The first cryptocurrency; created by an individual or group of individuals operating under the name Satoshi Nakamoto in 2008. It was intended to be a decentralized, peer-to-peer electronic cash system.
The blockchain is a digital ledger of all the transactions ever made in a particular cryptocurrency. It is made up of individual blocks that are chained to each other through a cryptographic signature. When a block’s capacity is reached, a new block is added to the chain. The blockchain is repeatedly copied and saved onto thousands of computers all around the world, and it must always match each copy. Because there is no master copy stored in a single location, the blockchain is considered decentralized.
A cipher is the name given to the algorithm that encrypts & decrypts information.
Cryptocurrency is a form of currency that exists as encrypted, digital information. Cryptocurrency uses sophisticated mathematics to regulate the creation and transfer of funds between entities.
Decryption is turning encrypted cipher text back into plain text.
A distributed ledger is a ledger that is stored in multiple locations. Entries can be accessed and checked by multiple parties. In cryptocurrency, the blockchain is held on multiple nodes on the network, all of which are checked simultaneously.
Encryption is converting plain text into a code with the use of a cipher.
Based on its market capitalization, Ethereum is one of the top 3 cryptocurrencies in the world. It is open source and based on blockchain technology, but it differs from Bitcoin in a few ways. Two of the ways it differs are that it allows developers to create dApps and also write smart contracts.
An exchange is a platform through which cryptocurrencies are exchanged with each other, with fiat currencies, and between entities. Exchanges vary widely in the both their fee structures and the currency conversions that they enable.
A hardware wallet is a physical device, that stores cryptocurrency in its encrypted form and it’s considered to be the most secure way to store cryptocurrency.
A paper wallet is a private key that is stored on a physical document. A paper wallet is sometimes also referred to as cold storage.
A public key is a string of numbers and letters that are used to access a wallet. A wallet is represented by a public key, while the private key is the password that needs to be kept secret. A private key is necessary when selling or withdrawing cryptocurrencies and it acts as a digital signature.
A public key is a unique wallet address. It is a long string of numbers and letters, and it is used to receive cryptocurrencies.
Shit Coin is a term used to describe a cryptocurrency that is not expected to have a positive future.
A type of cryptocurrency wallet where the private key is stored in software files on a computer. If you sign up for a wallet online that is not associated with an exchange, this is the type of wallet you are likely to use.
Cryptocurrency “coins” are called tokens. A token is the digital code defining each fraction, which can be owned, bought, and sold.
A wallet has a unique code that represents its address on the blockchain. The address of a wallet is public, but it contains private keys for determining ownership of the balance and the balance itself. A wallet can exist in software, hardware, paper, or other forms.