A digital ledger that records transactions across many computers so that any involved record cannot be altered retroactively. It's like a public library where everyone can see and verify the books (transactions), but no one can alter or remove them.
The first decentralized cryptocurrency, created in 2009. It's like the first car invented. It paved the way for other cryptocurrencies, just like the first car paved the way for various models and types of cars.3. Cryptocurrency: A digital or virtual form of currency that uses cryptography for security. It's like email for cash - you can send and receive money as easily as you send and receive emails.
The process of distributing or dispersing functions, powers, people, or things away from a central location or authority. This is like a city without a mayor, where every citizen has an equal say in decision-making. There's no central authority in a decentralized system.
A digital tool that allows users to make electronic transactions. A digital wallet is like a virtual bank account where you can store, send, and receive cryptocurrencies.
The process of validating blockchain transactions and adding them to the blockchain ledger. Mining is like solving complex math problems to validate transactions and add them to the blockchain. It's like being a detective who solves a case (transaction) and adds it to the case files (blockchain).
A consensus algorithm in a blockchain network that requires a participant node to prove that the work done and submitted is significant. This is like a competitive exam where the first one to solve the problem gets the reward. In PoW, miners compete to solve a mathematical problem.
A type of consensus algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. It's like a lottery system where the more tickets (coins) you hold, the better your chances of being chosen to validate transactions and earn rewards.
A self-executing contract with the terms of the agreement directly written into code. It's like a vending machine - you put in something (like money), and the machine automatically gives you something in return (like a snack).
An open-source, blockchain-based platform that enables developers to build and deploy decentralized applications (dApps). It's like a smartphone that can run different apps for different purposes.
Any cryptocurrency other than Bitcoin. It's like any car brand that isn't the original Ford Model T.1
A type of funding using cryptocurrencies. It's like a grand opening sale where a company offers their product (tokens) for a lower price to attract initial customers.
A digital asset that is sold to the public during an ICO for the purpose of funding a new blockchain project. It's like a ticket to a concert - it gives you certain rights and access within a specific ecosystem.
A platform where you can trade one cryptocurrency for another, or for fiat currency. It's like a foreign currency exchange at the airport, but for digital currencies.
Government-issued currency, like the US dollar or Euro. It's like the official language of a country - it's the accepted and regulated means of financial communication.
A cryptographic code that allows a user to receive cryptocurrencies into his or her account. It's like your email address - it's what others use to send you messages (or in this case, funds).
A cryptographic code that allows a user to access his or her cryptocurrency. It's like your email password - it's what you use to access your messages (or in this case, funds).
A function that converts an input into a fixed size string of bytes. It's like a unique fingerprint for data - even a small change in input data creates a significantly different output.
A computer that participates in the blockchain network. It's like a volunteer in a community project - each one contributes and maintains a copy of the shared ledger.
A split in the blockchain that results in two paths forward - one that follows the old rules and one that follows the new. It's like a road that splits into two - you can choose to follow the old path or take the new one.
The risk that a digital currency can be spent twice. It's like trying to use the same ticket to ride the bus twice - in a well-regulated system, this should be prevented.
A term derived from a misspelling of "hold" that refers to buy-and-hold strategies in the context of bitcoin and other cryptocurrencies. It's like holding onto a collector's item in the hopes that its value will increase over time.
A term used to describe the individuals or entities that hold large amounts of digital currencies. It's like the big fish in a small pond - they have the power to make waves in the market.
A condition of a financial market in which the prices of an asset are rising or are expected to rise. It's like a charging bull - it's aggressive and on the move upward.
A condition of a financial market in which the prices of an asset are falling or are expected to fall. It's like a hibernating bear - it's quiet and on the move downward.
Imagine a city (the blockchain network). In this city, there are citizens (nodes) who participate in city affairs. The city keeps a public library (blockchain) where all historical events (transactions) are recorded. The library uses a unique cataloging system (hash) to keep track of all the books (blocks). The city has its own currency (cryptocurrency), and the citizens use their IDs (public keys) and signatures (private keys) to trade. Some citizens are miners, who work (proof of work) to solve puzzles (validate transactions) and add them to the library's records.The city council (developers) can propose changes to the city's rules (forks), and the citizens can choose to follow the old or new rules. The city's economy experiences periods of growth (bull markets) and decline (bear markets), and there are a few wealthy individuals (whales) who have significant influence over the market. In this city, everyone is encouraged to participate and contribute to the community (decentralization), and the city's operations are transparent and verifiable by all citizens.