forks include Bitcoin Cash

(created in August 2017), Bitcoin Gold

(created in October 2017) and Bitcoin SV

(created in November 2017). A "soft fork" is a

change to protocol which is still compatible

with the previous system rules. Bitcoin soft

forks have increased the total size of

blocks, as an example.

BITCOIN TAX RISK

As bitcoin is ineligible to be included

in any tax-advantaged retirement

accounts, there are no good, legal

options to shield investments from

taxation.

Page 07


2013-2016

YEARLY

STORY

2011-2012

After early "proof-of-concept" transactions, the first

major users of bitcoin were black markets, such as

Silk Road. During its 30 months of existence,

beginning in February 2011, Silk Road exclusively

accepted bitcoins as payment, transacting 9.9

million in bitcoins, worth about $214 million.In 2011,

the price started at $0.30 per bitcoin, growing to

$5.27 for the year. The price rose to $31.50 on 8

June. Within a month the price fell to $11.00. The

next month it fell to $7.80, and in another month to

$4.77.In 2012, bitcoin prices started at $5.27 growing

to $13.30 for the year. By 9 January the price had

risen to $7.38 but then crashed by 49% to $3.80 over

the next 16 days. The price then rose to $16.41 on 17

August but fell by 57% to $7.10 over the next three

days. The Bitcoin Foundation was founded in

September 2012 to promote bitcoin's development

and uptake.On 1 November 2011, the reference

implementation Bitcoin-Qt version 0.5.0 was

released. It introduced a front end that used the Qt

user interface toolkit. The software previously used

Berkeley DB for database management. Developers

switched to LevelDB in release 0.8 in order to

reduce blockchain synchronization time. The update

to this release resulted in a minor blockchain fork on

the 11 March 2013. The fork was resolved shortly

afterward.Seeding nodes through IRC was

discontinued in version 0.8.2. From version 0.9.0 the

software was renamed to Bitcoin Core. Transaction

fees were reduced again by a factor of ten as a

means to encourage microtransactions. Although

Bitcoin Core does not use OpenSSL for the

operation of the network, the software did use

OpenSSL for remote procedure calls. Version 0.9.1

was released to remove the network's vulnerability

to the Heartbleed bug.

In 2013, prices started at $13.30 rising to $770 by 1

January 2014.In March 2013 the blockchain

temporarily split into two independent chains with

different rules due to a bug in version 0.8 of the

bitcoin software. The two blockchains operated

simultaneously for six hours, each with its own

version of the transaction history from the moment

of the split. Normal operation was restored when the

majority of the network downgraded to version 0.7

of the bitcoin software, selecting the backwardcompatible

version of the blockchain. As a result,

this blockchain became the longest chain and could

be accepted by all participants, regardless of their

bitcoin software version. During the split, the Mt. The

Gox exchange briefly halted bitcoin deposits and the

price dropped by 23% to $37 before recovering to

the previous level of approximately $48 in the

following hours.The US Financial Crimes

Enforcement Network (FinCEN) established

regulatory guidelines for "decentralized virtual

currencies" such as bitcoin, classifying American

bitcoin miners who sell their generated bitcoins as

Money Service Businesses (MSBs), that are subject

to registration or other legal obligations.In April,

exchanges BitInstant and Mt. Gox experienced

processing delays due to insufficient capacity

resulting in the bitcoin price dropping from $266 to

$76 before returning to $160 within six hours. The

bitcoin price rose to $259 on 10 April, but then

crashed by 83% to $45 over the next three days.On

15 May 2013, US authorities seized accounts

associated with Mt. Gox after discovering it had not

registered as a money transmitter with FinCEN in

the US. On 23 June 2013, the US Drug Enforcement

Administration listed 11.02 as a seized asset in a

United States Department of Justice seizure notice

pursuant to 21 U.S.C. § 881. This marked the first time

a government agency had seized bitcoin. The FBI

seized about 30,000 in October 2013 from the dark

web website Silk Road, following the arrest of Ross

William Ulbricht. These bitcoins were sold at blind

auction by the United States Marshals Service to

venture capital investor Tim Draper. Bitcoin's price

rose to $755 on 19 November and crashed by 50% to

$378 the same day. On 30 November 2013, the price

reached $1,163 before starting a long-term crash,

declining by 87% to $152 in January 2015.On 5

December 2013, the People's Bank of China

prohibited Chinese financial institutions from using

bitcoins. After the announcement, the value of

bitcoins dropped, and Baidu no longer accepted

bitcoins for certain services.

Page 08


2013-2016

Buying real-world goods with any virtual currency

had been illegal in China since at least 2009.In 2014,

prices started at $770 and fell to $314 for the year.

On 30 July 2014, the Wikimedia Foundation started

accepting donations of bitcoin.In 2015, prices started

at $314 and rose to $434 for the year. In 2016, prices

rose and climbed up to $998 by 1 January

2017.Release 0.10 of the software was made public

on 16 February 2015. It introduced a consensus

library which gave programmers easy access to the

rules governing consensus on the network. In

version, 0.11.2 developers added a new feature that

allowed transactions to be made unspendable until

a specific time in the future. Bitcoin Core 0.12.1 was

released on April 15, 2016, and enabled multiple soft

forks to occur concurrently. Around 100 contributors

worked on Bitcoin Core 0.13.0 which was released

on 23 August 2016.In July 2016, the

CheckSequenceVerify soft fork was activated.In

October 2016, Bitcoin Core’s 0.13.1 release featured

the "Segwit" soft fork that included a scaling

improvement aiming to optimize the bitcoin block

size. The patch was originally finalized in April, and

35 developers were engaged to deploy it. This

release featured Segregated Witness (SegWit)

which aimed to place downward pressure on

transaction fees as well as increase the maximum

transaction capacity of the network. The 0.13.1

release endured extensive testing and research

leading to some delays in its release date. SegWit

prevents various forms of transaction malleability.

2017–2019

On 15 July 2017, the controversial Segregated

Witness [SegWit] software upgrade was approved

("locked-in"). Segwit was intended to support the

Lightning Network as well as improve scalability.

SegWit was subsequently activated on the network

on 24 August 2017. The bitcoin price rose almost

50% in the week following SegWit's approval. On 21

July 2017, bitcoin was trading at $2,748, up 52% from

14 July 2017's $1,835. Supporters of large blocks who

were dissatisfied with the activation of SegWit

forked the software on 1 August 2017 to create

Bitcoin Cash.Prices started at $998 in 2017 and rose

to $13,412.44 on 1 January 2018, after reaching its alltime

high of $19,783.06 on 17 December 2017.China

banned trading in bitcoin, with the first steps taken in

September 2017,

and a complete ban that started on 1 February

2018. Bitcoin prices then fell from $9,052 to

$6,914 on 5 February 2018. The percentage of

bitcoin trading in the Chinese renminbi fell

from over 90% in September 2017 to less than

1% in June 2018.Throughout the rest of the first

half of 2018, bitcoin's price fluctuated between

$11,480 and $5,848. On 1 July 2018, bitcoin's

price was $6,343.The price on 1 January 2019

was $3,747, down 72% for 2018, and down 81%

since the all-time high.In September 2018, an

anonymous party discovered and reported an

invalid-block denial-of-server vulnerability to

developers of Bitcoin Core, Bitcoin ABC, and

Bitcoin Unlimited. Further analysis by bitcoin

developers showed the issue could also allow

the creation of blocks violating the 21 million

coin limit and CVE-2018-17144 was assigned

and the issue resolved.Bitcoin prices were

negatively affected by several hacks or thefts

from cryptocurrency exchanges, including

thefts from Coincheck in January 2018, Conrail

and Bithumb in June, and Bancor in July. For

the first six months of 2018, $761 million worth

of cryptocurrencies was reported stolen from

exchanges. Bitcoin's price was affected even

though other cryptocurrencies were stolen at

Conrail and Bancor as investors worried about

the security of cryptocurrency exchanges. In

September 2019 the Intercontinental Exchange

(the owner of the NYSE) began trading of

bitcoin futures on its exchange called Bakkt.

Bakkt also announced that it would launch

options on bitcoin in December 2019. In

December 2019 YouTube removed bitcoin and

cryptocurrency videos, but later restored the

content after judging they had "made the

wrong call."In February 2019, Canadian

cryptocurrency exchange Quadriga Fintech

Solutions failed with approximately $200

million missing. By June 2019 the price had

recovered to $13,000.

Page 09


2020

According to CoinMetrics and Forbes, on 11 March

281,000 bitcoins were sold by owners who held

them for only thirty days. This compared to 4,131

bitcoins that had laid dormant for a year or more

indicating that the vast majority of the bitcoin

volatility on that day was from recent buyers. During

the week of 11 March 2020 as a result of the COVID-

19 pandemic, cryptocurrency exchange Kraken

experienced an 83% increase in the amount of

account signups over the week of bitcoin's price

collapse, a result of buyers looking to capitalize on

the low price.

OWNERSHIP

In the blockchain, bitcoins are registered to bitcoin addresses. Creating a bitcoin address requires

nothing more than picking a random valid private key and computing the corresponding bitcoin

address. This computation can be done in a split second. But the reverse, computing the private

key of a given bitcoin address, is practically unfeasible. Users can tell others or make public a

bitcoin address without compromising its corresponding private key. Moreover, the number of

valid private keys is so vast that it is extremely unlikely someone will compute a key-pair that is

already in use and has funds. The vast number of valid private keys makes it unfeasible that

brute force could be used to compromise a private key. To be able to spend their bitcoins, the

owner must know the corresponding private key and digitally sign the transaction. The network

verifies the signature using the public key; the private key is never revealed.If the private key is

lost, the bitcoin network will not recognize any other evidence of ownership; the coins are then

unusable, and effectively lost. For example, in 2013 one user claimed to have lost 7,500 bitcoins,

worth $7.5 million at the time, when he accidentally discarded a hard drive containing his private

key. About 20% of all bitcoins are believed to be lost. They would have a market value of about

$20 billion at July 2018 prices.To ensure the security of bitcoins, the private key must be kept

secret. If the private key is revealed to a third party, e.g. through a data breach, the third party can

use it to steal any associated bitcoins. As of December 2017, around 980,000 bitcoins have been

stolen from cryptocurrency exchanges.Regarding ownership distribution, as of 16 March 2018,

0.5% of bitcoin wallets own 87% of all bitcoins ever mined.

Page 10


The original creator of the bitcoin client has described their

approach to the software's authorship as it being written

first to prove to themselves that the concept of purely

peer-to-peer electronic cash was valid and that a paper

with solutions could be written. The lead developer is

Wladimir J. van der Laan, who took over the role on 8 April

2014. Gavin Andresen was the former lead maintainer for

the software client. Andresen left the role of lead

developer for bitcoin to work on the strategic development

of its technology. Bitcoin Core in 2015 was central to a

dispute with Bitcoin XT, a competing client that sought to

increase the blocksize. Over a dozen different companies

and industry groups fund the development of Bitcoin Core.

DEVELOPMENT

How does

Bitcoin

work?

The basics for a new user -

As a new user, you can get

started with Bitcoin without

understanding the

technical details. Once

you've installed a Bitcoin

wallet on your computer or

mobile phone, it will

generate your first Bitcoin

address and you can

create more whenever you

need one. You can disclose

your addresses to your

friends so that they can pay

you or vice versa. In fact,

this is pretty similar to how

email works, except that

Bitcoin addresses should

be used only once.

Balances - block chain -

The block chain is a shared

public ledger on which the

entire Bitcoin network relies.

All confirmed transactions

are included in the block

chain. It allows Bitcoin

wallets to calculate their

spendable balance so that

new transactions can be

verified thereby ensuring

they're actually owned by

the spender. The integrity

and the chronological order

of the block chain are

enforced with cryptography.

Transactions - private keys - A

transaction is a transfer of value

between Bitcoin wallets that gets

included in the block chain.

Bitcoin wallets keep a secret

piece of data called a private key

or seed, which is used to sign

transactions, providing a

mathematical proof that they have

come from the owner of the

wallet. The signature also

prevents the transaction from

being altered by anybody once it

has been issued. All transactions

are broadcast to the network and

usually begin to be confirmed

within 10-20 minutes, through a

process called mining.

Page 11


How does

Bitcoin

work?

Going down the rabbit hole -

This is just a short summary of

Bitcoin. If you want to learn more

of the details, you can read the

original paper that describes its

design, the developer

documentation, or explore the

Bitcoin wiki.

Processing - mining - Mining is a distributed

consensus system that is used to confirm pending

transactions by including them in the block chain. It

enforces a chronological order in the block chain,

protects the neutrality of the network, and allows

different computers to agree on the state of the

system. To be confirmed, transactions must be

packed in a block that fits very strict cryptographic

rules that will be verified by the network. These

rules prevent previous blocks from being modified

because doing so would invalidate all the

subsequent blocks. Mining also creates the

equivalent of a competitive lottery that prevents

any individual from easily adding new blocks

consecutively to the block chain. In this way, no

group or individuals can control what is included in

the block chain or replace parts of the block chain

to roll back their own spends.

CRYPTOGRAPHY

Cryptography is associated with the process of

converting ordinary plain text into unintelligible

text and vice-versa. It is a method of storing and

transmitting data in a particular form so that only

those for whom it is intended can read and

process it. Cryptography not only protects data

from theft or alteration, but can also be used for

user authentication.Description: Earlier

cryptography was effectively synonymous with

encryption but nowadays cryptography is

mainly based on mathematical theory and

computer science practice.Modern

cryptography concerns with:Confidentiality -

Information cannot be understood by

anyoneIntegrity - Information cannot be

altered.Non-repudiation - Sender cannot deny

his/her intentions in the transmission of the

information at a later stageAuthentication -

Sender and receiver can confirm

eachCryptography is used in many applications

like banking transactions cards, computer

passwords, and

e- commerce transactions.Three types of

cryptographic techniques used in general.1.

Symmetric-key cryptography2. Hash functions.3.

Public-key

cryptographySymmetric-key

Cryptography: Both the sender and receiver share a

single key. The sender uses this key to encrypt

plaintext and send the cipher text to the receiver.

On the other side the receiver applies the same key

to decrypt the message and recover the plain

text.Public-Key Cryptography: This is the most

revolutionary concept in the last 300-400 years. In

Public-Key Cryptography two related keys (public

and private key) are used. Public key may be freely

distributed, while its paired private key remains a

secret. The public key is used for encryption and for

decryption the private key is used.Hash Functions:

No key is used in this algorithm. A fixed-length hash

value is computed as per the plain text that makes it

impossible for the contents of the plain text to be

recovered. Hash functions are also used by many

operating systems to encrypt passwords.

Page 12


HISTORY

Before the modern era, cryptography focused

on message confidentiality (i.e., encryption)—

conversion of messages from a comprehensible

form into an incomprehensible one and back

again at the other end, rendering it unreadable

by interceptors or eavesdroppers without secret

knowledge (namely the key needed for

decryption of that message). Encryption

attempted to ensure secrecy in

communications, such as those of spies, military

leaders, and diplomats. In recent decades, the

field has expanded beyond confidentiality

concerns to include techniques for message

integrity checking, sender/receiver identity

authentication, digital signatures, interactive

proofs and secure computation, among others.

CLASSIC

CRYPTOGRAPHY

The main classical cipher types are transposition

ciphers, which rearrange the order of letters in a

message (e.g., 'hello world' becomes 'behlol

world' in a trivially simple rearrangement

scheme), and substitution ciphers, which

systematically replace letters or groups of

letters with other letters or groups of letters

(e.g., 'fly at once' becomes 'gmz by pdf' by

replacing each letter with the one following it in

the Latin alphabet). Simple versions of either

have never offered much confidentiality from

enterprising opponents. An early substitution

cipher was the Caesar cipher, in which each

letter in the plaintext was replaced by a letter

with some fixed number of positions further

down the alphabet. Suetonius reports that Julius

Caesar used it with a shift of three to

communicate with his generals. Atbash is an

example of an early Hebrew cipher. The earliest

known use of cryptography is some carved

ciphertext on stone in Egypt (ca 1900 BCE), but

this may have been done for the amusement of

literate observers rather than as a way of

concealing information.

The Greeks of Classical times are said to have

known of ciphers (e.g., the scytale transposition

cipher claimed to have been used by the Spartan

military).[18] Steganography (i.e., hiding even the

existence of a message so as to keep it

confidential) was also first developed in ancient

times. An early example, from Herodotus, was a

message tattooed on a slave's shaved head and

concealed under the regrown hair.[12] More

modern examples of steganography include the

use of invisible ink, microdots, and digital

watermarks to conceal information.In India, the

2000-year-old Kamasutra of Vātsyāyana speaks

of two different kinds of ciphers called Kautilya

and Mulavediya. In the Kautilya, the cipher letter

substitutions are based on phonetic relations,

such as vowels becoming consonants. In the

Mulavediya, the cipher alphabet consists of

pairing letters and using the reciprocal ones.In

Sassanid Persia, there were two secret scripts,

according to the Muslim author Ibn al-Nadim: the

šāh-dabīrīya (literally "King's script") which was

used for official correspondence, and the rāzsaharīya

which was used to communicate secret

messages with other countries.David Kahn notes

in The Codebreakers that modern cryptology

originated among the Arabs, the first people to

systematically document cryptanalytic methods.

Al-Khalil (717–786) wrote the Book of

Cryptographic Messages, which contains the first

use of permutations and combinations to list all

possible Arabic words with and without

vowels.Language letter frequencies may offer

little help for some extended historical encryption

techniques such as homophonic cipher that tend

to flatten the frequency distribution. For those

ciphers, language letter group (or n-gram)

frequencies may provide an attack.

Page 13


CLASSIC

CRYPTOGRAPHY

Essentially all ciphers remained vulnerable to cryptanalysis using the frequency

analysis technique until the development of the polyalphabetic cipher. While it was

known to Al-Kindi to some extent,[25][26] it was first clearly described in the work of

Al-Qalqashandi (1355–1418), based on the earlier work of Ibn al-Durayhim (1312–1359),

describing a polyalphabetic cipher in which each plaintext letter is assigned more than

one substitute.[27] It was later also described by Leon Battista Alberti around the year

1467, though there is some indication that Alberti's method was to use different

ciphers (i.e., substitution alphabets) for various parts of a message (perhaps for each

successive plaintext letter at the limit). He also invented what was probably the first

automatic cipher device, a wheel which implemented a partial realization of his

invention. In the Vigenère cipher, a polyalphabetic cipher, encryption uses a keyword,

which controls letter substitution depending on which letter of the keyword is used. In

the mid-19th century Charles Babbage showed that the Vigenère cipher was

vulnerable to Kasiski examination, but this was first published about ten years later by

Friedrich Kasiski.Although frequency analysis can be a powerful and general

technique against many ciphers, encryption has still often been effective in practice,

as many would-be cryptanalysts were unaware of the technique. Breaking a message

without using frequency analysis essentially required knowledge of the cipher used

and perhaps of the key involved, thus making espionage, bribery, burglary, defection,

etc., more attractive approaches to the crypt analytically uninformed. It was finally

explicitly recognized in the 19th century that secrecy of a cipher's algorithm is not a

sensible or practical safeguard of message security; in fact, it was further realized that

any adequate cryptographic scheme (including ciphers) should remain secure even if

the adversary fully understands the cipher algorithm itself. Security of the key used

should alone be sufficient for a good cipher to maintain confidentiality under an attack.

This fundamental principle was first explicitly stated in 1883 by Auguste Kerckhoffs

and is generally called Kerckhoffs's Principle; alternatively and more bluntly, it was

restated by Claude Shannon, the inventor of information theory and the fundamentals

of theoretical cryptography, as Shannon's Maxim—'the enemy knows the

system'.Different physical devices and aids have been used to assist with ciphers. One

of the earliest may have been the scytale of ancient Greece, a rod supposedly used by

the Spartans as an aid for a transposition cipher. In medieval times, other aids were

invented such as the cipher grille, which was also used for a kind of steganography.

With the invention of polyalphabetic ciphers came more sophisticated aids such as

Alberti's own cipher disk, Johannes Trithemius' tabula recta scheme, and Thomas

Jefferson's wheel cypher (not publicly known, and reinvented independently by

Bazeries around 1900). Many mechanical encryption/decryption devices were

invented early in the 20th century, and several patented, among them rotor machines

—famously including the Enigma machine used by the German government and

military from the late 1920s and during World War II. The ciphers implemented by

better quality examples of these machine designs brought about a substantial

increase in cryptanalytic difficulty after WWI.

