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At some point in your journey into the cryptoverse, you will need to be familiar with cryptoese, the commonly new words and phrases that describe the world of cryptocurrency. Below is a list — although not complete, a list of many of these words is below. Some are not unique to crypto but are investment terms that apply to crypto investors. You will see (ci) listed beside these words.
In keeping with the article format, Cryptoese will be divided into five installments, and this is the fourth. Some definitions offer more explanation than others because some words or phrases need more explanation.
MFA = (ci) Multi-Factor Authentication, an authentication method of verifying a user
2FA = (ci) Two-factor Authentication, which uses two steps to verify a user
Mining
People who process the transactions are called miners. They are a decentralized authority that enforces the credibility of the coin. Mining is an incredibly complex computer program that solves a mathematical equation. In exchange for solving the equation, the miner is paid a predetermined amount of crypto.
NFT = Non-Fungible Token, a block of data stored on a blockchain that is not interchangeable
NFT (non-fungible token) Non-fungible token or NFT is one of the newest kids-on-the-crypto-block. NFTs are non-interchangeable units of data stored on a blockchain. Think of it as a digital ledger that can be bought, sold, or traded. Fungibility is an economic term meaning interchangeable. A digital piece of art is not interchangeable with another piece of art; therefore, non-fungible.
On-chain, off-chain
The growing challenges with on-chain transactions are speed and cost. Vast amounts of data must be processed in a short time; in some cases, up to 12-seconds. In a world where nano-seconds matter, this amount of time is like stepping back into the dark ages while fees cut into profit. The expansion of the blockchain today creates a variety of business ventures, like NFTs, Metaverses, and gaming, increasing the amount of time needed to validate transactions — all on the blockchain. Off-chain is a validation method before the data is transferred to the blockchain, thus cutting time and cost.
OpSec = Operational Security, a process that identifies critical information to determine its action
Proof-of-work = PoW, cryptographic (encrypted data) proof that verifies that a specific transaction has taken place
Proof-of-stake= PoS is a consensus mechanism used to validate blockchain transactions based on the miner’s number of coins. A random selection process determines which miner is allowed to validate the data.
The cryptoverse is for you. Follow along as I learn; maybe you, too, will learn; and perhaps, together, we can explore the cryptoverse.
Disclaimer: I am an avid student of all things crypto. The cryptoverse caught my attention when COVID-19 captured the world and locked down the global economy. Since then, I have dedicated a portion of my time to learning about this currency — the currency of the future — and international business. As a writer, I have determined to journal my discoveries. I have chosen to write them in short, bite-sized articles to help anyone interested in learning about this space. These articles are not written in cryptoese or investments but are easy-to-understand articles. I am not offering advice, simply the information I discovered on my unexpected journey into the cryptoverse. There could be something for the seasoned investor to glean from reading, but my focus is on the crypto-curious.
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