Crypto and Blockchain Lingo

Altcoin – any crypto currency besides Bitcoin. There are thousands of Alternative (Alt) Coins that use blockchain technology for processing.

ASIC – Application Specific Integrated Circuit. Specialized computer that is used to mine cryptocurrency. They are protocol specific meaning that they are configured to mine only one coin or token at a time.

Blockchain –  a peer-to-peer decentralized, distributed ledger technology that makes the records of any digital asset transparent and unchangeable and works without involving any third-party intermediary.  Similar to a database but instead of being controlled by a central authority (such as an individual, company or government) the ledger is dispersed across multiple computers, which can be located all over the world. The blockchain is a record of chronological transactions, such as a traditional financial ledger. Each new set of transactions, “blocks,” are recorded and cryptographically linked to the previous record, forming a chain.

Cantillon Effect – the printing of currency by Central Banks is exclusionary and the cronies closest to the Central Banks receive much greater privilege and associated wealth than the masses further downstream.

CBDC – Central Bank Digital Currency. More of the same but worse. The Central Bank will be able to monitor every unit of currency you spend. They will also be able to control your spending. If you are a fat bastard they may prevent you from buying certain foods or if you are a wino you may be limited in the amount of wine to buy. It is all possible with CBDCs.

Crypto Currency – from wikipedia… A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

Individual coin ownership records are stored in a digital ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Despite their name, cryptocurrencies are not necessarily considered to be currencies in the traditional sense and while varying categorical treatments have been applied to them, including classification as commodities, securities, as well as currencies, cryptocurrencies are generally viewed as a distinct asset class in practice.

DAO – Decentralized Autonomous Organization. It is an organization governed by code instead of leaders. The use of smart contracts is used in this regard.

dapp – decentralized application for use on web 3.

Digital Asset – does not exist in physical form unlike printed fiat currency.

EIP – Ethereum Improvement Proposal

ERC – Ethereum Request for Comments. ERC-20 is the standard for fungible tokens and ERC-721 is the standard for non-fungible tokens.

ESG (environmental, social, and governance) –  From their website:  “It is a concept used by investors in capital markets to measure the sustainability and ethical impact of an investment in a company. These three central factors are used to evaluate corporations and determine the future financial performance of companies.” In actuality it is an attack on Bitcoin and Freedom in general. You are the carbon that the cabal wants to reduce!

Fiat – from Latin, “let it be done”. Fiat currencies are willed into existence as legal tender usually by private banking entities linked inextricably to government. Historically national currencies were redeemable in a valuable resource such as gold. Fiat currencies are not redeemable and so they lose much of their purchasing power over time as the amount of currency in existence is inflated. It doesn’t cost any more to create a $100 bill than a $1 bill. It is merely the arrangement of the ink on the paper.

Fractional Reserve Banking – a system whereby the bank only holds a fraction of it’s deposits in its reserve. The rest is lent out in loans.

Hash – a cryptographic result of an algorithm used to secure the blockchain network.

Hash Rate – also know as Hash Power is a measure of a miners performance. It is the rate at which a miner can create output hashes from a given input.

ICO – Initial Coin Offering. Similar to IPOs on the stock exchanges. ICOs are the initial public offering for various crypto currency projects coming to the market. These are very risky as a very small percentage of crypto projects will be successful.

Layer 1 – refers to a blockchain such as Bitcoin, Ethereum and Litecoin.

Layer 2 – a third party integration to a Layer 1 Blockchain. For example, the Lightning Network is a Layer 2 solution designed to increase transaction speeds on the Bitcoin Blockchain.

Longest Chain Rule – means that the longest chain is accepted as the valid version of the blockchain. The nodes stick with the longest chain and this eliminates tampering by nefarious actors. In actuality, the Longest Chain Rule is evaluated by a metric call “Chain Work” which is the total number of hashes required to produce the chain. This is the chain that took the most work to produce.

Mempool –  essentially a cryptocurrency node’s mechanism for storing information on unconfirmed transactions, acting as a waiting room for transactions that have not yet been included in a block. (definition from Coinmarketcap)

Merkle Trees – also known as Binary hash trees, are a prevalent sort of data structure in computer science. In bitcoin and other cryptocurrencies, they’re used to encrypt blockchain data more efficiently and securely. It’s a mathematical data structure made up of hashes of various data blocks that summarize all the transactions in a block. (definition from

Mining – the process where specialized computers, also known as nodes or mining rigs, validate blockchain transactions for a specific cryptocoin and, in turn, receive a mining reward for their computational effort.

Nonce – The nonce is the number that blockchain miners are solving for. When the solution is found, the blockchain miner that solves it is given the block reward. (From Investopedia)

Normies – the mass of the population that due to constant propaganda and addiction to cheap entertainment provided by the establishment have not awoken to the manner in which they are being manipulated, coerced, controlled and enslaved.

Privacy Token – this refers to the segment of crypto currencies that provides additional anonymity regarding blockchain transactions. Most often used in non-permissive political environments. Some examples are Monero and Pirate Chain.

Proof of Work – the original crypto consensus mechanism. Used by Bitcoin and about 500 other crypto currencies.

Proof of Stake – an alternative consensus mechanism that uses less electrical power to maintain the integrity of the blockchain.

Stablecoins – a type of cryptocurrency that is tied to a reserve asset to promote stability. Some stablecoins (USDC and USDT for instance) are tied to the FRN, some are tied to gold and some are tied to a basket of reserve assets.

TPTB – The Powers that Be.

Token – A Token is a cryptocurrency  that does not have its own blockchain technology; instead, it operates on top of another coin’s blockchain. For example, Golem tokens (GNT) are hosted on the Ethereum blockchain and depend on its network to perform specific tasks. Another defining characteristic of tokens is that they are typically not used as a currency (like a coin). Tokens are primarily used to represent a utility, an asset, or both.(From Tokens are either fungible or non-fungible. From Merriam Webster, fungible: being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part or quantity in paying a debt or settling an account. So Ethereum is an example of a fungible token and a particular NFT would be an example of a non-fungible token.

Trading Pairs – assets that can be traded for each other in an exchange. For instance, BTC/LTC indicates two crypto currencies that can be exchanged and allows you to examine costs between these two different currencies.

UTXO – Unspent Transaction Output. This is the model that Bitcoin (BTC) uses to track the ownership of Bitcoin on its Blockchain. Ethereum by comparison uses the Account Model.

Web 3 – Web 1 was the original internet with Static Text or images that didn’t allow any type of interaction with the site. It was really a read-only experience. Web 2, which is what we currently have, uses centralized App development that relies on centralized databases. Web 3 has decentralization as it’s core tenant and will utilize blockchains, decentralized peer to peer networks or a combination of both.