Page 14


BLOCKCHAIN

What is Blockchain?If this technology is so complex, why call it “blockchain?” At

its most basic level, blockchain is literally just a chain of blocks, but not in the

traditional sense of those words. When we say the words “block” and “chain” in

this context, we are actually talking about digital information (the “block”) stored

in a public database (the “chain”).“Blocks” on the blockchain are made up of

digital pieces of information. Specifically, they have three parts:Blocks store

information about transactions like the date, time, and dollar amount of your

most recent purchase from Amazon. (NOTE: This Amazon example is for

illustrative purchases; Amazon retail does not work on a blockchain principle as

of this writing)Blocks store information about who is participating in transactions.

A block for your splurge purchase from Amazon would record your name along

with Amazon.com, Inc. (AMZN). Instead of using your actual name, your purchase

is recorded without any identifying information using a unique “digital signature,”

sort of like a username.Blocks store information that distinguishes them from

other blocks. Much like you and I have names to distinguish us from one another,

each block stores a unique code called a “hash” that allows us to tell it apart

from every other block. Hashes are cryptographic codes created by special

algorithms. Let’s say you made your splurge purchase on Amazon, but while it’s

in transit, you decide you just can’t resist and need a second one. Even though

the details of your new transaction would look nearly identical to your earlier

purchase, we can still tell the blocks apart because of their unique codes.While

the block in the example above is being used to store a single purchase from

Amazon, the reality is a little different. A single block on the Bitcoin blockchain

can actually store around 1 MB of data.1 Depending on the size of the

transactions, that means a single block can house a few thousand transactions

under one roof.

Page 15


How

Blockchain

Works?

When a block stores new data it is added to the blockchain. Blockchain, as its

name suggests, consists of multiple blocks strung together. In order for a block

to be added to the blockchain, however, four things must happen:

1. A transaction must occur. Let’s continue with the example of your impulsive

Amazon purchase. After hastily clicking through multiple checkout prompts,

you go against your better judgment and make a purchase. As we discussed

above, in many cases a block will group together potentially thousands of

transactions, so your Amazon purchase will be packaged in the block along

with other users' transaction information as well.

2. That transaction must be verified. After making that purchase, your

transaction must be verified. With other public records of information, like

the Securities Exchange Commission, Wikipedia, or your local library, there’s

someone in charge of vetting new data entries. With blockchain, however,

that job is left up to a network of computers. When you make your purchase

from Amazon, that network of computers rushes to check that your

transaction happened in the way you said it did. That is, they confirm the

details of the purchase, including the transaction’s time, dollar amount, and

participants. (More on how this happens in a second.)

3. That transaction must be stored in a block. After your transaction has been

verified as accurate, it gets the green light. The transaction’s dollar amount,

your digital signature, and Amazon’s digital signature are all stored in a block.

There, the transaction will likely join hundreds, or thousands, of others like it.

4. That block must be given a hash. Not unlike an angel earning its wings, once

all of a block’s transactions have been verified, it must be given a unique,

identifying code called a hash. The block is also given the hash of the most

recent block added to the blockchain. Once hashed, the block can be added

to the blockchain.

When that new block is added to the blockchain, it becomes publicly available

for anyone to view—even you. If you take a look at Bitcoin’s blockchain, you will

see that you have access to transaction data, along with information about when

(“Time”), where (“Height”), and by who (“Relayed By”) the block was added to the

blockchain.

Page 16


Is

Blockchain

Private?

Anyone can view the contents of the blockchain, but

users can also opt to connect their computers to the

blockchain network as nodes. In doing so, their computer

receives a copy of the blockchain that is updated

automatically whenever a new block is added, sort of like

a Facebook News Feed that gives a live update

whenever a new status is posted.Each computer in the

blockchain network has its own copy of the blockchain,

which means that there are thousands, or in the case of

Bitcoin, millions of copies of the same blockchain.

Although each copy of the blockchain is identical,

spreading that information across a network of

computers makes the information more difficult to

manipulate. With blockchain, there isn’t a single, definitive

account of events that can be manipulated. Instead, a

hacker would need to manipulate every copy of the

blockchain on the network. This is what is meant by

blockchain being a "distributed" ledger.Looking over the

Bitcoin blockchain, however, you will notice that you do

not have access to identifying information about the

users making transactions. Although transactions on the

blockchain are not completely anonymous, personal

information about users is limited to their digital signature

or username.This raises an important question: if you

cannot know who is adding blocks to the blockchain, how

can you trust blockchain or the network of computers

upholding it?

Is

Blockchain

Secure

Blockchain technology accounts for the issues of security

and trust in several ways. First, new blocks are always

stored linearly and chronologically. That is, they are

always added to the “end” of the blockchain. If you take a

look at Bitcoin’s blockchain, you’ll see that each block has

a position on the chain, called a “height.” As of August

2020, the block’s height had topped 646,132.After a block

has been added to the end of the blockchain, it is very

difficult to go back and alter the contents of the block.

That’s because each block contains its own hash, along

with the hash of the block before it. Hash codes are

created by a math function that turns digital information

into a string of numbers and letters. If that information is

edited in any way, the hash code changes as well.

Page 17


Is

Blockchain

Secure

Here’s why that’s important to security. Let’s say a hacker

attempts to edit your transaction from Amazon so that

you actually have to pay for your purchase twice. As soon

as they edit the dollar amount of your transaction, the

block’s hash will change. The next block in the chain will

still contain the old hash, and the hacker would need to

update that block in order to cover their tracks. However,

doing so would change that block’s hash. And the next,

and so on.In order to change a single block, then, a

hacker would need to change every single block after it

on the blockchain. Recalculating all those hashes would

take an enormous and improbable amount of computing

power. In other words, once a block is added to the

blockchain it becomes very difficult to edit and

impossible to delete.To address the issue of trust,

blockchain networks have implemented tests for

computers that want to join and add blocks to the chain.

The tests, called “consensus models,” require users to

“prove” themselves before they can participate in a

blockchain network. One of the most common examples

employed by Bitcoin is called “proof of work.”In the proof

of work system, computers must “prove” that they have

done “work” by solving a complex computational math

problem. If a computer solves one of these problems,

they become eligible to add a block to the blockchain.

But the process of adding blocks to the blockchain, what

the cryptocurrency world calls “mining,” is not easy. In

fact, the odds of solving one of these problems on the

Bitcoin network were about one in 17.56 trillion in August

2020.2 To solve complex math problems at those odds,

computers must run programs that cost them significant

amounts of power and energy (read: money).Proof of

work does not make attacks by hackers impossible, but it

does make them somewhat useless. If a hacker wanted

to coordinate an attack on the blockchain, they would

need to control more than 50% of all computing power on

the blockchain so as to be able to overwhelm all other

participants in the network. Given the tremendous size of

the Bitcoin blockchain, a so-called 51% attack is almost

certainly not worth the effort and more than likely

impossible. (More about this below.)

Page 18


BLOCKCHAIN VS.

BITCOIN

The goal of blockchain is to allow digital information to be recorded and

distributed, but not edited. That concept can be difficult to wrap our heads

around without seeing the technology in action, so let’s take a look at how the

earliest application of blockchain technology actually works.Blockchain

technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta, two

researchers who wanted to implement a system where document timestamps

could not be tampered with.3 But it wasn’t until almost two decades later, with

the launch of Bitcoin in January 2009, that blockchain had its first real-world

application.The Bitcoin protocol is built on the blockchain. In an email

announcing his research paper introducing the digital currency, Bitcoin’s

pseudonymous creator Satoshi Nakamoto referred to it as “a new electronic

cash system that’s fully peer-to-peer, with no trusted third party.”

Here’s how it works.You have all these people, all over the world, who have

bitcoin. There are likely many millions of people around the world who own at

least a portion of bitcoin. Let’s say one of those millions of people wants to

spend their bitcoin on groceries. This is where the blockchain comes in.When it

comes to printed money, the use of printed currency is regulated and verified by

a central authority, usually a bank or government—but Bitcoin is not controlled

by anyone. Instead, transactions made in bitcoin are verified by a network of

computers. This is what is meant by the Bitcoin network and blockchain being

"decentralized."When one person pays another for goods using bitcoin,

computers on the Bitcoin network race to verify the transaction. In order to do

so, users run a program on their computers and try to solve a complex

mathematical problem, called a “hash.” When a computer solves the problem by

“hashing” a block, its algorithmic work will have also verified the block’s

transactions. As we described above, the completed transaction is publicly

recorded and stored as a block on the blockchain, at which point it becomes

unalterable. In the case of Bitcoin, and most other blockchains, computers that

successfully verify blocks are rewarded for their labor with cryptocurrency. This

is commonly referred to as "mining."

Page 19


BLOCKCHAIN VS.

BITCOIN

Although transactions are publicly recorded on the

blockchain, user data is not—or, at least not in full.

In order to conduct transactions on the Bitcoin

network, participants must run a program called a

“wallet.” Each wallet consists of two unique and

distinct cryptographic keys: a public key and a

private key. The public key is the location where

transactions are deposited to and withdrawn from.

This is also the key that appears on the blockchain

ledger as the user’s digital signature.Even if a user

receives a payment in bitcoins to their public key,

they will not be able to withdraw them with the

private counterpart. A user’s public key is a

shortened version of their private key, created

through a complicated mathematical algorithm.

However, due to the complexity of this equation, it

is almost impossible to reverse the process and

generate a private key from a public key. For this

reason, blockchain technology is considered

confidential.Public and Private Key BasicsHere’s

the ELI5—“Explain it Like I’m 5”—version. You can

think of a public key as a school locker and the

private key as the locker combination. Teachers,

students, and even your crush can insert letters

and notes through the opening in your locker.

However, the only person that can retrieve the

contents of the mailbox is the one that has the

unique key. It should be noted, however, that while

school locker combinations are kept in the

principal’s office, there is no central database that

keeps track of a blockchain network’s private keys.

If a user misplaces their private key, they will lose

access to their bitcoin wallet, as was the case with

this man who made national .

headlines in December of 2017.A Single Public

ChainIn the Bitcoin network, the blockchain is not

only shared and maintained by a public network

of users—but it is also agreed upon. When users

join the network, their connected computer

receives a copy of the blockchain that is updated

whenever a new block of transactions is added.

But what if, through human error or the efforts of

a hacker, one user’s copy of the blockchain

manipulated to be different from every other

copy of the blockchain?The blockchain protocol

discourages the existence of multiple blockchains

through a process called “consensus.” In the

presence of multiple, differing copies of the

blockchain, the consensus protocol will adopt the

longest chain available. More users on a

blockchain mean that blocks can be added to the

end of the chain quicker. By that logic, the

blockchain of record will always be the one that

most users trust. The consensus protocol is one of

blockchain technology’s greatest strengths but

also allows for one of its greatest

weaknesses.Theoretically,

Hacker-

ProofTheoretically, it is possible for a hacker to

take advantage of the majority rule in what is

referred to as a 51% attack. Here’s how it would

happen. Let’s say that there are five million

computers on the Bitcoin network, a gross

understatement for sure but an easy enough

number to divide. In order to achieve a majority on

the network, a hacker would need to control at

least 2.5 million and one of those computers. In

doing so, an attacker or group of attackers could

interfere with the process of recording new

transactions. They could send a transaction—and

then reverse it, making it appear as though they

still had the coin they just spent. This vulnerability,

known as double-spending, is the digital

equivalent of a perfect counterfeit and would

enable users to spend their bitcoins twice

Page 20


PUBLIC AND PRIVATE

KEY BASICS

Here’s the ELI5—“Explain it Like I’m 5”—version. You can think of a public key as a school locker

and the private key as the locker combination. Teachers, students, and even your crush can

insert letters and notes through the opening in your locker. However, the only person that can

retrieve the contents of the mailbox is the one that has the unique key. It should be noted,

however, that while school locker combinations are kept in the principal’s office, there is no

central database that keeps track of a blockchain network’s private keys. If a user misplaces

their private key, they will lose access to their bitcoin wallet, as was the case with this man who

made national headlines in December of 2017.

A SINGLE PUBLIC

CHAIN

In the Bitcoin network, the blockchain is not only shared and maintained by a public network of

users—but it is also agreed upon. When users join the network, their connected computer

receives a copy of the blockchain that is updated whenever a new block of transactions is

added. But what if, through human error or the efforts of a hacker, one user’s copy of the

blockchain manipulated to be different from every other copy of the blockchain? The

blockchain protocol discourages the existence of multiple blockchains through a process

called “consensus.” In the presence of multiple, differing copies of the blockchain, the

consensus protocol will adopt the longest chain available. More users on a blockchain mean

that blocks can be added to the end of the chain quicker. By that logic, the blockchain of

record will always be the one that most users trust. The consensus protocol is one of

blockchain technology’s greatest strengths but also allows for one of its greatest weaknesses.

THEORETICALLY,

HACKER-PROOF

Theoretically, it is possible for a hacker to take advantage of the majority rule in what is

referred to as a 51% attack. Here’s how it would happen. Let’s say that there are five million

computers on the Bitcoin network, a gross understatement for sure but an easy enough

number to divide. In order to achieve a majority on the network, a hacker would need to control

at least 2.5 million and one of those computers. In doing so, an attacker or group of attackers

could interfere with the process of recording new transactions. They could send a transaction

—and then reverse it, making it appear as though they still had the coin they just spent. This

vulnerability, known as double-spending, is the digital equivalent of a perfect counterfeit and

would enable users to spend their bitcoins twice.

Page 21


PUBLIC AND PRIVATE

KEY BASICS

Here’s the ELI5—“Explain it Like I’m 5”—version. You can think of a public key as a school locker

and the private key as the locker combination. Teachers, students, and even your crush can

insert letters and notes through the opening in your locker. However, the only person that can

retrieve the contents of the mailbox is the one that has the unique key. It should be noted,

however, that while school locker combinations are kept in the principal’s office, there is no

central database that keeps track of a blockchain network’s private keys. If a user misplaces

their private key, they will lose access to their bitcoin wallet, as was the case with this man who

made national headlines in December of 2017.

A SINGLE PUBLIC

CHAIN

In the Bitcoin network, the blockchain is not only shared and maintained by a public network of

users—but it is also agreed upon. When users join the network, their connected computer

receives a copy of the blockchain that is updated whenever a new block of transactions is

added. But what if, through human error or the efforts of a hacker, one user’s copy of the

blockchain manipulated to be different from every other copy of the blockchain? The

blockchain protocol discourages the existence of multiple blockchains through a process

called “consensus.” In the presence of multiple, differing copies of the blockchain, the

consensus protocol will adopt the longest chain available. More users on a blockchain mean

that blocks can be added to the end of the chain quicker. By that logic, the blockchain of

record will always be the one that most users trust. The consensus protocol is one of

blockchain technology’s greatest strengths but also allows for one of its greatest weaknesses.

THEORETICALLY,

HACKER-PROOF

Theoretically, it is possible for a hacker to take advantage of the majority rule in what is

referred to as a 51% attack. Here’s how it would happen. Let’s say that there are five million

computers on the Bitcoin network, a gross understatement for sure but an easy enough

number to divide. In order to achieve a majority on the network, a hacker would need to control

at least 2.5 million and one of those computers. In doing so, an attacker or group of attackers

could interfere with the process of recording new transactions. They could send a transaction

—and then reverse it, making it appear as though they still had the coin they just spent. This

vulnerability, known as double-spending, is the digital equivalent of a perfect counterfeit and

would enable users to spend their bitcoins twice.

Page 22


Such an attack is extremely difficult to execute for a blockchain of Bitcoin’s scale, as it would

require an attacker to gain control of millions of computers. When Bitcoin was first founded in

2009 and its users numbered in the dozens, it would have been easier for an attacker to control

a majority of computational power in the network. This defining characteristic of blockchain has

been flagged as one weakness for fledgling cryptocurrencies.User fear of 51% attacks can

actually limit monopolies from forming on the blockchain. In “Digital Gold: Bitcoin and the

Inside Story of the Misfits and Millionaires Trying to Reinvent Money,” New York Times

journalist Nathaniel Popper writes of how a group of users, called “Bitfury,” pooled thousands

of high-powered computers together to gain a competitive edge on the blockchain. Their goal

was to mine as many blocks as possible and earn bitcoin, which at the time were valued at

approximately $700 each.

HARNESSING

BITFURY

BLOCKCHAIN'S

PRACTICAL

APPLICATION

By March 2014, however, Bitfury was positioned to exceed 50% of the

blockchain network’s total computational power. Instead of continuing to

increase its hold over the network, the group elected to self-regulate

itself and vowed never to go above 40%. Bitfury knew that if they chose to

continue increasing their control over the network, bitcoin’s value would

fall as users sold off their coins in preparation for the possibility of a 51%

attack. In other words, if users lose their faith in the blockchain network,

the information on that network risks becoming completely worthless.

Blockchain users, then, can only increase their computational power to a

point before they begin to lose money.

Blocks on the blockchain store data about monetary transactions—we’ve

got that out of the way. But it turns out that blockchain is actually a pretty

reliable way of storing data about other types of transactions, as well. In

fact, blockchain technology can be used to store data about property

exchanges, stops in a supply chain, and even votes for a

candidate.Deloitte recently surveyed more than 1,400 companies across

14 regions about integrating blockchain into their operations. The survey

found that 82% of respondents planned to hire staff with blockchain

expertise in the next 12 months, and 39% already had a blockchain system

in production today. In addition, 36% of companies said they would invest

$5 million or more in blockchain in the coming year.6 Here are some of

the most popular applications of blockchain being explored today.

BANK USE

Perhaps no industry stands to benefit from integrating blockchain into its

business operations more than banking. Financial institutions only operate

during business hours, five days a week. That means if you try to deposit a

check on Friday at 6 p.m., you likely will have to wait until Monday morning to

see that money hit your account. Even if you do make your deposit during

business hours, the transaction can still take one to three days to verify due to

the sheer volume of transactions that banks need to settle. Blockchain, on the

other hand, never sleeps. By integrating blockchain into banks, consumers can

see their transactions processed in as little as 10 minutes, basically the time it

takes to add a block to the blockchain, regardless of the time or day of the

week. With blockchain, banks also have the opportunity to exchange funds

between institutions more quickly and securely. In the stock trading business,

for example, the settlement and clearing process can take up to three days (or

longer, if banks are trading internationally), meaning that the money and

shares are frozen for that time.Given the size of the sums involved, even the

few days that the money is in transit can carry significant costs and risks for

banks. European bank Santander and its research partners put the potential

savings at $15 billion to $20 billion a year. Capgemini, a French consultancy,

estimates that consumers could save up to $16 billion in banking and

insurance fees each year through blockchain-based applications.

Page 23


USE IN CRYPTOCURRENCY

HEALTHCARE

USES

Blockchain forms the bedrock for cryptocurrencies like Bitcoin. As we

explored earlier, currencies like the U.S. dollar are regulated and verified

by a central authority, usually a bank or government. Under the central

authority system, a user’s data and currency are technically at the whim of

their bank or government. If a user’s bank collapses or they live in a

country with an unstable government, the value of their currency may be

at risk. These are the worries out of which Bitcoin was borne.By spreading

its operations across a network of computers, blockchain allows Bitcoin

and other cryptocurrencies to operate without the need for a central

authority. This not only reduces risk but also eliminates many of the

processing and transaction fees. It also gives those in countries with

unstable currencies a more stable currency with more applications and a

wider network of individuals and institutions they can do business with,

both domestically and internationally (at least, this is the goal.)

Health care providers can leverage blockchain to securely store their

patients’ medical records. When a medical record is generated and

signed, it can be written into the blockchain, which provides patients with

the proof and confidence that the record cannot be changed. These

personal health records could be encoded and stored on the blockchain

with a private key, so that they are only accessible by certain individuals,

thereby ensuring privacy

PROPERTY

RECORDS USE

USE IN SMART

CONTRACTS

If you have ever spent time in your local Recorder’s Office, you will know that

the process of recording property rights is both burdensome and inefficient.

Today, a physical deed must be delivered to a government employee at the

local recording office, where it is manually entered into the county’s central

database and public index. In the case of a property dispute, claims to the

property must be reconciled with the public index.This process is not just

costly and time-consuming—it is also riddled with human error, where each

inaccuracy makes tracking property ownership less efficient. Blockchain has

the potential to eliminate the need for scanning documents and tracking down

physical files in a local recording office. If property ownership is stored and

verified on the blockchain, owners can trust that their deed is accurate and

permanent.

