# Glossary

List of terms and definitions to help you get started in Web3.

## 0-9​

### 51% attack​

A condition in which more than half the computing power of a cryptocurrency network is controlled by a single malicious miner or group of miners. If he controls 51% of the network that makes him the authority on the network, giving him the power to spend the same coins multiple times, issue transactions that conflict with someone else’s or stop someone else’s transaction from being confirmed

## A​

### Abstract​

An abstract is defined as a summary of a larger written written document. Abstracts are common in the beginning cryptocurrency technical documents to briefly describe the entire document.

### Account​

An account is access to a computer, website or software that allows users to use the tools located within. Access is usually gained through a username and password but with cryptocurrencies, it is often done with what is known as a private key.

Used to receive and send transactions on the network. An address is a string of alphanumeric characters, but can also be represented as a scannable QR code.

### Agreement ledgers​

Distributed ledgers used by two or more parties to negotiate and reach agreement.

### Airdrop​

An airdrop is the process of freely distributing a new cryptocurrency to people hopefully creating more demand. When a new cryptocurrency is created, it needs to gain users. One way of doing this through an airdrop. The group issuing the airdrop hopes new users will begin researching and sharing the coin creating more demand. To start an airdrop, the crypto group will often find people who already have another cryptocurrency and identify them as being equipped with wallets that can accept these airdropped coins. Their other option is to have people voluntarily complete a form where they will then receive their coins. NOTE: Beware of any website that asks for your private keys. DO NOT share your private keys with anyone unless you trust them with your money!

### Algorithm​

An algorithm is a series of steps that will solve a problem. In cryptocurrencies, algorithms are used to hide and reveal information.

### Alphanumeric​

Alphanumeric is something made up of both letters and numbers. Alpha- comes from the word “alphabet” and -numeric comes from the word “numerical” meaning relating to numbers.

### Altcoin​

An abbreviation of “Bitcoin alternative”. Currently, the majority of altcoins are forks of Bitcoin with usually minor changes to the proof of work (POW) algorithm of the Bitcoin blockchain. The most prominent altcoin is Litecoin. Litecoin introduces changes to the original Bitcoin protocol such as decreased block generation time, increased maximum number of coins and different hashing algorithm

### Anonymous​

Anonymous is something made or done by an unknown person or group. Compare this definition with “pseudonymous” which means acting or done under a false name.

### Anti-Money Laundering (AML)​

Anti-Money Laundering or AML is a set of laws designed to prevent the conversion of illegally earned money into what appears to be legally earned money. Money laundering is the process of making illegally earned money appear to be legally earned.

### Application-Specific Integrated Circuit​

Application-Specific Integrated Circuit is commonly known as ASIC. “Integrated circuit” is just a computer chip. “Application-specific” means it was built for one specific purpose or computer application. An ASIC is used in cryptocurrencies to help record transactions on the digital record or blockchain. This process is known as mining.

### Arbitrage​

Arbitrage is the business of making money by buying something for a low price in one market and selling it in another for a profit. Arbitrage can be done with virtually any product including cryptocurrencies.

### ASIC​

An acronym for “Application Specific Integrated Circuit”. ASICs are silicon chips specifically designed to do a single task. In the case of bitcoin, they are designed to process SHA-256 hashing problems to mine new bitcoins.

### ASIC Miner​

ASIC is short for “Application-Specific Integrated Circuit”. And that’s a computer chip or “integrated circuit” which was built for the single purpose of mining cryptocurrencies. Mining is the process of recording on a digital record, known as the blockchain, money being received and spent. All of this is requires computer power and is done in return for money. Because an ASIC is built specifically for mining, it does the job faster than other computers and can earn more digital money.

### ATH​

ATH is short for All Time High. ATH is the highest price an investment has ever reached in its history. Whenever a cryptocurrency price passes its ATH, things can get crazy. While many leading investors thought bitcoin would hit an ATH of $10,000 by the end of 2018, it actually did so on December 6th, 2017. The price continued to rocket upward hitting$18,000 on the 8th. Time will tell if bitcoin can pass that and hit an even higher cost.

