Skip to main content

The Crypto-currency Terminology We Should All Know

This blogpost will look at some of the terminology that we need to know as we embark on dealing with crypto-currency. These terminologies are important before one tries to acquire coins. Failure to get the basics may lead to loss of funds.

CRYPTO-CURRENCY
Digital money which is not controlled by any government or bank.

WALLET
A crypto-currency wallet is a secure digital wallet used to store, send and receive digital currency.

BLOCK CHAIN
A block chain is a public ledger for all crypto-currency transactions. It is comprised of "blocks" and is constantly growing as new records, datum, or block is added onto the chain for everyone to see. It is essentially a public database that everyone can access and read, but the data can only be updated by the data owners.

 BLOCK
Blocks are essentially pages in a ledger or record keeping book. Blocks are the files where unalterable data related to the network is permanently stored.

MINING
Mining is the term used for discovering and solving blocks along the block chain.

PRIVATE/PUBLIC KEY
In cryptography, a public key is a cryptographic key that can be used by any party to encrypt a message. Another party can then receive the message and using a key that is only known to that individual or group, decode the message.

FIAT
Government issued currency such as Zambian Kwacha

EXCHANGE
Platforms, usually websites, where you can buy and sell crypto-currencies.

ALTCOIN
Generally any crypto-currency other than Bitcoin or Ethereum

ICO (Initial Coin Offer)
This is used by startups when they issue their own token in exchange for an existing coin.

ARBITRAGE
Taking advantage of the difference in price of the same currency on two different sites.

MARKET CAP
The total value held in crypto-currency. It is calculated by multiplying the total supply of coins by the current price of an individual unit.

* * * * * * * * * * * * * * * * * * *  * * * * * * * * * * * * * * * * * * * * * * * * *

That is all for now. More terms will be added to the Glossary over time so be sure to check often for new ones.

Love, Peace and Harmony.

Comments

Post a Comment

Popular posts from this blog

5 WAYS TO EARN, GROW AND SPEND BITCOIN IN ZAMBIA IN 2021

One frequently asked question by newcomers in the Crypto Tamanga community is: HOW CAN I EARN BITCOIN WITHOUT INVESTING. Well, the answer to this is not a straight forward one because a lot of factors come into play. Factors such as, how much time do you to have to burn? Services available in your locality, and general adoption levels of crypto in your locality. To put in context, in Zambia we do not have services that reward users in bitcoin and neither is the adoption to a point where I could readily be tipped or paid in bitcoin. That being said, for future purposes, here are some ways one can earn bitcoin without having to invest your money. Disclaimer: The content in this article is meant for educational purposes only, and must not be taken as financial advice. For financial advice, please seek the services of a registered financial advisor. For one who is a new comer to crypto, the thought of owning the first fraction of Bitcoin is a daunting one. This is mainly because, as a be...
Post a Comment
Read more

BitClub Network (BCN): An investment black hole

By Japhet Kapambwe Mesa I have been interested to learn more about BitClub Network (BCN) ever since I started seeing the endless posts on Facebook. The adverts promise daily earnings in Bitcoin and a number of other altcoins. So I was excited when I heard about a meeting that was going to be held in Lusaka. I made my way to the venue of the meeting in Avondale where I arrived one hour late but fortunately the starting time had been pushed by an hour so that more latecomers like me did not miss the event. I must say, the event was well attended. Speaking from personal experience of organizing similar events. I counted roughly 80 people in attendance. I was impressed. The guest speaker, a ‘master builder’ (according to the rank structure of BCN), from South Africa, took us through a well-prepared presentation. I agreed pretty much with a lot of what he had to say about Bitcoin. I could tell he was well researched on the topic. However, the issues came in when he s...
Post a Comment
Read more

Escrow Services

 ESCROW SERVICES Escrow services is not unique to digital products and services. It has been used whenever a buyer or seller (of any product) doesn't trust that the other party will meet their obligation. WHAT IS ESCROW Escrow Services allow both buyer and seller to protect a transaction by placing funds (or products, whichever is convenient) in the hands of a trusted third party that collects, holds, and disburse funds until a specified set of conditions is met by both parties. WHY IS IT NEEDED? When interacting with someone you have not interacted with before, to minimise your risk, you ask for payment in advance, but this also inadvertently creates an issue for the buyer. Who is as well not certain that the seller will deliver as promised. Step in, escrow service.  HOW IT WORKS The buyer sends the agreed purchase amount to the escrow service. After payment is verified, the seller is instructed to send the goods. Upon delivery, the buyer has a predetermined period of time to...
Post a Comment
Read more