A smart contract is a computer code that can be built into the blockchain to

facilitate, verify, or negotiate a contract agreement. Smart contracts operate

under a set of conditions that users agree to. When those conditions are met,

the terms of the agreement are automatically carried out.Say, for example, I’m

renting you my apartment using a smart contract. I agree to give you the door

code to the apartment as soon as you pay me your security deposit. Both of us

would send our portion of the deal to the smart contract, which would hold

onto and automatically exchange my door code for your security deposit on

the date of the rental. If I don’t supply the door code by the rental date, the

smart contract refunds your security deposit. This eliminates the fees that

typically accompany using a notary or third-party mediator.

Page 24


SUPPLY CHAIN USE

Suppliers can use blockchain to record the origins of materials that they

have purchased. This would allow companies to verify the authenticity of

their products, along with health and ethics labels like “Organic,” “Local,”

and “Fair Trade.”As reported by Forbes, the food industry is moving into

the use of blockchain to increasingly track the path and safety of food

throughout the farm-to-user journey.

USES IN VOTING

Voting with blockchain carries the potential to eliminate election fraud

and boost voter turnout, as was tested in the November 2018 midterm

elections in West Virginia.9 Each vote would be stored as a block on the

blockchain, making them nearly impossible to tamper with. The

blockchain protocol would also maintain transparency in the electoral

process, reducing the personnel needed to conduct an election and

provide officials with instant results.Advantages and Disadvantages of

BlockchainFor all its complexity, blockchain’s potential as a decentralized

form of record-keeping is almost without limit. From greater user privacy

and heightened security to lower processing fees and fewer errors,

blockchain technology may very well see applications beyond those

outlined above.

Pros

Improved accuracy by removing human involvement in verification

Cost reductions by eliminating third-party verification

Decentralization makes it harder to tamper with

Transactions are secure, private and efficient

Transparent technology

Cons

Significant technology cost associated with mining bitcoin

Low transactions per second

History of use in illicit activities

Susceptibility to being hacked

ACCURACY OF THE

CHAIN

Transactions on the blockchain network are approved by a network of

thousands or millions of computers. This removes almost all human

involvement in the verification process, resulting in less human error and a

more accurate record of information. Even if a computer on the network were

to make a computational mistake, the error would only be made to one copy

of the blockchain. In order for that error to spread to the rest of the blockchain,

it would need to be made by at least 51% of the network’s computers—a near

impossibility.

COST

REDUCTIONS

Typically, consumers pay a bank to verify a transaction, a notary to sign a

document, or a minister to perform a marriage. Blockchain eliminates the need

for third-party verification and, with it, their associated costs. Business owners

incur a small fee whenever they accept payments using credit cards, for

example, because banks have to process those transactions. Bitcoin, on the

other hand, does not have a central authority and has virtually no transaction

fees.

Page 25


DECENTRALIZATION

EFFICIENT

TRANSACTIONS

Blockchain does not store any of its information in a central location.

Instead, the blockchain is copied and spread across a network of

computers. Whenever a new block is added to the blockchain, every

computer on the network updates its blockchain to reflect the change. By

spreading that information across a network, rather than storing it in one

central database, blockchain becomes more difficult to tamper with. If a

copy of the blockchain fell into the hands of a hacker, only a single copy

of the information, rather than the entire network, would be compromised.

Transactions placed through a central authority can take up to a few days

to settle. If you attempt to deposit a check on Friday evening, for

example, you may not actually see funds in your account until Monday

morning. Whereas financial institutions operate during business hours,

five days a week, blockchain is working 24 hours a day, seven days a

week. Transactions can be completed in about ten minutes and can be

considered secure after just a few hours. This is particularly useful for

cross-border trades, which usually take much longer because of timezone

issues and the fact that all parties must confirm payment

processing.

PRIVATE

TRANSACTIONS

Many blockchain networks operate as public databases, meaning that

anyone with an internet connection can view a list of the network’s

transaction history. Although users can access details about

transactions, they cannot access identifying information about the

users making those transactions. It is a common misperception that

blockchain networks like bitcoin are anonymous, when in fact they are

only confidential.That is, when a user makes public transactions, their

unique code called a public key, is recorded on the blockchain, rather

than their personal information. Although a person’s identity is still

linked to their blockchain address, this prevents hackers from obtaining

a user’s personal information, as can occur when a bank is hacked.

SECURE

TRANSACTIONS

Once a transaction is recorded, its authenticity must be verified by the

blockchain network. Thousands or even millions of computers on the

blockchain rush to confirm that the details of the purchase are correct. After a

computer has validated the transaction, it is added to the blockchain in the

form of a block. Each block on the blockchain contains its own unique hash,

along with the unique hash of the block before it. When the information on a

block is edited in any way, that block’s hashcode changes—however, the hash

code on the block after it would not. This discrepancy makes it extremely

difficult for information on the blockchain to be changed without notice.

TRANSPARENCY

Even though personal information on the blockchain is kept private, the

technology itself is almost always open source. That means that users on the

blockchain network can modify the code as they see fit, so long as they have a

majority of the network’s computational power backing them. Keeping data on

the blockchain open source also makes tampering with data that much more

difficult. With millions of computers on the blockchain network at any given

time, for example, it is unlikely that anyone could make a change without

being noticed.

Page 26


DISADVANTAGES OF

BLOCKCHAIN

TECHNOLOGY

COST

SPEED

INEFFICIENCY

While there are significant upsides to the blockchain, there are also

significant challenges to its adoption. The roadblocks to the application of

blockchain technology today are not just technical. The real challenges

are political and regulatory, for the most part, to say nothing of the

thousands of hours (read: money) of custom software design and backend

programming required to integrate blockchain to current business

networks. Here are some of the challenges standing in the way of

widespread blockchain adoption.

Although blockchain can save users money on transaction fees, the

technology is far from free. The “proof of work” system that bitcoin uses

to validate transactions, for example, consumes vast amounts of

computational power. In the real world, the power from the millions of

computers on the bitcoin network is close to what Denmark consumes

annually. Assuming electricity costs of $0.03~$0.05 per kilowatt hour,

mining costs exclusive of hardware expenses are about $5,000~$7,000

per coin.

Despite the costs of mining bitcoin, users continue to drive up their

electricity bills in order to validate transactions on the blockchain. That’s

because when miners add a block to the bitcoin blockchain, they are

rewarded with enough bitcoin to make their time and energy worthwhile.

When it comes to blockchains that do not use cryptocurrency, however,

miners will need to be paid or otherwise incentivized to validate

transactions.

Bitcoin is a perfect case study for the possible inefficiencies of

blockchain. Bitcoin’s “proof of work” system takes about ten minutes to

add a new block to the blockchain. At that rate, it’s estimated that the

blockchain network can only manage about seven transactions per

second (TPS). Although other cryptocurrencies such as Ethereum

perform better than bitcoin, they are still limited by blockchain.Legacy

brand Visa, for context, can process 24,000 TPS.

ILLEGAL ACTIVITY

While confidentiality on the blockchain network protects users from hacks and

preserves privacy, it also allows for illegal trading and activity on the

blockchain network. The most cited example of blockchain being used for

illicit transactions is probably Silk Road, an online “dark web” marketplace

operating from February 2011 until October 2013 when it was shut down by the

FBI. The website allowed users to browse the website without being tracked

and make illegal purchases in bitcoins. Current U.S. regulations require

financial service providers to obtain information about their customers when

they open an account, verify the identity of each customer, and confirm that

customers do not appear on any list of known or suspected terrorist

organizations.

CENTRAL BANK

CONCERNS

Several central banks, including the Federal Reserve, the Bank of

Canada17 and the Bank of England,18 have launched investigations

into digital currencies. A June 2020 paper from the Federal Reserve

Bank of Philadelphia said the creation of a central bank digital currency

(CBDC) would put the Fed in direct competition with private banks.

"Besides its potential role in eliminating physical cash, a CBDC will

allow the central bank to engage in large-scale intermediation by

competing with private financial institutions for deposits (and, likely,

engaging in some form of lending of those deposits)," the paper said.

"In other words, a CBDC amounts to giving consumers the possibility of

holding a bank account with the central bank directly."

Page 27


HACK SUSCEPTIBILITY

Newer cryptocurrencies and blockchain networks are susceptible

to 51% attacks. These attacks are extremely difficult to execute

due to the computational power required to gain majority control

of a blockchain network, but NYU computer science researcher

Joseph Bonneau said that might change. In 2017, Bonneau

presented a paper estimating that 51% attacks were likely to

increase, as hackers can now simply rent computational power,

rather than buying all of the equipment.

WHAT'S NEXT FOR

BLOCKCHAIN?

First proposed as a research project in 1991, blockchain is

comfortably settling into its late twenties. Like most millennials its

age, blockchain has seen its fair share of public scrutiny over the

last two decades, with businesses around the world speculating

about what the technology is capable of and where it’s headed in

the years to come.With many practical applications for the

technology already being implemented and explored, blockchain

is finally making a name for itself at age twenty-seven, in no small

part because of bitcoin and cryptocurrency. As a buzzword on the

tongue of every investor in the nation, blockchain stands to make

business and government operations more accurate, efficient,

and secure.As we prepare to head into the third decade of

blockchain, it’s no longer a question of "if" legacy companies will

catch on to the technology—it's a question of "when.

Page 28


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

51% Attack - A 51% attack refers to an attack on a

blockchain—most commonly bitcoins, for which

such an attack is still hypothetical—by a group of

miners controlling more than 50% of the network's

mining hash rate or computing power.

Addresses - Every cryptocurrency coin has a

unique address that identifies where it sits on the

blockchain. It’s this address, this location, at which

the coin’s ownership data is stored and where any

changes are registered when it is traded. These

addresses differ in appearance between

cryptocurrencies but are usually a string of more

than 30 characters.

Airdrop - An airdrop, in the cryptocurrency

business, is a marketing stunt that involves sending

free coins or tokens to wallet addresses in order to

promote awareness of a new virtual currency.

Small amounts of the new virtual currency are sent

to wallets for free or in return for a small service

such as retweeting a post sent by the company

issuing the currency. A legitimate crypto airdrop

never seeks capital investment in the currency. Its

aim is purely promotional.

Algorithm - An algorithm is a set of

instructions designed to perform a

specific task. This can be a simple

process, such as multiplying two

numbers, or a complex operation, such as

playing a compressed video file. Search

engines use proprietary algorithms to

display the most relevant results from

their search index for specific queries.

All-Time High - An all-time high, low,

best, etc. is the highest, lowest, best, etc.

level that has ever been

All-Time Low - The lowest point in your life so far,

most likely after a break up and you miss someone

because you recalled loved them and we're

practically In Love.

Altcoins - Altcoin is the term given to describe

alternative digital assets, such as a coin or token

that is not Bitcoin. This nomenclature comes from

the idea that Bitcoin is the original cryptocurrency

and that all others are then considered “alternate”

or “alternative” coins.

AML - Acute myeloid leukemia (AML) is a cancer of

the myeloid line of blood cells, characterized by

the rapid growth of abnormal cells that build up in

the bone marrow and blood and interfere with

normal blood cell production.

Page 29


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

Anti-Money Laundering - Anti-money

laundering (AML) refers to the laws,

regulations and procedures intended to

prevent criminals from disguising illegally

obtained funds as legitimate income.

Though anti-money laundering laws

cover a limited range of transactions and

criminal behavior, their implications are

far-reaching.

Application Specific Integrated Circuit -

An application-specific integrated circuit

is an integrated circuit chip customized for

a particular use, rather than intended for

general-purpose use. For example, a chip

designed to run in a digital voice recorder

or a high-efficiency bitcoin miner is an

ASIC.

Arbitrage - Arbitrage is the purchase and

sale of an asset in order to profit from a

difference in the asset's price between

markets. It is a trade that profits by

exploiting the price differences of

identical or similar financial instruments in

different markets or in different forms.

ATH - An all-time high, low, best, etc. is

the highest, lowest, best, etc. level that

has ever been: After three years of

drought, the water in the lake had reached

an all-time low.

ATL - The lowest point in your life so far,

most likely after a break up and you miss

someone because you recalled loved

them and we're practically In Love.

Atomic Swap - An atomic swap is a smart

contract technology that enables the

exchange of one cryptocurrency for

another without using centralized

intermediaries, such as exchanges. ... For

example, .

Lightning Labs - a startup that uses bitcoin's

lightning network for transactions, has conducted

off-chain swaps using the technology

Bag - In the crypto space, the word bag refers to

the coins and tokens one is holding as part of their

portfolio. Typically, the term is used to describe a

significant amount of a particular cryptocurrency.

Bear/Bearish - The term bear market refers to a

negative trend in the prices of a market. It is widely

used not only in the cryptocurrency space but also

in the traditional markets, such as stocks, bonds,

real estate, and commodities markets.

Bear Trap - A bear trap is a technical pattern that

occurs when the performance of a stock, index, or

other financial instrument incorrectly signals a

reversal of a rising price trend. ... Bear traps can

tempt investors into taking long positions based on

anticipation of price movements which do not end

up taking place.

Bitcoin - The definition of bitcoin is a publiclyowned,

digital form of currency that uses

cryptography (information security algorithms) to

securely send and receive payments. An example

of bitcoin is the digital money that can be allocated

using a cell phone to donate to an Internet site

such as Wikileaks.

Buy Wall - When a large limit order has been

placed to buy when a cryptocurrency reaches a

certain value, then that is a buy wall. This can

prevent a cryptocurrency from falling below that

value, as demand will likely outstrip supply when

the order is executed.

Page 30


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

Block - A blockchain is a digital record of

transactions. The name comes from its

structure, in which individual records,

called blocks, are linked together in single

list, called a chain. Blockchains are used

for recording transactions made with

cryptocurrencies, such as Bitcoin, and

have many other applications.

Block Explorer - A block explorer is a tool

that people use to view all cryptocurrency

transactions online. Specifically, to view

all current and past transactions on the

blockchain. ... In other words, a block

explorer is an online blockchain browser

which reveals the data of individual blocks

and transactions.

Block Height - Blockchain is revolutionary

technology for creating permanent,

secure digital recordings.

Block Reward - A form of incentive for the

miner who successfully calculates the

hash (verification) in a block. Verification of

transactions on the blockchain generates

new coins in the process, and the miner is

rewarded with a portion of these.

Blockchain - The Bitcoin blockchain is a

public record of all Bitcoin transactions.

You might also hear the term used as a

“public ledger.” The blockchain shows

every single record of bitcoin transactions

in order, dating back to the very first one.

The entire blockchain can be downloaded

and openly reviewed by anyone, or you

can use a block explorer to review the

blockchain online.

BTFD - This is an expression used by

cryptocurrency investors that believe that

a downwards price movement is only

temporary.

Bull/Bullish - If the price of a cryptocurrency has

a positive price movement.

Burned - Coin burning is the process by which

digital currency miners and developers can

remove tokens or coins from circulation, thereby

slowing down inflation rates or reducing the total

circulating supply of coins, according to the Motley

Fool.

Buy the F$%king Dip - Advice to other traders to

pick up a coin that’s presumably hit its bottom.

When people are running around and selling

because of fear, this is the time to buy.

Cipher - A series of well-defined steps that can be followed

as a procedure. An alternative, less common term is

encipherment. To encipher or encode is to convert

information into cipher or code. In common parlance,

"cipher" is synonymous with "code", as they are both a set of

steps that encrypt a message; however, the concepts are

distinct in cryptography, especially classical cryptography.

CAP - Within the blockchain industry, the term

market capitalization (or market cap) refers to a

metric that measures the relative size of a

cryptocurrency. It is calculated by multiplying the

current market price of a particular coin or token

with the total number of coins in circulation. For

example, if each unit of a cryptocurrency is being

traded at $10.00, and the circulating supply is

equal to 50,000,000 coins, the market

capitalization for this cryptocurrency would be

$500,000,000.

Central Ledger - A centralized ledger also known

as a general ledger contains all the accounts for

recording transactions relating to a company’s

assets, liabilities, owners’ equity, revenue, and

expenses. Anything in the world which has a

financial value needs a ledger.

Chain Linking - ChainLink is a decentralized oracle

network that provides real-world data to smart

contracts on the blockchain. LINK is the digital

asset token used to pay for services on the

network.

Page 31


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

Circulating Supply - Circulating supply

can be defined as the supply that is

currently in the hands of the general

public. In the case of fairly mined proofof-work

systems (eg. Bitcoin), the total

supply is approximately equivalent to the

circulating supply, as there are no token

generation events which puts large

amounts of tokens in the hands of a select

few.

Cold Storage - Cold storage in the

context of Bitcoin refers to storing Bitcoins

offline and spending without the private

keys controlling them ever being online.

Confirmed - After a transaction is

broadcast to the Bitcoin network, it may

be included in a block that is published to

the network. When that happens it is said

that the transaction has been mined at a

depth of 1 block

Consensus - A consensus mechanism is a

fault-tolerant mechanism that is used in

computer and blockchain systems to

achieve the necessary agreement on a

single data value or a single state of the

network among distributed processes or

multi-agent systems, such as with

cryptocurrencies.

Consensus Process - These consensus

mechanisms are crucial for a blockchain in

order to function correctly. They make

sure everyone uses the same blockchain.

Everyone can submit things to be added

to the blockchain, so it’s necessary that all

transactions are constantly checked and

that the blockchain is constantly audited

by all nodes. Without good consensus

mechanisms, blockchains are at risk of

various attacks.

Consortium Blockchain - The consortium

blockchain is a system that is ‘semi-private’ and

has a controlled user group, but works across

different organizations.

Cryptocurrency - A cryptocurrency is a digital or

virtual currency that is secured by cryptography,

which makes it nearly impossible to counterfeit or

double-spend. Many cryptocurrencies are

decentralized networks based on blockchain

technology—a distributed ledger enforced by a

disparate network of computers.

Cryptographic Hash Function - A cryptographic

hash function is a mathematical function used in

cryptography. Typical hash functions take inputs of

variable lengths to return outputs of a fixed length.

Cryptography - Cryptocurrencies like Bitcoin and

Ethereum have gained immense popularity thanks

to their decentralized, secure and anonymous

nature, which supports the peer-to-peer

architecture and makes it possible to transfer

funds and other digital assets between two

different individuals without a central authority.

DAO - Decentralized Autonomous Organization

(DAO) is one of the major features of digital

currencies that they are decentralized. This means

they are not controlled by a single institution like a

government or central bank, but instead are

divided among a variety of computers, networks,

and nodes.

dApp - Decentralized applications (dApps) are

digital applications or programs that exist and run

on a blockchain or P2P network of computers

instead of a single computer, and are outside the

purview and control of a single authority.

Decentralized Application - A standard web app, like Uber or

Twitter, runs on a computer system which is owned and

operated by an organization giving it full authority over the

app and its workings. There may be multiple users on one

side, but the backend is controlled by one single

organization.dApps can run on both a P2P network as well as a

blockchain network.

Page 32


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

Decryption - The conversion of encrypted

data into its original form is called

Decryption. It is generally a reverse

process of encryption.

Deflation - Bitcoin is not affected by this

because it is fundamentally different from

popular currency.Deflation is a decline in

the general price level. Deflation occurs

when the price of goods and services,

relative to a specific measure, decline.

Depth Chart - ‘Depth chart’ is a frequently

changing display presenting the number

of orders to buy and sell an asset. These

assets include cryptocurrencies, stocks,

and other variants.This chart splits in the

middle, which indicates the asset’s price

during the previous trade.

Deterministic Wallet - A standard

cryptocurrency wallet is used to store the

cryptocurrency tokens or coins. It has a

public address which the user can give to

others to receive funds from them, and a

private key that the user uses to spend

the stored tokens.

Difficultty - Difficulty is a parameter that

bitcoin and other cryptocurrencies use to

keep the average time between blocks

steady as the network's hash power

changes.

Digital Commodity - A digital commodity

is a digital asset that is finite in amount

and can be transferred for value among

market participants.

Digital Currency - In that case, digital

currency represents electronic money (emoney).

Digital currency denominated in

its own units of value or with

decentralized or automatic issuance will

be considered as a virtual currency.

Digital Signature - Digital signature is used in

Bitcoin to provide a proof that you own the private

key without having to reveal it (so proves that you

are authorized to spend the associated funds). The

digital signature, additionally, makes sure that a

transaction cannot be modified by anyone after

signed.

Distributed Ledger - A distributed ledger is a

database that is consensually shared and

synchronized across multiple sites, institutions, or

geographies, accessible by multiple people. It

allows transactions to have public "witnesses".

Double Spend - Double-spending is the risk that a

digital currency can be spent twice. It is a potential

problem unique to digital currencies because

digital information can be reproduced (relatively

easily by savvy individuals who understand the

blockchain network and the computing power

necessary to manipulate it.

