Good day everybody,

I hope you are all having a great day. Welcome to CryptoGod-1's blog on all things crypto. Today I am going to look at the second of a three part series on Crypto Terminology. We all had that initial moment when we first stumbled upon the crypto space where a specific term caught us out, or left us feeling like we didn't really understand the space at all. Hopefully the guide below will help any newcomers, and experienced users alike, to ensure they have a grasp of all the lingo. 

The first part to this series can be found here: Crypto Terminology Part I

The third part to this series can be found here: Crypto Terminology Part III

Crypto Terminology - Part II - J through R

Letter J

• Java - This is a programming language, used as general purpose, class based and object orientated.
• JavaScript - This is a powerful, dynamic, lightweight, and advanced programming language. Generally used in web based applications, it can also be wrapped for use in smart contracts.
• JOMO - The Joy of Missing Out, when a user is happy they did not FOMO into something.

Letter K

• Keylogger - This is a piece of software used by hackers to spy on users and record their keystrokes, which can often be used to obtain passwords and private keys.
• Klinger Oscillator - A technical indicator used to compare price to volume to forecast price reversals in the trading market.
• Know Your Customer (KYC) - This refers to the process used by the majority of Centralised Exchanges for obtaining and verifying personal identification information from their customers. This is for business purposes and as part of government regulations, and is often required before allowing users access to services or products.

Letter L

• Lambo - Slang for the car, Lamborghini, which most crypto enthusiast's aspire of purchasing with their gains one day. It is also an indicator of how quickly people expect to get rich.
• Laser Eyes - A viral Twitter meme used by Bitcoiner's pushing the price, originating in February 2021.
• Layer 0 - This is the network layer running beneath the Blockchain, made up of the protocols, miners, connections, hardware, and everything else which forms the foundation of the Blockchain network.
• Layer 1 - A set of solutions that improve on the base protocol Blockchain.
• Layer 2 - Scaling solutions which improve the throughput of transactions on a Blockchain, while maintaining the security of the underlying Blockchain its built upon. 
• Ledger - A record of unchangeable transactions which can be updated with new transactions.
• Leverage - Money that a trader borrows from an exchange or broker, allowing them further exposure than their original capital allows.
• Lightning Network - A solution which aims to speed up transactions on the Bitcoin blockchain through moving them off the main chain. The network works as a decentralised system of pre-funded channels, allowing people to make transfers without waiting for the global consensus and confirmation from miners, therefore allowing for swifter settlement times.
• Limit Order - A specific instruction from an investor to buy or sell at a specific price, which triggers once the market hits this price.
• Liquidation - The conversion of an asset such as cryptocurrency into FIAT or equivalent.
• Liquidity - Determines how accessible a cryptocurrency is, more liquidity means more of it is available to buy on the market without impacting the price.
• Liquidity Pool - Crypto assets which are kept to facilitate the trading of trading pairs on decentralised exchanges.
• Liquidity Provider - In DeFi, these are users who provide their coins/ tokens into a liquidity pool on a decentralised exchange.
• Long - Buying cryptocurrency in the anticipation that the price will increase and can be sold for profit later.

