Welcome to our Crypto Glossary!
You will find here different definitions in the field of cryptocurrency, mining and staking. This section is in constant evolution.
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An address is a random group of characters that is used as a public key when you need to send or receive cryptocurrency. An address can be compared to a bank account number in the traditional banking system.
An altcoin is an expression that designates all cryptocurrencies other than Bitcoin. Altcoins are considered alternative currencies because of the importance of Bitcoin.
An ASIC (Application Specific Integrated Circuit) is a machine dedicated to mining. Generally used to mine Bitcoin, it is much more powerful than a simple RIG and resolves the proof of work much faster.
Bitcoin is a blockchain and cryptocurrency developed by the mysterious Satoshi Nakamoto.
A block is a file containing information such as ongoing transactions. This block is subject to verification and will be attached to the previous block if it is considered valid. In the Bitcoin blockchain, a block is created every 10 minutes.
The blockchain is a technology that allows information and transactions to be stored and transmitted in a safe and transparent way and most importantly, in a decentralized way. It is a secure system open to all users that can contain transactions.
Each user can check the validity of a transaction in the blockchain, which can be considered as a kind of electronic ledger that is anonymous, public and non-falsifiable.
This is the total number of blocks on a blockchain. This data is written when you count the number of blocks before the last block of a blockchain.
It is a reward that is given when a miner validates a block. Because of his contribution to keep the blockchain alive, the miner is rewarded with cryptocurrencies.
Byzantine Fault Tolerance (BFT) is a consensus mechanism that is derived from the problem of Byzantine generals. This is a dilemma that represents the problems that Byzantine generals could have when they had to communicate and agree between themselves on the next strategic move during a siege.
Byzantine Fault Tolerance (BFT) allows us to determine if we can trust the blockchain if it is infected by malicious machines.
This is the input voltage level of GPUs. This value may not be available on newer cards.
A cryptocurrency is an electronic, virtual and decentralized currency that is used in the blockchain. Unlike traditional currencies such as the Dollar or Euro, cryptocurrencies are created by solving mathematical problems based on cryptography.
DAG (Directed Acyclic Graphs) is a mathematical and computational construct that allows the creation of distributed systems and networks with many functional similarities to those proposed by blockchains.
A DAG is a finite directed graph, without directed cycles. This means that its vertices are connected by edges with a specific direction and the whole graph takes us from point A to point B, without the possibility of returning to point A.
For more info: https://cruxpool.com/blog/what-is-dag-in-mining/.
A DAO or Decentralized Autonomous Organizations is an organization that is run through rules encoded in smart contracts.
A dApp or Decentralized Applications is a kind of application that runs on a decentralized network.
The objective of decentralization is that no one entity should have the control. In the context of a blockchain, the objective is that no single company or individual can control the entire network. The more actors are in the blockchain, the more decentralized the network is.
DeFi (De centralized Fi nance) refers to decentralized finance. It is a term for financial products and services that are accessible to anyone with an Internet connection. With DeFi, markets are open and there are no centralized authorities that can block payments or deny you access.
Delegated Proof of Stake (DPoS) is a variant of the consensus Proof of Stake (PoS). A certain panel of users will be responsible for validating the blocks for the entire network, contrary to the Proof of Stake (PoS) which makes it possible for any member of the blockchain possessing cryptocurrency to validate a block.
Difficulty, as its name suggests, is a measure that defines the difficulty of finding a new block.
A double spend is an malicious action by a person who tries to send a transaction to two receivers at the same time. The goal is to spend cryptocurrency that you don’t have.
This is a practice in cryptomining that has become relatively common and allows you to mine two cryptocurrencies at the same time with only one GPU.
For more info: https://cruxpool.com/blog/is-dual-mining-worth-it-and-how-does-it-work.
ERC or Ethereum Request for Comments is a protocol of the Ethereum network. The tokens resulting from this protocol have the objective to improve Ethereum.
Ethereum is an open source blockchain that allows developers to create dApps but also smarts contracts. Today, Ethereum is one of the most interesting projects to follow and its currency, Ether or ETH, is one of the most capitalized.
This is a network difficulty adjustment system programmed to increase difficulty exponentially. With Ice Age, it is impossible for miners to keep up with the increase in difficulty, which would increase block time and cause the blockchain to freeze.
For more info: https://cruxpool.com/blog/what-is-the-ethereum-difficulty-bomb/.
An exchange is a platform where cryptos are traded with each other or against cash. This makes it possible to invest or to speculate on the price of cryptocurrencies.
FIAT is short for fiat currency. These are the classic currencies like the Euro, Dollar, etc.
A fork is a major or minor change to a blockchain. Indeed, a blockchain is always in development. When there is an addition or a modification in the code of the network, the new version replaces the old one. There are Hard Fork, which are major changes and Soft Fork, which are minor changes.
In the FPPS mode, the block reward and the mining service fee are paid according to the theoretical profit. This involves taking a standard transaction fee for a certain period of time and distributing it to miners according to their hashrate contribution.
This increases the miner’s income by sharing a portion of the transaction fee.
The gas is a unit that measures the computational effort when you make a transaction, when you use a smart contract or when you launch a dApp on the Ethereum network. So, Gas is the price you will pay to be able to use its services.
The gwei is the currency that defines the cost of gas when you make a transaction on the Ethereum Network.
Halving is the division by two of the reward for mining a cryptocurrency. This division has been set since the launch of the cryptocurrency since it is written in the code of the coin. The halving is activated when a certain number of blocks are mined.
