What do the professional terms in the currency circle mean?
Blockchain is a distributed ledger used to record transactions and data. Cryptocurrencies are cryptographically protected digital currencies. Bitcoin is the first decentralized cryptocurrency and Ethereum is a platform that allows the development of decentralized applications. Smart contracts automatically execute when conditions are met. Tokens represent value or utility on the blockchain. Miners verify transactions and receive rewards.
Analysis of professional terms in the currency circle
Blockchain: A distributed, tamper-proof ledger , used to record transactions and data.
Cryptocurrency: Digital currency protected using cryptography to ensure transaction security and anonymity.
Bitcoin: The first decentralized cryptocurrency, created in 2009 by Satoshi Nakamoto.
Ethereum: A public blockchain platform that allows the development of decentralized applications (dApps).
Smart Contract: A program written on the blockchain that automatically executes when predefined conditions are met.
Token: A digital asset created on a specific blockchain platform that usually represents some value or utility.
Decentralization: A system or application that is controlled by multiple independent participants rather than by a single entity.
Miner: A person or device that verifies and processes transactions and is rewarded with cryptocurrency.
Hash: A one-way function that converts any amount of data into a fixed-length string.
Wallet: A software or hardware device that stores and manages cryptocurrency private keys.
Private Key: A password used to access and control a cryptocurrency.
Public Key: A public key paired with a private key used to receive cryptocurrency.
Cold Wallet: A wallet that stores cryptocurrency offline to ensure security.
Hot Wallet: A wallet connected to the internet that allows users to easily trade cryptocurrencies.
Short : A person who predicts that the price of an asset will fall.
Bull: A person who predicts that the price of an asset will rise.
Leverage: A mechanism for borrowing funds to trade cryptocurrencies to magnify gains or losses.
Airdrop: A marketing campaign that distributes cryptocurrency to users for free.
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