January 28, 2023

Dictionary of cryptocurrency terms in Russian and English

Dictionary of cryptocurrency terms in Russian and English

The cryptocurrency market is actively developing and new terms are constantly appearing in it, and the roots of some concepts, on the contrary, have gone so deep into history that not everyone correctly understands their meaning.

To make it easier for beginners (and not only) to navigate in the cryptocurrency space, we compiled a dictionary of all the most popular cryptocurrency terms in Russian and English.

Popular cryptocurrency terms in Russian

Altcoin (eng. altcoin) - the name of all cryptocurrencies except bitcoin. The first altcoins appeared in 2011. Their goal was to overcome all the technical limitations that bitcoin has. There are hundreds of altcoins, for example, Coinmarketcap lists over 2000 altcoins. Every day more and more altcoins appear. Read more about Altcoin.

Arbitration Trading (transactions) - these are trading operations with the samefinancial assets at the same time, but in different markets, in order to capitalize on price differences. Read more about arbitrage trading. Read more about arbitrage trading.

Attack 51% - these are manipulations involving the use of51% of the computing power for a network using proof-of-work (POW). In an attack, the available powers are used to generate blocks in the interests of the attacker. Read about the 51% attack in more detail.

Atomic swap (atomic swap) - exchange one cryptocurrency foranother without the participation of third parties. Not all cryptocurrencies support such an exchange. Atomic Swap is supported in the code: Bitcoin, Litecoin, Vertcoin, Decred. Read more about atomic swaps.

ASIC (ASIC) - specialized technical equipment for cryptocurrency mining. Read more about ASIC.

Airdrop (Airdrop) is one of the two most effectivemethods for receiving cryptocurrency (tokens) for free. During the AirDrop, the developers of the project give free coins to everyone, and in return they ask to register on their resource. There is also an option when developers accrue bonuses to the holders of their tokens in the amount of 10-15% of their amount. Read more about Airdrop.

Bounty - this is an opportunity to receive a reward in cryptocurrencyfor certain advertising and informational actions without the need to invest their money in the project. This is mainly about ICO. Read more about bounty programs.

White paper (eng. white paper) is an official written message, usually this term is used in the USA, Great Britain, Ireland and other English-speaking countries. In the crypto industry, the term has been fixed for official documentation containing a description of the technical solutions of ICO projects.

Blockchain Is a continuous and sequential blockchain of information (digital linked list). When building a blockchain chain, copies of related blocks are simultaneously stored on many computers. Read more about blockchain.

Bitcoin block Is an element of the blockchain chain, a set of records of completed transactions in the cryptocurrency network.

Cryptocurrency exchanges - this is a place (platform) where people exchange alonecryptocurrencies for other or main fiat currencies (dollar, euro, rubles, yuan). This is the second place where they can be obtained after mining and, at the moment, the first place where they can be spent. Read more about cryptocurrency exchanges.

Bitcoin address - identifier (account number) starting with 1or 3 and containing 26–35 alphanumeric Latin characters (except 0, O, I). The address can also be represented as a QR code, is anonymous and does not contain information about the owner. It can be obtained free of charge using any bitcoin wallet.

Bitcoin ETF Is a stock exchange fund that will useBitcoin as the underlying asset, i.e. to buy cryptocurrency and sell its shares to investors. Investors who buy these securities will be able to earn on the change in the rate of the coin. Read more about Bitcoin ETF.

Validity - a term used in economics,psychology, financial affairs and other social disciplines. It means the degree of reliability, correctness and reliability of information, organization, enterprise. The etymology of the concept has French roots, from “valide”, which means “valid” in translation. In the cryptocurrency sector, it is used to measure the security level of the exchange, the reliability of the ICO.

Volatility Is a financial term that meansstatistical indicator of price volatility. The etymology of the term: from English “volatility”, which means “flying, volatility”. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trading risk and as a financial analytical tool for playing the stock exchange.

Genesis block - (genesis block) Is a cryptocurrency term that meansfirst block in the blockchain chain. Thanks to the creation of this block, a new cryptocurrency is “born”. The genesis of a block is the only block in the chain that does not have a parent block and is connected “hash” unilaterally with the next block. Like the following blocks, the genesis consists of a “head” header and a “playload” transaction record. The header “head” and “playload” block genesis contain the following information: Exact block creation time. Read more about the genesis of the block.

