Glossary of Cryptocurrency Terms

51% Attack
The ability of someone controlling a majority of network hash rate to revise transaction history and prevent new transactions from confirming. Works on PoW cryptocurrencies with lower market caps.

A Cryptocurrency address is used to receive and send transactions on the network. An address is most commonly represented as a string of alphanumeric characters and sometimes referred to as wallets. Addresses can also be represented as a scannable QR code.

Short form for ‘Application Specific Integrated Circuit’. Often compared to GPUs, ASICs are specially made for mining and may offer significant power savings. But also means is special hardware and is not easy to find.

Refers to any cryptocurrency other than Bitcoin. In other words, any Bitcoin alternative is called an altcoin.

Refers to where a person takes advantage of the difference in price of the same coin on different exchanges. The term is mainly mentioned to refer to the difference of ETH price on Korean and US exchanges.

A method of distributing cryptocurrency amongst a population, first attempted with Auroracoin in early 2014.

ATH (All-Time-High)
The ATH is the highest price an asset has ever reached.

Atomic Swap
Atomic swaps, or atomic cross-chain trading, is the exchange of one cryptocurrency to another cryptocurrency, without the need to trust a third-party.

Bitcoin is the first decentralised, open source cryptocurrency that runs on a global peer to peer network, without the need for middlemen and a centralised issuer.

Someone who still holds an altcoin even after a pump and dump cycle - Someone holding the coin as the value depreciates, with few future prospects.

Block reward
The payment to or profit earned by a miner who successfully hashes a transaction block.

Blockchain or a chain of blocks refers to distributed digital ledgers or public databases that are linked and secured by cryptography, on which transactions between parties in the network are recorded, and whose data can be read by users located in different places in the network.

These are partial files of the overall files (for instance a page of a ledger) where some data that has not yet entered any prior blocks (data about transactions and other issues) are recorded on the blockchain. Many blocks make a blockchain. The first block in a blockchain is called a genesis block.

Block Explorer
Block explorer is an online tool to view all transactions, past and current, on the blockchain. They provide useful information such as network hash rate and transaction growth.

Block Height
The number of blocks connected on the blockchain.

Block Reward
A form of incentive for the miner who successfully calculated the hash in a block during mining. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of those.

Bollinger Band
A tool of technical analysis. It draws a margin around the crypto price which helps show when a coin has been overbought or oversold. Another indicator used for this is RSI.

Bull Market
When the market price for crytocurrencies (or stocks/commodities) is generally trending upward.

Bear Market
When the market price for crytocurrencies (or stocks/commodities) is generally trending downwards.

The successful act of hashing a transaction, validating a transaction by adding it to the blockchain.

Cold storage
Cryptocurrency stored offline to avoid hacking threats.

Consensus and Consensus rules
Consensus is the reaching of decisions about a matter by a significant number in the cryptocurrency network. In other words, it means the absence of significant objection among the people making the decision to do a hardfork for instance. Consensus rules are the rules enforced by a crypto protocol when considering the validity of a block and its transactions.

A digital asset used as a medium of exchange in digital platforms and with cryptography to secure transactions and control creation of new units of it .

Cyptocurrency exchange
Websites or applications where you can exchange, buy and sell your coins. Examples include Bitfinex and Coinbase.

Cryptographic Hash Function
Cryptographic hashes produce a fixed-size and unique hash value from variable-size transaction input. The SHA-256 computational algorithm is an example of a cryptographic hash.

Dark Send
A cryptocurrency transaction that's private, so that the blockchain doesn't record the sender, receiver, or the amount.

Decentralized Autonomous Organization was an investor-directed venture capital fund that was built on the Ethereum network and which was hacked in June 2016.

Dapps - Decentralized Applications
These are applications deployed on the blockchain with the smart contract as the back-end code and which do not require a centralized decision making process on their functionality. They perform functionality beyond transactions that exchange value. The backend code runs on a decentralized peer-to-peer network.

DDoS (Distributed Denial of Service)
An electronic attack to a system where the attacker controls a large number of computers in a network to drain the resource of their central target.

Decentralization refers to the lack of central mechanism of governance and control in cryptocurrency.

Decred cryptocurrency
This is a cryptocurrency that uses a hybrid consensus system in order to balance the interest of miners and users in order to avoid one group having excessive influence or sway over the other in the way the project goes.

Distributed Consensus
Is the collective decision-making of parties inside a decentralized or distributed network.

Distributed Ledger
Distributed ledgers are ledgers in which data is stored across a network of decentralized nodes. A distributed ledger does not have to have its own currency and may be permissioned and private.

Distributed Network
A type of network where processing power and data are spread over the nodes rather than having a centralised data center.

This refers to how easily a data block of transaction information can be mined successfully.

