In order to analyze the opportunities, risks and challenges associated with cryptocurrencies, it is necessary to become familiar with the definitions, characteristics and key concepts that build their foundations.
BASIC CRYPTOCURRENCY TERMINOLOGY
Next, we will discuss the basic terminology associated with cryptocurrencies.
BASIC CRYPTOCURRENCY TERMINOLOGY
BASIC CRYPTOCURRENCY TERMINOLOGY
Bitcoin
Bitcoin is the branded cryptocurrency that most users are familiar with. This cryptocurrency operates as a decentralized, global peer-to-peer network with no publishing authority and no buyer. This means that no body can control it, as long as the central authority is bypassed. The currency is open, meaning it has wallet and transaction certification. But the best thing is: anyone can use Bitcoin via smartphone or computer. Bitcoin was created by Satoshi Nakamoto in 2008 and is the first application of blockchain technology and the first cryptocurrency. It remains the most common cryptocurrency to date. The global bitcoin stock is set at 21 million – this is the market value of all bitcoins.
BASIC CRYPTOCURRENCY TERMINOLOGY
Block
It is a block chain file that contains and validates many transactions pending. Blocks are synonymous with the digital pages of a cathedral, also called an accounting book. It stores the unaltered data associated with the network. A block is a file in the block chain that contains and validates many pending transactions. About every 10 minutes, on average, a new block that includes transactions is attached to the chain of blocks by mining.
BASIC CRYPTOCURRENCY TERMINOLOGY
Blockchain (Η αλυσίδα των μπλοκ)
It is a public record of cryptographic currency transactions in chronological order. The block chain is shared among all users. It is used for verify the permanence of transactions and to prevent double spending (double spending). It is a distributed ledger that records all transactions and smart contracts for a cryptocurrency or platform. Blockchain is replicated in many thousands of nodes worldwide. The block chain is a public chronological order of Bitcoin transactions. The block chain is shared among all Bitcoin users. It is used to verify the permanence of Bitcoin transactions and to prevent double spending.
BASIC CRYPTOCURRENCY TERMINOLOGY
Block Height
The height of the blocks is the sum of the individual blocks in each chain. The first block is zero in height and is also known as the first genesis block.
Charlie Lee
Charlie Lee is the creator of Litecoin and, prior to that, Coinbase’s chief engineer. Although he is the pioneer of Litecoin, Lee has devoted himself to numerous Bitcoin-exclusive projects. Prior to his breakthrough in the world of cryptocurrencies, Lee worked as a computer engineer at many companies, such as Google and Guidewire Software.
Cypherpunk
‘Cypherpunk’ describes every activist who advocates the widespread use of strong encryption and security (data) technology as a means of achieving social and political change. These informal groups of activists, who initially communicated through their own mailing lists, aim to protect privacy and security by actively using cryptography. The Cypherpunks have been active in the movement since the late 1980s.
Cryptocurrency
Cryptocurrency is a decentralized digital currency that can be used for commodities, services and transfers of investment goods. The first cryptocurrency was Bitcoin. It was first released on the market in January 2009.
Cryptocurrency Exchange (Ανταλλακτηρια κρυπτονομισματων)
It is a service that exchanges Bitcoins with other currencies such as Euro and US Dollars. Cryptocurrency exchanges are websites or services that allow the exchange of digital cryptocurrencies with cryptocurrencies and vice versa, or the exchange of documentary money (eg US dollars) with cryptocurrency assets). Two of the most typical examples of such exchanges are the Coinbase and the Binance.
Cryptocurrency Wallets (Πορτοφολια κρυπτονομισματων)
A crypto wallet is a way of storing private and public keys to investing goods. Each wallet is a portfolio where one can go to find keys. A Bitcoin wallet is generally the equivalent of a natural wallet in the Bitcoin network. In fact, the wallet contains your own private key (s) that allow you to spend the bitcoins allocated to this block chain. Each Bitcoin wallet can show you the total balance of all the bitcoins it controls and lets you pay a certain amount to a specific person, as does a real wallet. This is different from the credit cards where you are charged by the merchant. In order to store the cryptographic currencies that the user has he creates a wallet which is generally equivalent to a physical wallet in the Bitcoin network. in fact, the wallet contains the private key that allows it to spend the Bitcoins that are allocated to this block chain. amount to a specific person, as is the case with a real wallet. This is different from the credit cards where they are charged by the merchant.
David Lee Chaum
David Lee Chom is an American computer scientist and cryptographer. He became famous for the development of e-cash, an electronic cash application designed to maintain user anonymity. He has also invented many cryptographic protocols, and he founded DigiCash, an online money company. His article “Undetectable E-mail, Sender Address, and Digital Aliases” (1981) paved the way for research into anonymous communication.