Double waste or double spending - an attempt to spend money twice. This happens when someone completes a financial transaction and then completes a second transaction with the same money.

Cryptocurrency - type of digital currency, issue and accounting of whichbased on cryptographic methods, for example, the Proof-of-work protection method and asymmetric encryption, and the functioning of the system is decentralized in a distributed computer network. Read more about cryptocurrency.

Cryptocurrency wallet (cryptocurrency wallet) - storage systemcryptocurrencies. There are two types of wallets: cold (offline) and hot (online) storage. The difference is that the former store digital coins offline, without access to the Internet. Read more about cryptocurrency wallets.

The keys (keys) - character string (bit string),used by the cryptographic algorithm in encrypting and decrypting messages, staging and verifying a digital signature, as well as identification. The keys are symmetric (the same key is used for encryption and decryption) and asymmetric (public and private).

Ring signature (ring signature) - a kind of digital signature that allows one anonymous user to sign a document on behalf of a group of users, that is, on behalf of some “user ring”.

Cross chain - A technology that allows you to exchange one cryptocurrency for another without the use of centralized intermediaries, such as cryptocurrency exchanges.

Crowdsale (CrowdSale, ICO) is an economic term that refers to the process of pre-selling a product. Read more about ICO.

Whale (WHALE) - this term has come to the cryptocurrency worldfrom speculation. A whale is a trader with huge financial opportunities who is trying to influence the dynamics of a particular cryptocurrency in order to gain profit.

Cryptocurrency HYIPs - This is the process of making money by attracting financial resources of investors in a particular project.

Liquidity - a term that means opportunityrealize (sell) any financial assets (below or above the market price). The term "liquidity, translated from Latin, means" liquid, current. " Today, it is customary to use three types of liquidity: low (difficult to sell at market prices), high (easy to sell) and illiquid assets (almost impossible to sell).

Mining - type of activity for creating new blocks inblockchain chain to ensure the smooth operation of the system. The etymology of the term: from English “mining”, which means “mining”. In the cryptocurrency world, mining has two main functions: 1. Support for the operation of the blockchain platform and the introduction of committed transactions in the chain. Each committed transaction is recorded by the miners in a new block. 2. A system for maintaining cryptocurrency emissions. Read more about mining.

Masternode Is a complete node (node) of the blockchain network withadvanced features. The main conditions for creating a masternode is the availability of a stable uninterrupted Internet, a certain number of coins that must be frozen, and any transactions for life are excluded. The most famous masternode coins are DASH, PIVX, SysCoin, Strat and many other coins. In general, owning a masternode is a good stable way of passive income, and allows you to participate in the activities of the network of your chosen coin, but the investment cost is quite high. Read more about masternodes.

Token Migration - coin swap, this is the process of transferring cryptocurrency fromone blockchain to another. This process may be due to hard fork or the launch of the main network. Token holders need to follow the recommendations for a successful transition so as not to lose their coins.

But yes (from English node) is any computer that connects to the Bitcoin network and uses the p2p protocol, which allows nodes to communicate with each other on the network and disseminate information about transactions and blocks. Of these nodes, between which information is distributed, is a blockchain network. Read more about nodes.

Order - automatic application for purchase or salecryptocurrencies. Orders are used during trading on the exchange to open and close a position. According to the type of execution, exchange orders are typified into: Limit exchange orders - buy-sell orders at a specified price or higher. Market orders - orders are executed at the average market price on the exchange. “Stop orders” - used for urgent purchase – sale of crypto assets at an average market price or worse.

Cloud mining (cloud mining) - web services selling powerfor cryptocurrency mining. The equipment itself is located on the seller’s site and is serviced by his forces. The buyer pays for the ordered computing power and receives income from mining. Read about cloud mining in more detail.

Pump and Dump (Pump & dump) is a manipulative scheme of a game onexchange with the goal of quick money. The essence of the scheme is an artificial increase in the exchange rate of the currency on the market, the exchange with its subsequent collapse, or vice versa: a collapse with a subsequent rise.

Transaction confirmation (eng., “Confirmation”) is necessary to prevent re-spending of the same money. Usually, when a cryptocurrency is received, the new owner cannot immediately dispose of them. As soon as the transaction is completed, it is sent to the blockchain network for execution and must be included in the block in order to become legitimate. Read more about bitcoin transactions.

