Cryptopedia

Crypto asset -​ a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.

Private keys ​- a private key in the context of Blockchain is a secret number that allows crypto assets to be spent. Every Crypto asset wallet contains one or more private keys, which are saved in the wallet file. The private keys are mathematically related to all Crypto asset addresses generated for the wallet.

Addresses -​ an identifier of alphanumeric characters, that represents a possible destination for a Crypto asset payment. Addresses can be generated at no cost by any user of Crypto asset.

Cryptocurrency node, Full node wallet ​- any computer that connects to the Blockchain network is called a node. Nodes that fully verify all of the rules of Bitcoin are called full nodes. Full nodes download every block and transaction and check them against Blockchain consensus rules.

Blockchain explorer -​ a block chain browser (also called “block explorer”) is a program or web site that lets users search and navigate a blockchain. Uses include: checking address balances, tracking coin transfer histories, watching for transaction acceptance, monitoring the network hash rate and other statistics.

SPV (Simplified Payment Verification) ​- a method for verifying if particular transactions are included in a block without downloading the entire block. The method is used by some lightweight Blockchain clients. Thin clients don’t verify the preceding blocks, they use the number of confirmations (whether they are valid or not) as a measure of the likelihood of a block chain reorganization producing a new longer fork which excludes the transaction.

Full node wallet -​ a full node is a program that fully validates transactions and blocks. Almost all full nodes also help the network by accepting transactions and blocks from other full nodes, validating those transactions and blocks, and then relaying them to further full nodes. It’s possible and safe to run a full node wallet to support the network and use its wallet to store your Crypto assets, but one must take the same precautions you would when using any Crypto asset wallet.

Orderbook -​ an order book is an electronic list of buy and sell orders for a specific security or financial instrument, organized by price level. An order book lists the number of assets being bid or offered at each price point, or market depth. It also identifies the market participants behind the buy and sell orders, although in some cases participants choose to remain anonymous (most likely for crypto markets).

Trade ​- trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.

Taker ​- a taker is an individual or company that must accept prices in a market and takes liquidity from the makers. A Taker hits previously created order from the orderbook.

Signature ​- a mathematical scheme for demonstrating the authenticity of digital messages or documents. A valid digital signature gives a recipient reason to believe that the message was created by a known sender (authentication), that the sender cannot deny having sent the message (non-repudiation), and that the message was not altered in transit (integrity).

Seeding -​ an uploading of already downloaded content for others to download from. A peer, a computer that is connected to the network, becomes a seed when having acquired the entire set of data it tries to download. This data consists out of small parts so that seeds can effectively share their content with other peers, handing out the missing pieces. A peer deliberately chooses to become a seed by leaving the upload task active when content is downloaded.

Byzantine consensus ​- a dependability of a fault-tolerant computer system, particularly distributed computing systems, where components may fail and there is imperfect information on whether a component is failed. In a “Byzantine failure”, a component such as a server can inconsistently appear both failed and functioning to failure-detection systems, presenting different symptoms to different observers.

Validator -​ a special role for active consensus participants maintaining consensus in Byzantine networks. While not all the nodes in the blockchain network may be actively involved in the consensus algorithm Validator nodes do.

Blockchain oracles ​- an application for a delivery of data to the blockchain and delivery of the data itself.

Market price -​ current price at which an asset or service can be bought or sold. The economic theory contends that the market price converges at a point where the forces of supply and demand meet.

Network commissions ​- a fee that spenders may include in any Blockchain transaction. The fee may be collected by the miner who includes the transaction in a block.

ERC20 (223) tokens ​- a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. It defines a common list of rules that an Ethereum token has to implement, giving developers the ability to program how new tokens will function within the Ethereum ecosystem.

OTC deals ​- crypto assets traded in some context other than on a formal exchange such as the Poloniex, Binance, Kraken. The phrase “over-the-counter” can be used to refer to Crypto assets that trade via a dealer network as opposed to on a centralized exchange.

Smart contract ​- a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.

KYC procedure ​- the Know Your Client form is a standard form in the investment industry that ensures investment advisors know detailed information about their clients’ risk tolerance, investment knowledge and financial position. KYC forms protect both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and cannot include in their client’s portfolio