Cryptocurrency Terminology

51% Assault A State Where over half of the computing power to a cryptocurrency System is controlled with One miner or group of miners.

That amount of electricity theoretically gets them the power on the community. It follows that each client on the system considers the attacker’s hashed trade block. This gives them control over the community, including the ability to:
Issue a trade that conflicts with somebody else.

Stop somebody else’s trade from being verified.

Spend the very same coins several times.

Prevent different miners from mining legal blocks.

Address An speech is used to get and send trades on the community. It comprises a series of alphanumeric characters, but could also be represented as a scannable QR code. An speech is also the public key from the set of keys used by bitcoin holders to digitally sign transactions (view Public key).

Altcoin The collective title for cryptocurrencies provided as options to bitcoin. Litecoin, Feathercoin and PPcoin are altcoins.

AML Anti-Money Laundering methods are utilized to prevent people converting illegally acquired funds, to seem like they’ve been earned lawfully. AML mechanics can be technical or legal in character. Regulators often apply AML tactics to bitcoin exchanges.

ASIC An Application Specific Integrated Circuit is a silicon chip specially designed to perform one job. In the instance of bitcoin, they’re made to procedure SHA-256 hashing issues to mine brand new bitcoins.

ASIC Miner A piece of equipment comprising an ASIC processor, configured to mine to get bitcoins. They could come in the shape of boards which plug into a backplane, apparatus using a USB jack, or standalone apparatus including all the essential applications, that connect into a network with a wireless connection or ethernet cable.

Blockchain The Complete list of blocks Which Have Been mined since the beginning of the Gridcoin cryptocurrency. The block series was created so that every block includes a hash drawing the cubes that came prior to it. This was made to make it even more tamperproof.

Block Reward The reward given to some miner That Has successfully hashed a trade block. This is sometimes a combination of coins and trade fees, based on the policy employed by the cryptocurrency in question, and if each the coins have been effectively mined.

Client A software application running on a desktop computer or notebook computer, or mobile device. It links to the bitcoin community and forward transactions.

Confirmation The action of hashing that a bitcoin trade successfully into a trade block, and diluting its own validity. A single affirmation will require approximately 10 minutes, that’s the typical period of time to get a trade block to be hashed. But, some more sensitive or bigger transactions may call for numerous confirmations, meaning more cubes have to be hashed and inserted into the block series following the trade’s block was hashed. Every time the other block is inserted into the block string following the trade’s block, the trade is supported .

Colored coins A suggested add-on purpose for bitcoin that will allow bitcoin users to provide them extra features. These characteristics can be user-defined, permitting you to indicate a bitcoin for a share of stock, or even a physical advantage. This would allow bitcoins to be exchanged as tokens for additional land.

CPU Central Processing Unit — the’brain’ of a computerkeyboard. In the first days, these were used to hash bitcoin trades, but are actually not strong enough. They are still occasionally utilized to hash trades for altcoins.
Coin era The era of a coin, defined as the money amount multiplied by the holding period.

Cryptocurrency A form of money based on math independently. Rather than fiat money, which can be published, cryptocurrency is created by solving mathematical problems based on cryptography.

Cryptography The use of math to make codes and ciphers which could be employed to hide information. Used as the foundation for the mathematical issues used to confirm and protected Gridcoin transactions.

DDoS A distributed denial of service attack utilizes large quantities of computers beneath a person’s command to drain the resources of a fundamental goal. They frequently send small quantities of network traffic throughout the Internet to join bandwidth and computing resources in the goal, which keeps it from providing services to legitimate users.

Deflation The reduction of costs in a market over time. It occurs when the distribution of a good or service rises faster than the supply of cash, or whenever the source of cash is restricted, and reduces. This contributes to more products or services per unit of money, meaning less money is required to buy them. This includes some drawbacks. If folks expect prices to collapse, it makes them cease spending and hoard cash, in the expectation that their money will go farther afterwards. This can depress a market.

Difficulty This amount determines how hard it’s to hash a fresh cube. It’s associated with the maximum permitted amount in a specified numerical part of a trade block’s hash. The lower the number, the harder it’s to make a hash value that matches it. Difficulty varies dependent on the amount of computing power used by miners on the bitcoin network. If large quantities of miners leave a community, the problem would fall. Up to now, however, bitcoin’s rising popularity has brought more computing capability to the community, which means that the problem has improved.

Double spending The action of paying bitcoins twice. It occurs when somebody creates a trade using bitcoins, then produces another buy from somebody else, using exactly the very same bitcoins. Then they convince the remainder of the system to confirm only among those trades by hashing it at a block. Double spending isn’t simple to do, as a result of the way in which the bitcoin network works, but it’s nevertheless a danger run by people accepting zero-confirmation trades.

