Additionally, each data block is cryptographically added to the previous one– like adding a new link to a chain, creating a blockchain - a type of immutable, digital ledger with hundreds of participants maintaining their own copies of the “books.”Ĭentralized Ledger: In contrast to blockchains which are decentralized across nodes, centralized ledgers are contained on single computers providing single access points. When a new transaction is executed, it forms a data block that is then duplicated across all nodes. Faster block times are better, supporting faster and more efficient transactions.īlockchain: A distributed ledger that is verified using a decentralized network of participants. Market makers provide liquidity, while AMMs automate and decentralize this process thanks to liquidity pools stored within smart contracts.īlock time: Blockchain transactions are bundled together into blocks, and the time it takes to verify and process a block on the blockchain is known as the block time. Markets can only function with enough liquidity - the ease with which one asset can be converted into another of equal value. Today, the term has grown to include all crypto that isn’t bitcoin, regardless of its use case.Īutomated Market Maker (AMM): A buying and selling algorithm. The term originated to distinguish the few early digital currencies that were attempting to take market share away from the industry leader. To become eligible for an airdrop, users commonly have to do a simple task: signing up for a newsletter, sharing a social media post, using a product, etc.Īlt Coin: Any cryptocurrency other than bitcoin is known as an alt coin (sometimes “ altcoin”). When crypto project developers want to increase the number of users on their platform, they liberally give out coins to users’ crypto wallets.
#CRYPTO LINGO FREE#
Crypto LingoĪirdrop: Free cryptocurrencies given away, usually by the cryptocurrency’s founder or development team. To help you start your journey into digital assets, here is the glossary of the most common crypto vernacular and terms. But with so much happening in this new market, it can be challenging to keep up with new terminology and jargon. In its report titled Digital Assets Primer: Only the first inning, Bank of America made a strong case that digital assets represent Finance 2.0.
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