Impress your date with some of your new crypto vocabulary after you're done with this post!

It's essential that you know the meaning of some terms and terminologies used in the crypto space.

Maybe you put off learning that new word you read in that bitcoin price analysis article. Or you read a definition that was way too complex.

In this post, I'll give you all the important terminologies you need to know in crypto, and what they mean. Heck, I'd even arrange it in alphabetical order!

Sounds nice? Let's get right in to the post.

Address: An address is a unique alphanumeric string of characters from which bitcoin or other altcoins may be sent to or from. This is usually called a "wallet address". It is just like an email address in that you can give it out to people to exchange value. In this way, cryptocurrency is said to be synonymous, not anonymous. You can trace transactions to and from the address.

API: API stands for Application Programming Interface. Any cryptocurrency with API functions included in its code can run separate apps as to increase functionality. Unfortunately, the father of all cryptocurrencies doesn't have API support, and many have said that this is a major reason for it's inability to scale properly.

Block: A block us an aggregated or compiled series of verified transactions that have taken place during a set time period. In the bitcoin blockchain, a block is created every 10 minutes.

Blockchain: This is, simply put, a large data file containing all the transactions that have ever taken place using a particular cryptocurrency.

(Fun fact: IOTA is a cryptocurrency that DOESN'T use a blockchain. I reviewed it earlier today, and you can check that post out here.)

Distributed Computing: This refers to spreading a lot of computing tasks over s large network that simultaneously runs those tasks. It is the computer version of "division of labor"

Decentralised: Possibly the most famous word in the cryptocurrency space. Decentralised means that it isn't controlled by any one body. The power is literally in the hands of the users.

Centralised: The opposite of decentralised. It means that the power belongs to one central body.

Cold wallet: A wallet whose private keys are kept offline. They are considered the safest form of storage for cryptocurrencies, as hacks are basically impossible since there is no server to connect to.

Confirmation: A transaction is said to be confirmed when it has been included in a block on the blockchain, at which point it has one confirmation.

Cryptography: This is the use of extremely complex mathematics to safeguard sensitive information. Bitcoin uses cryptography to verify transactions on its blockchain.

Hash: A hash is a unique transaction identifier that miners perform on a block to make that block secure. Think of it as a form of security protocol.

Hot wallet: A wallet that is connected to some server and is always online. A hot wallet is more susceptible to hacks, but it is also extremely easy to use as you don't have to go through the bogus process that you go through with a cold wallet. These wallets are also created for mobile phones, so it makes sending and receiving crypto on the go a whole lot easier. I recommend the Trust wallet as the best hot wallet for mobile.

Ledger: An electronic log book which contains transactions and balances. The bitcoin blockchain is(and was the first) decentralised public ledger.

Miner: (Someone who mines. JK😂) A miner refers to a computer(in most cases it refers to a group of computers) that add transactions to blocks and verify blocks created by other miners in the network. They are very essential to cryptocurrencies that run on blockchains, as no transactions can take place on a blockchain without miners verifying it first. Miners require a lot of processing power and electricity, and they must be on all the time.

Multi Signature: This is a transaction that requires electronic signatures from more than one person to be executed. They are am effort to strengthen security on blockchains.

Node: A node is a participant in the network. All modes each have a copy of the blockchain.

Private Keys: This is a string of alphanumeric characters that serves as the only means of retrieving a lost address. They are the lock and key of an address, and an address cannot be used without the private keys being inputted first. It goes on to say that you should never share these with anyone. Not even your cat. Don't do it.

Proof of Work: A piece of data that requires a significant amount of computational power to create, but requires very minimal power to be verified. Bitcoin uses this method to form blocks.

Public key: This is exactly like your private key, except you can give this one out. It serves as your "bank account number" and is what you'd give to someone who wants to send you crypto.

Signature: A signature is an element of a transaction that proves that the owner or owners of the private keys have authorized the transaction.

Wallet: A software program or a piece of hardware that contains the private keys to unlock certain cryptocurrencies that belong to a user. A wallet consists of a wallet address, which is also known as your public key. This is where bitcoin and other cryptocurrencies can be sent to.

Thank you for reading this guide! I hope you gained or learnt something new.

Have a nice day!