Getting started on blockchain could indeed be tasking. Just like medicine, blockchain has certain terminologies that are mostly used and applied in the parlance. In English Language, a classification of well defined terms that are peculiar to a field or profession is called register. These jargons as you may call them, often sound strange and technical to someone who’s not well versed in the blockchain space.
On beginning my crypto journey years back, even the term ‘Blockchain’ in itselfvhad a way of sending complicated signals to my brain. This cycle continued till i discovered that just like every other profession you belong to, be it law, medicine, engineering, and whatnot, the need to understand these common terms directly influences a full grasp of what the industry is all about. Some of these terms include:
Blockchain
This is a system in which a record of transaction made in cryptocurrencies are maintained among several computers that are linked. It is mostly referred to as a digital ledger.
Cryptocurrencies — ‘Crypto’ for short
From your understanding of blockchain, crypto will be described as a digital or virtual currency based on a network that is distributed across several computers. It is secured by cryptography which makes it impossible to counterfeit or double-spend. It’s just like your paper money, just that this time around, it’s intangible. Bitcoin and Ethereum are popularly known cryptocurrencies.
Cryptography
Forget how it sounds. It’s simply a method of protecting information, transactions, communication, through the use of codes. Summarily, it is used to protect digital data.
Peer-to-Peer
This is simply two users interacting directly without a third party or intermediary. This brings me to the next point;
Decentralization
I’ll come to largely explain the term in my upcoming blog post, however for now, the term is described as the transfer of control of activity to several authorities as opposed to one single authority. As a case in point to understand the concept of decentralization is Unidef, a blockchain platform poised at acceleration the realization of a decentralized economy. Empahsis will be p;aced on the native token of the project called $U. Are you a holder? You can proceed to CoinmarketCap to make your purchases now. See my blog post on how to get started with $U.
Tokens
Tokens are virtual currencies. They represent tradable assets or utility that resides on its own blockchain and allows the holder to use it for investment or economic purposes. Every blockchain project generates a native token structure which gains utility within and outside the ecosystem of a project. For instance, the native token for the Unidef project is $U which has been listed on Pancakeswap.
DYOR
This is an acronym that connotes ‘Do your own research’. This potentially warns holders to be wary about the tokens or project to invest in.
Cold Wallet
This simply connotes a secure method that have been devised to store cryptocurrencies offline.
Hot Wallet
These are cryptocurrency wallets that are software-based. They are not offline meduims of storing crypto and are therefore connected to the Internet.
HODL
It’s a crypto acronym thta means ‘Hold On For Dear Life’. It originated from a typo on a Bitcoin forum in 2013. In the blockchain space, it emphasizes the need to buy and hold crypto instead of the conventional method of buying and trading immediately. Hodling has been described as a safer means of gaining more value from your coin as they may increase in value.
There are definitely many more that i didn’t get to mention here, but i hope this publication spurs an appetite to do more research, thus re-emphasizing the whole essence of the acronym, DYOR.
Finally, are you a crypto holder? What token are you looking to hold in the nearest future? You can commence your crypto journey as a $U holder today by making your way to Pancakeswap, Bitrue, AAX, BitForex, or DigiFinex to make your first purchase.
This blog post is brought to you by Sammy. I am committed to accelerating the adoption of blockchain by relating its relevance and usage to everyday life.