Glossary of Crypto Terms Flashcards
What does the shorthand ‘4’ refer to in crypto?
It refers to ignoring FUD, fake news, and attacks, popularized by Binance CEO Changpeng ‘CZ’ Zhao.
What is a 51% attack in blockchain?
An attack where a single person or group gains control of over 50% of a blockchain’s hashing power, allowing them to block transactions and alter the blockchain.
How do addresses function in cryptocurrency?
Addresses are strings of characters used to identify cryptocurrency wallets, such as the 42-character strings in Ethereum.
What is address poisoning or address spoofing?
An attack where scammers create a similar-looking wallet address to trick users into sending funds to the wrong address.
What is an airdrop in crypto?
A distribution of cryptocurrency tokens or assets, usually for free, to promote a larger user-base.
How do algorithmic stablecoins maintain their value?
They use market incentives and mint/burn techniques instead of backing with reserve assets.
What is an allowlist or whitelist in the NFT space?
A list that guarantees a person the opportunity to mint a specific NFT to prevent bot intervention.
What is the meaning of the term altcoin?
It refers to cryptocurrencies other than Bitcoin.
What is APR in cryptocurrency?
The annual percentage rate, which is the rate of return on an investment, not including compound interest.
What does APY stand for?
Annual percentage yield, the rate of return on an investment, including compound interest.
What does the term ‘apes’ refer to?
Slang for NFTs, especially those associated with the Bored Apes Yacht Club project.
What is a blockchain?
A decentralized distributed database where entries can be added but not easily changed or erased.
What is a bridge in blockchain technology?
A method allowing different blockchains to interoperate and use tokens from one blockchain on another.
What is meant by the term ‘burning’ in crypto?
The process of permanently removing tokens from circulation by sending them to an unusable address.
What is a cold wallet?
A cryptocurrency wallet not connected to the internet, enhancing security.
What is a DAO?
A decentralized autonomous organization represented by rules encoded as a computer program.
What is a dApp?
A decentralized application running on a blockchain network.
What is a decentralized exchange (DEX)?
A peer-to-peer crypto exchange without a centralized intermediary.
What is DeFi?
Decentralized finance, which offers financial services without relying on intermediaries like banks.
What is a deployer in crypto?
The wallet address responsible for creating and deploying a smart contract.
What is double-spending in cryptocurrency?
The potential flaw where the same token is spent more than once.
What does DYOR stand for?
Do Your Own Research, a common phrase in crypto communities to encourage personal verification of information.
What is an ETF in crypto?
Exchange-traded fund, offering exposure to cryptocurrencies without direct trading.
What is fiat currency?
Government-issued legal tender, such as the U.S. dollar.
What is a flash loan?
An unsecured loan that doesn’t require collateral and is repaid within a single transaction.
What is FOMO in crypto?
Fear of Missing Out, the fear that one might regret not buying into a project.
What is a fork in blockchain?
Creating a new version of a blockchain based on an existing one, often to add features or fix bugs.
What is FUD?
Fear, Uncertainty, and Doubt, used to describe negative or dubious information about a project.
What are gas fees?
Transaction fees required to perform any transaction on the Ethereum blockchain.
What is a governance token?
A token that grants its holder voting powers in the governance of a blockchain project.
What is a hot wallet?
A cryptocurrency wallet connected to the internet for easy access to assets.
What is an ICO?
Initial Coin Offering, where a quantity of cryptocurrency is sold to investors in exchange for other cryptocurrencies or fiat.
What is KYC in cryptocurrency?
Know Your Customer, procedures to verify the identity of a person behind a crypto wallet.
What is a layer 2 solution?
A protocol built on top of a blockchain to improve transaction speeds and scalability.
What is a liquidity pool?
Funds locked in a smart contract to facilitate trading and lending in a decentralized exchange.
What does it mean to go long on a crypto asset?
Betting that the price of an asset will rise.
What is market capitalization in cryptocurrency?
The total value of all tokens in a given cryptocurrency.
What is a memecoin?
A cryptocurrency based on an internet meme or humorous theme, such as Dogecoin.
What is mining in cryptocurrency?
The process of validating blockchain transactions and receiving cryptocurrency as a reward.
What is minting in crypto?
The process of creating new tokens or NFTs on a blockchain.
What is a multi-signature wallet?
A wallet that requires multiple private keys to authorize certain transactions.