Fifty-Nine Blockchain Terms Rarely Used

Blockchain technology has been steadily gaining popularity in recent years. However, many terms that describe the technology and its various applications remain unfamiliar to those outside the industry. Here is a quick overview of 59 Blockchain terms that are rarely used. Familiar yourself with them to get a better view and understanding of the technology.

1. Encryption: Converting information into an unreadable format protects it from unauthorized access.
2. Nodes: A term used to define a computer that is connected to the blockchain network and relays information about transactions
3. Cloud mining: An operation in which users can rent processing power from a remote data center and mine cryptocurrency without needing special hardware.
4. Hash rate: The measure of the computing power of a blockchain network, typically expressed in hashes per second.
5. Nonce: A random number added to a block header to make it unique.
6. Mining pools: Ming pool is a group of miners who join forces to increase their chances of finding blocks, translating to higher rewards.
7. 51% Attack: When a group of miners/ delegators controls more than 50% of the hash rate, they can manipulate the blockchain to their advantage.
8. Bitcoin Block halving: An event that occurs every four years in which the bitcoin block rewards halve, meaning miners receive fewer rewards for successfully mining a block.
9. Oracles: A third-party entity that provides real-world data to smart contracts, allowing them to execute at the right conditions.
10. Forking: Creating a new blockchain version by splitting it into two or more chains.
11. Atomic Swap: An atomic swap is a way to exchange one cryptocurrency for another without needing a third-party intermediary.
12. Bagholder: A person who holds a large amount of cryptocurrency that has decreased significantly.
13. Diamond hands: A term used to describe crypto traders unafraid to hold their position during a bear market.
14. BUIDL: A term used to describe those who continue to work on building projects in the crypto space despite the bear market.
15. Satoshi: The smallest unit of bitcoin, equivalent to 0.00000001 BTC
16. Stablecoin: A cryptocurrency designed to maintain a stable price, usually by being pegged to a fiat currency or basket of assets.
17. Liquidity: The ability of an asset to be easily bought and sold without affecting its price.
18. Sharding: A method for increasing the scalability of blockchain networks by splitting them into multiple shards, each containing its subset of transactions.
19. Byzantine Generals’ Problem: A problem in distributed computing that requires consensus among the participants of a network to reach a reliable result.
20. Dead cat bounce: A temporary recovery in the price of an asset after a sharp decline.
21. Degen: A slang term for a crypto trader who takes high risks and makes speculative trades.
22. Dutch auction: A type of auction in which an asset’s price gradually reduces until it finds a buyer.
23. EIP: An Ethereum Improvement Proposal is a document detailing a proposed change to the Ethereum Protocol.
24. ELI5: A shorthand for “Explain Like I’m Five” is a way of asking for an explanation in simple terms.
25. Fully Diluted Valuation: measures the total value of all tokens in circulation, including those locked up and unavailable to trade.
26. Hybrid consensus: A method of achieving distributed consensus that combines aspects of both Proof-of-Work and Proof-of-Stake. Inflation:
27. IEO: An Initial Exchange Offering, which is a token sale that takes place on a cryptocurrency exchange.
28. JOMO: A slang term for the “joy of missing out,” which is the pleasure that comes from not participating in a particular activity or event.
29. Kimchi Premium: A phenomenon in which the price of a cryptocurrency is higher on South Korean exchanges than elsewhere.
30. Mempool: A pool of unconfirmed transactions waiting to load on the blockchain.
31. Permissioned blockchain: A blockchain network that requires the identity of participants to get approval to join.
32. Proof of Authority: A consensus algorithm in which specific nodes validate blocks based on their reputation and other factors.
33. REKT: The slang term “wrecked” refers to a trade gone wrong.
34. STO: A Security Token Offering, a token sale with certain legal protections for investors.
35. Tangle: An alternative to a blockchain based on a directed acyclic graph structure.
36. Unspent Transaction Output (UTXO): UTXO is the output from a previously confirmed transaction pending for a subsequent transaction.
37. Zero Confirmation Transaction: Miners have not confirmed a transaction broadcast to the network.
38. Vanity Address: An address with a customized prefix designed to look more visually appealing.
39. Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (Zk-Snarks): Zk-Snarks is a cryptographic technique that allows transactions to verify without revealing their contents.
40. Whale: A prominent investor who has a significant amount of capital in the crypto market. 
41. Yield Farming: The practice of providing liquidity to exchange in return for rewards in the form of tokens or other assets.
42. Zombie Chain: A Blockchain network that has yet to gain traction or become active.
43. Airdrop: The distribution of free tokens to the wallets of existing cryptocurrency holders.
44. Bear Trap: When traders spread false rumors to drive down the price of an asset to buy it at a lower price.
45. Dapp: Short for Decentralized Application, an application built on a blockchain network.
46. Exchange Token: A token issued by a cryptocurrency exchange, typically used to provide discounts on trading fees.
47. Gas: A fee paid to miners on the Ethereum network for transactions to be processed.
48. HODL: A slang term for “hold,” which describes the strategy of buying and holding cryptocurrency for the long term.
49. IOU: An informal agreement between two parties in which one party promises to repay something of value at a future date. 
50. Proof-of-Stake: A consensus algorithm where participants “stake” tokens to validate transactions and earn rewards.
51. Quarkchain: A high-throughput blockchain that leverages sharding technology to improve scalability.
52. Tokenomics: The study of the economics and incentives associated with tokens, often used to evaluate the potential success of a blockchain project.
53. Vaporware: A term used to describe software or products that are announced but never released.
54. X16R Algorithm: An algorithm used by several cryptocurrencies, including Ravencoin, Pigeoncoin, and Bitcoin Diamond, which operates 16 different hash functions in random order for mining purposes. 
55. Yellow paper: A technical document that describes the protocol or algorithm underlying a blockchain network.
56. Zombie Coin: A cryptocurrency project that has failed to gain traction and is no longer active. 
57. Airdrop Marketing: The practice of offering free tokens to potential customers to attract attention and promote the product or service.
58. Cold Storage: The storage of cryptocurrencies offline, typically on a hardware device, to protect them from hackers.
59. Masternode: A blockchain node responsible for validating and confirming transactions, typically requiring an upfront investment to participate.

Conclusion

Cryptocurrency and blockchain technology can be complex and confusing. This article has provided a comprehensive overview of some of the most common terms crypto traders, investors, and developers use. 

Understanding these terms makes it possible to understand better how the cryptocurrency market works and make more informed decisions when trading or investing in the space. With this knowledge, traders and investors can take advantage of the unique opportunities that arise from the rapid growth of this emerging market.