By Fadlan Effendi
Every week Blockchain Sensei will be walking you through the basics of blockchain technology. Consider this your crash course in all things web3!
The world of cryptocurrencies can be daunting for newcomers, with its own unique jargon and technical terms. To help you, we’ve put together a list of 10 essential crypto terms that every enthusiast should know.
1. Blockchain: The underlying technology behind cryptocurrencies, a blockchain is a decentralized, immutable ledger that records transactions across a network of computers.
2. Bitcoin: The world’s first and most well-known cryptocurrency, Bitcoin is a decentralized digital currency that enables peer-to-peer transactions without intermediaries.
3. Ethereum: A decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps).
4. Smart Contract: Self-executing contracts with the terms of the agreement directly written into code, eliminating the need for intermediaries.
5. Altcoin: Any cryptocurrency other than Bitcoin, such as Ethereum, Litecoin, or Ripple.
6. Mining: The process by which new cryptocurrency coins are created and transactions are validated on a blockchain network.
7. Proof-of-Work (PoW): A consensus mechanism used by cryptocurrencies, where miners compete to solve complex mathematical problems to validate transactions and create new blocks.
8. Proof-of-Stake (PoS): An alternative consensus mechanism where validators are chosen based on the number of coins they hold and “stake” as collateral.
9. HODL: A term originating from a typo of “hold,” which has become a popular strategy of holding onto cryptocurrency investments for the long term.
10. Bull/Bullish: A term used to describe a positive price movement or market sentiment in the crypto space.
By familiarizing yourself with these key terms, you’ll be better equipped to understand the conversations, news, and developments in the crypto world, helping you make more informed decisions about the exciting opportunities that cryptocurrencies have to offer.