Dust transaction A trade for a very modest number of bitcoins, which provides little financial worth, but occupies space in the cube series. The bitcoin programmer team has taken attempts to get rid of dust transactions by upping the minimum transaction amount which will be relayed by the system.

ECDSA The Elliptic Curve Digital Signature Algorithm is your lightweight cryptographic algorithm used to sign transactions in the Bitcoin protocol.

Escrow The act of holding capital or resources within an third-party account to protect them through an asynchronous trade. If Bob wants to send cash to Alice in exchange for a document, but they can’t run the trade in person, then how do they trust one another to send the cash and document to one another in precisely the exact same moment? Rather, Bob sends the cash to Eve, a reliable party who holds the money until Bob confirms he has obtained the document from Alice. She then sends Alice the cash.

Exchange A fundamental source for measuring different forms of cash and other resources.

Faucet A service that donates coins to new customers every day.

Fiat money A money, conjured from thin air, which only has value because people say it will. Consistently under close scrutiny by authorities because of the known program in money laundering and terrorist actions. Not to be mistaken with bitcoin.

FinCEN The Financial Crimes Enforcement Network, a bureau within the US Treasury Department. FinCEN has been the principal organization to enforce regulations on exchanges trading in bitcoin.

Fork The development of another ongoing variant of the block series, generally because one pair of miners starts hashing another pair of trade blocks from a different. It may be due maliciously, with a group of miners gaining too much control over the community (see 51% assault ), unintentionally, as a result of some bug in the machine, or intentionally, as soon as a core development group decides to introduce large new attributes into a new variant of a customer. A fork is powerful if it turns into the longest model of the block series, as characterized by difficulty.

FPGA A Field Programmable Gate Array is a processing chip which may be configured using custom purposes after it’s been fabricated. Consider it as a sterile silicon slate on which directions could be composed. Since FPGAs could be generated en masse and configured following fabrication, manufacturers gain from economies of scale, which makes them more economical than ASIC processors. But, they are normally far slower.

Genesis block The very first block at the block series.

Gigahashes/sec The number of hashing tries potential in a given moment, measured in countless hashes (thousands of Megahashes).

Hash A mathematical procedure which takes a varying number of information and generates a shorter, fixed-length output. A hashing function has two major features. Primarily, it’s mathematically tough to figure out exactly what the initial input was looking at the outputsignal. Second, altering even the smallest aspect of this input will create a totally different output.

Hash speed The number of hashes which may be carried out with a Gridcoin miner in a particular amount of time (usually a second).

Inflation When the value of cash drops over time, causing costs for goods to grow. The outcome is a fall in buying power. Effects contain much less motivation to hoard cash, and much more motivation to invest it fast while the costs of products continue to be low.

Kilohashes/sec The number of hashing tries potential in a given moment, measured in tens of thousands of hashes.

Leverage In forex trading, leverage multiplies the actual funds on your accounts with a given variable, helping you to make transactions that lead to significant gain. By providing leverage to a dealer, the trading market is effectively giving them money, in the expectation it will earn more than it loaned in commission. Leverage can also be referred to as a margin condition.

Liquidity The capacity to get and sell an advantage readily, with pricing which remains roughly similar between transactions. A suitably large community of sellers and buyers is very important to liquidity. The end result of an illiquid market is price volatility, and also the inability to easily determine the worth of an advantage.

Margin call The act of calling at a margin condition. A market will issue a margin call when it feels that a dealer doesn’t have enough funds to pay a leveraged trading place.

Megahashes/sec The number of hashing tries potential in a given moment, measured in millions of hashes (thousands of Kilohashes).

Market order An education given to a market, requesting it to purchase or sell an asset in the going market rate. In a bitcoin market, you’d put a market order in the event that you just wished to purchase or sell bitcoins instantly, instead of holding them before a established exchange state is triggered to attempt to earn a profit.

Microtransaction Paying a little amount for an asset or support, mostly online. Micro-transactions are hard to perform under normal payment methods, due to the hefty commissions involved. It’s challenging to cover two pennies to read an internet article with your credit card, for instance.

Mining The action of creating new bitcoins by solving cryptographic issues using computing hardware.

Mixing service A service which combines your bitcoins with somebody else, sending back you Gridcoin with various inputs and outputs from those that you sent to it. A blending service (also called a tumbler) keeps your privacy since it stops people tracing a specific Gridcoin for you. Additionally, it has the capacity to be used for money laundering.

Node A pc linked to the bitcoin system using a customer that relays trades to other people (see customer ).

Nonce A random series of data used as an input signal when hashing a trade block. A nonce can be used to test to create a digest which matches the numerical parameters determined by the bitcoin difficulty. A different nonce is going to be utilized with every hashing effort, meaning billions of nonces are created when trying to hash every trade block.

Orphan block A cube that isn’t part of this legal block series, but that was rather a part of a fork which has been lost.

