Hello Steemians,
Nowadays everybody talks about cryptocurrencies, its market has grown rapidly and it became a global phenomenon. However when I started to talk with some friends about cryptocurrencies, I found that they have no clue information about what I say, so I decided in this post to present the meaning of some of words that are more familiar in Cryptocurrencies Science and that soon or later you will face them in blogs or hear them in videos.
1- Firstly, we start with Cryptocurrency word: What is Cryptocurrency?
Well, Cryptocurrency is simply a digital or a virtual currency that used codes of cryptography for security. Unlike the normal money, there is no government that can stamp cryptocurrencies, no one can control them and there is no need to third party in case of transactions, the most famous cryptocurrencies are Bitcoin and Ethereum but there are a lot of other digital currencies that differ in their utilities.
2- Peer-to-Peer Network:
It allows users to access digital files using a P2P software program (like uTorrent) that searches for other connected computers on a P2P network to locate the desired content.
So When it comes in term of transferring a value, or transferring money we don’t need to a third party like a bank to make this transfer happens, with cryptocurrencies, wherever you are in this world you can make a transfer of money from point A to point B within a second using P2P Network.
3- Decentralized network:
While many traditional digital media store private keys for users on central servers, these have become increasingly susceptible to be hacked.
Decentralized in the other hand store keys in different servers, in a way that no server has a complete process of transaction.
4- Blockchain:
It is an open, decentralized database that provides a complete record of any transactions that involves value like (money, goods, documents …), the record’s authenticity must be verified by the entire community without central recordkeeping.
5- Segregated Witness (SegWit) :
When the transactions of Bitcoin start to have some issues in time, sometimes a single transaction can take all a day to be transferred to the other receiver, then a SegWit happens, it is presented as a solution to free up some space or capacity to add more transactions to the chain by removing some parts of transaction like signature data from Bitcoin transactions.
6- Smart contracts:
They are the codes and the agreements that exist between the buyer and the seller in the decentralized blockchain, and that permit a trusted transaction without a need to external authority.
7- WhitePaper:
It is the document that has a plan and describes what the project is about.
8- Initial Coin Offering (ICO):
It is a campaign that is used by the startups to fund their projects by presenting their plan in Whitepaper, what needs the project and how much money is needed to end the campaign, how long the ICO will run for and what is the money accepted for exchange to tokens of startups.
Thank you for reading my post!
Don’t Forget to Upvote, Resteem and Follow.
Sincerely
@dakster