Cryptocurrency Terms with their Meaning.
Today, we will explore cryptocurrency terms and their meanings.
A solution that allows investors and traders to convert fiat currencies to cryptocurrencies. On-ramps are offered by most leading cryptocurrency exchange operators.
Proof Of Stake (PoS)
A mechanism by which block validators are selected based on how much cryptocurrency they are staking (i.e. committing funds to help maintain blockchain network). Ethereum will start using proof of stake in 2022.
Private Key
A unique string of letters and numbers that essentially functions as a user’s digital signature. It is vital that private keys are kept secret. Price Floor The general low price for a collection of items (usually referring to NFT’s). For example, if the lowest available price of a collective of NFT’s is 1 Eth, then we consider the price floor of this NFT to be 1Eth.
Ponzi Scheme
A scam that involves an investment scheme where early investors are being paid by funds from new investors; also referred to as a pyramid scheme.
Phishing
A method of obtaining personal information such as usernames, passwords and banking details through deceptive means. Phishing is a common type of cyber attack. Permissionless Not needing permission to join or interact with something that is public.
Ordinals
The end result of a paired identifier inscribed along with inscribed data on an individual satoshi. Order Book A list of buy and sell orders on an exchange, usually color with green for buy while red for sell.
Oracle
A blockchain middleware that serves as a secure connection between smart contracts and off-chain data; significantly bolstering the functionality of smart contracts.
Options
A type of derivative contract that gives the owner the right—but not the obligation—to buy or sell an underlying cryptocurrency at a specified price on or before a specified date, depending on the form of the option.
Open Source Code that is designed to be publicly accessible, meaning anyone can see, modify and distribute the code as they see fit.
The article is based on knowledge gained from Bitbama.
Don't forget to comment like and react.