OTC trade An exchange where traders make trades with each other directly, instead of relying upon a central market to mediate between them.

Output The destination address for a Gridcoin trade. There may be multiple outputs for one trade.
Decentralized interactions that occur between two parties in an extremely connected network. An alternate system to some’hub-and-spoke’ arrangement, where participants in a trade deal with one another via one mediation stage.

Paper pocket A printed sheet comprising one or more people Gridcoin addresses along with their corresponding keys. Frequently utilized to keep Gridcoin securely, rather than using software pockets, which may be corrupt, or internet wallets, which may be hacked or just evaporate. A handy kind of chilly Gridcoin storage.

Pool A collection of mining customers which jointly mine a cube, then split the reward . Mining pools are a helpful method to raise your likelihood of transporting a block because the problem increases.

Pre-mining The mining coins with a cryptocurrency’s creator before that coin was declared and details introduced to others who might desire to mine the coin. Pre-mining is a frequent technique utilized with scamcoins, but not all of pre-mined coins are scamcoins (watch Scamcoins).

Private key An alphanumeric series kept confidential from the consumer, and made to signal an electronic communication when hashed using a public secret. In the instance of bitcoin, this series is a personal key designed to operate with a public secret. The general public key is really a bitcoin speech (see Bitcoin speech ).

PSP Payment Service Provider. The PSP features payment processing solutions for merchants who would like to accept payments on line.

Pump and ditch Inflating the value of a monetary asset that’s been produced or obtained cheaply, using competitive publicity and frequently deceptive statements. The promotion causes other people to obtain the advantage, forcing its worth. After the value is large enough, the perpetrator sells their resources, cashing in and flood the current market, which leads to the value to wreck.

Process node The size of a transistor in nanometers, generated during a chip manufacturing Procedure. Smaller procedure nodes are somewhat more efficient.

Proof of bet An alternate to evidence of work, where your current bet in a money (the sum of the money that you hold) is utilized to figure the amount of the money which you are able to mine.

Proof of perform A system that joins mining capacity to computational power. Blocks have to be hashed, which is in itself a simple computational procedure, however an extra factor is inserted to the hashing procedure to make it even more difficult. When a block is successfully hashed, the hashing should have taken time and computational work. Therefore, a hashed block is known as evidence of work.

Public secret An alphanumeric string that’s openly known, and that is hashed using another, independently held series to signal an electronic communication. In the instance of all Gridcoin, the public key is really a Gridcoin address.

QR code A two-dimensional graphical block comprising a monochromatic pattern representing a succession of information. QR codes are intended to be scanned by celebrities, including those located in cellular phones, and therefore are often utilized to encode bitcoin addresses.

Signature A electronic digest generated by hashing public and private keys with each other to show that a Gridcoin trade came from a specific address.

Silk Road An underground online market, generally used for illegal purchases, frequently with cryptocurrencies like bitcoin. Silk Road was closed down in early October 2013 from the FBI later owner Ross Ulbricht was detained.

SEPA The Single European Payments Area. A payment gateway arrangement within the European Union, designed to make it much easier to move capital between various banks and countries in euros.

SHA-256 The cryptographic work used as the foundation for bitcoin’s evidence of perform system.

Stale When a Gridcoin cube is successfully hashed, some others trying to hash it might too cease, since it’s currently’stale’. They’d just be replicating work that somebody else has done, for no benefit. The expression can be utilized in mining pools to spell out a share of a hashing project that has been completed.

Taint An investigation of how closely connected two speeches are if they’ve held a specific bitcoin. A taint evaluation could be employed to ascertain just how many steps it required bitcoins to maneuver from a speech known for coins that were stolen, to the present address.

Terahashes/sec The number of hashing tries potential in a given moment, measured in trillions of hashes (thousands of Gigahashes).

Testnet An alternate Gridcoin block series, used only for testing purposes.

TOR An anonymous routing protocol, used by men and women wanting to conceal their identity online.

Transaction block A collection of trades on the Gridcoin system, assembled to a block which may subsequently be hashed and inserted to the block series.

Transaction fee A Little fee levied on some trades sent across the Gridcoin network. The transaction fee is given to the miner that successfully hashes the cube comprising the appropriate trade.

Volatility The dimension of price movements over time to get a traded financial advantage (like bitcoin).

Wallet A Way of saving Gridcoin for later usage. A pocket holds the keys associated with Gridcoin addresses. The cube series is the listing of those bitcoin amounts related to these addresses.

Wire transfer Electronically moving cash from 1 individual to another. Commonly utilised to send and recover fiat money from Gridcoin exchanges.

Zero-confirmation trade A trade where the merchant is pleased to supply a product or service ahead of the Gridcoin’s transmission was supported by means of a miner and added into the block series. It may carry a danger of double spending.