Dump - Pump-and-dump is a scheme that

attempts to boost the price of a stock through

recommendations based on false, misleading or

greatly exaggerated statements.

Dumping - Pump-and-dump is a scheme that

attempts to boost the price of a stock through

recommendations based on false, misleading or

greatly exaggerated statements.

Dust Transcation - Bitcoin dust is the small

amount of bitcoin that remains in a particular

wallet or address because the monetary value is

so tiny that it is below the amount of the fee

required to spend the bitcoin. It makes the

transaction impossible to process.

DYOR - DYOR stands for Do Your Own Research

and is a common phrase used by cryptocurrency

enthusiasts. However, the acronym is not a piece

of advice exclusive to the cryptocurrency

ecosystem.

Page 33


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

Encryption - Encryption is the method by

which information is converted into secret

code that hides the information's true

meaning. The science of encrypting and

decrypting information is called

cryptography.

ERC - The popular cryptocurrency and

blockchain system Ethereum is based on

the use of tokens, which can be bought,

sold, or traded. Ethereum was launched in

2015, and since then it has become one of

the driving forces behind the popularity of

cryptocurrency.

ERC-20 - The ERC-20 commands vital

importance; it defines a common list of

rules that all Ethereum tokens must

adhere to. Some of these rules include

how the tokens can be transferred, how

transactions are approved, how users can

access data about a token, and the total

supply of tokens.

Escrow - An escrow service is a mediator

service that keeps the money for a

transaction in safekeeping until the

Bitcoins are handed over. Escrow protects

buyers from fraudulent sellers by

requiring the Bitcoin to be deposited up

front, before any money changes hands.

EVM - The Ethereum Virtual Machine (EVM) is a

powerful, sandboxed virtual stack embedded

within each full Ethereum node, responsible for

executing contract bytecode. Contracts are

typically written in higher level languages, like

Solidity, then compiled to EVM bytecode.

Exchange - A bitcoin exchange is a digital

marketplace where traders can buy and sell

bitcoins using different fiat currencies or altcoins. A

bitcoin currency exchange is an online platform

that acts as an intermediary between buyers and

sellers of the cryptocurrency.

FA - Fundamental analysis is the evaluation of

economic, financial and other key variables, known

as fundamentals, to determine a security’s true

value.

Faucet - A website on which the user can receive

bitcoins or altcoins at certain time intervals. Such

resources are made available by advertisers

(through banners, videos etc.). These sites are

usually free to access, although they may require

you to register an email address.

Fiat - Fiat currency is “legal tender” backed by a

“central government.” It can take the form of

physical dollars (for example paper Federal

Reserve notes), or it can be represented

electronically, such as with bank credit.

Ethereum - Ether (ETH), the

cryptocurrency of the Ethereum network,

is arguably the second most popular

digital token after bitcoin (BTC). Indeed, as

the second-largest cryptocurrency by

market cap, comparisons between Ether

and BTC are only natural.

Ethereum Virtual Machine - The Ethereum

Virtual Machine (EVM) is a powerful,

sandboxed virtual stack embedded within

each full Ethereum node, responsible for

executing contract bytecode.

FOMO - FOMO is a more personal thing. Its the fear

of missing out on something that others are

enjoying (for example the fear of missing out on

Bitcoin gains while others are picking out their

Lambos).

FORK - A hard fork (or hard fork), as it relates to

blockchain technology, is a radical change to a

network's protocol that makes previously invalid

blocks and transactions valid, or vice-versa.

Page 34


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

Frictionless - The study called “Is Bitcoin

Really Frictionless?” uses some historical

prices and arbitrage between three leading

exchanges in the past. The analysis by the

authors gives a detailed opinion on why there

are different spot price ranges among each

exchange concluding that the digital currency

is not really frictionless.

FUD - FUD is a commonly used expression in

the crypto community. It stands for fear,

uncertainty and doubt – reflecting sentiment

in the market, especially when they’re is a big

price shift.

Full Node - Any computer that connects to

the Bitcoin network is called a node. Nodes

that fully verify all of the rules of Bitcoin are

called full nodes.

Futures Contract - A bitcoin futures contract

is a forward agreement to purchase or sell a

specific amount of bitcoin, within a specified

time frame for a set price.

Gas - GAS is the cryptocurrency that users

pay to use NEO, a China-focused blockchain

platform that wants to become the backbone

of the emerging digital economy.

Gas Limit - The term gas limit refers to the

maximum price a cryptocurrency user is

willing to pay when sending a transaction, or

performing a smart contract function, in the

Ethereum blockchain.

Gas Price - Gas Price means the amount of

ether to be spent for each gas unit on a

transaction. The initiator of a transaction

chooses and pays the gas price of the

transaction.

Genesis Block - Genesis Block is the name of

the first block of Bitcoin ever mined—thus

called "Genesis." The Genesis Block forms the

foundation of the entire Bitcoin trading

system and is the prototype of all other

blocks in the blockchain.

Group Mining - Bitcoin mining is the process

of creating new bitcoin by solving a

computational puzzle.Bitcoin mining is

necessary to maintain the ledger of

transactions upon which bitcoin is based.

Gwei - Gwei is a denomination of the

cryptocurrency ether (ETH), which is used on

the Ethereum network. Ethereum is a

blockchain platform, like Bitcoin, where users

transact with each other to buy and sell

goods and services without a middle man or

interference from a third party.

Halving - A Bitcoin halving event is when the

reward for mining Bitcoin transactions is cut in

half.This event also cuts in half Bitcoin's

inflation rate and the rate at which new

Bitcoins enter circulation.

Hard Cap - A ‘hard cap’ is the maximum

amount of money that a cryptocurrency can

receive from investors during its ICO. The

determination of this ceiling is by the project’s

creators. Any attempts to buy a token or

digital currency that already reached its hard

cap will typically go through reimbursement.

Hard Fork - A hard fork (or hard fork), as it

relates to blockchain technology, is a radical

change to a network's protocol that makes

previously invalid blocks and transactions

valid, or vice-versa. A hard fork requires all

nodes or users to upgrade to the l

Page 35


CRYPTOGRAPHY

TERMINOLOGIES AND

DEFINITION

Hardware Wallet - A hardware wallet is a

special type of bitcoin wallet which stores the

user's private keys in a secure hardware

device. They have major advantages over

standard software wallets:private keys are

often stored in a protected area of a

microcontroller, and cannot be transferred

out of the device in plaintext immune to

computer viruses that steal from software

wallets can be used securely and

interactively, private keys never need to touch

potentially-vulnerable software much of the

time, the software is open source, allowing a

user to validate the entire operation of the

device.

Hash - A hash is a function that converts an

input of letters and numbers into an

encrypted output of a fixed length. A hash is

created using an algorithm and is essential to

blockchain management in cryptocurrency.

Hash Rate - Put simply, hash rate is a general

measure of the processing power of the

Bitcoin network. ... Each of these hashes is

created by successfully completing an

intentionally difficult mathematical puzzle.

Hashing Power - Put simply, hash rate is a

general measure of the processing power of

the Bitcoin network. Each of these hashes is

created by successfully completing an

intentionally difficult mathematical puzzle.

HODL - Hodl (/ˈhɒdəl/ HOD-əl; often written

HODL) is slang in the cryptocurrency

community for holding the cryptocurrency

rather than selling it.

ICO - An initial coin offering (ICO) or initial

currency offering is a type of funding using

cryptocurrencies. It is often a form of

crowdfunding, however a private ICO which

does not seek public investment is also

possible.

Initial Coin offering - An Initial Coin Offering

(ICO) is the cryptocurrency industry’s

equivalent to an Initial Public Offering (IPO).

ICOs act as a way to raise funds, where a

company looking to raise money to create a

new coin, app, or service launches an ICO.

JOMO - JOMO is an acronym standing for Joy

of Missing Out. It is the direct opposite of

FOMO. In the cryptocurrency markets, the

expression is most often used to describe the

feeling that you are happy you didn’t “get on

the train” when the price of something starts

to plummet or when it is revealed that a

certain ICO that they didn’t participate in was

a scam.

KYC - KYC refers to a process that banks and

other financial institutions use to gather

identifying data and contact information from

current and potential customers.

LAMBO - Lambo is defined as a short form of

“Lamborghini”, the exotic Italian sports car that

many cryptocurrency investors symbolically

promise to purchase in the event that they

become rich from their investments.

Ledger - A cryptocurrency public ledger is a

record-keeping system. The ledger maintains

participants' identities anonymously, their

respective cryptocurrency balances, and a

record of all the genuine transactions

executed between network participants.

Leverage - Leveraged Bitcoin trading is a kind

of trading where you borrow Bitcoin from a

crypto exchange or other traders to increase

your trading position beyond what would be

available from your cash balance alone.

Lightning Network - The lightning network is

a second layer technology applied to bitcoin

that uses micropayment channels to scale its

blockchain’s capability to conduct

transactions more efficiently.

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Limit Order/Limit/Sell/Limit Buy - A limit

order is a type of order to purchase or sell a

security at a specified price or better. For buy

limit orders, the order will be executed only at

the limit price or a lower one, while for sell

limit orders, the order will be executed only at

the limit price or a higher one.

Liquidity - The concept of liquidity has many

facets, and they influence the price of Bitcoin.

One way of defining liquidity is the ability of

an asset to be converted to cash on demand.

Lock Time - From Bitcoin Wiki. A Timelock is

a type of smart contract primitive that

restricts the spending of some bitcoins until a

specified future time or block height.

Long - A long position—also known as simply

long—is the buying of a stock, commodity, or

currency with the expectation that it will rise

in value. Holding a long position is a bullish

view. A long position is the opposite of a short

position (short).

MACD - It is a trend following indicator. It is

used to identify new trends in the markets,

and confirm if they are bearish or bullish. The

slope of MACD indicates the direction of the

trend.

Margin Bear Position - Moving Average

Convergence Divergence (MACD) is a trendfollowing

momentum indicator that shows

the relationship between two moving

averages of a security’s price.

Margin Bull Position - A bull market is the

condition of a financial market in which

prices are rising or are expected to rise. The

term "bull market" is most often used to refer

to the stock market but can be applied to

anything that is traded, such as bonds, real

estate, currencies and commodities.

Market Trading - Market capitalization

(market cap) simply defines the current share

price multiplied by the total number of

existing shares.

Market Order - The simplest type of trade

order is a market order. Market orders are

usually placed by traders if they want to be

certain a trade is executed. A market order is

instant. Therefore, it is simply an order placed

by a trader to buy or sell an asset like Bitcoin

immediately at whatever its current price is.

MCAP - BGF is a cryptocurrency exchange

that offers maximum security and advanced

trading features. BGF allows its customers to

transact with fiat currencies across the

exchange and blockchain without the

volatility concerns related to Bitcoin or alt

coins.

Mining - Mining is the process of adding

transaction records to Bitcoin's public ledger

of past transactions (and a "mining rig" is a

colloquial metaphor for a single computer

system that performs the necessary

computations for "mining". ... Bitcoin uses the

hashcash proof-of-work function.

Mining Contact - An investment in mining

hardware whereby you rent out the hashing

power of mining hardware for a certain

amount of time. The renter does not pay for

the hardware or the maintenance and

electricity required to run it.

Mining Pool - A mining pool is a joint group of

cryptocurrency miners who combine their

computational resources over a network.

Individually, participants in a mining pool

contribute their processing power toward the

effort of finding a block.

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CRYPTOGRAPHY

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Money Services Business - A legal term used

to represent an entity that transfers or

converts money.

Moon - "To the Moon" is an exclamation used

when cryptocurrency prices are rising off the

charts. By the same token, when a coin's price

is "mooning," that means that the price has hit

a peak.

Moving Average Convergence Divergence -

Moving Average Convergence Divergence

(MACD) is a trend-following momentum

indicator that shows the relationship between

two moving averages of a security’s price.

MSB - Money Services Businesses (“MSBs”) are

defined in the Proceeds of Crime (Money

Laundering) and Terrorist Financing Act (S.C.

2000, c. Issuing or redeeming money orders,

traveler's cheques or other similar negotiable

instruments except for cheques payable to a

named person or entity.

Multipool Mining - Multipool mining is as it

sounds; it is the ability to mine from multiple

pools for multiple altcoins. Multipool offers a

proprietary port, which is the first of its kind. It

is a tool that switches automatically based on

coin profitability.

Multi Signature (Multi-Sig) Wallets -

Multisignature (multisig) refers to requiring

multiple keys to authorize a Bitcoin

transaction, rather than a single signature

from one key. It has a number of applications.

Network - The bitcoin network is a peer-topeer

payment network that operates on a

cryptographic protocol. The network requires

minimal structure to share transactions. An ad

hoc decentralized network of volunteers is

sufficient.

Node - A node is a computer connected to

other computers which follows rules and

shares information. A 'full node' is a computer

in Bitcoin's peer-to-peer network which hosts

and synchronises a copy of the entire Bitcoin

blockchain.

Nonce - A nonce is an abbreviation for

"number only used once," which is a number

added to a hashed—or encrypted—block in a

blockchain that, when rehashed, meets the

difficulty level restrictions. The nonce is the

number that blockchain miners are solving

for.

OCO - "One Cancels the Other" (OCO) order

consists of a pair of orders that are created

concurrently, but it is only possible for one of

them to be executed. This means that as soon

as one of the orders get fully or partially filled,

the other one will be automatically canceled.

One Cancels the Other Order - "One Cancels

the Other" (OCO) order consists of a pair of

orders that are created concurrently, but it is

only possible for one of them to be executed.

Oracles - Blockchain oracles are third-party

services that provide smart contracts with

external information. They serve as bridges

between blockchains and the outside world.

Overbought - Overbought is a term used

when a security is believed to be trading at

level currently above its intrinsic or fair value.

Overbought generally describes recent or

short-term movement in the price of the

security, and reflects an expectation that the

market will correct the price in the near

future.

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Oversold - Overbought is a term used when a

security is believed to be trading at level

currently above its intrinsic or fair value.

Overbought generally describes recent or

short-term movement in the price of the

security, and reflects an expectation that the

market will correct the price in the near future.

Paper Wallet - A paper wallet is the name

given to an obsolete and unsafe method of

storing bitcoin which was popular between

2011 and 2016. It works by having a single

private key and bitcoin address, usually

generated by a website, being printed out

onto paper.

P2P - A peer-to-peer (P2P) service is a

decentralized platform whereby two

individuals interact directly with each other,

without intermediation by a third party.

Instead, the buyer and the seller transact

directly with each other via the P2P service.

Peer to Peer - A peer-to-peer (P2P) service is

a decentralized platform whereby two

individuals interact directly with each other,

without intermediation by a third party.

Instead, the buyer and the seller transact

directly with each other via the P2P service.

PND - Pump and Dump (PND): People get

together on telegram groups and then pump

coins to the moon. Sometimes what looks like

natural growth in crypto is a “PND.”

Pre-Sale - An Initial Coin Offering (ICO) is the

cryptocurrency industry’s equivalent to an

Initial Public Offering (IPO). ICOs act as a way

to raise funds, where a company looking to

raise money to create a new coin, app, or

service launches an ICO.

Private Key - A private key is a sophisticated

form of cryptography that allows a user to

access his or her cryptocurrency. A private

key is an integral aspect of bitcoin and

altcoins, and its security make up helps to

protect a user from theft and unauthorized

access to funds.

Proof of Authority (PoA) - Proof of Authority

(PoA) is a reputation-based consensus

algorithm that introduces a practical and

efficient solution for blockchain networks

(especially the private ones). The term was

proposed in 2017 by Ethereum co-founder

and former CTO Gavin Wood.

Proof of Stake (PoS) - Proof of Stake (PoS)

concept states that a person can mine or

validate block transactions according to how

many coins he or she holds. This means that

the more Bitcoin or altcoin owned by a miner,

the more mining power he or she has.

Proof of Work (PoW) - A variable is added to

the process of hashing a transaction that

demands that effort before a block can be

successfully hashed. Having a hashed block

proves the miner did work and deserves a

reward – hence proof of work.s.

Protocols - A protocol is basically a

foundational layer of code that tells

something how to function. It's the program

that forms the software basis of any given

network.

Public Blockchain - Permissioned

blockchains can be seen as an additional

blockchain security system, as they maintain

an access control layer to allow certain

actions to be performed only by certain

identifiable participants. For this reason, these

blockchains differ from public and private

blockchains.

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CRYPTOGRAPHY

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Public Key - A bitcoin private key is simply a

large (256 bits) secret number that allows

bitcoin to be unlocked and sent. Each private

key creates a unique signature that authorizes

the transaction of bitcoin for the owner. It’s

called a private key because it is meant to be

kept private and not shown to other people.

Pump - Bitcoin pump and dumps work in a

very simple yet straightforward manner.

Pump and Dump schemes comprise two

groups of people. The first group is players

who play by artificially increasing the price of

the Bitcoin by endorsing or promoting it.

Pump and Dump - Pump-and-dump is a

scheme that attempts to boost the price of a

stock through recommendations based on

false, misleading or greatly exaggerated

statements.

REKT - Rekt is defined as completely

destroyed and ruined. In cryptocurrency, it

would mean total financial loss. It is an

intentional misspelling of “wrecked”.

Relative Strength Index - The relative

strength index (RSI) is a momentum indicator

used in technical analysis that measures the

magnitude of recent price changes to

evaluate overbought or oversold conditions in

the price of a stock or other asset.

Ring Signature - In cryptography, a ring

signature is a type of digital signature that can

be performed by any member of a group of

users that each have keys.

RSI - The relative strength index (RSI) is a

momentum indicator used in technical

analysis that measures the magnitude of

recent price changes to evaluate overbought

or oversold conditions in the price of a stock

or other asset.

Satoshi Nakamoto - Satoshi Nakamoto is the

name used by the creator/s of the protocol

used in the Bitcoin cryptocurrency.

SATS - The satoshi is the smallest unit of the

bitcoin cryptocurrency. It is named after

Satoshi Nakamoto, the creator of the protocol

used in blockchains and the bitcoin

cryptocurrency. The satoshi to bitcoin ratio is

100 million satoshis to one bitcoin.

Scrypt - In cryptography, scrypt (pronounced

"ess crypto) is a an algoritm used in some

proof-of-work cryptocurrencies. The

algorithm was specifically designed to be

computationally harder to mine by requiring

large amounts of memory

Seed - In cryptography, scrypt (pronounced

"ess crypto) is a an algoritm used in some

proof-of-work cryptocurrencies. The

algorithm was specifically designed to be

computationally harder to mine by requiring

large amounts of memory.

Segregated Witness - SegWit is the process

by which the block size limit on a blockchain

is increased by removing signature data from

Bitcoin transactions.

SEGWIT - The bitcoin blockchain consists of

multiple systems distributed across a peerto-peer

network. These systems are called

nodes and serve as the administrators of

Bitcoin transactions.

Selfish Mining - Selfish mining is a strategy of

generating income from block mining in a

way thatdeviates from the standard protocol,

contributing to an increase in mine income,

ratherthan the amount of work done for the

network.

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CRYPTOGRAPHY

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DEFINITION

Sell Wall - The term sell wall refers to a very

large limit sell order or a cumulation of sell

orders at one price level on an order book. It is

the opposite of a buy wall, which refers to a

large buy order or a cumulation of buy orders

at one price level.

SHA-256 - SHA-256 stands for Secure Hash

Algorithm 256-bit and it's used for

cryptographic security. Cryptographic hash

algorithms produce irreversible and unique

hashes.

Sharding - Sharding is the process of splitting

a large database into smaller more-easily

manageable components (shards). The goal is

to lower the load on the database by

separating it into many parts and hosting each

part on a separate server, thus speeding up

query times. Sharding is known as a horizontal

type of partitioning, meaning it splits a

database by rows, not by columns (vertical).

Shit Coin - The Urban Dictionary defines a

shitcoin as “a great way to lose money” and “a

cryptocurrency with no utility or unique

features.” In other words, a shitcoin is a

cryptocurrency that will someday be totally

worthless.

Short - Short selling (often referred to just as

‘short’) is an investment method to make

money over an asset’s price drop. Shorting

Bitcoin is trading against a long-term uptrend;

the longer you the trend remains, the riskier

this becomes.

Smart Contarcts - A smart contract is a selfexecuting

contract with the terms of the

agreement between buyer and seller being

directly written into lines of code. The code

and the agreements contained therein exist

across a distributed, decentralized blockchain

network.

Soft Fork - In terms of blockchain technology,

a soft fork (or sometimes softfork) is a change

to the software protocol where only

previously valid blocks/transactions are

made invalid.