Decentralization (Αποκεντρωση)
Decentralization is a criterion for assessing how much power a key beneficiary has. One can argue that blockchain is definitely much more decentralized than other data-sharing methods, as (at least in the public chains) there is no watchdog to control who can participate: anyone who has the computing power can become part of the blockchain.
Digital Signature (Ψηφιακη υπογραφη)
A cryptographic signature is a mathematical mechanism that allows one to prove ownership. In the case of Bitcoin, a Bitcoin wallet and its own private keys are associated with some mathematical equation. When the cryptographic software signs a transaction with the appropriate private key, the entire network can see that the signature coincides with the cryptocurrencies they spend. A digital (cryptographic) signature is a digital code created by the decryption of a public key that is in turn linked to an electronically disclosed document, which verifies the document’s content and the sender’s identity. A cryptographic signature is a mathematical mechanism that allows one to prove ownership. In the case of Bitcoin, a Bitcoin wallet and its own private key (s) are associated with some mathematical magic. When your Bitcoin software signs a transaction with the appropriate private key, the entire network can see that the signature coincides with the spent bitcoins. However, there is no way the world can spoil someone guessing your private key to steal your hard-earned bitcoins.
Distributed ledger (Διανεμημενο καθολικο)
This is a match often made in blockchain. Instead of a centralized blockchain, blockchain promises to distribute the balances through a server network.
Double Spending (Διπλές δαπάνες)
If a malicious user tries to use their coins on two different recipients at the same time, this is called double spending.
Escrow (Χρηματικη εγγυηση)
A financial guarantee is a financial arrangement whereby a third party saves and regulates the payment of funds required by the two members involved in a particular transaction. It helps make transactions safer by keeping the payment in a secure guarantee account, which is released only when all the terms of the agreement have been met, under the supervision of the guarantor.
Ethereum
Ethereum is a decentralized platform for applications running “smart contracts” based on blockchain technology that aims to solve problems related to censorship, fraud and third-party intervention.
Fiat (Παραστατικο χρημα)
Fiat money is the means of payment associated with the national currency, such as the US dollar, GBP or euro. It is considered legitimate money by a government, but its value is not justified by natural resources such as gold.
Fork (Διχαλα)
The fork is an operating system that creates an alternate version of the blockchain, allowing two chains to run in different areas of the network at the same time.
Genesis Block (Πρωτη συναλλαγη)
This is the first blockchain array / block..
Hodl
Hodl is a cryptocurrency meme for savings, not for the sale of investment goods. The meme was created in December 2013, when a user who downloaded some glasses typed something wrong in a popular Bitcoin forum. You can find the relevant original thread on the page bitcointalk.org.
ICO (Αρχικη νομισματικη προσφορα)
As cryptocurrencies become more and more popular, the number of first coins is increasing. Each of them promises to correct, highlight or enhance a particular aspect of the cryptocurrency landscape. These new currencies are available through ICOs. In other words, it is the cryptocurrency of a stock exchange offering new securities.
James Dalton Bell
James Dalton Bell is an American crypto-anarchist who came up with the idea of paid internet killings, which he calls a “murder policy”. In April 1995, Bell wrote the first chapter of a ten-part essay entitled “Assassination Policy,” in which he describes in detail a murder market in which anonymous donors can order the killing of members of the government or other persons secretly citizens’ rights. In 2001, Wired magazine called Bell “one of the Internet’s most famous test takers” and “the world’s most notorious crypto-convict.”
Mining (Εξορυξη)
Mining is the process created by computer hardware to perform mathematical calculations so that the network can confirm transactions and increase security. In return for their services, they collect transaction fees that confirm transactions, along with newly created bitcoins. Mining is a specialized and competitive market where fees are divided according to the computed value. Not all users make Bitcoin mining, and the process of making some money.1 is not at all easy. Due to the encrypted nature of cryptocurrencies, verifying transactions requires a tremendous amount of computing power and specialized hardware. In exchange for computing power, people who solve (and therefore approve) a transaction are paid in cryptocurrencies. This process is called mining. Mining is the process created by computer hardware to perform mathematical calculations so that the Bitcoin network can confirm transactions and increase security. As a remuneration for their services, those mining can collect transaction fees for the transactions they confirm, along with the newly created bitcoins. Mining is a specialized and competitive market where fees are divided according to how much has been calculated. Not all Bitcoin mining users do, and it’s not an easy way to make money.
