Lexicon of Crypto Concepts
Blockchain
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The blockchain is a decentralized digital public ledger for transactions in the field of digital currencies. The blockchain expands continuously by adding blocks in chronological order. Managing the blockchain enables participants and traders in digital currencies to track transactions without the need for a centralized management system for saving information. Each computer node connected to the network automatically receives a copy of the blockchain.
Digital Asset
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A digital asset is any media or text that exists in binary format and is licensed for use.
Mining
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Mining is a nickname for the process by which new bitcoins come into the world. Mining is done by miners, solving extremely complicated equations. The miner who resolves quickest will receive the recompense (commission) for the transfer, at the same time adding it to the blockchain.
Digital Wallet
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A digital wallet is an application installed on a computer or app that allows the storage of digital currencies. Most digital wallets are designed to store Bitcoin, which is the most popular currency. A digital wallet uses public addresses as well as private keys to safely hold the coins.
Hot Wallet
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Once investors have decided to purchase digital currency, they must determine where and how they will store it. Digital coin wallets are a tool that is typically used to store and protect your digital assets, there are a variety of different forms and types of wallets. One of the most popular is a wallet called a "Hot Wallet".
Cold Wallet
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"Cold wallet" is for offline Bitcoin storage. The cold digital wallet is stored on a platform that is not connected to the Internet and therefore protects the wallet from unauthorized entry, hackers, damages and other vulnerabilities to which a system connected to the Internet is exposed.
Private Key
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A private key is a very complex configuration of cryptography (pieces of information and parameters that allow control of the encryption or decryption process) enabling digital asset owners (currencies in this case) to access their database of assets. A private key is an integral part of Bitcoin and digital currencies in general, and the level of security that accompanies it is what allows user protection against theft and unauthorized entry into their digital assets.
Public-key cryptography
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A public key is a very complex configuration of cryptographic code (pieces of information and parameters that allow control of the encryption or decryption process) enabling the user to receive digital currencies into their account. The public key completes the private key and together they constitute a necessary tool for the security of the crypto domain.
Smart Contract
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Contracts that rely on digital protocols over the Internet to enable more efficiency, speed, and functionality. In fact, they replace the outdated paper agreements that we know today, and transfer them to the Internet in a transparent, reliable manner that meets the regulations.
FOMO
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FOMO stands for "Fear Of Missing Out". In commerce, it is customary to say FOMO about fear of missing a profit. For example, when Bitcoin rises sharply, there is a lot of “FOMO” to miss the profits following the increases.
FUD
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FUD is an acronym for – fear, uncertainty and doubt. This is a nickname for bad and unfounded news that is mostly disseminated by the traditional means of communication disparaging Bitcoin. The goal of spreading FUD is to create mass panic. FUD could be news of Bitcoin regulatory issues, rumors of a ban in certain countries, etc.
DeFi
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DeFi, which stands for decentralized finance, is a revolutionary monetary system built on a decentralized blockchain without the involvement of a centralized institution. Many will say that DeFi is the banking of the future – DeFi allows a decentralized market of borrowers and lenders at attractive rates without a mediating factor. The mediating factor is the smart contract.
