{"id":18815,"date":"2022-06-04T00:44:56","date_gmt":"2022-06-04T00:44:56","guid":{"rendered":"http:\/\/egrowonline.com\/?p=18815"},"modified":"2022-06-04T00:44:56","modified_gmt":"2022-06-04T00:44:56","slug":"from-blockchain-to-the-metaverse-your-cryptocurrency-pocket-glossary","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=18815","title":{"rendered":"From Blockchain to The Metaverse: Your Cryptocurrency Pocket Glossary"},"content":{"rendered":"


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These days, discussing cryptocurrency can feel on par with chatting about the weather \u2014 even for those of us who aren\u2019t in the fintech space, it\u2019s often hard to avoid. But for all its popularity, it\u2019s not exactly easy<\/em> to engage with the ecosystem behind it. The world of digital coinage is not without its barriers to entry, especially for newcomers.<\/p>\n

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Why, you ask? Well, for one, it\u2019s an entirely new way of conceptualizing commerce and value itself. But on top of that, the market is often associated with words like \u201cvolatile,\u201d \u201cunpredictable,\u201d and \u201cfickle\u201d (hardly welcoming<\/em> terms). In fact, the whole category is cloaked in jargon, making it a daunting topic to broach (think: \u201cNFTs,\u201d \u201cgas,\u201d and \u201cdApps\u201d). For folks looking to dip their toes into the underlying blockchain technology, the lingo can certainly be disorienting (read: intimidating). Think about it: You\u2019re required to translate new coinage names, wallet types, and NFT requirements just to join the conversation. It\u2019s like learning a new language.\u00a0<\/p>\n

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That\u2019s why we\u2019ve collaborated with Venmo<\/a> \u2014 where crypto newbies can easily buy, sell, and hold digital currencies using an app they already keep in their regular rotation \u2014 to tap crypto journalist and author of The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze<\/em>, Laura Shin<\/a>, for a jargon-busting lesson. Ahead, find our pocket crypto glossary: all your need-to-know fintech terms to thrive in the world of blockchain, according to Shin.\u00a0<\/p>\n

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This is by no means a crypto bible, but when in doubt, feel free to check back here for the essentials \u2014 whether you\u2019re buying, selling, holding, or merely making dinner party conversation.\u00a0\u00a0<\/p>\n

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Alt-coin<\/strong>\u00a0<\/p>\n

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This word has two meanings, according to Shin. \u201c[Alt-coin] is used pejoratively sometimes, implying that a coin doesn\u2019t have much merit on its own,\u201d she explains. The rest of the time, it\u2019s used to describe any coin that isn\u2019t<\/em> bitcoin (for example: Ethereum, Litecoin, Bitcoin Cash, the list goes on).\u00a0<\/p>\n

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Bitcoin<\/strong>\u00a0<\/p>\n

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Bitcoin is another word with two meanings. Shin says that technically bitcoin (lowercase) refers to the first cryptocurrency developed while Bitcoin (uppercase) is the first blockchain.\u00a0It is governed by an algorithm in which only 21 million bitcoins can ever exist. Its abbreviation is BTC.<\/p>\n

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Bitcoin<\/strong> Cash<\/strong>\u00a0<\/p>\n

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Bitcoin Cash (abbreviated as BCH) is a cryptocurrency and blockchain spun off of the same blockchain as bitcoin in an event known as the \u201cBitcoin fork\u201d. The spinoff was designed to enable more transactions. It shares the same transaction history with bitcoin up until the creation of bitcoin cash.<\/p>\n

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Blockchain<\/strong><\/p>\n

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In the simplest of terms, the Blockchain system is a digital ledger that stores transactions in a digital format. Each transaction that occurs is recorded as a block of data inherently linked to the block before it, creating a secure chain of information that cannot be changed. These blocks are connected chronologically, with new blocks being added as transactions continue.<\/p>\n

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Blockchains are usually stored across a distributed network of servers, each continually exchanging, storing, and updating the ledger. This allows the information to be decentralized and unable to be corrupted by a single user.\u00a0\u00a0<\/p>\n