Software Wallet - A Bitcoin wallet is a

software program in which Bitcoins are

stored. Technically, Bitcoins are not stored

anywhere. For every individual who has a

balance in a Bitcoin wallet, there is a private

key (secret number) corresponding to the

Bitcoin address of that wallet.

Solidity - Solidity is a statically-typed

programming language designed for

developing smart contracts that run on the

EVM. Solidity is compiled to bytecode that is

executable on the EVM.

TA - Technical analysis is a trading discipline

employed to evaluate investments and

identify trading opportunities by analyzing

statistical trends gathered from trading

activity, such as price movement and volume.

Technical Analysis - Technical analysis is a

trading discipline employed to evaluate

investments and identify trading opportunities

by analyzing statistical trends gathered from

trading activity, such as price movement and

volume.

Test Net - The testnet is an alternative Bitcoin

block chain, to be used for testing. Testnet

coins are separate and distinct from actual

bitcoins, and are never supposed to have any

value. This allows application developers or

bitcoin testers to experiment, without having

to use real bitcoins or worrying about

breaking the main bitcoin chain.

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CRYPTOGRAPHY

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Token - Crypto tokens, which are also called

crypto assets, are special kinds of virtual

currency tokens that reside on their own

blockchains and represent an asset or utility.

Most often, they are used to fundraise for

crowd sales, but they can also be used as a

substitute for other things.

Token Ledger - A tokenless ledger refers to a

distributed ledger that does not require any

native currency to function.

TOR - Tor, short for 'The Onion Router', is an

open source privacy network that permits

users to browse the web anonymously.

Transcation - A transaction is a transfer of

Bitcoin value that is broadcast to the network

and collected into blocks. This article is

about on-chain transactions. See also: Off-

Chain TransactionsStandard transaction

outputs nominate addresses, and the

redemption of any future inputs requires a

relevant signature.

Transaction Fee - A bitcoin transaction fee is

the cost you incur when you send coins from

one bitcoin wallet into another. To explain

how bitcoin transaction fees work, you need

to know how bitcoins are created, which is

through a process called mining.

Turing Completeness - Turing Complete

refers to a machine that, given enough time

and memory along with the necessary

instructions, can solve any computational

problem, no matter how complex.

Unconfirmned - An unconfirmed transaction

means that the transaction has not been

included in a block and thus has not been

completed. Most recipients require at least

one confirmation to complete the transaction,

including Wirex.

Unspent Transaction Output - The term

UTXO refers to the amount of digital currency

someone has left remaining after executing a

cryptocurrency transaction such as bitcoin.

The letters stand for unspent transaction

output. Each bitcoin transaction begins with

coins used to balance the ledger.

UTXO - Unspent Transaction Output’ (UTXO)

is the unspent output from transactions

involving Bitcoin.Probably the best way to

explain this is to take a quick look at Bitcoin

transactions. Each transaction starts with

coins that bring balance to the ledger.

Volatility - Volatility is measured in traditional

markets by the Volatility Index, also known as

the CBOE Volatility Index (VIX). More recently,

a volatility index for bitcoin has also become

available.

Wallet - A Bitcoin wallet is a software

program in which Bitcoins are stored.

Technically, Bitcoins are not stored anywhere.

For every individual who has a balance in a

Bitcoin wallet, there is a private key (secret

number) corresponding to the Bitcoin address

of that wallet.

Whale - A bitcoin whale is a cryptocurrency

term that refers to individuals or entities that

hold large amounts of bitcoin. Whales hold

enough cryptocurrency that they have the

potential to manipulate the currency

valuations.

Whitelist - The term whitelist refers to a list of

allowed and identified individuals, institutions,

computer programs, or even cryptocurrency

addresses. In general, whitelists are related to

a particular service, event, or piece of

information.

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White Paper - The Bitcoin whitepaper, Bitcoin:

A Peer-to-Peer Electronic Cash System, was

published in 2008 by Satoshi Nakamoto.

Bitcoin is revolutionizing the global payments

industry and people around the world are

rethinking the meaning of their money.

Moreover, the underlying technology and

network that process Bitcoin transactions,

known as blockchain, is transforming

industries as varied as banking, farming,

logistics, healthcare, elections and

manufacturing, to name a few.

Zero Confirmation Transaction - A zero

confirmation transaction is defined as an

exchange that has not yet been recorded and

verified on the blockchain. Instead the seller

immediately assumes he received his money

and delivers what was sold.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

Abbreviations for

Different

Cryptocurrencies

AUR - Auroracoin - Auroracoin is a peer-topeer

cryptocurrency developed in Iceland. It

was launched in 2014 by its pseudonymous

creator Baldur Friggjar Óðinsson.Auroracoin

was intended to serve as a mechanism for

cross-border transfers in the local economy.

BCC - BitConnect (inactive) - Bitconnect (also

spelled BitConnect and stylized bitconnect,

ticker BCC) was an open-source

cryptocurrency that was connected with the

high-yield investment program (a type of

Ponzi scheme) bitconnect.co.

BCH - Bitcoin Cash - Bitcoin cash is a

cryptocurrency created in August 2017, from a

fork of Bitcoin. Bitcoin Cash increases the size

of blocks, allowing more transactions to be

processed.

BTC or XBT - Bitcoin - Being that Bitcoin is

decentralized, there is no standard, nor

governing body, to dictate what notation

should be used for it. Nonetheless, "BTC" has

been the generally accepted abbreviation for

Bitcoin stemming from the early days of

Bitcoin."XBT" is a new abbreviation for Bitcoin

that is starting to come into use and reflects

its growing legitimacy as an international

currency.

DASH - Dash - Dash (formerly Darkcoin) is a

blockchain-based

peer-to-peer

cryptocurrency that was forked out of Bitcoin

to offer faster and more private transactions

to users than Bitcoin could deliver.

DOGE or XDG - Dogecoin - Dogecoin is an

open-source digital currency that is used by

internet users worldwide.

EOS - EOS.io - EOS.IO is a blockchain protocol

powered by the native cryptocurrency EOS.

The smart contract platform claims to

eliminate transaction fees and also conduct

millions of transactions per second.

ETC - Etherium Classic - Ethereum Classic is

an open source, blockchain-based distributed

computing platform featuring smart contract

(scripting) functionality.

ETH - Ether - Ethereum is the second-largest

cryptocurrency platform by market

capitalization, behind Bitcoin. It is a

decentralized open source blockchain

featuring smart contract functionality.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

GRC - Gridcoin - Gridcoin (ticker: GRC) is an

open source cryptocurrency which securely

rewards volunteer computing performed on

the BOINC, a distributed computing platform

that is home to over 30 science projects

spanning a range of scientific disciplines.

LTC - Litecoin - Litecoin (LTC or Ł) is a peerto-peer

cryptocurrency and open-source

software project released under the MIT/X11

license.

MZC - Mazacoin - MazaCoin (MZC) is a

decentralised open-source cryptocurrency

forked from Zetacoin in March 2014. It was

conceived as a result of signing a

memorandum of understanding with the

Oglala Sioux Tribe, a native American tribe in

North America.

Nano - Nano is a software designed to

facilitate fee-free cryptocurrency transactions.

... When transactions are made, Nano users

exchange NANO cryptocurrency and update

their own ledgers.

Neo - The NEO platform allows for linking the

physical asset with an equivalent and unique

digital avatar on its network.

NMC - Namecoin - Namecoin is a

cryptocurrency forked from. bitcoin. It was

developed to decentralize domain names so

that the Internet would not have a centralized

infrastructure.

Nxt - NXT - Nxt is an open source

cryptocurrency and payment network

launched in 2013 by anonymous software

developer BCNext.

POT - Potcoin - Potcoin is a digital currency

that allows consumers to buy and sell

cannabis products anonymously.

PPC - Peercoin - Peercoin is an alternative

cryptocurrency launched in August 2012 and

is based on the Bitcoin framework. Peercoin is

also referred to as PPCoin, Peer-to-Peer Coin

and P2P Coin.

TIT - Titcoin - Titcoin (Ticker Symbol: TIT) is a

type of digital currency called a

cryptocurrency that uses pornography on a

decentralized peer-to-peer network to

manage the issuance of new currency units

while simultaneously processing transactions.

USDC - USD Coin (stablecoin) - USD Coin

(USDC) is a relatively fresh stablecoin pegged

to the US dollar. ... USDC is an alternative to

other USD backed cryptocurrencies like

Tether (USDT) or TrueUSD (TUSD). In a

nutshell, USD Coin is a service to tokenize US

dollars and facilitate their use over the

internet and public blockchains.

USDT - Tether - Tether is a blockchain-based

cryptocurrency whose crypto coins in

circulation are backed by an equivalent

amount of traditional fiat currencies, like the

dollar, the euro or the Japanese yen, which

are held in a designated bank account.

VTC - Vertcoin - Vertcoin is a cryptocurrency

which is like Bitcoin and Litecoin, in that it has

an added focus on keeping the ecosystem as

decentralized as possible.

XEM - NEM - NEM stands for the New

Economy Movement. Like Ethereum, Waves,

and NEO, NEM is both a cryptocurrency and a

platform for building applications on top of.

XLM - Stellar - Stellar refers to both the

Stellar network and the cryptocurrency

associated with it, the Stellar Lumens (XLM).

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

XMR - Monero - Monero (/məˈnɛroʊ/; XMR) is

an open-source cryptocurrency created in

April 2014 that focuses on fungibility, privacy

and decentralization.

XPM - Primecoin - Primecoin is an innovative

cryptocurrency, a form of digital currency

secured by cryptography and issued through

a decentralized mining market.

XRP - Ripple - Ripple is the company that is

behind XRP, the cryptocurrency itself.Bitcoin

transaction confirmations may take many

minutes with high transaction costs, while XRP

transactions are confirmed in seconds with

little cost.

XVG - Verge - Verge is an open-source,

decentralized cryptocurrency that claims to

offer completely anonymous transactions by

obfuscating the location and IP address of the

transacting participants using TOR and I2P

network layers.

ZEC - Zcash - ZCash is a cryptocurrency with

a decentralized blockchain that seeks to

provide anonymity for its users and their

transactions. As a digital currency, ZCash is

similar to Bitcoin.

Blockchain and

Network

Abbreviations

Bitcoin Improvement Proposal - A Bitcoin

Improvement Proposal (BIP) is a standard for

proposing changes to the Bitcoin protocol, or

in some cases a source for information for the

Bitcoin community.

BTM - Automatic Teller Machine for Bitcoin -

A Bitcoin ATM (Automated Teller Machine) is

a kiosk that allows a person to purchase

Bitcoin by using cash or debit card.

DAO – Decentralized Autonomous

Organization - One of the major features of

digital currencies is that they are

decentralized. This means they are not

controlled by a single institution like a

government or central bank, but instead are

divided among a variety of computers,

networks, and nodes.

DPoS - Delagated Proof of Stake -

Delegated proof of stake (DPoS) is one of

those security alternatives, a so-called

“consensus algorithm” used by digital

currencies like EOS or Cardano.

EEA - Enterprise Etherium Alliance -

Ethereum is the second-largest

cryptocurrency platform by market

capitalization, behind Bitcoin. It is a

decentralized open source blockchain

featuring smart contract functionality.

EIP - Etherium Improvement Proposal - EIP is

an acronym for Ethereum Improvement

Proposal, just as BIP is an acronym for Bitcoin

Investment Proposal. The EIPs set out the

technical standards (protocol specifications,

contract standards, client APIs etc.) for the

Ethereum blockchain.

ERC - Etherium Request for Comments -

Ethereum Request for Comments (ERC-20) is

a standard protocol that is used in issuing

tokens under the Ethereum platform. From

the name itself, it has 20 unique ID numbers

that differentiate it from others.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

EVM - Etherium Virtual Machine - Ethereum

provides a decentralized replicated virtual

machine, the Ethereum Virtual Machine

(EVM), which can execute scripts using an

international network of public nodes.

FA - Fundamental Analysis - Fundamental

analysis is the evaluation of economic,

financial and other key variables, known as

fundamentals, to determine a security’s true

value.

LN - Lightning Network - The Lightning

Network is a way of handling Bitcoin

transactions without the need to verify them

on the blockchain. It's designed to speed up

verification times and to allow more

transactions to take place at the same time.

MACD - Moving Average Convergence

Divergence - Moving Average Convergence

Divergence (MACD) is a trend-following

momentum indicator that shows the

relationship between two moving averages of

a security’s price.

MoE - Medium of Exchange - A medium of

exchange is an intermediary instrument or

system used to facilitate the sale, purchase, or

trade of goods between parties.

MoE - Medium of Exchange - A medium of

exchange is an intermediary instrument or

system used to facilitate the sale, purchase, or

trade of goods between parties.

P2P - Peer to Peer - Bitcoin[a] () is a

cryptocurrency invented in 2008 by an

unknown person or group of people using the

name Satoshi Nakamoto] and started in 2009

when its implementation was released as

open-source software.

DAO – Decentralized Autonomous

Organization - One of the major features of

digital currencies is that they are

decentralized. This means they are not

controlled by a single institution like a

government or central bank, but instead are

divided among a variety of computers,

networks, and nodes.

PoA - Proof of Authority - The Proof-Of-

Authority (PoA) is a consensus method that

gives a small and designated number of

blockchain actors the power to validate

transactions or interactions with the network

and to update its more or less distributed

registry.

PoB - Proof of Burn - Proof of burn (POB) is an

alternative consensus algorithm that tries to

address the high energy consumption issue

of a POW system.

PoD - Proof of Deliver - Proof of Developer or

PoD is any verification that provides evidence

of a real, living software developer who

created a cryptocurrency. PoD are used when

launching new cryptocurrencies to prevent an

anonymous developer from collecting and

stealing money without actually providing a

workable cryptocurrency.

PoS - Proof of Stake - Proof of stake (PoS) is a

type of consensus algorithm by which a

cryptocurrency blockchain network aims to

achieve distributed consensus.

PoW - Proof of Work - A proof-of-work

system is a consensus mechanism. It deters

denial-of-service attacks and other service

abuses such as spam on a network by

requiring some work from the service

requester, usually meaning processing time

by a computer.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

SC - Smart Contract - A smart contract is a

self-executing contract with the terms of the

agreement between buyer and seller being

directly written into lines of code. The code

and the agreements contained therein exist

across a distributed, decentralized blockchain

network.

SegWit - Segrated Witness - Segregated

Witness, or SegWit, is the name used for an

implemented soft fork change in the

transaction format of Bitcoin. ... It does this by

splitting the transaction into two segments,

removing the unlocking signature ("witness"

data) from the original portion and appending

it as a separate structure at the end.

SoV - Store Value - The most heard argument

for Bitcoin as a store of value is the maximum

total supply of 21 million Bitcoins. In

combination with the growing community and

the increasing function of Bitcoin as a medium

of exchange, people consider Bitcoin a good

long term investment.

TA - Technical Analysis or Trend Analysis -

Technical analysis is a trading discipline

employed to evaluate investments and

identify trading opportunities by analyzing

statistical trends gathered from trading

activity, such as price movement and volume.

UoA - Unit of Account - Essentially, a unit of

account is a measurement for value. It may be

related to fiat currency, cryptocurrencies, or

any other instrument that allows us to

compare the value of things.

UTC - Coordinated Universal Time -

Coordinated Universal Time (or UTC) is the

primary time standard by which the world

regulates clocks and time. It is within about 1

second of mean solar time at 0° longitude,

and is not adjusted for daylight saving time.

WP - White Paper - White paper is an official

document usually issued by new blockchain

projects before their ICO informing the reader

about the new technology, methodology,

product or service being launched.

YTD - Year tto Date - Bitcoin is a digital

currency created in January 2009 following

the housing market crash. It follows the ideas

set out in a whitepaper by the mysterious and

pseudonymous Satoshi Nakamoto.

Technical

Abbreviations

2FA - 2 Factor Authentication - Two-factor

authentication (2FA) is a security system that

requires two distinct forms of identification in

order to access something.Two-factor

authentication can be used to strengthen the

security of an online account, a smartphone,

or even a door.

Addy - Address - A Bitcoin address, or simply

address, is an identifier of 26-35 alphanumeric

characters, beginning with the number 1 , 3 or

bc1 that represents a possible destination for

a bitcoin payment.

API - Application Programming Interface -

An application programming interface, or API,

is a set of programming code that queries

data, parses responses, and sends

instructions between one software platform

and another.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

ASIC – Application Specific Integrated

Circuit - An application-specific integrated

circuit (ASIC) miner is a device that is

designed for the sole purpose of mining—not

coal, but rather digital currency. Generally,

each ASIC miner is constructed to mine a

specific digital currency.

BFA - Brute Force Attack - During the bruteforce

attack, the intruder tries all possible

keys (or passwords), and checks which one of

them returns the correct plaintext.

Bech32 - Bitcoin address format (also known

as bc1 addresses) - A Bitcoin address, or

simply address, is an identifier of 26-35

alphanumeric characters, beginning with the

number 1, 3 or bc1 that represents a possible

destination for a bitcoin payment.

CPU - Central Processing Unit - Each

standard computer is equipped with a Central

Processing Unit (CPU), which is a processing

device that acts as a master of the whole

computer system.

BFT – Byzantine Fault Tolerance - The

characteristic known as " Byzantine fault

tolerance " (BFT) is one of those concepts

worth understanding. The ability to tolerate

what computer scientists call "byzantine

failures" is a crucial part of blockchains' ability

to maintain reliable records of transactions in

a transparent, tamper-proof way.

DAG - Directed Acyclic Graph - A DAG is a

different kind of data structure – think of it like

a database that connects different pieces of

information together. "Directed acyclic graph"

is a loaded term, so let's start by breaking it

down.

DAPP or dApp – Decentralized Application -

Decentralized applications (dApps) are digital

applications or programs that exist and run on

a blockchain or P2P network of computers

instead of a single computer, and are outside

the purview and control of a single authority.

DDoS – Distributed Denial of Service - A

distributed denial-of-service (DDoS) attack is

a malicious attempt to disrupt the normal

traffic of a targeted server, service or network

by overwhelming the target or its surrounding

infrastructure with a flood of Internet traffic.

DEVCON - Developers Conference - The

Developer Conference is a technical

conference for developers, hardware

engineers and architects working on IoT

solutions. Learn from the world's leading

companies and open source projects who will

present the information needed to lead

successful IoT developments.

GPU – Graphical Processing Unit - A

distributed denial-of-service (DDoS) attack is

a malicious attempt to disrupt the normal

traffic of a targeted server, service or network

by overwhelming the target or its surrounding

infrastructure with a flood of Internet traffic.

IPFS – Interplanetary Files System - The

InterPlanetary File System (IPFS) is a protocol

and peer-to-peer network for storing and

sharing data in a distributed file system.

PKI – Public Key Infrastructure - A public key

is a cryptographic code that allows users to

receive cryptocurrencies into their accounts.

The public key and the private key are the

tools required to ensure the security of the

crypto economy.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

Multi-sig - Multi-Signature - Multisignature

(multisig) refers to requiring multiple keys to

authorize a Bitcoin transaction, rather than a

single signature from one key. ... Dividing up

responsibility for possession of bitcoins

among multiple people.

Financial

Abbreviations

NONCE – Number Used Only Once - A nonce

is an abbreviation for "number only used

once," which is a number added to a hashed—

or encrypted—block in a blockchain that,

when rehashed, meets the difficulty level

restrictions.

SHA-256 - Secure Hash Acronym (256-bit) -

A cryptographic hash function that generates

a 256-bit signature for a text, used in Bitcoin

Proof-of-Work (PoW). Standing for “Secure

Hash Algorithm”, it is one of the SHA-2

algorithms, first designed by the NSA.

WWDC - Worldwide Developers Conference

- Apple Worldwide Developers Conference,

mainly known as WWDC, is a conference held

annually by Apple Inc. The conference is

normally held in the San Jose Convention

Center in California, but in 2020, WWDC was

held online at Apple Park from June 22 to

June 26.

AML - Anti-Money Laundering - Anti-money

laundering (AML) refers to the laws,

regulations and procedures intended to

prevent criminals from disguising illegally

obtained funds as legitimate income.

ATH - All Time HIgh - The term “All-Time

High” relates to the highest price that an asset

has achieved on an exchange, for the current

trading pair that is being referenced.

ATH - All Time Low - The lowest point (in

price, in market capitalization) that a

cryptocurrency has been in history.

ALT or Altcoin – Alternative Cryptocurrency

(cryptocurrency other than Bitcoin) -

Altcoins are the other cryptocurrencies

launched after the success of Bitcoin.

Generally, they sell themselves as better

alternatives to Bitcoin. The term "altcoins"

refers to all cryptocurrencies other than

Bitcoin.