### Atomic Swap​

Atomic Swap is technology that allows two different people to exchange different cryptocurrencies directly. Right now, if you wanted to exchange bitcoin for ethereum, with another, you couldn’t. However, any coin using Atomic Swap can be exchanged for any other coin also using Atomic Swap.

### Attestation Ledgers​

Distributed ledgers that provide a durable record of agreements, commitments or statements, providing evidence (attestation) that these agreements, commitments or statements were made.

## B​

### Initial Coin Offering (ICO)​

ICOs are types of crowdfunding mechanisms conducted on the blockchain. Originally, the main idea of an ICO was to fund new projects by pre-selling coins/tokens to investors interested in the project. Entrepreneurs present a whitepaper describing the business model and the technical specifications of a project before the ICO. They lay out a timeline for the project and set a target budget where they describe the future funds spending (marketing, R&D, etc.) as well as coin distribution (how many coins are they going to keep for themselves, token supply, etc.). During the crowdfunding campaign, investors purchase tokens with already established cryptocurrencies like Bitcoin and Ethereum.

### Input​

Input describes digital money coming into your digital wallet. When you want to spend your money, your inputs are later used as proof to show that you have X amount of money. That is known as an “output”.

### Instamine​

Instamining means new cryptocurrencies, for a short time after launch, are very easy to create. The purpose of instamining is to accumulate a large quantity of the available supply early on and later sell it for a big profit. Mining is a computer process of recording and verifying information on the digital record known as the blockchain. Mining usually also involves computers working very hard at solving a math problem. The first computer to solve this problem would discover a new block and could record information on the blockchain. This earned them a reward in brand new digital money plus fees paid for each transaction.

### Invest​

Invest is the process of spending money on something with the expectation that it will increase in value later and can be sold for more money.

### IPFS​

The InterPlanetary File System (IPFS) is a hypermedia distribution protocol, addressed by content and identities. IPFS enables the creation of completely distributed applications. It aims to make the web faster, safer, and more open. IPFS is an open source project developed by the team at Interplanetary Networks and many contributors from the open source community. It is a peer-to-peer distributed file system that seeks to connect all computing devices with the same system of files. In some ways, IPFS is similar to the Web, but IPFS could be seen as a single BitTorrent swarm, exchanging objects within one Git repository. In other words, IPFS provides a high throughput content-addressed block storage model, with content-addressed hyperlinks. This forms a generalized Merkle DAG, a data structure upon which one can build versioned file systems, blockchains, and even a Permanent Web. IPFS combines a distributed hash table, an incentivized block exchange, and a self-certifying namespace. IPFS has no single point of failure, and nodes do not need to trust each other

## J​

### JOMO​

JOMO is short for Joy of Missing Out. This is the pleasure of doing what you are doing and not worrying about anything worthwhile you might be missing out on.

## K​

### Key​

A key is a secret string of letters and numbers that must be used to make hidden, unreadable information readable.

Know Your Customer or KYC is a set of laws where financial organizations must request government issued identification from their customers before allowing them to use their services. KYC was established to prevent criminals from converting their illegally earned money into digital money to hide it from the police.

## L​

### Ledger​

A ledger is a book or other collection of records in which a person, business, or other group records how much money it receives and spends.

### Leverage​

Leverage is increased investment power through margin. Margin is a borrowed asset (stocks or cryptocurrencies), usually from the financial services company you are investing with, that allows you to make larger investments in the hopes of making even more money. Leverage allows the investor to control much more assets than he actually owns giving him the opportunity to make or lose more money.

### Light Node​

A computer on a blockchain network that only verifies a limited number of transactions relevant to its dealings, making use of the simplified payment verification (SPV) mode

### Lightning Network​

The Lightning Network is technology that allows near-instant and low fee transactions of cryptocurrencies using bitcoin’s technology. With cryptocurrencies like bitcoin, it can take an average of 10 minutes for your transaction to be registered in the digital recording known as the blockchain. The Lightning Network will make those transactions instant.

