Initial Coin Offering (ICO) has emerged as a very popular method of fundraising especially in the decentralized cryptocurrency market. However, for an investor, one of the major pre-requisites before investing in ICOs is to thoroughly go through the ICO whitepaper which has all the details regarding the project or the business or the idea.
But an average investor, especially the ones who are new to the cryptocurrency market, might find the ICO whitepaper to be filled with financial jargons and peculiar terms. Below is the list of some of the useful terms in an ICO along with their meanings.
• Blockchain: Blockchain is a decentralized digital ledger wherein transactions made in digital currencies are recorded publicly. As the name suggests, a blockchain links multiple blocks in a chain like format. Each block carries information that becomes a part of the blockchain.
• Cryptocurrency: A digital currency developed using proper encryption techniques like cryptography and is completely decentralized.
• Circulating Supply: Total number of digital tokens or coins that are available in the public market.
• Maximum Supply: This is the total number of digital tokens which can exist for a cryptocurrency or a crypto asset.
• Total Supply: This is the total number of digital tokens in existence including both — the publicly circulated ones as well those that are reserved or locked.
• Decentralized: Something that is not controlled by any central power or authority and hence doesn’t have a single point of failure.
• Decentralized Applications: Applications or software programs that work on a decentralized peer-to-peer network instead of a single computer.
• Fiat Currency: A currency which has been defined as a legal tender by the government bodies. For e.g. U.S Dollar, British Pound, Euro etc.
• FOMO: This stands for ‘Fear-of-Missing-Out’. This is a kind of feeling that occurs to investors on missing any profitable investment opportunity while regretting it later.
• Genesis Block: This is the first block of data which is processed or validate on a new blockchain network. It is often referred to as Block 0 or Block 1.
• Hard Cap: The maximum amount which an ICO is willing to raise. Once an ICO reaches hard-cap, the project will stop collecting further funds.
• Soft Cap: The minimum amount an ICO needs to raise. If the ICO fails to raise this amount, the project will be cancelled and the funds will be returned to investors.
• HODL: This stands for ‘Hold on for Dear Life’. This is basically used while referring to an long-term strategy of investment.
• Mining: This process refers to transactions that are verified and added to the blockchain later.
• Pre-Sale: A token-sale that takes place before an ICO goes live for general public to participate.
• Proof-of-Work (PoW): An algorithm which rewards the first person to solve a complex mathematical and computational problem in order to achieve distributed consensus.
• Proof-of-Stake (PoS): An algorithm which rewards participants solving cryptographic puzzles in order to achieve distributed consensus. This algorithm allows participants to create new blocks and validate transactions based on individual stake of the total number of coins owned.
• Pump and Dump: A scheme wherein a project is hyped, without any fundamental or concrete basis, in order to lure investors and make early exit by selling it at an higher rate.
• Smart Contracts: Contracts involving two or more parties which are designed in a such a way that they get executed only when certain conditions are met or events are triggered.
• Digital Tokens: These are the electronic tokens present in the blockchain network used for transactions.
• Wallet: A place to store your cryptocurrency holdings or digital assets.
• Whitepaper: An informal document giving an complete idea regarding an ICO project along with its future plans.
• Whitelist: A list of approved and registered participants having special and exclusive access to a pre-sale or an ICO.
More channels.
Webpage : https://ozex.io
Whitepaper : https://github.com/ozexproject/OZEX-Whitepaper
OZEX blog : https://ico.ozex.io/blog/
Naver blog : http://blog.naver.com/ozexpj
Bounty promotion : https://bit.ly/2IZNfRo
Twitter : https://twitter.com/ozex_official
Facebook : https://www.facebook.com/OZEXproject
Medium : https://medium.com/ozex
Steemit : https://steemit.com/@ozexproject
Telegram(Global) : https://ozex.io/telegram
Telegram(Korea) : https://t.me/joinchat/IVKygBIZE8Fi-W1OSYC7rw
Instagram : https://www.instagram.com/ozex_official/
Bitcoinforum : https://bitcointalk.org/index.php?topic=4355099.0