CEX – Centralized Exchange - A centralized

market is a financial market structure that

consists of having all orders routed to one

central exchange with no other competing

market.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

CMC - Coinmarketcap - CoinMarketCap is the

world's most-referenced price-tracking

website for cryptoassets in the rapidly

growing cryptocurrency space. Its mission is

to make crypto discoverable and efficient

globally by empowering retail users with

unbiased, high quality and accurate

information for drawing their own informed

conclusions.

DAICO - Decentralized Autonomous Initial

Coin Offering - One of the major features of

digital currencies is that they are

decentralized. This means they are not

controlled by a single institution like a

government or central bank, but instead are

divided among a variety of computers,

networks, and nodes.

DCA - Dollar Cost Averaging - Dollar-cost

averaging (DCA) is an investment strategy in

which an investor divides up the total amount

to be invested across periodic purchases of a

target asset in an effort to reduce the impact

of volatility on the overall purchase. The

purchases occur regardless of the asset's

price and at regular intervals; in effect, this

strategy removes much of the detailed work

of attempting to time the market in order to

make purchases of equities at the best prices.

DeFi - Decentralized Finance - Decentralized

finance, also known as DeFi, is a fast-growing

sector of the cryptocurrency industry. While

cryptocurrency coins create a decentralized

store of value separate from any governmentbacked

fiat currency, DeFi creates

decentralized financial instruments separate

from traditional centralized institutions.

DEX – Decentralized Exchange - A

decentralized exchange is a cryptocurrency

exchange which operates in a decentralized

way, i.e., without a central authority.

Decentralized exchanges allow peer-to-peer

trading of cryptocurrencies.

DLT - Distributed Ledger Technology - A

distributed ledger is a consensus of

replicated, shared, and synchronized digital

data geographically spread across multiple

sites, countries, or institutions. Unlike with a

distributed database, there is no central

administrator.

ERC-20 - Token standard for Ethereum - One

of the most significant Ethereum tokens is

known as ERC-20. ERC-20 has emerged as

the technical standard; it is used for all smart

contracts on the Ethereum blockchain for

token implementation and provides a list of

rules that all Ethereum-based tokens must

follow.

ERC-721 - Token standard for NFT (nonfungible

tokens) - ERC-721 is a free, open

standard that describes how to build nonfungible

or unique tokens on the Ethereum

blockchain. While most tokens are fungible

(every token is the same as every other

token), ERC-721 tokens are all unique. Think of

them like rare, one-of-a-kind collectables.

ETF - Exchange-Traded Fund - An exchangetraded

fund is a type of investment fund and

exchange-traded product, i.e. they are traded

on stock exchanges. ETFs are similar in many

ways to mutual funds, except that ETFs are

bought and sold throughout the day on stock

exchanges.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

ETP – Exchange-Traded Product -

Exchange- traded products (ETPs) are types

of securities that track underlying securities,

an index, or other financial instruments. ETPs

trade on exchanges similar to stocks meaning

their prices can fluctuate from day-to-day and

intraday. However, the prices of ETPs are

derived from the underlying investments that

they track.

FIAT – Conventional government-issued

currency (e.g. US Dollar, Euro) - Fiat money is

government-issued currency that is not

backed by a physical commodity, such as

gold or silver, but rather by the government

that issued it. The value of fiat money is

derived from the relationship between supply

and demand and the stability of the issuing

government, rather than the worth of a

commodity backing it as is the case for

commodity money.

IBO - Initial Bounty Offering - A Bounty is a

sum of money offered as a reward for

completing a specific task. When a company

launches an IBO (acronym for Initial Bounty

Offering), it invites parties to – during a limited

period of time – perform certain tasks. Tasks

can include marketing, translation work or

finding bugs. In exchange for performing such

tasks, the task-performing participants

normally receive a certain allocation of

tokens. Different from a normal ICO, however,

an IBO does not entail investment of capital

(merely investment of time).

ICO – Initial Coin Offering - An Initial Coin

Offering (ICO) is the cryptocurrency industry’s

equivalent to an Initial Public Offering (IPO).

ICOs act as a way to raise funds, where a

company looking to raise money to create a

new coin, app, or service launches an ICO.

ITO – Initial Token Offering - An Initial Coin

Offering (ICO) is the cryptocurrency industry's

equivalent to an Initial Public Offering (IPO). ...

Interested investors can buy into the offering

and receive a new cryptocurrency token

issued by the company.

mBTC - Millibitcoin (0.001 BTC) - Millibitcoin,

also known as the abbreviation mBTC, is one

thousandth of a bitcoin or 0.001 of a bitcoin.

Compare this with Megabitcoin or MBTC

which is one million bitcoin or 1,000,000

bitcoin.

MCAP – Market Capitalization - Market

capitalization is the aggregate valuation of the

company based on its current share price and

the total number of outstanding stocks. It is

calculated by multiplying the current market

price of the company's share with the total

outstanding shares of the company.

PnD – Pump-and-Dump scheme - Pumpand-dump

is a scheme that attempts to boost

the price of a stock through

recommendations based on false, misleading

or greatly exaggerated statements. The

perpetrators of this scheme already have an

established position in the company's stock

and sell their positions after the hype has led

to a higher share price.

OTC – Over the Counter - Over-the-counter

(OTC) refers to the process of how securities

are traded for companies that are not listed

on a formal exchange such as the New York

Stock Exchange (NYSE). Securities that are

traded over-the-counter are traded via a

broker-dealer network as opposed to on a

centralized exchange. These securities do not

meet the requirements to have a listing on a

standard market exchange.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

SATS – Satoshis (the smallest denomination

of a Bitcoin: 0.00000001 BTC) - A satoshi is

the smallest unit of a bitcoin, equivalent to

100 millionth of a bitcoin. Bitcoins can be split

into smaller units to ease and facilitate

smaller transactions. The satoshi was named

after the founder, or founders, of bitcoin,

known as Satoshi Nakamoto.

STO – Securities Token Offering - A security

token offering (STO) / tokenized IPO is a type

of public offering in which tokenized digital

securities, known as security tokens, are sold

in cryptocurrency exchanges, or security

token exchanges.

TPS – Transactions Per Second - In a more

restricted view, the term is usually used by

DBMS vendor and user community to refer to

the number of database transactions

performed per second. Recently, the term has

been used to describe the transaction rate of

a cryptocurrency, such as the distributed

network running the Bitcoin blockchain.

Tx – Transaction - An transaction is a transfer

of Bitcoin value that is broadcast to the

network and collected into blocks. A

transaction typically references previous

transaction outputs as new transaction inputs

and dedicates all input Bitcoin values to new

outputs.

TxID – Transaction Identification - Every

Bitcoin transaction comes with its own

transaction ID (TXID), a string of letters and

numbers that makes it unique. The

Bitcoin.com wallet conveniently provides the

TXID for you, as do some other wallets and

exchanges.

uBTC - MicroBitcoin (0.000001 BTC) -

Microbitcoin, also known as the abbreviation

uBTC, is one millionth of a bitcoin or 0.000001

of a bitcoin.

UXTO - Unspent Transaction - In

cryptocurrencies, an unspent transaction

output (UTXO) is an abstraction of electronic

money. Each UTXO represents a chain of

ownership implemented as a chain of Digital

Signatures where the owner signs a message

(transaction) transferring ownership of their

UTXO to the receiver's Public Key.

Conversational

Cryptocurrency

Abbreviations

BUIDL – “Build” (purposeful misspelling for

ironic meaning) - BUIDL is a warping of the

word “build” in the same fashion as “HODL.”

BUIDL is a call to arms for building and

contributing to the blockchain and

cryptocurrency ecosystem, instead of

passively holding.

FOMO – Fear of Missing Out - In

cryptocurrency, FOMO is often used to

describe the tendency of investors to panic

and begin buying coins or tokens when they

see that the price is going up. Many of them

quickly learn that this is a mistake.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

HODL – Hold On for Dear Life (purposeful

misspelling of “HOLD") - HODL means "Hold

On For Dear Life (Cryptocurrency Term)". ...

HODL is also used by investors as a statement

of intent. Investors who HODL, do so in the

hope or belief that the market will improve

and they will make much bigger profits on

their holdings in the future.

BTD or BTFD – Buy The Dip or Buy the F******

Dip - When you add an F, and create the

acronym BTFD, it stands for Buy The Fucking

Dip. This is an expression used by

cryptocurrency investors that believe that a

downwards price movement is only

temporary.

DYOR – Do Your Own Research - DYOR

stands for Do Your Own Research and is a

common phrase used by cryptocurrency

enthusiasts. However, the acronym is not a

piece of advice exclusive to the

cryptocurrency ecosystem. It is commonly

used throughout the internet due to how fast

and easily misinformation can spread.

FUD – Fear, Uncertainty, Doubt - FUD is a

commonly used expression in the crypto

community. It stands for fear, uncertainty and

doubt – reflecting sentiment in the market,

especially when they're is a big price shift.

This state of mind will often impact how and

when crypto enthusiasts make trades,

purchases, or hold onto their coins.

FUDster - A person who spreads Fear,

Uncertainty, and Doubt - A FUDster is

someone who spreads FUD and FUD is short

for Fear, Uncertainty and Doubt. FUD is any

information that is supposed to create

feelings of fear, uncertainy, doubt and other

negative emotions.

ELI5 - Explain It Like I’m 5 - ELI5 stands for

the phrase, “Explain Like I'm 5.” The 5 refers to

a five-year-old child, the implication being

that the person requesting the explanation

has a limited or naive understanding of the

issue.

JOMO - Joy of Missing Out - JOMO is an

acronym for joy of missing out and describes

the pleasure of taking a break from social

activity–especially social media–to enjoy

personal time.

KYC - Know Your Customer - Streamlining

"Know Your Customer" (KYC) processes is

among the key benefits of blockchain for the

financial services industry. The distributed

ledger functions as a common repository for

client transaction activity history, and it is now

being tested for KYC use.

Lambo - Lamborghini (cryptocurrency term

for getting rich) - LAMBO is confidence of the

depositors in the crypto world. This term is

used to claim that he is confident to earn a lot

amount of money from cryptocurrency trade.

So really what is LAMBO meaning … This word

is the short form of Lamborghini, one of the

most luxurious fast car producing company in

the world.

TLT - Think Long Term - TLT is an acronym

for Think Long Term and represents an

investment strategy where you’re not looking

for the quick profits. Rather, you have a longterm

investment horizon (months to years).

OCO - One Cancels the Other - A "One

Cancels the Other" (OCO) order consists of a

pair of orders that are created concurrently,

but it is only possible for one of them to be

executed. This means that as soon as one of

the orders get fully or partially filled, the other

one will be automatically canceled.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

AMA - Ask Me Anything - Ask me anything

refers to actions where individuals of certain

profession (eg. fireman, nurse, journalists) or

company (eg. CEO of Tesla) conduct a session

for users to ask them questions. It is usually

done on Reddit’s Ask me Anything (r/AmA)

subreddit, but can also be done in any

specific chatrooms/subreddits.

REKT - “Wrecked” (meaning major losses) -

The term rekt derives from the word

"wrecked." In general, rekt is a slang used to

define something that got completely

destroyed or a person that experienced a

catastrophic failure. However, the term may

carry different meanings depending on the

context.

TOR - The Onion Router (one who sends

anonymous data) - From Bitcoin Wiki. Tor is a

distributed 'onion' network, that makes it more

difficult for an adversary to track any one peer

on the network.

CT - Crypto Twitter - A self-proclaimed

portion of TwitterTwitter© users who tweet

nearly exclusively on the subject of

cryptocurrency, and all it's Glory.

Abbreviations for

Regulatory

Commissions

SEC – Securities and Exchange Commission

- The U.S. Securities and Exchange

Commission (SEC) is an independent federal

government regulatory agency responsible

for protecting investors, maintaining fair and

orderly functioning of the securities markets,

and facilitating capital formation. It was

created by Congress in 1934 as the first

federal regulator of the securities markets.

FTC – Federal Trade Commission - The

Federal Trade Commission is an independent

agency of the United States government

whose principal mission is the enforcement of

civil U.S. antitrust law and the promotion of

consumer protection.

CFTC – Commodity Futures Trading

Commission - The Commodity Futures

Trading Commission is an independent

agency of the US government created in

1974, that regulates the U.S. derivatives

markets, which includes futures, swaps, and

certain kinds of options.

FDIC – Federal Deposit Insurance

Corporation - The Federal Deposit Insurance

Corporation is one of two agencies that

provide deposit insurance to depositors in U.S.

depository institutions, the other being the

National Credit Union Administration, which

regulates and insures credit unions.

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MAJOR

CRYPTOCURRENCY

ABBREVIATIONS

DOJ – Department of Justice - The United

States Department of Justice, also known as

the Justice Department, is a federal executive

department of the United States government

responsible for the enforcement of the law

and administration of justice in the United

States, and is equivalent to the justice or

interior ministries of other countries.

Page 56


REFERENCES

About Bitcoin,

https://www.investopedia.com/terms/b/bitc

oin.asp

History of Bitcoin,

https://bitcoin.org/en/how-it-works

Cryptography,

https://economictimes.indiatimes.com/defini

tion/cryptography#:~:text=Definition%3A%20C

ryptography%20is%20associated%20with,can

%20read%20and%20process%20it.

Classic Cryptography,

https://en.wikipedia.org/wiki/Cryptography

Blockchain,

https://www.investopedia.com/terms/b/blo

ckchain.asp

51% Attack,

https://www.investopedia.com/terms/1/51-

attack.asp#:~:text=A%2051%25%20attack%20re

fers%20to,hash%20rate%20or%20computing%

20power

Addresses,

https://www.definitions.net/definition/addre

sses

Airdrop,

https://www.investopedia.com/terms/a/aird

rop-cryptocurrency.asp

Algorithm,

https://techterms.com/definition/algorithm#

:~:text=An%20algorithm%20is%20a%20set,playi

ng%20a%20compressed%20video%20file.&tex

t=In%20computer%20programming%2C%20al

gorithms%20are%20often%20created%20as%2

0functions

All Time High,

https://dictionary.cambridge.org/us/dictiona

ry/english/all-time

All Time Low,

https://www.urbandictionary.com/define.ph

p?term=All%20time%20low

Altcoins,

https://academy.binance.com/glossary/altc

oin#:~:text=Altcoin%20is%20the%20term%20gi

ven,%E2%80%9D%20or%20%E2%80%9Calterna

tive%E2%80%9D%20coins

AML,

https://en.wikipedia.org/wiki/Acute_myeloid

_leukemia#:~:text=Acute%20myeloid%20leuke

mia%20(AML)%20is,with%20normal%20blood%

20cell%20production.

Anti Money Laundering,

https://www.investopedia.com/terms/a/aml

.asp

Application Specific Integrated Circuit,

https://en.wikipedia.org/wiki/Applicationspecific_integrated_circuit

Arbitrage,

https://www.investopedia.com/terms/a/arbi

trage.asp#:~:text=Arbitrage%20is%20the%20pu

rchase%20and,markets%20or%20in%20differe

nt%20forms

ASIC,

https://en.wikipedia.org/wiki/Applicationspecific_integrated_circuit

ATH,

https://dictionary.cambridge.org/us/dictiona

ry/english/alltime#:~:text=An%20all%2Dtime%20high%2C%2

0low,reached%20an%20all%2Dtime%20low

Page 57


REFERENCES

ATL,

https://www.urbandictionary.com/define.ph

p?term=All%20time%20low

Atomic Swap,

https://www.investopedia.com/terms/a/ato

micswaps.asp#:~:text=An%20atomic%20swap%20i

s%20a,centralized%20intermediaries%2C%20s

uch%20as%20exchanges.&

text=For%20example%2C%20Lightning%20Lab

s%2C%20a,chain%20swaps%20using%20the%2

0technology.

Bag, https://medium.com/investment

Bear/Bearish,

https://medium.com/investment

Bear Trap,

https://www.investopedia.com/terms/b/be

artrap.asp#:~:text=A%20bear%20trap%20is%20

a,of%20a%20rising%20price%20trend.&text=Be

ar%20traps%20can%20tempt%20investors,not

%20end%20up%20taking%20place.

Bitcoin,

https://www.yourdictionary.com/bitcoin#:~:t

ext=noun,Internet%20site%20such%20as%20W

ikileaks.

Block,

https://techterms.com/definition/blockchain

#:~:text=A%20blockchain%20is%20a%20digital,

and%20have%20many%20other%20applicatio

ns.

Block Explorer,

https://marketbusinessnews.com/financialglossary/blockexplorer/#:~:text=A%20block%20explorer%20is%

20a,past%20transactions%20on%20the%20block

chain.&text=In%20other%20words%2C%20a%20bl

ock,of%20individual%20blocks%20and%20transa

ctions.

Block Height,

https://decryptionary.com/dictionary/blockheight/#:~:text=Block%20height%20is%20defi

ned%20as,creating%20permanent%2C%20sec

ure%20digital%20recordings.

Block Reward,

https://support.blockchain.com/hc/enus/articles/213276463-Bitcoin-Glossary

Blockchain,

https://support.blockchain.com/hc/enus/articles/213276463-Bitcoin-Glossary

BTFD,

https://www.cryptowisser.com/glossary/btd

-btfd-buy-the-fuckingdip/#:~:text=BTD%2FBTFD%20(Buy%20The%2

0(Fucking)%20Dip)&text=When%20you%20add

%20an%20F,price%20movement%20is%20only

%20temporary.

Bull/Bullish,

https://cryptotips.eu/en/knowledgebase/what-is-a-bull-market-or-a-bullrun/#:~:text=A%20bull%20run%20is%20a,and%

20the%20beginning%20of%202018.

Burned,

https://www.investopedia.com/tech/cryptoc

urrency-burning-can-it-manageinflation/#:~:text=Coin%20burning%20is%20th

e%20process,according%20to%20the%20Motl

ey%20Fool.

Buy the F$%king Dip,

https://nymag.com/intelligencer/2017/12/m

eaning-of-hodl-and-btfd-bitcoin-termsdefined.html

Page 58


REFERENCES

Buy Wall,

https://academy.binance.com/glossary/buy

-wall

CAP,

https://academy.binance.com/glossary/mar

ket-capitalization

Central Ledger,

https://medium.com/@shyamshankar/centr

alized-ledgers-vs-distributed-ledgers-

layman-understanding-

52449264ae23#:~:text=A%20centralized%20led

ger%20also%20known,financial%20value%20n

eeds%20a%20ledger.

Chain Linking,

https://gemini.com/learn/what-is-chainlinkand-how-does-it-work

Cipher, https://en.wikipedia.org/wiki/Cipher

Circulating Supply,

https://www.coingecko.com/en/glossary/ci

rculating-supply

Cold Storage,

https://en.bitcoin.it/wiki/Cold_storage

Confirmed,

https://en.bitcoin.it/wiki/Confirmation

Consensus,

https://www.investopedia.com/terms/c/con

sensus-mechanismcryptocurrency.asp#:~:text=A%20consensus%

20mechanism%20is%20a,systems%2C%20suc

h%20as%20with%20cryptocurrencies.

Consensus Process,

https://hackernoon.com/differentblockchain-consensus-mechanismsd19ea6c3bcd6

Consortium Blockchain,

https://openledger.info/insights/consortium

-

blockchains/#:~:text=The%20consortium%20b

lockchain%20is%20a,company%20and%20cros

s%2Ddiscipline%20solutions.

Cryptocurrency,

https://www.investopedia.com/terms/c/cry

ptocurrency.asp

Cryptographic Hash Function,

https://www.investopedia.com/news/crypto

graphic-hash-functions/

Cryptography,

https://www.investopedia.com/tech/explaini

ng-crypto-cryptocurrency/

DAO,

https://www.investopedia.com/tech/whatdao/

dApp,

https://www.investopedia.com/terms/d/de

centralized-applications-dapps.asp

Decentralized Application,

https://www.investopedia.com/terms/d/de

centralized-applicationsdapps.asp#:~:text=Decentralized%20applicatio

ns%20(dApps)%20are%20digital,control%20of

%20a%20single%20authority.

Decentrazed Autonomous Organization,

https://www.investopedia.com/tech/whatdao/

Decryption,

https://economictimes.indiatimes.com/defini

tion/decryption#:~:text=Definition%3A%20The

%20conversion%20of%20encrypted,a%20secr

et%20key%20or%20password.

Page 59


REFERENCES

Deflation,

https://en.bitcoin.it/wiki/Deflationary_spiral#

:~:text=Bitcoin%20is%20not%20affected%20by,

to%20a%20specific%20measure%2C%20declin

e.