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Cold Wallet<\/strong><\/p>\n

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A physical device to store your crypto offline. Modern cold wallets look similar to a USB drive and reduce the risk of hacking since they are not connected to the internet. It\u2019s important to keep the device in a safe place because crypto is not recoverable if lost or stolen.<\/p>\n

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dApps<\/strong><\/p>\n

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Short for decentralized applications, \u201cdApps\u201d are applications or programs that run on a blockchain and are developed without any intermediaries. Instead of a single company that hires employees, dApps have a coin designed to incentivize people to offer their services.\u00a0<\/p>\n

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Decentralization<\/strong><\/p>\n

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Decentralization is a movement to design programs, applications, and other digital projects without requiring centralized actors. \u201cFor example,\u201d Shin offers, \u201cIf you were designing a new app online, typically in Web 2.0, it would be done with a centralized company like a startup that would hire all the people to make it run. But in the decentralized world, you would build by designing a coin to incentivize people to fulfill all the roles.\u201d Those who contribute to building these apps are typically compensated with the coins of the system they run on.\u00a0<\/p>\n

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DeFi<\/strong><\/p>\n

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Decentralized Finance (DeFi) is a system whereby different financial services operate online without having financial institutions behind them. \u201cYou\u2019re replacing those financial institutions with software or protocol, and incentivizing the different actors on a network to provide whatever services you need,\u201d says Shin.<\/p>\n

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Ethereum\u00a0<\/strong><\/p>\n

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This is the second most popular blockchain \u2014 and the second largest in terms of market cap. It\u2019s a platform for other decentralized applications, such as the game CryptoKitties<\/a>. People often call it a decentralized world computer. \u201cAnother way to describe it would be an app store where any developer can dream up a decentralized application and upload it to Ethereum,\u201d says Shin.\u00a0\u00a0\u00a0<\/p>\n

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Ethereum 2.0<\/strong>\u00a0<\/p>\n

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You might hear Ethereum 2.0 referred to as the consensus layer. \u201cBasically, Ethereum 2.0 refers to a proof of work blockchain that has become a proof of stake blockchain,\u201d Shin says. \u201cAnd all that means is that instead of electricity [through crypto mining] being the way that the network is secured, now it\u2019ll be secured by people depositing certain coins, so-called staking them, and earning interest on them to secure the chain.\u201d\u00a0<\/p>\n

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Fiat Currency\u00a0<\/strong><\/p>\n

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Fiat currency is a type of currency issued by a government decree \u2014 but isn’t necessarily backed by anything (i.e. gold).<\/p>\n

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FUD\u00a0<\/strong><\/p>\n

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Standing for \u201cfear, uncertainty, and doubt.\u201d It\u2019s a term often used to describe those who are critical of the crypto world. These people are said to \u201chave FUD\u201d.\u00a0<\/p>\n

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HODL<\/strong><\/p>\n

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\u201cIt just means hold,\u201d says Shin. \u201cThe misspelling comes from a drunken forum post on a bitcoin talk forum, where someone meant to write hold and they wrote, HODL. But it just means what it means\u2014don’t sell your coins.\u201d<\/p>\n

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Initial Coin Offering\u00a0<\/strong><\/p>\n

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Think of this like fundraising. An initial coin offering is basically a crowd sale in exchange for cryptocurrency tokens issued by the company, used to fund the development of a new blockchain project. The tokens can also have utility for a particular service or product.<\/p>\n

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Litecoin<\/strong>\u00a0<\/em><\/p>\n

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Litecoin is often referred to as digital silver (in contrast to bitcoin being referred to as digital gold). \u201cIt\u2019s designed like bitcoin but with slightly different parameters,\u201d says Shin. \u201cThere are more litecoins than bitcoin and the block time \u2014 the time between transaction broadcasts \u2014 is shorter on litecoin.\u201d<\/p>\n

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Metaverse\u00a0<\/strong><\/p>\n