Digital Signature
A digital code generated by public key encryption that is attached to an electronically transmitted document to verify its contents and the sender’s identity.

DIVX token
Divi Project tokens - These are ERC20 standard tokens issued on the Ethereum blockchain. We project that there will be around 60-80 million tokens created through a smart contract during the token sale, but this depends on when people buy. Divi Project tokens will be automatically issued to participants through a smart contract and become tradable as soon as the token sale reaches the cap or the end date, whichever comes first. Only DIVX will be available during the presale, token sale, and prior to the launch of the Divi Project blockchain. These tokens will be exchangeable for the real DIVI coins on a 1-1 rate.

Double Spend
An act where a malicious user sends cryptocurrency to two different people to pay for different services with the same cryptocurrency in the balance.

Dust transaction
This is a transaction worth only a very small amount of cryptocurrency coins and takes up space in the blockchain, but with little financial value.

ERC20 compliant tokens

ERC20 compliant tokens are tokens that adhere to a common list of rules defined by the ERC20-Standars to predict behavior and functioning for all tokens issued on the Ethereum blockchain. By adhering to these standards, assets become more easily interchangeable and ensure they can work with Dapps adhering to the same standards.

Ethereum is an open-source, public blockchain computing platform that allows execution of smart contract (scripting), development and deployment of decentralized applications that can run as programmed without chances of fraud, censorship or third-party interference.

The Ethereum Virtual Machine (EVM) is a Turing complete virtual machine that allows anyone to execute arbitrary EVM Byte Code. Every Ethereum node runs on the EVM to maintain consensus across the blockchain.

A technique used to launch an altcoin – many are pre-mined and people are given coins for free to encourage people to take interest and begin mining it.

Refers to any government-issued currencies such as the Euro and US Dollar. Regulated physical paper money.

Someone with a small amount of cryptocurrency in a network such that he or she cannot control the general trend such as pricing.

FOMO (Fear Of Missing Out)
The excessive desire to get into a project or deal of buying the coin when the price starts to go up immediately.

The separated chain from the original blockchain in a cryptocurrency project. It is usually the result of building "governance rules" into the original blockchain code.

FUD (Fear, Uncertainty, and Doubt)
Fear and negativity that someone spreads intentionally in order to have the price go down.

Gas price
The amount to be spent on each gas unit on a transaction.

The amount of processing required by a network to process a transaction. Some transactions require more gas, others require less.

Genesis Block
The first block of a blockchain, which will usually contain the starting quantities in the ledger of all the initial coin holders. Genesis blocks also sometimes contain other information such as the names of the founders of the cryptocurrency or other trivia.

Going long
Betting on the price to increase.

Going short
Betting on the price to decrease.

A change to the block structure that changes the difficulty rules.

Hardware wallet
A physical device that stores digital cryptocurrency.

Hash Rate
Is the processing power of the computer used to mine cryptocurrency in a network.

A mathematical process where an algorithm or signature (or subroutine) is used to represent an arbitrary amount of data. In other words, the amount of data is mapped into a fixed length hash, a short string of letters and numbers. You can compare the sets of data with two or more hashes without looking at the full data set.

This is the keeping or holding of the funds (without spending them) and selling it at the most opportune time. One holds it with the expectation that the price will go up.

HODL - Hold On for Dear Life
It means holding a coin or position for long term. The hilarious original Bitcointalk post of how the term HODL was invented is here: HODL Story

Hybrid PoS/PoW
A hybrid PoS/PoW allows for both Proof of Stake and Proof of Work as consensus distribution algorithms on the network. In this method, a balance between miners and voters (holders) may be achieved, creating a system of community-based governance by both insiders (holders) and outsiders (miners).

Initial Coin Offering (ICO)
Similar to an IPO in the non-crypto world, ICO refers to the issuing of tokens by a startup crypto project in exchange for ether, usually done through crowdfunding on the ethereum platform.

Know Your Receiver (Divi Feature)
Wallet feature that will let you see the photo and details of the wallet you’re sending to before you hit the send button to avoid send errors.

Limit order, limit buy or limit sell
Cryptocurrency order to buy or sell cryptocurrency when its price hits a certain limit or amount. They are the orders bought or sold against when traders place market orders. They merely act as "for-sale" signs.

Lottery Blocks Reward System (DIVI feature)
A new original feature invented by Divi. Normally a blockchain produces regular awards with a consistent amount awarded. The lottery block system randomly produces an occasional block with much higher amounts than normal, that are rewarded to whoever found it.

MACD (Moving Average Convergence Divergence)
Trend indication of the relationship between two moving averages of prices.

