Crypto Glossary

Bitcoin: A user-to-user electronic cash system. Bitcoin with a capital B refers to the decentralized payment protocol and platform.

bitcoin: The token that circulates in the Bitcoin protocol; The native exchange unit.

Blockchain: The blockchain is a public record of Bitcoin transactions in chronological order. The blockchain is shared among all Bitcoin users. It is used to verify the stability of Bitcoin transactions and to prevent double spending.

P2P: For its acronym in English (Peer to Peer) Point to point or also called user to user. Refers to systems that work as a collective organization. allowing each individual to interact directly with others. In the case of Bitcoin, the network is built in such a way that each user is transmitting transactions from other users. And something very important, no bank is required as an intermediary.

FOSS: For its acronym in English, free open software. Software that can be used for free and developed transparently.

Crypto assets: A crypto asset is a digital asset that depends primarily on cryptography and blockchain technology or similar; that is not issued by a public authority or central bank and that can be used as a medium of exchange, for investment purposes or to access a product or service under certain conditions.

Cryptocurrency: It is a category of crypto assets, whose main function is to operate as a means of exchange value within a peer-to-peer economic system that uses cryptography to verify and secure transactions and control the creation of additional units.

Ethereum: Global, open, decentralized computing infrastructure that runs programs called smart contracts. It uses a blockchain to synchronize and store state changes with its native ether token, to measure and limit the cost of execution resources.

Smart contracts: These are computer programs that can be fulfilled automatically once the parties have agreed on the terms. They are written and executed on a blockchain. Ethereum was the first blockchain ecosystem to allow their creation and execution.

Token: A unit of value that an organization creates to self-manage its business model and empower its users to interact with its products, while facilitating the distribution and exchange of rewards and benefits for all its stakeholders.

ERC: Ethereum Request for Comment. ERCs are standards and conventions at the application level.

EIP: For its acronym in English Ethereum Improvement Proposal. Ethereum improvement proposal. It is the first mechanism to propose new features, to gather technical input from the community on a topic, and to document the design decisions that have been included in Ethereum.

Utility Token: Tokens that from the legal dimension do not represent a negotiable security. On the contrary, they have a utility, generally it is to give access to a service, network or product or to build on a decentralized infrastructure.

ICO: Initial Coin Offering. Initial coin offering. Process by which a startup raises funds by offering in exchange a utility token issued on the blockchain.

STO: For its acronym in English, (Security Token Offering). Process of issuing digital assets-called tokens that represent marketable securities (securities: debt or equity) where blockchain technology is used to digitize them.

Security Token: negotiable securities tokens; They may represent fractional ownership of real estate, art, company stock, debt, or an asset backed by some security.

Compliance platforms: Platforms in charge of aligning technology with standards and regulatory frameworks. They are known as compliance platforms.

ERC-20: It is a technical standard used to issue and implement tokens on the Ethereum blockchain. It is understood as a smart contract, technical or specific guide to a framework of rules that must be followed for the token to function properly. ERC-20 tokens are called ERC-20 tokens that are created using this standard.

Protocol: Set of predefined rules to standardize the exchange of information in computing activities. By following the same protocol, it is guaranteed that the devices will be compatible at the different points of a computer system.

Algorithm: Prescribed set of well-defined, ordered and finite instructions or rules that allow an activity to be carried out through successive steps that do not raise doubts for whoever should carry out the said activity.

Consensus Algorithm: Mechanism through which a blockchain network reaches consensus. Decentralized public blockchains are distributed systems and, because they do not depend on a central authority, their nodes need to agree on the validity of transactions. They are responsible for maintaining the integrity and security of the systems.

dApp: For its acronym in English Decentralized Applications; applications that run in a distributed way, hosted on a blockchain.

PoW: Proof of Work. Consensus algorithm used by Bitcoin with the goal

PoS: Proof of Stake. Consensus algorithm that secures the network in a deterministic way. In this system, there are no miners processing data. Users interested in participating in the network must participate in their tokens and leave them alone as a guarantee. The more tokens you have in participation, the higher the reward.

Miners: Specialized machines that run on the PoW consensus algorithm. They perform mathematical calculations to confirm transactions on the Bitcoin network and protect the network.

KYC: For its acronym in English (Know Your Client) Know your client. Supervision processes carried out by an entity to get to know its new and old clients to identify what they do and where their funds come from, intending to avoid maintaining commercial relationships with people involved in crimes of money laundering, terrorism, government corruption, drug-related crimes.

AML: For its acronym in English (Anti Money Laundering) prevention of money laundering.

FINMA: Swiss Financial Market Supervisory Authority. Swiss Financial Markets Supervisory Authority.

FATF: For its acronym in English, Financial Action Task Force. Financial Action Task Force-FATF Intergovernmental institution created in 1989 to promulgate an international framework of prevention standards.

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