Pools - Association of miners into mining groupscryptocurrencies. Participation in the pool significantly increases the chances of winning by all participants. Each miner, according to its power, receives a task to find the nonce value (one-time code) at a certain interval. After completing this task, the miner receives the following. The contribution of each participant to the closure of the block is evaluated in the sheyr (or ball - from the English. “Share” - share, part). A shair (ball) is part of the job of finding a solution to the hash function for signing the block, which is issued by the pool to the miner. Read more about mining pools.

Premining (Pre-mining) - cryptocurrency mining by the creatorcryptocurrencies before it is officially announced. Allows you to issue cryptocurrency before it enters the market. It is often used in fraudulent cryptocurrencies, but not all premining coins are fraudulent.

Private (private) key (private key) - a code line with which access to a wallet or bitcoin address is carried out. Needed for transactions. How to store a private key?

Public (public) key (public key) - pairing to the corresponding privatethe key is a code string to which there is open access. Used along with a secret private key to send transactions. The public key corresponds to the bitcoin address.

Soft fork - slight code change without violationsmain protocol. It is used by the cryptocurrency developers themselves or the top mining pools, which need to make minor changes to the network. Updating the software of the nodes does not require, the network is rolled back a few blocks and make the necessary changes to the code. Read more about soft fork.

Satoshi Nakamoto (Satoshi Nakamoto) - a person known asfounder of Bitcoin and creator of the original Bitcoin client. In his profile at the P2P Foundation, he said he was from Japan. Almost nothing is known about his personality. Satoshi Nakamoto has been developing the project since 2007, and in 2010 stopped his participation in the development of Bitcoin.

Scam (from the English scam) - fraud. The Russified term is reliably fixed to investment Internet projects that initially did not think to fulfill their obligations to investors. The concept of scam is mainly used among hype investors. When a hype stops making payments to investors, it is called a scam or they say that it is chipped.

Complexity (English, difficulty) is a unit of measure that shows how difficult it is to find a hash that will be lower than the proposed target system (target). Read more about the complexity of mining.

Smart contract (eng. smart contract, also self-executing contract, blockchain contract, or digital contract) is an electronic algorithm designed to automate the process of executing contracts on the blockchain. The main idea of ​​smart contracts is to eliminate discrepancies in the interpretation of the terms of the contract by the parties to it. Read more about smart contracts.

Stacking Is an alternative way to mining,implying the storage of virtual coins on a wallet connected to the Network. In other words, it is the mining of coins that operate on the PoS consensus mechanism. Read more about stacking.

Token - The accounting unit that is used forRepresentation of the digital balance in an asset. Tokens are recorded in a database based on blockchain technology, and they are accessed through special applications using electronic signature schemes. The use of tokens is limited by the project, but they are multifunctional: they can be used as a currency within the project, as an indicator of stock ownership or for the right to vote for changes to the project. This is their main difference from cryptocurrencies. Electronic currencies have one function - exchange for goods and services. Tokens can be exchanged at different sites regardless of origin. Read more about tokens.

Transaction - this is a signature-confirmed data section,which is transmitted over the blockchain network and collected in blocks. Usually it contains links to previous transactions and associates a certain number of bitcoins with one or more public keys (bitcoin addresses). It is not encrypted, since nothing is encrypted in the Bitcoin system. Read more about transactions.

Trading Is an economic term that means a processindependent trade, independent market analysis and conclusion of trade transactions. Etymology of the concept: from English “Trader” - “trader”. More often use the "trader". Read more about cryptocurrency trading.

Tu ze moon (TO THE MOON) - to the moon. The phrase refers to 2017 cryptocurrency fever. Then often you could come across statements like: The price of this coin will one day go to the moon! ("One day the value of this coin will fly to the moon!").

Fork (from English “Fork” - which translates as “branch”) - is the intentional use of one code base of a software project to start another. That is, changing the blockchain code to split it into two. Each new branch of the chain can develop independently of the main project. This also applies to functions: in a new direction, it is possible to realize opportunities that were not mainly. Bitcoin acts as a base for forks. All other cryptocurrencies are called BTC forks. The main distinguishing features of forks from each other are: Encryption algorithm, Emission speed and complexity, Hash function, hash algorithm (SHA-256, scrypt, Scrypt-Adaptive-Nfactor (Scrypt-N), Keccak). Read more about forks.