A hard fork is a major change in the life of a blockchain. It is during a Hard Fork that the development can be split in two, as for the Ethereum and the Ethereum Classic.
A hardware wallet is a physical wallet of cryptocurrencies such as Ledger and Trezor.
Hash is an abbreviation for the cryptographic hash function. The hash function is a mathematical process that measures a quantity of power.
The hashrate is the unit of power of a miner or a network.
HODL is a term that defines holding cryptos for a long period of time. This expression comes from a mistake made by a user on the Bitcoin Talk forum, where he wrote HODL instead of HOLD several times.
An ICO or Initial Coin Offering is a distribution of tokens when a cryptocurrency project is fundraising. In an ICO, the purchase of tokens is equivalent to the purchase of shares in a traditional company.
LHR (Lite Hashrate) GPUs are the NVIDIA 3000 series GPUs released in early 2021. Until now, these GPUs were restricted to the Ethash mining algorithm. This means that their hashrate to mine Ethereum was voluntarily limited by the manufacturer NVIDIA.
The memory clock works like the core clock, but by measuring the clock rate of the graphics processor’s memory.
The clock rate measures the number of processing cycles per second that the GPU is able to accept.
Mining is a practice that allows a blockchain to verify transactions through decentralized machines. These machines, which are owned by miners, validate transactions, also called blocks. Then the miners receive a reward, in cryptocurrency, for their mining.
A mining farm is an area dedicated to the mining of cryptocurrencies. Some people invest in buildings and hundreds of machines in order to mine as much cryptocurrency as possible.
A mining pool is a service that allows miners to join together as a single entity for the purpose of mining cryptocurrencies, like Cruxpool.
Mining RIG is the term used to define a mining machine. These machines composed of graphic cards (GPU) make it possible, thanks to their hash power, to verify the transactions of a blockchain.
The network is the set of engaged nodes that helps the operation of the blockchain.
In the network, a node represents a machine that works for the good working of the blockchain.
When a transaction is validated by a miner, it is embedded in a block that is named by a series of random characters, called a nonce.
Power level allows the GPU to demand more power from your power supply.
For example, if the GPU is limited to 200 W by default, you can increase this value to 240 W by setting it to 120 (i.e. 20%).
You may need to do this if you want to overclock your GPU further, but it will increase the temperature.
Proof of Work (PoW) is the first proof system used in the blockchain. This proof was introduced with the Bitcoin blockchain. It is a consensus algorithm that checks a block by asking the machines, also called miners, to do a very complex job. The objective of this work is to eliminate the potential proliferation of inappropriate information that could affect the proper operation of the blockchain.
Proof of Stake (PoS) is a verification process that is completely different from the algorithm Proof of Work (PoW). In fact, there is no question of working on a complex job to validate a new block. Proof of Stake (PoS) based on the principle that it is required to own and stock a certain part of the blockchain, also called staking, to take part in the block validation process. This part is represented by the cryptocurrency of the blockchain.
PPS is a simple method of payment. Miners are paid for each validated share. Then the mining pool will pay a small reward to thank the miners for validating a share. Please note that you will always be paid with the PPS payment method, no matter if the mining pool finds a block or not.
PPS + is an identical payment method similar to regular Pay-Per-Share. The one and only difference is that the mining pool also pays the fee transactions that are included if a block is found. Fee transactions are a small, but a necessary fee when you make a transaction.
The PPLNS system rewards miners once a block has been found by the mining pool. You will therefore only be paid after the block has been found. It is important to know that you lose your reward if you disconnect from the mining pool before the block is found.
Members receive a reward at the end of the operating period. The PROP reward is proportional to the minor’s shares based on the total number of shares held. In addition, the reward is based on the shares accepted.
Satoshi Nakamoto is the mysterious creator of Bitcoin. He is also the founder of Bitcoin.org and the Bitcoin Talk forum.
A seed phrase (or mnemonic phrase) is a group of words that provides access to a cryptocurrency wallet. A seed phrase refers to a generated list of 12 to 24 words, in a specific order. This means that any third party who knows your recovery seed can potentially move your funds to another crypto wallet address.
A shitcoin is a term used to refer to the not-so-serious crypto-currencies that are only used to scam people.
Proof of Stake blockchains have both reward and penalty mechanisms.
Good behavior is encouraged by rewards while bad behavior such as inactivity and dishonest validations are subject to a penalty. We refer to this as slashing, the goal of which is to discourage malicious behavior by validators and encourage network participation, security, and node availability.
It is a crypto wallet to store your cryptocurrency. They are software wallets like MyCrypto and Exodus.
A smart contract is a computing protocol designed to facilitate, verify or apply a contract on the blockchain.
A cryptocurrency with very low variability, similar to fiat currencies like dollar ($) or euro (€).
Staking uses a process adopted by Ethereum 2.0 that aims to immobilize ETH tokens in order to validate transactions, create blocks and secure the blockchain. Staking works with the help of a consensus called Proof of Stake.
Transaction blocks are added to the Ethereum blockchain by validators who hold some stake in the native currency of this blockchain. The process is opposite to the mining process: Proof of Work.
A token is a digital unit that allows access and use of an element of a blockchain. It is developed to be used with third-party applications to accomplish a specific function. As for example the ERC-20 token which is used in Ethereum smarts contracts.
Transaction fees are mandatory fees applied to each cryptocurrency transaction. These fees vary, depending on the flow of the blockchain and the size of the transaction.
This is a digital wallet that allows you to store, send and receive one or several cryptocurrencies.
A white paper is a complete document written by the initiators of a cryptocurrency project which allows to know the vision, the use and various technical information concerning this project.