Depth Chart,

https://hedgetrade.com/what-is-a-depthchart/

Deterministic Wallet,

https://www.investopedia.com/terms/h/hdwallet-hierarchical-deterministic-wallet.asp

Difficulty,

https://www.investopedia.com/terms/d/diff

iculty-cryptocurrencies.asp

Digital Commodity,

https://blockchain.news/search/digital%20c

ommodity#:~:text=A%20digital%20commodity

%20is%20a,for%20value%20among%20market

%20participants.

Digital Currency,

https://en.wikipedia.org/wiki/Digital_currenc

y#:~:text=In%20that%20case%2C%20digital%20

currency,a%20type%20of%20virtual%20curren

cy.

Digital Signature,

https://www.massmux.com/introduction-todigital-signature-in-bitcoin/

Distributed Ledger,

https://www.investopedia.com/terms/d/dist

ributedledgers.asp#:~:text=A%20distributed%20ledge

r%20is%20a,geographies%2C%20accessible%2

0by%20multiple%20people.&text=Underlying

%20distributed%20ledgers%20is%20the,that%2

0is%20used%20by%20bitcoin.

Double Spend,

https://www.investopedia.com/terms/d/do

ublespending.asp

Dump,

https://www.investopedia.com/terms/p/pu

mpanddump.asp

Dumping,

https://bitsgap.com/blog/cryptocurrencypump-and-dump-definition-how-does-itwork/

Dust Transaction,

https://www.investopedia.com/terms/b/bit

coindust.asp#:~:text=What%20Is%20Bitcoin%20Du

st%3F,limit%20of%20a%20valid%20transaction.

DYOR,

https://academy.binance.com/glossary/doyour-own-research

Encryption,

https://searchsecurity.techtarget.com/definit

ion/encryption#:~:text=Encryption%20is%20th

e%20method%20by,encrypted%20data%20is%

20called%20ciphertext.

ERC,

https://www.investopedia.com/news/whaterc20-and-what-does-it-mean-ethereum/

ERC-20,

https://www.investopedia.com/news/whaterc20-and-what-does-it-mean-ethereum/

Etherium,

https://www.investopedia.com/articles/investi

ng/031416/bitcoin-vs-ethereum-drivendifferentpurposes.asp#:~:text=Ethereum%3A%20An%20O

verview,token%20after%20bitcoin%20(BTC).&text

=Both%20of%20these%20tokens%20are,central%

20bank%20or%20other%20authority.

Page 60


REFERENCES

Etherium Virtual Machine,

https://www.bitrates.com/guides/ethereum

/what-is-the-unstoppable-worldcomputer#:~:text=The%20Ethereum%20Virtual

%20Machine%20(EVM,responsible%20for%20e

xecuting%20contract%20bytecode.&text=Ever

y%20node%20in%20the%20Ethereum,on%20e

xecuting%20the%20same%20instructions.

EVM,

https://www.bitrates.com/guides/ethereum

/what-is-the-unstoppable-worldcomputer#:~:text=The%20Ethereum%20Virtual

%20Machine%20(EVM,responsible%20for%20e

xecuting%20contract%20bytecode.&text=Ever

y%20node%20in%20the%20Ethereum,on%20e

xecuting%20the%20same%20instructions.

Exchange,

https://www.investopedia.com/terms/b/bit

coinexchange.asp#:~:text=A%20bitcoin%20exchan

ge%20is%20a,is%20either%20BTC%20or%20XB

T.

FA,

https://www.coindesk.com/bitcoin-tradersknow-fundamental-analysis

Faucet,

https://alpari.com/en/beginner/glossary/bit

coin-faucet/

Fiat,

https://cryptocurrencyfacts.com/thedifference-between-fiat-currency-andcryptocurrency/#:~:text=What%20is%20Fiat%2

0Currency%20and,not%20backed%20by%20a

%20government.

FOMO,

https://cryptocurrencyfacts.com/fud-andfomoexplained/#:~:text=FOMO%20describes%20th

e%20%E2%80%9CFear%20of,nor%20FOMO%2

0is%20your%20friend.

Fork,

https://www.investopedia.com/terms/h/har

d-fork.asp

Frictionless,

https://news.bitcoin.com/federal-reservesays-bitcoin-significant-friction/

FUD,

https://coinrivet.com/guides/what-is-acryptocurrency-exchange/what-isfud/#:~:text=FUD%20is%20a%20commonly%2

0used,or%20hold%20onto%20their%20coins.

Full Node,

https://en.bitcoin.it/wiki/Full_node

Fundamental Analysis,

https://www.coindesk.com/bitcoin-tradersknow-fundamental-analysis

Futures Contract,

https://news.bitcoin.com/futures-marketswhat-they-are-and-what-they-mean-forbitcoin/

GAS,

https://www.exodus.ioblog/what-is-gascoin//

Gas Limit,

https://academy.binance.com/glossary/gaslimit

Gas Price,

https://www.cryptowisser.com/glossary/gas

-price/

Page 61


REFERENCES

Genesis Block,

https://www.investopedia.com/terms/g/ge

nesisblock.asp#:~:text=Genesis%20Block%20is%20t

he%20name,other%20blocks%20in%20the%20

blockchain.

Group Mining,

https://www.investopedia.com/terms/b/bit

coin-mining.asp

Gwei,

https://www.investopedia.com/terms/g/gw

eiethereum.asp#:~:text=Gwei%20is%20short%20

for%20gigawei,ether%20is%20broken%20into%

20denominations.&text=1%20ether%20%3D%2

01%2C000%2C000%2C000%20gwei%20(10,1%

20gwei%20%3D%200.000000001%20ether.

Halving,

https://www.investopedia.com/bitcoinhalving-4843769

Hard Cap,

https://hedgetrade.com/what-is-a-hardcap-asset/

Hard Fork,

https://www.investopedia.com/terms/h/har

d-fork.asp

Hardware Wallet,

https://en.bitcoin.it/wiki/Hardware_wallet#:

~:text=A%20hardware%20wallet%20is%20a,of

%20the%20device%20in%20plaintext

Hash,

https://www.investopedia.com/terms/h/ha

sh.asp#:~:text=A%20hash%20is%20a%20functi

on,to%20blockchain%20management%20in%2

0cryptocurrency.

Hash Rate,

https://thenextweb.com/hardfork/2019/08/

05/ugh-this-is-what-bitcoins-hash-ratemeans-and-why-itmatters/#:~:text=Put%20simply%2C%20hash%

20rate%20is,power%20of%20the%20Bitcoin%2

0network.&text=Each%20of%20these%20hash

es%20is,complete%20this%20puzzle%20every

%20second.

Hasing Power,

https://thenextweb.com/hardfork/2019/08/

05/ugh-this-is-what-bitcoins-hash-ratemeans-and-why-it-matters/

HODL,

https://en.wikipedia.org/wiki/Hodl#:~:text=H

odl%20(%2F%CB%88h%C9%92d,cryptocurrenc

y%20rather%20than%20selling%20it.&text=Tho

ugh%20originally%20used%20in%20relation,h

olding%20other%20cryptocurrencies%20and%

20tokens.

ICO,

https://en.wikipedia.org/wiki/Initial_coin_off

ering#:~:text=An%20initial%20coin%20offering

%20ICO,type%20of%20funding%20using%20cr

yptocurrencies.&text=The%20tokens%20are%2

0promoted%20as,of%20capital%20for%20start

up%20companies.

Initial Coin Offering,

https://www.investopedia.com/terms/i/initialcoin-offeringico.asp#:~:text=An%20Initial%20Coin%20Offering

%20(ICO)%20is%20the%20cryptocurrency%20ind

ustry's%20equivalent,Initial%20Public%20Offerin

g%20(IPO).&text=Interested%20investors%20can

%20buy%20into,token%20issued%20by%20the%2

0company.

JOMO,

https://www.cryptowisser.com/glossary/jo

mo/

Page 62


REFERENCES

KYC,

https://academy.binance.com/glossary/kno

w-your-customer

LAMBO,

https://decryptionary.com/dictionary/lambo

/#:~:text=Are%20you%20new%20to%20crypto,

become%20rich%20from%20their%20investm

ents.

Ledger,

https://www.investopedia.com/tech/whatcryptocurrency-publicledger/#:~:text=A%20cryptocurrency%20publi

c%20ledger%20is,transactions%20executed%2

0between%20network%20participants.

Leverage,

https://tradesanta.com/blog/leveragebitcoin

Lightning Network,

https://www.investopedia.com/terms/l/light

ningnetwork.asp#:~:text=The%20lightning%20netw

ork%20is%20a,to%20conduct%20transactions

%20more%20efficiently.&text=The%20lightnin

g%20network%20can%20also,transactions%20

involving%20exchanges%20between%20crypt

ocurrencies.

Limit Order/Limit Buy/Limit Sell,

https://www.investopedia.com/terms/l/limi

torder.asp

Liquidity,

https://www.investopedia.com/articles/inve

sting/112914/liquiditybitcoins.asp#:~:text=The%20concept%20of%2

0liquidity%20has,influence%20the%20price%2

0of%20Bitcoin.&text=Liquidity%20thus%20me

ans%20that%20there,item%20is%20bought%2

0and%20sold.

Locktime,

https://en.bitcoin.it/wiki/Timelock#:~:text=Fr

om%20Bitcoin%20Wiki,channels%20and%20ha

shed%20timelock%20contracts.

Long,

https://www.investopedia.com/terms/l/lon

g.asp

MACD,

https://medium.com/neptuneinsights/understanding-cryptocurrencytrading-signals-macd-in-300-wordsb962bc100245#:~:text=MACD%20stands%20fo

r%20Moving%20Average,the%20direction%20

of%20the%20trend.

Margin Bear Position,

https://www.investopedia.com/terms/m/m

acd.asp

Margin Bull Position,

https://www.investopedia.com/terms/b/bul

lmarket.asp

Margin Trading,

https://coincentral.com/cryptocurrencymarketcapitalization/#:~:text=Market%20capitalizatio

n%20(market%20cap)%20simply,referred%20t

o%20as%20circulating%20supply

Market Order,

https://www.bitpanda.com/academy/en/les

sons/what-are-market-orders-limit-ordersstop-limit-orders/

MCAP,

https://questions.coincheckup.com/mcap/wha

t-is-mcapmcap/#:~:text=A%20brief%20description%20of%

20MCAP.&text=BGF%20is%20a%20cryptocurrenc

y%20exchange%20that%20offers%20maximum%

20security%20and,to%20Bitcoin%20or%20alt%20

coins.

Page 63


REFERENCES

Mining,

https://en.bitcoin.it/wiki/Mining#:~:text=Minin

g%20is%20the%20process%20of,necessary%2

0computations%20for%20%22mining%22.&text

=Bitcoin%20uses%20the%20hashcash%20proo

f%2Dof%2Dwork%20function

Mining Contact,

https://www.lawinsider.com/dictionary/mini

ngcontracts#:~:text=Mining%20Contracts%20me

ans%20any%20of,venture%20agreements%2C

%20development%20agreements%2C%20ope

rating

Mining Pool,

https://www.investopedia.com/terms/m/mi

ning-pool.asp

Money Services Business,

https://www.lathropgpm.com/newsletter-

240.html

Moon,

https://www.businessinsider.com/cryptocur

rency-bitcoin-slang-explained-2018-4#tothe-moon-2

Moving Average Convergence Divergence,

https://www.investopedia.com/terms/m/m

acd.asp

MSB,

https://soseilaw.com/bitcoin/the-businessof-bitcoin-is-your-cryptocurrency-businessanmsb/#:~:text=Money%20Services%20Busines

ses%20(%E2%80%9CMSBs%E2%80%9D,2000%

2C%20c.&text=Issuing%20or%20redeeming%2

0money%20orders,a%20named%20person%2

0or%20entity.

Multipool Mining,

https://hedgetrade.com/what-is-multipoolmining/

Multi Signature Wallets,

https://en.bitcoin.it/wiki/Multisignature#:~:te

xt=Multisignature%20(multisig)%20refers%20to

%20requiring,of%20bitcoins%20among%20mul

tiple%20people.

Network,

https://en.wikipedia.org/wiki/Bitcoin_networ

k#:~:text=The%20bitcoin%20network%20is%20

a,operates%20on%20a%20cryptographic%20p

rotocol.&text=The%20network%20requires%20

minimal%20structure,rejoin%20the%20networ

k%20at%20will.

Node,

https://www.bitpanda.com/academy/en/les

sons/what-is-a-bitcoinnode#:~:text=A%20node%20is%20a%20compu

ter,keeping%20a%20cryptocurrency%20netwo

rk%20running

Nonce,

https://www.investopedia.com/terms/n/no

nce.asp#:~:text=A%20nonce%20is%20an%20ab

breviation,blockchain%20miners%20are%20sol

ving%20for.

OCO,

https://academy.binance.com/glossary/one

-cancels-the-other-order

One Cancels the Other Order,

https://academy.binance.com/glossary/onecancels-the-other-order

Oracles,

https://academy.binance.com/blockchain/bloc

kchain-oraclesexplained#:~:text=Blockchain%20oracles%20are

%20third%2Dparty,blockchains%20and%20the%2

0outside%20world.&text=The%20data%20transm

itted%20by%20oracles,temperature%20measure

d%20by%20a%20sensor.

Page 64


REFERENCES

Overbhought,

https://www.investopedia.com/terms/o/ove

rbought.asp

Oversold,

https://www.investopedia.com/terms/o/ove

rsold.asp#:~:text=The%20term%20oversold%2

0refers%20to,identify%20oversold%20and%20

overbought%20levels.

Paperwallet,

https://en.bitcoin.it/wiki/Paper_wallet

P2P,

https://www.investopedia.com/terms/p/pe

ertopeer-p2p-service.asp

PND,

https://cryptocurrencyfacts.com/a-quickguide-to-cryptocurrencyterms/#:~:text=Pump%20and%20Dump%20(P

ND)%3A,why%2C%20don't%20buy.

Pre-Sale,

https://www.investopedia.com/terms/i/initi

al-coin-offeringico.asp#:~:text=An%20Initial%20Coin%20Offeri

ng%20(ICO)%20is%20the%20cryptocurrency%

20industry's%20equivalent,Initial%20Public%2

0Offering%20(IPO).&text=Interested%20invest

ors%20can%20buy%20into,token%20issued%2

0by%20the%20company.

Private Key,

https://www.investopedia.com/terms/p/pri

vate-key.asp

Proof of Authority,

https://academy.binance.com/blockchain/p

roof-of-authority-explained

Proff of Stake,

https://www.investopedia.com/terms/p/pro

of-stakepos.asp#:~:text=Proof%20of%20Stake%20(PoS)

%20concept,power%20he%20or%20she%20ha

s.

Proof of Work,

https://www.investopedia.com/terms/p/pro

of-stakepos.asp#:~:text=Proof%20of%20Stake%20(PoS)

%20concept,power%20he%20or%20she%20ha

s.

Protocols,

https://blog.liquid.com/what-are-protocolsand-why-are-they-important

Public Blockchain,

https://www.investopedia.com/terms/p/per

missioned-blockchains.asp

Public Key,

https://getbitcoinclarity.com/blog/2020/05

/16/what-is-a-bitcoin-private-key

Pump,

https://steemit.com/bitcoin/@tonylondon/h

ow-bitcoin-pumps-and-dumps-work

Pump and Dump,

https://www.investopedia.com/terms/p/pu

mpanddump.asp

REKT,

https://decryptionary.com/dictionary/rekt/#

:~:text=Rekt%20is%20defined%20as%20compl

etely,loses%20a%20lot%20of%20money.

Relative Stregth Index,

https://www.investopedia.com/terms/r/rsi.a

sp

Page 65


REFERENCES

Ring Signature,

https://en.wikipedia.org/wiki/Ring_signature

#:~:text=In%20cryptography%2C%20a%20ring%

20signature,a%20particular%20group%20of%2

0people.

RSI,

https://www.investopedia.com/terms/r/rsi.a

sp

Satoshi Nakamoto,

https://www.investopedia.com/terms/s/sat

oshi-nakamoto.asp

SATS,

https://www.investopedia.com/terms/s/sat

oshi.asp

Scrypt,

https://www.coingecko.com/en/glossary/s

crypt#:~:text=By%20CoinGecko%20%7C%20U

pdated%20on%20Mar,requiring%20large%20a

mounts%20of%20memory

Seed,

https://en.bitcoinwiki.org/wiki/Mnemonic_p

hrase

Segregated Witness,

https://www.investopedia.com/terms/s/se

gwit-segregatedwitness.asp#:~:text=SegWit%20is%20the%20p

rocess%20by,signature%20data%20from%20B

itcoin%20transactions.&text=Hence%2C%20Se

gregated%20Witness%2C%20in%20short,mea

ns%20to%20separate%20transaction%20signa

tures.

SEGWIT,

https://cointelegraph.com/explained/segwi

t-explained

Slfish Mining,

https://www.researchgate.net/publication/3

35636112_Analysis_of_Blockchain_Selfish_Min

ing_Attacks

Sell Wall,

https://academy.binance.com/en/glossary/

sell-wall

SHA-256,

https://support.google.com/googleads/answer/9004655?hl=en

Sharding,

https://chainbulletin.com/shardingexplained-in-simple-terms/

Shit Coin,

https://privacypros.io/btc-faq/shitcoins

Short,

https://99bitcoins.com/short-sell-bitcoin/

Smart Contracts,

https://www.investopedia.com/terms/s/sm

artcontracts.asp#:~:text=What%20Is%20a%20Sma

rt%20Contract,a%20distributed%2C%20decent

ralized%20blockchain%20network.

Soft Fork,

https://www.investopedia.com/terms/s/soft

-

fork.asp#:~:text=In%20terms%20of%20blockch

ain%20technology,soft%20fork%20is%20back

ward%2Dcompatible.

Software Wallet,

https://www.investopedia.com/terms/b/bit

coin-wallet.asp

Solidity,

https://en.wikipedia.org/wiki/Solidity

Page 66


REFERENCES

TA,

https://www.investopedia.com/terms/t/tec

hnicalanalysis.asp

Technical Annalysis,

https://www.investopedia.com/terms/t/tec

hnicalanalysis.asp

Test Net,

https://en.bitcoin.it/wiki/Testnet

Timestamp,

https://en.bitcoin.it/wiki/Block_timestamp

Token,

https://www.investopedia.com/terms/c/cry

ptotoken.asp#:~:text=Understanding%20Crypto%

20Tokens,a%20substitute%20for%20other%20

things.

Tokenless Ledger,

https://www.ico.li/glossary/tokenlessledger/

TOR,

https://www.investopedia.com/terms/t/tor.

asp

Transaction,

https://en.bitcoin.it/wiki/Transaction#:~:text=

An%20transaction%20is%20a%20transfer,netw

ork%20and%20collected%20into%20blocks.&t

ext=Standard%20transaction%20outputs%20n

ominate%20addresses,viewed%20with%20a%

20hex%20editor.

Transaction Fee,

https://www.cloudbet.com/en/blog/bitcoin

-101/8522-what-are-bitcoin-transactionfees/#:~:text=A%20bitcoin%20transaction%20f

ee%20is,through%20a%20process%20called%

20mining.

Turning Completeness,

https://academy.binance.com/en/glossary/

turing-complete

Unconfirmed,

https://wirexapp.com/help/article/why-ismy-crypto-transaction-unconfirmed-0061

Unspent Transaction Output,

https://www.investopedia.com/terms/u/utx

o.asp

UTXO,

https://hedgetrade.com/what-is-unspenttransaction-output/

Volatility,

https://www.investopedia.com/articles/inve

sting/052014/why-bitcoins-value-sovolatile.asp

Wallet,

https://www.investopedia.com/terms/b/bit

coinwallet.asp#:~:text=What%20Is%20a%20Bitcoin

%20Wallet,Bitcoin%20address%20of%20that%

20wallet

Wale,

https://www.investopedia.com/terms/b/bit

coinwhale.asp#:~:text=A%20bitcoin%20whale%20is

%20a,to%20manipulate%20the%20currency%2

0valuations.

Whitelist,

https://academy.binance.com/en/glossary/

whitelist

White Paper,

https://www.bitcoin.com/getstarted/bitcoin-white-paper-beginner-guide/

Page 67


REFERENCES

Zero Confirmation Transaction,

https://decryptionary.com/dictionary/zeroconfirmationtransaction/#:~:text=A%20zero%20confirmatio

n%20transaction%20is,and%20delivers%20wha

t%20was%20sold.&text=In%20a%20big%20bloc

kchain%20like%20bitcoin%2C%20that's%20incr

edibly%20expensive%20and%20difficult.