Phishing (eng. phishing, from fishing - fishing, fishing) is a type of Internet fraud, the purpose of which is to gain access to confidential user data - logins and passwords. Read more about phishing.

Futures contract Bitcoin is an obligation to sell or buya certain amount of bitcoins at a certain price before the contract expires. The concept of futures, or, in a broader sense, is a derivative, that is, a derivative financial instrument. A derivative is a financial contract between parties to a transaction that is based on the future value of the underlying asset. Read more about bitcoin futures.

Hard fork - a drastic change in the source code,incompatible with the old protocol and used software. The new chain breaks away from the old one and does not interact with it anymore. Transactions performed in the previous chain are not recognized as a new chain. Hard fork approval requires network members. However, if some of the miners oppose, a split will occur. Based on one source code, two separate chains will appear. They can exist in parallel, but most often the chain that most users choose survives. The second immediately dies or passes a long period of stagnation.

Halving or halving - halving the rewardminers for the block found. From 2012 to 2016, the reward of the miner is 25 bitcoins, after halving, this amount will be 12.5 bitcoins. The final amount of 21 million bitcoins is expected to be generated by 2140. Read more about halving.

Hash (hash, hashing) is a cryptographic term,which means changing the input data of different sizes into the source data of a clearly defined size, using a special mathematical algorithm. The term is used by miners to calculate the number below the “target” mark, as well as during cryptographic coding. For example, if you need to encode the names of participants in a transaction on the blockchain, they are processed by a special program, and the original alphanumeric code is called a hash. In mining, a hash is a number that must be obtained in order to block a chain and receive a reward.

Chaincode - (chaincode) in Hyperledger Fabric is nothing more than a smart contract. The chaincode can be written in Go, Java and, in the near future, in JavaScript.

Shilling (from English shilling, shill - "decoy duck", shouted) - an activity on the Web aimed at disseminating information about some cryptocurrencies in order to arouse the interest of users and, as a result, increase their value.

Shitcoin (SHITCOIN) - cryptocurrency without intrinsic value or practical benefit.

Popular cryptocurrency terms in English

Airdrop - Free cryptocurrencies that are distributed as advertisements to convey information about the token to potential investors and cryptocurrency enthusiasts.

ASIC (Application-Specific Integrated Circuit) - a special-purpose integrated circuit or ASIC - a hash processor used in cryptocurrency mining.

ATH (All Time High) - the highest value for all time. The maximum cryptocurrency rate.

Bip (Bitcoin Improvement Proposal) - The Bitcoin Development Project, - a document that describes the technical design, new features, new processes or software environment that change the Bitcoin protocol.

Bitcoin investment trust (Bitcoin Investment Fund) - Private Fund,which invests exclusively in bitcoins and uses the storage of bitcoins on behalf of and on behalf of its depositors. It provides financial services for people who want to invest in bitcoins, without the need to buy and safely store cryptocurrency themselves.

Bitcoins per Block or Block Reward

BPI (Bitcoin Price Index) - Bitcoin price index, - developed by Coindesk, represents the average price of bitcoin on the world's largest exchanges.

Coinprizm - application (wallet) and network of the same name for digital confirmation of ownership of arbitrary objects and work with colored coins (Colored coins).

Cryptonote - a protocol that provides for obfuscation (entanglement) of transactions in order to increase the degree of anonymity.

DA or Dapp (Decentralized Application), a decentralized application, is an open source program that works autonomously and stores its data in a block chain.

DAO (Decentralized Autonomous Organization) - A decentralized autonomous organization (DAO).

Diffiffy (complexity) - a parameter characterizing the complexity of mining, i.e. the complexity of solving a cryptographic task.

Dgw (Dark Gravity Wave) - mining complexity adjustment algorithm.

DLT (Distributed Ledger Technology) - Technologydistributed accounting registry (Bitcoin blockchain) - A combination of components including peer-to-peer (P2P) networks, distributed data storage and cryptography.

