0.2 Blockchain Glossary Part 2. H-Z

H-Z

Hard Fork

Type of fork that makes previously invalid transactions valid, and vice versa. This type of fork requires all nodes and users to update to the latest version of the protocol software.

Hash

They are computer keys that are obtained through the resolution of very complex mathematical formulas and that store a large amount of information. There are not two equal hashs and they cannot be modified.

HODL (Hold On for Dear Life)

The act of buying and holding.

Japanese candle

Graphics and analysis techniques used in economics initially by the Japanese. They arose in Japan in the eighteenth century, in the rice market.

KYC (Know Your Costumer)

It is a process by which the companies or entities that make a business or transaction must identify the counterparty with which they carry out the same. The purpose is to verify the legitimacy and existence of the client.

Lambo

It is one of the most recognized terms in the ecosystem, portrayed in many memes and jokes. It is the abbreviation of the well-known sports car brand Lamborghini, one of the first signatures to accept payments in crypto-active. Lambo also refers to large profits that allow you to buy a Lamborghini of one million dollars.

Leverage

Use of borrowed capital, usually through exchange houses, to enhance potential profits. In the cryptocurrency market, leverage rates of 2 to 5 times the investment in exchange houses such as Kraken or Poloniex are achieved.

Liquidity

It is the ability to buy and sell or exchange an asset in a fluid and effective way, without giving time to the loss of its value.

Long Position (A long)

It is the act of buying something you have borrowed in the hope of being able to sell it later at a higher price.

MACD (Moving Average Convergence / Divergence)

It is a widely used and extended indicator in the world of trading and is used mainly as an indicator of trends (whether bullish or bearish)

Masternode

It is a type of mining, where users store a large amount of coins in an online wallet, which helps the network verify the transactions of the other users of the blockchain. The system itself will reward the users storing coins in these masternodes with a % of coins on a regular basis just to keep the coins in the wallet and support the network.

Microtransaction

It is the transmission of a small amount of bitcoins from one direction to another

Mining

It is the act of solving a block, validating all the transactions it contains.

Mining Pool

It is the grouping of two or more miners who join their computing power to raise the chances of solving a block and get a reward. In the mining pools, the reward is divided internally according to the amount of hashes contributed by each of its members.

Multi-Signature

The addresses of several firms provide an additional layer of security by requiring more than one key to authorize a transaction.

N
ode

It is a computer connected to the Bitcoin network that transmits transactions to others.

Oracles

The oracles function as a bridge between the real world and the blockchain providing data to intelligent contracts.

OTC (On The Counter)

It is a bilateral exchange, in which two individuals or users make proposals directly, without any type of mediator.

Output

It is the destination of a transaction. The most common is that it is an address, but there may also be transactions with more than one destination address and, therefore, several exits.

P2P (Person to Person)

It is a network of decentralized computers where all the parties interact with each other and share information.

Paper Wallet

A printed document that contains the information linked to your wallet. That is to say your private key, public key, etc.

PoS (Proof Of Stake)

Distributed blockchain consensus protocol in which transactions are processed by proving ownership of the cryptocurrencies themselves. The possibility that a participant finds a block and deciphers it is proportional to the amount of cryptocurrencies stored by it in the network

PoW (Proof Of Work)

Distributed blockchain consensus protocol consisting of the resolution of mathematical problems, a hash sequence, which has a variable that makes it difficult. Solving the test successfully requires time and energy, therefore, ultimately, this system conditions the mining capacity to the computational power of the user.

PoS/PoW hybrid

A PoS / PoW hybrid allows the use of Proof of Stake and Proof of Work (proof of participation and proof of work) as a network of distribution algorithms. Through this method, a balance can be achieved between the miners and the voters, creating a system of community governance by both the members (owners) and the strangers (miners).

Private Key

Alphanumeric text associated mathematically to an address and that must be known only by its owner, thus allowing him to perform bitcoin transactions.

Pump

An accelerated movement in the price increase of cryptocurrencies.

Pump and Dump

Cycle in which the market drives the price of a cryptocurrency to exceed its resistance and at its highest point this price drop precipitously. First, a high volume of purchase increases the price of a crypto active. When this value stabilizes in the same value during a relative period of time, the volume of sales increases again causing this value to fall precipitously. It is a phenomenon frequently seen in the markets of altcoins and crypto actives of little monetary value.

Pullback

Correction that occurs in most cases after a rapid rise of the currency in a short period of time.

Rally

A rally is a period in which the price of an asset, market or index rises steadily.

Rekt

Term referred to the word “wrecked”, originated from a spelling error of a user, which means ‘ruined’ and refers to when an investor loses all their money by the fall of the price of a crypto active.

Satoshi

It is the smallest subdivision you can get from a bitcoin, namely: 0.00000001 BTC.

Segwit

Implementation and update of the internal nodes in the Bitcoin blockchain by the Bitcoin Core team.

Satoshi Nakamoto

It is the pseudonym used by the person or group of people who developed the Bitcoin protocol. He has “supposedly” been retired since 2010.

Scamcoin

Digital currency usually not supported by blockchain whose financial scheme is fraudulent and tends to steal funds from investors and participants.

Short (Shorting)

It is the act of selling something you have borrowed in the hope of being able to buy it later at a lower price.

Smart Contract

A fragment of code that can be transmitted to the block chain and executed. It is used to write applications that run distributed through the platform.

Silk Road

It was an online market (located on the Deep web) used for the purchase of illicit products and in which, the main form of payment was bitcoin. It was closed at the end of 2013 after the FBI arrested its owner, Ross Ulbricht.

Soft Fork

A soft fork differs from a hard fork in the fact that it only invalidates valid transactions. Since the old nodes recognize that the new blocks are valid, a soft fork is basically compatible with previous versions. For this type of fork the approval of the majority of the miners is necessary, while for the hard fork it is necessary that all the nodes accept a new version.

Solidity

Solidity is the programming language used by the Ethereum to develop intelligent contracts.

Stop Loss

An order which is triggered by the act of a traded commodity falling below a price set by the trading party.

TA (Technical Analysis)

Financial analysis that uses patterns in market data to identify trends and make predictions.

Tangle

Protocol and alternative decentralized proposal to blockchain known as directed acyclic graph (DAG) in which a transaction requires two other transactions to be confirmed. It was introduced and explained by the IOTA project on its white paper. In this protocol, the nodes do not require knowing the total amount of the network to process transactions, but a small part of it.

TP (Take Profit)

Percentage or figure in which a trading operation must be closed. All TPs are in “POSITIVE” percentage

Wall

It is said that there is a wall in buying or selling, when in the same order many coins are accumulated for sale or purchase, this makes lowering or raising that price difficult given the large number of currencies that block that position.

Whales

Merchants with massive amounts of the currency that is marketed. They can sell and buy in large enough quantities to manipulate the market price in the short term.