Common Cryptocurrency Terms
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Here at ShapeShift, we oftentimes receive questions about the digital asset world and its many nuances. This list of definitions can help you bitcoin blockchain explorer cryptocurrency mining programs dogecoin blockchain fork all of the words you may run into on a daily basis. There is a lot to learn if you are new to digital assets, but ShapeShift is here to help you every step of the way.
An address is an alphanumeric string of letters and numbers that is unique to a wallet. It is what is used to route digital assets across the network to a particular destination.
Different coins have unique address formats. New tokens are sometimes given to a number of users that have assets on a particular blockchain, whether it be NXT or BTC. Algorithms solve problems using calculations and data processing.
Most modern software depends on functioning algorithms. Cryptocurrencies that came to be after Bitcoin was created are referred to as altcoins.
They are created specifically for a certain use rather than to be multi-use. ASIC miners work best for mining digital assets. The first internationally renowned digital payment network and protocol. The first internationally renowned digital asset. Block explorers display transactions on the blockchain. Some common block explorers include: The block height is the number of blocks separating the current block and the genesis block.
Cold storage is any kind of cryptocurrency storage that is not online at all times. There are two types of wallets that may be considered cold storage: Confirmations are necessary for a successful transaction. The number of confirmations is based on the number of times that the network has accepted the transaction. The more confirmations, the more likely the transaction is to be legitimate. If there are only a few confirmations, the likelihood of bitcoin blockchain explorer cryptocurrency mining programs dogecoin blockchain fork being double-spent increases.
A contract address is an address that utilizes a smart contract. This is specific to Ethereum and ERC tokens. These organizations are utilized through smart contracts. A decentralized exchange supports the trading of decentralized currencies, aka digital assets. A bitcoin blockchain explorer cryptocurrency mining programs dogecoin blockchain fork address is where someone deposits their digital assets.
If you are using ShapeShift, you will need to send your digital assets to the deposit address before receiving the asset you desire. Destination tags are a short numeric string specific to Ripple XRP. Most Ripple wallets will require a destination tag for the funds to be routed to the correct recipient. Public-key cryptography sometimes uses data storage based on the algebra behind elliptic curves. This is because this type of data storage detects common corruption issues.
An ERC token piggybacks off of the Ethereum network, but for an ERC token to be accepted, the token must meet a certain set of rules. The Ethereum network supports ethereum, a cryptocurrency that hopes to fully decentralize transactions.
An exchange is any service that allows someone to trade one digital asset for another. A fork is when a digital asset splits into two different cryptocurrencies. This refers to how much their investment has earned them since they originally invested.
If a transaction does not have enough gas, it may not confirm. GPUs are also used to mine digital assets, as they can make computations as well. Gas typically is paid for using Gwei. HODL is a term that meant use when they are referring to holding to a specific digital asset. A bitcoin blockchain explorer cryptocurrency mining programs dogecoin blockchain fork wallet is a wallet meant to hold digital assets that is always online.
Some common hot wallets are: Litecoin is a decentralized, peer-to-peer cryptocurrency network featuring cheap transaction costs. Litecoin LTCas a cryptocurrency, is exchanged using said network.
In the cryptocurrency space, it is referring to coin market capitalization. Mining is the act of confirming transactions on the blockchain using a series of advanced computations. A miner fee is cryptocurrency that is provided to reward miners for enabling transactions to be sent across the network. Any transaction that has several outputs is a multiple output transaction. Multisignature allows several users to digitally sign the same document for a valid transaction.
Nodes are used to pass block data throughout the network. These nodes are able to validate transactions.
When an ETH transaction runs out of gasit has done so because not enough gas was provided for a transaction to fully process on the blockchain. This error is common with smart contracts. Not all Monero wallets require this form of ID, but many do. An act of fraud that pretends to be a particular entity to receive assets or information from the victim. A privacy coin strongly focuses on anonymity and lack of traceability.
A few examples of privacy coins are: A private cryptographic key that should only be known to the user. This key can be used to decipher encrypted messages created by the public key. A cryptographic key bitcoin blockchain explorer cryptocurrency mining programs dogecoin blockchain fork can be bitcoin blockchain explorer cryptocurrency mining programs dogecoin blockchain fork by anyone to encrypt messages that are decipherable by the private key.
Re-syncing a wallet occurs the blockchain is rescanned within a wallet. The re-sync button is often represented by two arrows in the shape of a circle. A refund address is the address provided by a user in case a return of the deposited digital asset is needed. When using ShapeShift, we recommend that you always provide a refund address. A replay attack is when one blockchain forks into two and results in an equal amount of coins existing on both blockchains. A satoshi is a small amount of bitcoin.
One bitcoin is equal to , satoshis. It is forward compatible, meaning that no software updated need to take place for it to work. SHA is the cryptographic hash algorithm. It works by generating a bit signature. A smart contract creates a certain set of conditions that a digital asset transaction must meet to be successful. A transaction fee is a fee that allows an entity to profit each time that a transaction is made. These occur to validate transactions via nodes on the network.
A whitepaper is written by those that are launching a new digital coin. It explains everything about the coin that someone may want to know. A withdrawal address is an address that a user provides to receive digital assets from an exchange. It may also be referred to as a "destination address". Bitcoin The first internationally renowned digital payment network and protocol.
Hardware wallets - A physical device that is only online when it is hooked up to a secondary device such as a laptop or desktop. Paper wallets - A physical piece of paper that is a physical representation of owned cryptocurrency.
Ethereum The Ethereum network supports ethereum, a cryptocurrency that hopes to fully decentralize transactions. Dollar or the Euro. Gwei Gas typically is paid for using Gwei. Exodus Jaxx Breadwallet myCryptoWallet input The input is where a transaction is being sent from, or where a transaction starts. Litecoin Litecoin is a decentralized, peer-to-peer cryptocurrency network featuring cheap transaction costs.
Satoshi Nakamoto Satoshi Nakamoto is the screen-name of the founder of Bitcoin.