When a cryptocurrency has been using an ERC20 or other temporary token through and ICO process, the final release of the new blockchain is called the mainnet, at which time the temporary tokens are converted to those native to the new blockchain.

Margin trading
A risky trading trick where a trader "magnifies" the intensity of his or her trades by risking the existing coins.

Market cap
Total value held in a cryptocurrency. Total coin in supply multiplied by the current price of one unit.

Market order, market buy or market sell
It is a simple purchase or sale at the current price, on an exchange. A market buy will buy the cheapest ETH available on the order book and a market sell will fill the most expensive buy order.

A masternode is a computer connected to and communicating with other computers in the network to perform specialized functions such as such as relaying transactions, enabling InstantSend, PrivateSend, hosting decentralized apps and other things. Masternodes are run by individuals in the network to support the crypto goals and so are incentivized or compensated for the operation.

Masternode System, Tiered (DIVI Feature)
A innovative tiered masternode system developed by DIVI, Coin holders will be elegible to run different levels of masternodes depending on the colateral of coins they hold. There will be 5 levels of masternodes avaialble

The chance of earning coins at each mas ternode level improves linearly with the number of coins. For example, the Gold Masternode is 10 times more likely to earn coins than copper, plus 10% bonus.

Mining difficulty
The how difficult it is to hash a new block. It is a number related to the maximum allowed number in a given numerical portion of a transaction block's hash. Lower numbers have more difficulty in producing a hash value that fits them.

Mining Rig
A computer with capability to and specifically designed to mine Proof of Work blockchains. They usually comprise of multiple-high-end GPUs to maximize processing power and speed.

Process of trying to "solve" the next block in a crypto network and which is rewarded with the network crypto coins. It is done either by using massive resources and electricity in Proof of Work or by staking or keeping some amount of coins in a wallet in Proof of Stake system to "vote" and for purposes of generating consensus.

The process of rewarding users in proof of stake coins. New coins are minted as the reward for verifying transactions in a block.

When the price of a cryptocurrency starts rapidly going higher, it's called "mooning" and is an even that all the coin holders look forward to.

Mobile Behavioral Biometrics (DIVI feature)
Behavioral biometrics works by tracking each person’s unique movement signature. Thus, your wallet could be automatically locked if stolen.

Multi-Sig Wallet/Pocket (DIVI feature)
User’s funds will be able to be set into a pocket that requires more than one signature to unlock, creating an extra layer of security. A very secure way to secure smartphone wallet funds in case is stolen or hacked.

A copy of the ledger operated by a participant in the blockchain network. Miners, stakers, and masternode holders typically operate a "node" as part of their support of the network.

Oracles work as a bridge between the real world and the blockchain by providing data to the smart contracts.

Peer to Peer
Peer to Peer (P2P) refers to the decentralized interactions between two parties or more in a highly-interconnected network. Participants of a P2P network deal directly with each other through a single mediation point.

Piggy-bank (Divi Feature)
It is a "pocket" or wallet where a user can put DIVI that can't be withdrawn until a specific date, or a certain minimum amount is reached. Like the name implies, it's a digital version of a piggy bank.

Pocket (Divi Feature)
A sub-wallet within the Divi wallet where one can save or store crypto with its own privacy and security parameters.

Private key
A secret piece of data that a user uses to confirm transactions in order to spend cryptocurrencies stored in a wallet. The private key can be stored in a software wallet for instance in one's computer, but you can also print it on a piece of paper or a paper wallet.

The private key is a secret number that allows one to spend cryptocurrencies by confirming transactions in the network. The private key corresponds to the wallet address in question and is generated mathematically or algorithmically using the public key.

The mining of a cryptocurrency by its developers before it is released to the public. This can be done with good intentions, however it is also strongly associated with scamcoins.

Proof of Stake
A consensus where people who own coins can ‘lock up’ an amount for a given period of time so as to "vote" and generate network consensus. Those who do so are rewarded. The amount of coins staked is used to calculate the amount of currency you can mine.

Proof of Work
Proof of work is a consensus that requires one to use massive resources such as electricity and high-power machines to "solve" the next block in the blockchain.

Public Key
A public key is an alpha-numeric cryptographic code that allows a user to receive cryptocurrencies in his or her account and accompanied by a private key that allows spending of the currency.

Pump and Dump
This is a scheme whereby a group of investors talk, shill, and advertise a cryptocurrency to get others interested, and help push the price very high. Usually the schemers have already bought a lot of these coins at a low price in advance. Once the price starts rising, they start selling their coins and continue to "pump" the price up while they "dump" into the rise.

QR Code
Usually in paper wallets. It's a square barcode that contains a monochromatic pattern representing a sequence of data. In cryptocurrency it's often used to represent a public wallet address for mobile apps.