DPoS (Delegated proof-of-stake) - achievement algorithmdecentralized consensus alternatives to PoW and PoS consensus. It was developed in 2014 as part of the Graphene project and was first involved in the Bitshares project, later in the Steemit project.

EEA (Enterprise Ethereum Alliance) - Nonprofitan alliance of financial and technology companies and foundations whose goal is to promote and support Ethereum-based technologies and standards, as well as harmonize the reference architecture of EntEth 1.0.
EEA members are a number of large banks, including JP Morgan, Santander, UBS and BNY Mellon, as well as IT companies Microsoft, Intel and others.

ECDSA (Elliptic Curve Digital Signature Algorithm) - an algorithm used to confirm transactions in the Bitcoin protocol.

Equihash - the hashing algorithm used inProof-of-Work of some cryptocurrencies (ZCash, Bitcoin Gold, etc.). This is a fairly complex hash function and requires a lot of RAM to execute. Optimized for mining using graphics cards, the so-called GPU mining.

ETF (Exchange Traded Fund) - a stock exchange investment fund. A fund whose units (shares) are traded on an exchange. Learn more

EVM (Ethereum Virtual Machine) - Ethereum virtual machine.

Fomo (Fear of missing out) - a syndrome of lost profits, an obsessive fear of missing out on the benefits of cryptocurrency price increases.

Hashrate (hashrate or computing power) - the computing performance of computer equipment for cryptocurrency mining. Measured by hash (hash) per second.

Hodl (Hold On for Dear Life - Hold as iflife depends on it) - an Internet meme from the world of bitcoins and cryptocurrencies, which is a deliberate spelling distortion of the word “hold” (store, hold, save) or its typo.
The word came into use on December 8, 2013, whenThe user of the BitcoinTalk.org forum under the nickname GameKyuubi has published a post called I AM HODLING. In this post, he admits that he is under the influence of alcohol and explains the reason for the behavior of BTC in the bear market.
Howey test (Howie test) - the criteria used to determine the investment contract and securities. It includes four features:
- Investing money.
- General enterprise.
- Waiting for profits.
- The efforts of the promoter or third parties.
In other words, according to the Howie test, an investment contract is an investment of money in anticipation of profit from a common enterprise, depending solely on the efforts of the promoter or a third party.

ICO (Initial Coin Offering - Initialoffer of coins) - an abbreviation similar to IPO (Initial Public Offering - the first public sale of shares in a company) is a way of attracting primary capital using cryptocurrency.

ISO (Initial Scam Offering - Primary Offersscam) - a pun, an allusion to an ICO, with a hint that most (if not all) of them are dummies. Ethereum entrepreneur and developer Julien Bouteloup coined the phrase to warn people about a scam on the cryptocurrency market.

Instant send - service for instant transactions.

Lightning network (LN) - technological solution for scalingBitcoin and other cryptocurrencies (Lightcoin etc.). Proposed by Blockstream. It is an add-on over the Bitcoin protocol, which allows transactions to be made without prior recording to the blockchain. Functions in the form of bidirectional payment channels. Learn more

MAST (Merkelized Abstract Syntax Trees -Merkelized Abstract Syntax Trees) - Bitcoin extension technology that allows you to increase the flexibility of smart contracts, improve scalability, and increase privacy. Combines the potential of P2SH with the capabilities of Merkle trees. It is under development. Learn more

Nocoiner (nokoiner) - a person who does not have bitcoins. Nokoiners (usually socialists, lawyers, or MBA economists) are people who missed the opportunity to buy bitcoin at a low price, because they thought it was a fraud, and now regret that they missed the opportunity. Nokoiner hides his regret by constantly stating that Bitcoin will collapse, that this is fraud, this is a pyramid or bubble. The worst nokoiners are academics and financiers ("golden bugs"). They believe that the world owes them everything that they want, because they are part of the elite.

Nonce ("Nons") - the numerical parameter sought duringmining (PoW algorithm) and written to the block header. Actually, the goal of mining, as a competitive process for the right to add a block of transactions to the blockchain, is to select such Nonce so that the sought-for block hash (Block Hash) is less than a certain Target number, which is equivalent to obtaining a block hash starting with a certain number of zero bits.

P2P (Peer to Peer) - a peer-to-peer computer network in which all participants (nodes) are equal and can interact with each other, being both a client and a server.