Letter M

• Mainnet - An independent Blockchain which is running its own network with its own technology and protocol.
• Malware - This is malicious software which is harmful to a computer, and used by bad actors in a harmful way to gain illegal access to users computers.
• Margin - This is the collateral that a holder of a financial instrument has to deposit with a counterparty to cover some or all of the credit risk the holder poses for the counterparty, such as giving an exchange a set number of coins in return for a higher amount of another coin.
• Market Capitalisation - The total value of the circulating supply of a given cryptocurrency. This is calculated by multiplying its current price by its total supply.
• Market Order - A type of limit order which does not specify any price, instead purchases at the price when its executed.
• Memecoin - A digital currency which does not have any real use base or inherent value, purely created for social purposes.
• Merkletree - A tree structure in cryptography, in which every leaf node is labelled with the hash of a data block and every non-leaf node is labelled with the cryptographic hash of the labels of its child nodes. The Hash trees allow for efficient and secure verification of the contents within the Blockchains, as each change propagates upwards so verification can be done by simply looking at the top hash.
• MetaMask - An online wallet and one of the most popular, set for the Ethereum Network and also usable on a variety of other networks including Polygon, Binance Smart Chain, Harmony, Fantom, etc
• Metaverse - A digital universe which contains the aspects of the real world, such as real-time interactions in a social sense, gaming, and economics, to create a unique experience for users
• Miner - An individual or a group who use their computing power to confirm the transactions on the Blockchain. They receive rewards, generally in the native currency, for providing this service.
• Mining - This is the process of making new coins as part of a cryptocurrency, done by solving complex mathematical problems, which are then verified and added to the blockchain network. 
• Mining Difficulty - Defines how much computing power the miners need to use for solving complex cryptographic puzzles before verifying transactions and earning mining rewards. The difficulty level serves as an indicator of how competitive mining is at any given moment in time.
• Mining Farm - A group of miners who decide to mine together for a variety of advantageous reasons, including efficient energy use.
• Mining Pool - An arrangement where a number of miners pool their resources to increase their chances of finding the next block, and sharing the reward amongst the entire pool.
• Mining Reward - The income, generally in cryptocurrency, that miners receive after completing the mining of a new block on a Blockchain.
• Mining Rig - This is a dedicated computer, generally custom built machines which are designed specifically for the purpose of mining coins through finding solutions to complex mathematical problems so they can be added to public ledgers. Generally they require multiple graphics cards installed along with specially designed processors and cooling systems which helps them mine better than your average computer would be able to do alone.
• Minting - Minting is the process of generating new coins / tokens / NFTs through using the proof-of-stake mechanism and adding them to the existing circulation, which can then be traded.
• Moon - Slang term used when a crypto price goes up astronomically.
• Mt. Gox - One of the most famous crypto exchange for buying and selling Bitcoin. It closed in 2014 after a major hack, and is used as a learning curve for all to not trust the exchanges with their cryptocurrency, instead to take the coins off the exchange into private wallets.
• Multisignature - These are crypto wallets which require more than a single signature to sign a transaction.

Letter N

• Network - All the nodes in the operations of a Blockchain at any given moment.
• Node - A computer connected to the network of the Blockchain, acting as the most basic unit of its infrastructure. All nodes are considered equal and each one can be used to broadcast messages across the entire system.
• Node.js - A cross platform environment for JavaScript which can be used on both servers and desktop/mobile applications.
• Non Fungible Token (NFT) - A unique digital asset stored to the Blockchain, including art, music, tickets, etc.
• Nonce - An arbitrary number used only once when a transaction is hashed by a miner.

Letter O

• Off-Chain - A transaction which is processed outside of the blockchain network, doing so with an increased speed and reduced cost.
• Offline Storage - The act of storing cryptocurrencies in devices or systems, such as hardware wallets, which are not connected to the internet.
• On-Chain - Transactions which are recorded on the blockchain itself, visible to all of the participants and are known as on-chain.
• On-Chain governance - This is a decentralised framework which is used for organizing and integrating updates/improvements to the blockchain networks.
• Online Storage - The act of storing cryptocurrencies in devices or systems, such as hot wallets, which are connected to the internet.
• OpenSea - A decentralized P2P platform for NFTs.
• Options - A contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price.
• Options Market - A public market which is focused on options, giving the buyer an opportunity to buy or sell a cryptocurrency at a specific strike price, on or before a specific date.
• Order Book - An order book comprises different key information regarding an asset.
• Overbought - The more a cryptocurrency has been purchased by investors over a period of time, the more its price increases.
• Oversold - The more a cryptocurrency has been sold by investors over a period of time, the more its price decreases.

