Important terms to know about blockchain and crypto

BTC – Bitcoin: the first and most well-known cryptocurrency, created in 2009.

BCH – Bitcoin Cash: a hard fork of Bitcoin that was created in 2017.

BLOCK – a unit of data on the blockchain that contains a set of transactions.

BLOCKCHAIN – a decentralized, digital ledger that records transactions on multiple computers.

DAPP – Decentralized Application: a software application that runs on a blockchain or decentralized network.

DAG – Directed Acyclic Graph: a data structure used by some blockchain technologies, such as IOTA, to confirm transactions.

ERC-20 – Ethereum Request for Comment-20: a technical standard used for smart contracts on the Ethereum blockchain.

ETH – Ethereum: a decentralized platform that runs smart contracts, and the second largest cryptocurrency by market capitalization.

HASH – a cryptographic function that converts an input of any size into a fixed-size output, used to secure transactions on the blockchain.

LEDGER – a record of transactions, such as a financial ledger or a blockchain.

MINER – a person or entity that confirms transactions and adds them to the blockchain, earning rewards in the process.

NODE – a computer that is connected to the blockchain network and participates in the validation and propagation of transactions.

P2P – Peer-to-Peer: a network of computers that communicate and share resources directly, without the need for a central authority.

PROOF-OF-WORK – a consensus mechanism used by some blockchain technologies, where miners compete to solve complex mathematical problems in order to confirm transactions and add them to the blockchain.

PROOF-OF-STAKE – a consensus mechanism used by some blockchain technologies, where the likelihood of a miner being able to add a block to the blockchain is proportional to the amount of cryptocurrency they hold.

SMART CONTRACT – a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.

TOKEN – a digital asset that represents a specific value or utility on a blockchain platform.

TRANSACTION – a transfer of value or data on the blockchain.

WALLET – a digital or physical storage device for holding cryptocurrency.

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