P2SH (Pay to Script Hash) is a multi-signature technology that reduces the load on the Bitcoin infrastructure in terms of data storage.
PoI (Proof-of-Importance) - Alternative PoWan algorithm for achieving consensus when writing a block to the blockchain, in which the definition of the user who will record the next block takes into account the contribution of each participant in the process to the development and promotion of cryptocurrency.

PoS (Proof-of-Stake) - proof of ownership, -an alternative PoW algorithm to achieve consensus when writing a block to the blockchain, in which the probability of writing a new block to the blockchain and receiving the corresponding reward is proportional to the user's ownership in the system:
A single currency holder, having a share of P of the total number of coins in circulation, creates a new block with probability P.

PoW (Proof-of-Work) - proof of completionwork, is the algorithm by which the bitcoin mining network comes to consensus, determining which of the mining nodes will write the generated block to the blockchain.
The essence of PoW comes down to two main points:
The need to perform a certain rather complex and lengthy computational task.
Possibilities to quickly and easily check the result.

PPS (Pay per Share) - payment method (rewards) for mining in the pool. Payment for each sheyr (ball) found.

PPLNS (Pay Per Last N Shares) - payment method (rewards) for mining in the pool. Payment for the last N shapers (ball).

PROP (Proportional) - method of payment (reward) for mining in the pool. The reward is calculated in proportion to the share of shaders sent by the miner (ball) when the block is found by the pool.

RBF (Replace-By-Fee) - in Bitcoin, the replacement of the existingTransaction with a new transaction with increased commission. This feature provides the ability to increase the size of the commission to speed up the process of confirming an existing transaction on the blockchain. RBF is described in BIP-0125. With Replace-By-Fee, users can replace their own transaction with a newer transaction with an increased commission already included.

Scrypt - cryptographic hashing algorithm,Designed for Litecoin (LTC). Compared to the SHA-256 function, calculations are faster and require less processing power.

Seed (seed, source) - a code phrase (sequence of words) with which the user gets access to the private key (private key) from the wallet or bitcoin address.

Segwit (Segregated Witness - a separate fork offered by the Bitcoin Core development team whose goal is to optimize the block size. Learn more

SHA-256 - the cryptographic hashing function that underlies the Bitcoin proof of work protocol, as well as some other cryptocurrencies.

Share (shair or ball) - part of the cryptocurrency search task that a mining pool issues to miner clients.

Shitcoin - shitcoin - crypto coins offered by scammers.

Solidity - Ethereum platform programming language for developing smart contracts.

SPV (Simplified Payment Verification) - Simplifiedpayment verification is a feature of the Bitcoin protocol that allows nodes to verify a transaction without downloading a complete chain of blocks. Instead, to verify the transaction, loading the Headers of the blocks containing the hashes is sufficient.

State channels (Status channels) - technology that allowscarry out the exchange of information (transactions) between nodes in the network without prior entry into the blockchain. The idea of ​​state channels is to move many intermediate processes outside the blockchain, while maintaining the characteristic reliability of the blockchain.

Target or Difficulty Target- target complexity - the maximum number that should not exceed the block hash sought during mining (Block Hash). Actually determines the number of zero bits at the beginning of the desired hash.

Testnet - test chain of transaction blocks. Used by developers not to spend money in the main chain.

Tge (Token Generating Event) is generally a synonym for ICOs, or more precisely, one of the stages of an ICO, namely, the issuance and distribution of tokens (Token sale).

Utxo (unspent transaction output) - unspent transaction output - indivisible pieces of bitcoins tied to a specific owner, recorded in a blockchain, and recognized as a currency throughout the network.
In Bitcoin, there is no concept of accounts or balances; there is only
Unspent transaction outputs (UTXO).

Wire transfer (Bank transfer or bank transfer) - the transfer of money from one person to another in electronic form. It is usually used to send and receive traditional currency in cryptocurrency exchangers.

X11 - a system of hashing algorithms using a chain of 11 hash functions. It is used to prove the performance of work when mining the DASH cryptocurrency.

Zero Knowledge Proof - Zero-disclosure proof, -An interactive cryptographic protocol that allows one of the interacting parties (“The verifier” - Verifier) ​​to verify the validity of any statement (usually mathematical), without having any other information from the second side (“The prover” - Proof).

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