Cryptocurrency Terminology

With cryptocurricies comes a lot of acronyms and terms that you may not be familiar with yet. Block chains, hashes, Satoshi, Etherium, all terms associated with various cryptocurricies.

Address – Much like your home address, your wallet is address is where people send your cryptocurrency. Length and style varies from cryptocurrency to cryptocurrency.

Altcoin – Any coin that isn’t Bitcoin. Examples include Litecoin, Etherium, ZCash and Dogecoin. 

ASIC – Application Specific Integrated Circuit. Designed to do one specific thing very efficiently, such as mining Bitcoin. 

Bit – The penny of Bitcoin. Equal to 0.000001 Bitcoin, or 1 millionth of a bitcoin. 

Bitcoin – The first cryptocurrency, using the SHA-256  algorithm. Currently the most valuable currency. Also known as. BCT. 

Block – The current transactions taking place on a block chain. Anytime someone sends or recives money, it’s contained on a block that’s added to the block chain to be processed.

Block Chain – The virtual “bank ledger” of cryptocurrencies. Contains all the transactions that take place for that specific cryptocurrency.

Burstcoin – A cryptocurrency based off of a proof of capacity (PoC) concept. Instead of raw processing power, your hard drive space is used to store answers to algorithms. Also known as BURST. 

CPU – Sometimes used to process algorithms. Less popular than GPU’s due do their inability to process several small chunks if data at once. 

Dogecoin – A currency featuring the interment meme Doge as its image. Originally created as a joke, it’s value quickly rose. It’s current market cap is roughly $340 million as of 2017.

Ether – An altcoin used on the Etherium network  for payments. It is also a digital cryptocurrency used by the general public for transactions. 

GPU – Graphics processing unit. Popular option for processing algorithms for various cryptocurricies, such as ZCash

Hashrate – The speed that the math problem for a block is solved. Expressed as GHash/s or MHash/s. 

Litecoin – Created in response to Bitcoins difficulty. Litecoin, as its name suggests, is lighter on resources than its popular counterpart. It uses scrypt as its hashing algorithm. Also known as LTC. 

Mining – The act of solving hashes to create new coins for a specific cryptocurrency. This is how new coins enter the market.

PoC – Proof of capacity. Miners compute a large amount of data at once and store it to dusk. This data is then pulled from to verify transactions. Used in Burstcoin. 

PoW – Proof of work. Miners compute using hashing algorithms on the fly. This is much more energy intensive than PoC. Most cryptocurricies currently use this method. 

Satoshi – The smallest measurement of a bitcoin. Equal to 0.00000001 Bitcoin. Most faucets pay out in Satoshi. 

ZCash – Operates with strict privacy. Transactions are published to the public block chain, but sender, recipient and transaction amount is kept private. Uses the Equihash algorithm. 
This list is a work in progress. If you’d like to see anything added or would like to suggest a correction, please do so in the comments below. 

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