Letter P

• Pair - Trade between one cryptocurrency and another, for example, the trading pair BTC/ETH.
• Paper Wallet - A physical document containing your private key or seed phrase.
• Passive Income - This is money which is produced from investments and does not require the earner to be actively involved.
• Peer to Peer - A system where two separate parties can conduct financial transactions between each other without the requirement of a third party, such as a bank or an exchange. Blockchain technology allows this as it connects nodes in its network directly to each other and allows the free sharing of data/transactions.
• Permissioned Ledger - A distributed ledger where certain members have access, generally determined by a set of rules or an access control layer.
• Permissionless - This is used to describe Blockchains where there is no entity that can regulate who can use it and how it can be used.
• Pizza - Known as one of the very first Bitcoin transaction, in 2010, a programmer named Laszlo Hanyecz offered to pay 10,000 Bitcoins (valued at around $40 at the time) for two pizzas from Papa John's. That would be worth about $380 million today!
• Play2Earn - Play-to-earn are blockchain games which offers users the chance to earn cryptocurrencies simply by playing a game.
• Ponzi Scheme - A fraudulent investment involving the payment of purported returns to existing investors from funds contributed by new investors.
• Private Key/Secret Key - A piece of code generated in asymmetric-key encryption process, paired with a public key. It is made to be kept secret and to be used in decrypting information hashed with the public key. It should never be shared with anyone else.
• Proof Of Authority (POA) - A consensus mechanism where validators are required to demonstrate possession of a certain amount or type of stake before being allowed into nodes on the network for verifying transactions. This has been implemented by various blockchain networks including POA Networks (based on Ethereum), and Oyster Pearl (based on IOTA Tangle).
• Proof Of Burn (POB) - A type of consensus algorithm that requires users to "burn" or exchange some tokens by sending them to an unusable or dead address, thus proving they are real and active participants in the network.
• Proof Of Stake (POS) - A type of validation that requires its members/nodes to prove ownership over a certain amount of cryptocurrency to guarantee their right to vote on transaction validation. The amount required will vary from network to network.
• Proof Of Work (POW) - The consensus algorithm used to validate transactions on the blockchain, which requires users to solve complex computational puzzles to add new blocks onto the chain. Bitcoin is an example of POW algorithm which is based on the SHA-256 hashing function.
• Protocol - The set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain.
• Public Key - A cryptographic key which allows a user to receive cryptocurrency from another user, but it cannot be used for sending funds. They generally consist of 64 unique characters to encrypt your wallet or make digital signatures.
• Pump and Dump - The process of buying and promoting a coin on the market to raise its price and attract other users, which is followed by selling for profit-taking.

Letter Q

• Quantum Computing - A computer that makes use of quantum mechanics to perform more functionally and efficiently than traditional computers. Its believed in the future could harness the power to make current encryption methods like SHA-256, which Bitcoin uses, vulnerable against them because of their ability to break through cryptography codes.
• Quantum-proof - A blockchain which is resistant to attacks coming from quantum computers.
• Quroum - The minimum numbers of members required to be present for an assembly group to make the meeting valid.

Letter R

• Ransonware - This is a type of malware which infects a computer through encrypting the files. Once they are encrypted the hacker holds those files hostage, making the owner pay a ransom if they want to get access back to their data.
• Regulation - These are rules created by governments and other regulators to ensure compliance with laws and standards for certain businesses or industries.
• Rekt - A slang term which is used to denote a situation where an investor looses there money due to bad trading decisions or other factors within the market. It is derived from the word wrecked.
• Return on Investment (ROI) - A measurement of the returns an investor makes off of their initial investment, and is used to measure the overall performance of a particular cryptocurrency or trading strategy, where higher numbers indicate better results. 
• Rug Pull - When a fraudulent cryptocurrency strategy or developers hype a project and then leave with the investors money or sell off their assets / coins once a certain price is achieved, ensuring the price crashes and the remaining investors loose what they invested as the price generally becomes worthless for their coins / tokens.

I hope you enjoyed the article and found it to be of some use. Part III is on the way and will be released soon.

Peace. CryptoGod-1.

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