Mooning (Σεληνιασμος)
In 2017, cryptocurrencies were supposed to have multiple value overnight. The entire capital stock of the sector rose from $ 15 billion in January to $ 600 billion in December of the same year. Ripple was the biggest winner. Its value has risen by 28,963% over the past 12 months. In comparison, the S&P 500 climbed 19.4%. The phenomenon of multiplication of profits by a single coin is known as “mooning”.
Nick Szabo
Nick Zambo is one of the pioneers of blockchain and cryptocurrencies. He is widely regarded as the inventor of the concept of smart contracts, which is now a fundamental feature of cryptocurrencies. Zambo is also the creator of bit gold, a decentralized forerunner of Bitcoin, which laid the foundations for the original construction of Bitcoin architecture.
Node (Κομβος)
The node is a blockchain computing device. He is responsible for the certification of transactions, but also for maintaining and updating the distributed ledger.
Peer to Peer (Ομοτιμη συνδεση ή Ομότημο Δίκτυο)
It is a network that allows two or more computers to share their resources equally. All network nodes have equal permissions. Information located at one node, depending on the permissions specified, can be read by everyone else and vice versa. Peer-to-peer connection, or P2P, refers to decentralized interactions between two or more members in a highly interconnected network. The participants of a P2P network deal directly with each other, through a single intermediary point. Peer-to-peer refers to systems that operate like an organized collective allowing each individual to interact directly with others. In the case of Bitcoin, the network is designed in such a way that each user transmits the transactions of other users. And, most importantly, no bank is required as a third party.
Pretty Good Privacy / Αρκετα Καλο Απορρητο (PGP)
It is an encryption program that provides encryption and data privacy verification. PGP is used to sign, encrypt and decrypt texts, e-mails, folders, directories and hard disk partitions, as well as to enhance the security of electronic mail. Phil Zimmerman developed the PGP in 1991.
Proof-of-stake (Αποδειξη κυριοτητας)
Proof of ownership encourages people who own a multitude of blockchain brands to make decisions to validate the chain. In practice, it is significantly less energy intensive than mining.
Proof-of-work (Αποδειξη εργασιας)
It is a system in which blockchain transaction data blocks are extracted and validated by specialized computers that are rewarded for solving mathematical equations.
Public/Private Keys (Δημοσια/Ιδιωτικα κλειδια)
Keys are the tools for accessing currencies and for receiving / sending value or data in crypto currency. The public key is similar to the email address. This is what allows funds to be sent to third parties. You can share your public key with a general audience. A private key is a secret piece of data (256 bit size) that is attached to an address and stored in the user’s wallet. It also demonstrates the right to use cryptocurrencies from a particular wallet through a cryptographic signature. The private key is stored on the computer and the user can use a software wallet or stored on remote servers or can use an online
wallet. The private key should not be disclosed by the user as it is the one that offers him the security of his transactions. The private key is used to execute the transactions, as the user who executes it encapsulates the transaction itself, while also proving to be the sender of the cryptocurrencies.
Satoshi Nakamoto
The name Satoshi Nakamoto is what was used by the anonymous creator (or anonymous creators) who captured bitcoin, signed the bitcoin White Paper, and also conceived and developed the first bitcoin reference implementation. As part of the implementation, Satoshi Nakamoto also developed the first blockchain database. In this process, they were the first to address the issue of double spending, using a peer-to-peer network. It was active in bitcoin development until December 2010.
Smart Contracts (Εξυπνα συμβολαια)
In addition to cryptocurrencies (chips or coins), some chains also support smart contracts. The dominant form of smart contract network is Ethereum. Some contracts allow non-exchange-traded investments to change hands in the chain without the use of intermediaries. These goods may include subscriptions, insurance or even real estate.
Timothy C. May
Timothy XMay, known as Tim May (December 21, 1951 – December 13, 2018) was an American writer specializing in technical issues and politics, working as a computer engineer and top scientific staff at Intel in the early years of the company. May was one of the founding executives and one of the most generous contributors to Cypherpunk’s mailing list. He had written extensively on encryption and privacy issues from the 1990s to 2003.
Tokens (Μαρκες)
A brand is a digital unit that can be programmed with its own codebase associated with an existing chain. Brands are used to facilitate the creation of decentralized applications.
Vitalik Buterin
Vitalik Buterin is the creator of Ethereum, the blockchain platform that acts as a global computer for decentralized applications. The corresponding cryptocurrency, Ether, saw its value launch in 2017 (Ethereu’s capital value is close to $ 30 million). He is the co-founder of Bitcoin Magazine and is currently running the Ethereum project, working on upgrading its protocol.
Sources:
https://bitcoin.org/el/vocabulary (Bitcoin Project 2009-2016)
https://www.onassis.org/el/whats-on/blockchain-utopia-or-u-turn/glossary