AUR - Auroracoin,

https://www.investopedia.com/terms/a/aur

oracoin.asp#:~:text=Auroracoin%20is%20a%20

peer%2Dto,transfers%20in%20the%20local%20

economy.

BCC - BitConnect (inactive),

https://en.wikipedia.org/wiki/Bitconnect

BCH - Bitcoin Cash,

https://www.investopedia.com/terms/b/bit

coincash.asp#:~:text=Bitcoin%20cash%20is%20a%2

0cryptocurrency,more%20transactions%20to

%20be%20processed.&text=Bitcoin%20Cash%

20is%20referred%20to,the%20original%20Bitc

oin%20Cash%20client.

BTC or XBT - Bitcoin -

https://support.kraken.com/hc/enus/articles/360001206766-Bitcoin-currencycode-XBT-vs-

BTC#:~:text=%22XBT%22%20is%20a%20new%2

0abbreviation,list%20of%20internationally%20

recognized%20currencies.

DASH - Dash,

https://www.investopedia.com/terms/d/da

sh.asp#:~:text=Dash%20(formerly%20Darkcoin

)%20is%20a,in%20the%20markets%20is%20DA

SH.

DOGE or XDG - Dogecoin ,

https://en.wikipedia.org/wiki/Dogecoin

EOS - EOS.IO,

https://www.kraken.com/learn/what-iseosio

ETC - Ethereum Classic,

https://en.wikipedia.org/wiki/Ethereum_Clas

sic

ETH - Ether (also known as Ethereum),

https://en.wikipedia.org/wiki/Ethereum

GRC - Gridcoin,

https://en.wikipedia.org/wiki/Gridcoin

LTC - Litecoin,

https://en.wikipedia.org/wiki/Litecoin

KOI or COYE - Coinye (inactive),

https://en.wikipedia.org/wiki/Coinye

MZC - Mazacoin,

https://en.bitcoinwiki.org/wiki/MazaCoin#:~:t

ext=MazaCoin%20(MZC)%20is%20a%20decent

ralised,from%20Zetacoin%20in%20March%202

014.&text=The%20cryptocurrency%20uses%20

the%20proof,million%20coins%20per%20year

%20thereafter.

Nano - Nano,

https://www.kraken.com/learn/what-isnano#:~:text=Nano%20is%20a%20software%20

designed%20to%20facilitate%20fee%2Dfree%2

0cryptocurrency%20transactions.&text=When

%20transactions%20are%20made%2C%20Nan

o,on%20the%20main%20Nano%20blockchain

NEO - Neo,

https://www.investopedia.com/tech/chinaneocryptocurrency/#:~:text=The%20NEO%20platfor

m%20allows%20for,and%20are%20protected%20

by%20law.&text=NEO%20supports%20two%20cr

ypto%20coins%2C%20NEO%20and%20GAS.

Page 68


REFERENCES

NMC - Namecoin

https://alpari.com/en/beginner/glossary/na

mecoin/#:~:text=Namecoin%20was%20the%2

0second%20decentralised,which%20are%20a

dministered%20by%20ICANN).

Nxt - NXT,

https://en.wikipedia.org/wiki/Nxt#:~:text=Nxt

%20is%20an%20open%20source,%2C%20unlik

e%20bitcoin%2C%20no%20mining.

POT - PotCoin,

https://www.investopedia.com/terms/p/po

tcoin.asp#:~:text=What%20Is%20Potcoin%20Di

gital%20Currency,the%20burgeoning%20legal

%20cannabis%20industry.

PPC - Peercoin,

https://www.investopedia.com/terms/p/pe

ercoin.asp#:~:text=DEFINITION%20of%20Peer

coin,in%20terms%20of%20market%20capitali

zation.

TIT - Titcoin

https://en.wikipedia.org/wiki/Titcoin#:~:text=

Titcoin%20(Ticker%20Symbol%3A%20TIT),unit

s%20while%20simultaneously%20processing

%20transactions.

USDC - USD Coin (stablecoin),

https://cryptonews.com/coins/usdcoin/#:~:text=USD%20Coin%20(USDC)%20is%

20a,pegged%20to%20the%20US%20dollar.&te

xt=USDC%20is%20an%20alternative%20to,the

%20internet%20and%20public%20blockchains

.

USDT - Tether,

https://www.investopedia.com/terms/t/teth

erusdt.asp#:~:text=DEFINITION%20of%20Tether

%20(USDT),in%20a%20designated%20bank%2

0account.

VTC - Vertcoin,

https://blog.coinpayments.net/coinspotlight/vertcoin

XEM - NEM,

https://www.bitdegree.org/crypto/tutorials/

nem-price-prediction

XLM - Stellar,

https://personalfinancial.com/2020/08/21/what-is-stellarlumens-xlm-cryptocurrencies/

XMR - Monero,

https://en.wikipedia.org/wiki/Monero_(crypt

ocurrency)

XPM - Primecoin,

https://primecoin.io/

XRP - Ripple,

https://www.investopedia.com/tech/whatsdifference-between-bitcoin-and-ripple/

XVG - Verge,

https://www.investopedia.com/terms/v/ver

ge-xvg-cryptocurrency.asp

ZEC - Zcash,

https://www.investopedia.com/terms/z/zca

sh.asp

BIP - Bitcoin Improvement Proposal,

https://bitcoinmagazine.com/what-isbitcoin/what-is-a-bitcoin-improvementproposalbip#:~:text=A%20Bitcoin%20Improvement%20

Proposal%20(BIP)%20is%20a%20standard%20f

or%20proposing,information%20for%20the%20

Bitcoin%20community.

BTM - Automatic Teller Machine for Bitcoin,

https://en.wikipedia.org/wiki/Bitcoin_ATM

Page 69


REFERENCES

DAO – Decentralized Autonomous

Organization,

https://www.investopedia.com/tech/whatdao/

DPoS – Delegated Proof of Stake,

https://www.benzinga.com/money/delegat

ed-proof-of-stake

EEA - Enterprise Ethereum Alliance,

https://en.wikipedia.org/wiki/Ethereum

EIP - Ethereum Improvement Proposal,

https://www.cryptowisser.com/glossary/ei

p-ethereum-improvement-proposal/

ERC – Ethereum Request for Comments,

https://www.meetbunch.com/terms/erc-20

EVM – Ethereum Virtual Machine,

https://en.wikipedia.org/wiki/Ethereum

FA - Fundamental Analysis,

https://www.cryptocointrade.com/cryptotrading-blog/crypto-fundamental-analysis/

LN – Lightning Network,

https://www.investopedia.com/terms/l/light

ning-network.asp

MACD - Moving Average Convergence

Divergence,

https://www.investopedia.com/terms/m/m

acd.asp

MoE – Medium of Exchange,

https://www.investopedia.com/terms/m/m

ediumofexchange.asp

P2P – Peer to Peer,

https://www.investopedia.com/terms/b/bit

coin.asp

PoA – Proof of Authority,

https://www.coinhouse.com/coinhouseacademy/blockchain/what-is-proof-ofauthority/#:~:text=The%20Proof%2DOf%2DAut

hority%20(,more%20or%20less%20distributed

%20registry

PoB - Proof of Burn,

https://www.investopedia.com/terms/p/pro

of-burncryptocurrency.asp#:~:text=Proof%20of%20bur

n%20(POB)%20is,%E2%80%9Cburn%E2%80%9

D%20virtual%20currency%20tokens

PoD - Proof of Developer,

https://www.coingecko.com/en/glossary/pr

oof-of-developer-pod

PoS – Proof of Stake,

https://en.wikipedia.org/wiki/Proof_of_stake

#:~:text=Proof%20of%20stake%20(PoS)%20is,

(i.e.%2C%20the%20stake).

PoW – Proof of Work,

https://www.investopedia.com/terms/p/pro

of-work.asp

SC – Smart Contract,

https://en.wikipedia.org/wiki/Smart_contract

SegWit – Segregated Witness,

https://www.investopedia.com/terms/s/segwi

t-segregated-witness.asp

SoV – Store of value,

https://www.investopedia.com/ask/answers/1

00314/why-do-bitcoins-have-value.asp

TA - Technical Analysis or Trend Analysis,

https://www.investopedia.com/terms/t/tec

hnicalanalysis.asp

Page 70


REFERENCES

UoA – Unit of Account,

https://www.google.com/search?

rlz=1C1NDCM_enPH833PH834&sxsrf=ALeKk01

mTVVJ_bhOsiFS0UDbYchYBDg_qQ%3A1602

600223031&ei=H72FX4HAAdWWr7wPj7WtkA

w&q=Unit+of+Account+definition+in+blockchai

n&oq=Unit+of+Account+definition+in+blockchai

n&gs_lcp=CgZwc3ktYWIQA1AAWABg9AFoA

HAAeACAAQCIAQCSAQCYAQCqAQdnd3Mtd

2l6&sclient=psyab&ved=0ahUKEwjBy4qI57HsAhVVy4sBHY9a

C8IQ4dUDCA0&uact=5

UTC - Coordinated Universal Time,

https://en.wikipedia.org/wiki/Coordinated_

Universal_Time#:~:text=Coordinated%20Univ

ersal%20Time%20(or%20UTC,Greenwich%20

Mean%20Time%20(GMT).

WP – Whitepaper,

https://www.investopedia.com/terms/b/bit

coin.asp

YTD - Year to Date,

https://www.investopedia.com/terms/b/bit

coin.asp

2FA – Two Factor Authentication,

https://www.investopedia.com/terms/t/two

factor-authentication-

2fa.asphttps://www.investopedia.com/terms

/m/macd.asp

Addy - Address

https://en.bitcoin.it/wiki/Address#:~:text=A%

20Bitcoin%20address%2C%20or%20simply,de

stination%20for%20a%20bitcoin%20payment.&

text=It%20is%20also%20possible%20to,exchan

ge%20or%20online%20wallet%20service.

API - Application Programming Interface,

https://www.investopedia.com/terms/a/app

lication-programming-interface.asp

ASIC – Application Specific Integrated

Circuit,

https://en.bitcoin.it/wiki/ASIC

BFA - Brute Force Attack,

https://en.wikipedia.org/wiki/Bruteforce_attack

Bech32 - Bitcoin address format (also

known as bc1 addresses),

https://en.bitcoinwiki.org/wiki/Bitcoin_addre

ss

CPU – Central Processing Unit,

https://www.investopedia.com/tech/gpucryptocurrencymining/#:~:text=GPU%20vs.-,CPU,software%2

0installed%20on%20the%20computer.

BFT – Byzantine Fault Tolerance,

https://en.wikipedia.org/wiki/Byzantine_fault

DAG – Directed Acyclic Graph,

https://academy.binance.com/en/articles/w

hat-is-a-directed-acyclic-graph-dag-incryptocurrency

DAPP or dApp – Decentralized Application,

https://www.investopedia.com/terms/d/de

centralized-applicationsdapps.asp#:~:text=Decentralized%20applicatio

ns%20(dApps)%20are%20digital,control%20of

%20a%20single%20authority.

DDoS – Distributed Denial of Service,

https://www.cloudflare.com/learning/ddos/

what-is-a-ddos-attack/

DEVCON - Developers,

Conferencehttps://tmt.knect365.com/iotworld/developer-conference/

Page 71


REFERENCES

GPU – Graphical Processing Unit,

https://www.investopedia.com/tech/gpucryptocurrencymining/#:~:text=A%20GPU%2C%20or%20graph

ics%20processing,to%20their%20speed%20an

d%20efficiency.

IPFS – Interplanetary Files System,

https://en.wikipedia.org/wiki/InterPlanetary

_File_System#:~:text=The%20InterPlanetary%

20File%20System%20(IPFS,in%20a%20distribu

ted%20file%20system.&text=IPFS%20allows%

20users%20to%20not,a%20similar%20manner

%20to%20BitTorrent.

PKI – Public Key Infrastructure,

https://www.investopedia.com/terms/p/pu

blic-key.asp

Multi-sig - Multi-Signature,

https://en.wikipedia.org/wiki/Multisignature

NONCE – Number Used Only Once,

https://www.investopedia.com/terms/n/no

nce.asp#:~:text=A%20nonce%20is%20an%20ab

breviation,meets%20the%20difficulty%20level

%20restrictions.&text=When%20the%20solutio

n%20is%20found,are%20offered%20cryptocurr

ency%20in%20exchange.

SHA-256 - Secure Hash Acronym (256-bit),

https://www.coingecko.com/en/glossary/s

ha-256

WWDC - Worldwide Developers

Conference,

https://en.wikipedia.org/wiki/Apple_Worldw

ide_Developers_Conference

AML - Anti-Money Laundering,

https://www.investopedia.com/terms/a/aml

.asp

ATH - All-Time High,

https://academy.binance.com/en/glossary/

all-time-high

ATL - All-Time Low, Source:

https://www.coingecko.com/en/glossary/al

l-time-low-atl

ALT or Altcoin – Alternative Cryptocurrency

(cryptocurrency other than Bitcoin),

https://www.investopedia.com/terms/a/altc

oin.asp#:~:text=Altcoins%20are%20the%20othe

r%20cryptocurrencies,all%20cryptocurrencies

%20other%20than%20Bitcoin.

CEX – Centralized Exchange,

https://www.investopedia.com/terms/c/cen

tralizedmarket.asp#:~:text=A%20centralized%2

0market%20is%20a,or%20sell%20the%20speci

fic%20asset.

CMC - Coinmarketcap,

https://coinmarketcap.com/about/

DAICO - Decentralized Autonomous Initial

Coin Offering,

https://www.investopedia.com/tech/whatdao/

DCA - Dollar Cost Averaging,

https://www.investopedia.com/terms/d/dol

larcostaveraging.asp

DeFi - Decentralized Finance,

https://en.wikipedia.org/wiki/Decentralized_

finance

DEX – Decentralized Exchange,

https://en.wikipedia.org/wiki/Decentralized_

exchange

DLT - Distributed Ledger Technology,

https://www.investopedia.com/terms/d/dist

ributed-ledgers.asp

Page 72


REFERENCES

ERC-20 - Token standard for Ethereum,

https://www.investopedia.com/news/whaterc20-and-what-does-it-mean-ethereum/

ERC-721 - Token standard for NFT (nonfungible

tokens),

https://education.district0x.io/general-

topics/understanding-ethereum/erc-721-

tokens/

ETF - Exchange-Traded Fund,

https://en.wikipedia.org/wiki/Exchangetraded_fund

ETP – Exchange-Traded Product,

https://www.investopedia.com/terms/e/exc

hange-traded-products-etp.asp

FIAT – Conventional government-issued

currency (e.g. US Dollar, Euro),

https://www.investopedia.com/terms/f/fiat

money.asp

IBO - Initial Bounty Offering,

https://www.cryptowisser.com/glossary/ibo

-initial-bountyoffering/#:~:text=A%20Bounty%20is%20a%20s

um,of%20time%20%E2%80%93%20perform%2

0certain%20tasks.

ICO – Initial Coin Offering,

https://www.investopedia.com/terms/i/initi

al-coin-offering-ico.asp

ITO – Initial Token Offering,

https://en.wikipedia.org/wiki/Initial_coin_off

ering

mBTC - Millibitcoin (0.001 BTC),

https://decryptionary.com/dictionary/millibit

coin/

MCAP – Market Capitalization,

https://www.investopedia.com/terms/m/m

arketcapitalization.asp

PnD – Pump-and-Dump scheme,

https://www.investopedia.com/terms/p/pu

mpanddump.asp#:~:text=Pump%2Dand%2Ddu

mp%20is%20a,to%20a%20higher%20share%20

price.

OTC – Over the Counter,

https://www.investopedia.com/terms/o/otc.

asp

SATS – Satoshis (the smallest denomination

of a Bitcoin: 0.00000001 BTC),

https://www.investopedia.com/terms/s/sat

oshi.asp#:~:text=A%20satoshi%20is%20the%20

smallest,bitcoin%2C%20known%20as%20Sato

shi%20Nakamoto.

STO – Securities Token Offering,

https://en.wikipedia.org/wiki/Security_token

_offering#:~:text=A%20security%20token%20of

fering%20(STO,exchanges%2C%20or%20secur

ity%20token%20exchanges.

TPS – Transactions Per Second,

https://en.wikipedia.org/wiki/Transactions_p

er_second#:~:text=In%20a%20more%20restrict

ed%20view,network%20running%20the%20Bit

coin%20blockchain.

Tx – Transaction,

https://en.bitcoin.it/wiki/Transaction

TxID – Transaction Identification,

https://blog.bitcoin.com/how-to-find-anybitcoin-transaction-on-the-blockchain/

uBTC - MicroBitcoin (0.000001 BTC),

https://decryptionary.com/dictionary/micro

bitcoin/

Page 73


REFERENCES

UXTO - Unspent Transaction,

https://www.investopedia.com/terms/u/utx

o.asp#:~:text=The%20term%20UTXO%20refers

%20to,used%20to%20balance%20the%20ledg

er.

BUIDL – “Build” (purposeful misspelling for

ironic meaning),

https://academy.binance.com/en/glossary/

buidl

FOMO – Fear of Missing Out,

https://cryptocurrencyfacts.com/fud-andfomo-explained/

HODL – Hold On for Dear Life (purposeful

misspelling of “HOLD"),

https://www.investopedia.com/terms/h/ho

dl.asp

BTD or BTFD – Buy The Dip or Buy the F******

Dip,

https://www.cryptowisser.com/glossary/btd

-btfd-buy-the-fuckingdip/#:~:text=BTD%2FBTFD%20(Buy%20The%2

0(Fucking)%20Dip)&text=When%20you%20add

%20an%20F,price%20movement%20is%20only

%20temporary.

DYOR – Do Your Own Research,

https://academy.binance.com/en/glossary/

do-your-ownresearch#:~:text=DYOR%20stands%20for%20D

o%20Your,and%20easily%20misinformation%2

0can%20spread.

FUD – Fear, Uncertainty, Doubt,

https://coinrivet.com/guides/what-is-acryptocurrency-exchange/what-isfud/#:~:text=Introduction,or%20hold%20onto%

20their%20coins

FUDster - A person who spreads Fear,

Uncertainty, and Doubt,

https://decryptionary.com/dictionary/fudste

r/#:~:text=Are%20you%20new%20to%20crypto

,doubt%20and%20other%20negative%20emoti

ons.

ELI5 - Explain It Like I’m 5,

https://www.dictionary.com/e/slang/eli5/#:

~:text=ELI5%20stands%20for%20the%20phrase

,naive%20understanding%20of%20the%20issu

e.

JOMO - Joy of Missing Out,

https://www.dictionary.com/browse/jomo#:

~:text=JOMO%20is%20an%20acronym%20for,

media%E2%80%93to%20enjoy%20personal%2

0time.

KYC - Know Your Customer,

https://www.investopedia.com/news/whynew-know-your-customer-project-crucialblockchain/#:~:text=Updated%20Jun%2025%2

C%202019,being%20tested%20for%20KYC%20

use.

Lambo - Lamborghini (cryptocurrency term

for getting rich),

https://www.cryptoemotions.com/lambomeaning-in-crypto/

TLT - Think Long Term,

https://decryptionary.com/dictionary/tlt-2/

OCO - One Cancels the Other,

https://academy.binance.com/en/glossary/

one-cancels-the-otherorder#:~:text=A%20%22One%20Cancels%20th

e%20Other,one%20will%20be%20automaticall

y%20canceled.

AMA - Ask Me Anything,

https://www.coingecko.com/en/glossary/as

k-me-anything-ama

Page 74


REFERENCES

REKT - “Wrecked” (meaning major losses),

https://academy.binance.com/en/glossary/

rekt

TOR - The Onion Router (one who sends

anonymous data),

https://www.investopedia.com/terms/t/tor.

asp

CT - Crypto Twitter,

https://www.urbandictionary.com/define.ph

p?term=cryptotwitter

SEC – Securities and Exchange Commission,

https://www.investopedia.com/terms/s/sec.

asp

FTC – Federal Trade Commission,

https://en.wikipedia.org/wiki/Federal_Trade

_Commission

CFTC – Commodity Futures Trading

Commission,

https://en.wikipedia.org/wiki/Commodity_Fu

tures_Trading_Commission

FDIC – Federal Deposit Insurance

Corporation,

https://en.wikipedia.org/wiki/Federal_Depos

it_Insurance_Corporation

DOJ – Department of Justice,

https://en.wikipedia.org/wiki/United_States_

Department_of_Justice

Page 75


BITCOIN

FOR

BEGINNERS

w w w . D r J C a r e s . c o m

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