## M​

Margin trading describes a way of investing where you use margin. Margin increases your investment power. Margin is a borrowed asset (stocks or cryptocurrencies), usually from the financial services company you are investing with, that allows you to make larger investments in the hopes of making even more money. This advantage is known as leverage. The borrowed assets aren’t free, you must pay back interest on each transaction involving margins. Margin allows the investor to control much more assets than he actually owns giving him the opportunity to make or lose more money.

### Tokenless ledger​

A distributed ledger that doesn’t require a native currency to operate.

### Total Supply​

Total supply is the complete amount of coins currently available for a cryptocurrency not including any coins that were burnt. Burning coins is the action of sending cryptocurrency to an address which is unspendable.

### Transaction (TX)​

Transaction or TX, is the transfer of money from one person to another for a business deal.

### Transaction block​

A collection of transactions on the bitcoin network, gathered into a block that can then be hashed and added to the blockchain.

### Transaction fees (TX Fee)​

Small fees imposed on some transactions sent across the bitcoin network. The transaction fee is awarded to the miner that successfully hashes the block containing the relevant transaction.

### Trustless​

Trustless is a positive quality where you are not required to trust the person you’re doing the transaction with. A trustless system or technology is so secure and smooth in handling your transactions, that both people in a transaction can safely hand over money and other valuables without the risk of being cheated.

### Turing completeness​

A machine is Turing complete if it can perform any calculation that any other programmable computer is capable of. All modern computers are Turing-complete in this sense. The Ethereum Virtual Machine (EVM) which runs on the Ethereum blockchain is Turing complete. Thus it can process any “computable function”. It is, in short, able to do what you could do with any conventional computer and programming language

## U​

### Unpermissioned ledgers​

Have no single owner (Ex. Bitcoin) — indeed, they cannot be owned. The purpose of an unpermissioned ledger is to allow anyone to contribute data to the ledger and for everyone in possession of the ledger to have identical copies.

### Unregulated​

Unregualted describes something that is not managed and controlled according to rules. Cryptocurrencies remain unregulated by many governments.

### Unspent Transaction Output (UTXO)​

Unspent Transaction Output or UTXO, is a list of money received that has not yet been spent. In other words, if you were to total up the UTXO, you would get the user’s available balance. Bitcoin and other cryptocurrencies based on its technology use UTXO in their blockchain technology to verify that a person has unspent crypto available for spending.

## V​

A vanity address starts is a string of letters and numbers that is publicly available and starts with a customized set of letters and numbers. Your address allows cryptocurrency to be received, held and sent.

### Venture​

A venture is a business that has a large risk of failure.

### Venture Capital​

Venture capital is money provided to new companies that hold a promise of long-term growth. In exchange for the money, the companies will share ownership. Because they are new companies and have no history of success, they usually have a higher risk of failure.

### Volatility​

Volatility is the measurement of how much the price of an asset is likely to change over a period of time. Stocks for established companies like Apple and Google have a much lower volatility than cryptocurrencies which may change a lot in one day.

## W​

### Wallet​

A wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money. The wallet doesn’t actually store the money, instead it locks away access to the money. The only way to get access to it is by providing a key, a string of letters and numbers like a password.

### Weak Hands​

Weak hands describes an investor who doesn’t have the confidence in his investment to continue holding while the price falls so he sells it.

### Wei​

Wei is the smallest amount of ethereum coin. One ethereum coin is worth 1 quintillion (1,000,000,000,000,000,000) wei.

### Whales​

Whales are people or organizations that hold large quantities of cryptocurrency or stocks in a company. Because they can move buy and sell large quantities, they can greatly affect the price based on whether they buy or sell.

### Whisper​

Whisper is a part of the Ethereum p2p protocol suite that allows for messaging between users via the same network that the blockchain runs on. The main task of whisper will be the provision of a communication protocol between dapps

### White Paper​

A white paper is a document that explains the purpose and technology used in a cryptocurrency. Usually a white paper is used when a cryptocurrency is just starting to help people understand what it has to offer. A clear, simple white paper is a good sign for a new cryptocurrency.

## Z​

### Zero Confirmation Transaction​

A zero confirmation transaction, means a seller who is receiving cryptocurrency as part of a deal doesn’t wait for verification that the money was sent and instead immediately delivers what was sold.