Quantum Resistant
When a cryptocurrency has been designed to resist attacks by quantum computers. More info on this: Quantum Resistant Cryptos

Redeeming coins
Redeeming is exchanging one type of crypto coin with another. Usually this is done as part of the ICO process when a temporary token that's sold during an ICO is finally redeemed (exchanged) for a token on a new blockchain.

ROI Return on Investment
Percentage of profit made compared to the initial investment in a cryptocurrency

The penny of bitcoin or the smallest measurement of bitcoin. 1 Satoshi = 0.00000001
BTC. Named after the inventor of Bitcoin, Satoshi Nakamoto.

Sell wall or buy wall
It is a "wall" formed by the current limit and sell points as seen in a depth chart or graph.

Scrypt is a type of cryptographic algorithm and is used by Litecoin. Compared to SHA256, this is quicker as it does not use up as much processing time.

When a person, usually an influencer or celebrity excessively praises a cryptocurrency in order to help pump the price up. "Shillers" are usually paid to do this, or have already bought these coins at a low price. Shillers are typically seen in a bad light by the crypto community, but often they have many followers who follow their advice.

SHA-256 is a cryptographic algorithm used by cryptocurrencies such as Bitcoin. However, it uses a lot of computing power and processing time, forcing miners to form mining pools to capture gains.

The hosting of partial copies of the complete blockchain by the nodes so as network performance and consensus speed can improve.

The act of selling a cryptocurrency in hopes of buying it at a lower price later on to make profit.

Single-signature transactions
A transaction that requires confirmation by only one key in order to transact the assets involved.

Smart contract
Conditioned-based transactions and interactions that state how money flows based on the agreements. A smart contract is a self-executing computer protocol stored or embedded on the blockchain and which is intended to facilitate, verify or enforce the negotiation or performance of transactions and other things according to the agreement or set of rules agreed upon.

Software wallet
A digital storage for crypto coins which is just software files in a computer or network.

Soft Fork
A soft fork differs from a hard fork in that only previously valid transactions are made invalid. Since old nodes recognize the new blocks as valid, a soft fork is essentially backward-compatible. This type of fork requires most miners upgrading in order to enforce, while a hard fork requires all nodes to agree on the new version.

Solidity is Ethereum’s programming language for developing smart contracts.

Stable Coin
A cryptocurrency with a low volatility and which can be used to trade against the overall market.

Staking is the putting money into your wallet and allowing the money to sit on the wallet for a fixed amount of time so as to earn more coins.

Subscription Send (Divi Feature)
A wallet Function to send a preset amount of cryptocurrency on a regular schedule (daily, weekly, monthly, etc) to a given address.

TA (Trend Analysis or Technical Analysis)
Using the current charts to predict future market trends.

A test blockchain used by developers to prevent expending assets on the main chain.

The "currency" of a cryptocurrency project e.g. Divi tokens are DIVI or DIVX.

Transaction confirmation
It means the processing of a transaction by other miners in the network and it means the transaction is then added to a new block on the blockchain.

Transaction Block
A collection of transactions gathered into a block that can then be hashed and added to the blockchain.

Transaction Fee
All cryptocurrency transactions involve a small transaction fee. These transaction fees add up to account for the block reward that a miner receives when he successfully processes a block.

Turing Complete
Turing complete refers to the ability of a machine to perform calculations that any other programmable computer is capable of. An example of this is the Ethereum Virtual Machine (EVM).

Two Factor Authentication (2FA)
A common security technique whereby before logging into a website or app, a user will need to use Google 2FA or check email for a second one-time-use code.

Uncle Block (Also Orphans)
When two miners find a block at nearly the same time, the blockchain can have a temporary state of confusion while the other nodes try to develop a consensus. These are uncle/orphan blocks.

Vaulting (DIVI feature)
Ability for the user to lock their coins into the blockchain for a given period of time to secure them, so that even under duress or extortion, they will not be able to remove those coins from the wallet.

Measurement of how difficult it is for the the price of a cryptocurrency to move up or down. Generally, the fewer people who are trading a cryptocurrency (low volume) makes the value more volatile.

Voting is the participation by the cryptocurrency stakeholders in the decision-making process, to express a wish about a cryptocurrency protocol. It is usually done to determine which applications and sub-projects should be funded.

A file that houses Private Keys. It usually contains a software client which allows access to view and create transactions on a specific blockchain that the wallet is designed for.

Wallet address
Refers to a code used to send or receive cryptocurrency coins. It is the public key used in digitally signing of transactions. It has 26-35 alphanumeric characters.

A person or group that owns a large amount of a cryptocurrency, such that they have a lot of power to affect vote, or sell off large amounts to deeply affect the price.

A document describing the cryptocurrency project and protocol in detail.