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Simply put, the metaverse is an alternative, virtual world where you can own digital assets like NFTs and transact using cryptocurrencies. But it\u2019s not quite<\/em> that simple. \u201cThe way it\u2019s being developed right now, it doesn’t seem like there\u2019s going to be a single metaverse,\u201d says Shin. \u201cThere are centralized companies building their own versions of the metaverse, so this term is ill-defined at the moment. It\u2019s not really clear what it\u2019s going to be, in the end.\u201d\u00a0<\/p>\n

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Mining<\/strong>\u00a0<\/p>\n

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A way in which people try to obtain a new coin being <\/strong>minted (essentially, made official) by a blockchain or by a crypto network. Crypto mining requires solving complex equations. The first miner to solve the problem gets a reward of the next block in the blockchain, resulting in a new transaction being added to the ledger.\u00a0<\/p>\n

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NFT<\/strong><\/p>\n

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NFT is short for non-fungible token and a new concept in ownership. \u201cIt\u2019s what enables you to own objects in the digital metaverse. Basically it\u2019s a unique token,\u201d Shin explains. \u201cIf I asked you to pay me a bitcoin for some huge, huge item, I wouldn\u2019t say I prefer this bitcoin over that bitcoin<\/em> or anything like that. With a non-fungible token, since it’s unique, each one is distinct from another.\u201d\u00a0<\/p>\n

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Every bitcoin has the same value, and each is interchangeable. In contrast, an NFT\u2019s value comes individually, as each token is different. For example, think about the way your kid\u2019s artwork on your fridge will have a different market value than, say, a Picasso \u2014 even though they\u2019re both technically artworks. <\/em>\u00a0\u00a0\u00a0<\/p>\n

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\u201cThere can be a particular class of NFTs that are unique within that class,\u201d clarifies Shin. \u201cSo for instance, you could have a series of 100 tickets to an event that are NFTs, so they’re fungible with each other but not with anything outside.\u201d<\/p>\n

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Private Key & Public Key<\/strong><\/p>\n

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\u201cA private key is what enables you to send crypto <\/strong>from your<\/em> wallet or address to another<\/em> wallet or address, whether it\u2019s owned by you or by someone else,\u201d says Shin. \u201cBut a public key is what allows you to accept crypto when it\u2019s sent your way from a different <\/em>user. A public key would be like a mailbox where you receive money and then a private key would be the door in the back that allows you to send money out.\u201d\u00a0<\/p>\n

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Smart Contracts<\/strong>\u00a0<\/p>\n

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These are software programs that automatically execute the terms of an agreement between two transacting parties without the need for a company or other intermediary to intervene and ensure that the two parties fulfill the terms of their agreement. The contract executes itself, without anyone overseeing it. For example: A vending machine transaction. You put a dollar into the vending machine, and the machine gives you a soda. No one has to enforce this transaction.\u00a0Smart contracts are often used to execute contracts and agreements efficiently across blockchains, such as Ethereum.<\/p>\n

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Wallet<\/strong><\/p>\n

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A hardware device or an application used to keep private keys safe. \u201cYour wallet allows you to interact with the blockchain: you can view your balance and send or receive money,\u201d says Shin.\u00a0<\/p>\n

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These days, discussing cryptocurrency can feel on par with chatting about the weather \u2014 even for those of us who aren\u2019t in the fintech space, it\u2019s often hard to avoid. But for all its popularity, it\u2019s not exactly easy to engage with the ecosystem behind it. The world of digital coinage is not without its […]<\/p>\n","protected":false},"author":1,"featured_media":18816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[43],"tags":[73,52,2226,67,8202],"class_list":["post-18815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-litecoin","tag-blockchain","tag-cryptocurrency","tag-glossary","tag-metaverse","tag-pocket"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/06\/1651856816129-050322vicevenmometaverse006.jpeg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/18815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18815"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/18815\/revisions"}],"predecessor-version":[{"id":18817,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/18815\/revisions\/18817"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/18816"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18815"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}