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As Cryptobunq, we have compiled the meanings of the most commonly used terms related to blockchain technology and products that you will use for your business or personal projects in our blockchain glossary.
With the introduction of blockchain technology, great revolutions have been taking place in the economic world for about 10 years. Cryptocurrencies, the digital assets of blockchain technology, have become a part of our lives.
Popular cryptocurrencies such as Bitcoin and Ethereum have been used a lot in recent years. Businesses and investors are also interested in the future of cryptocurrencies.
Businesses that want to work in this field or that want to work in another sector and receive their payments through digital assets have started to research blockchain technology.
When we understand the meanings of some of the frequently used terms in blockchain technology, it offers many different advantages not only for businesses but also for individuals.
With this practical dictionary, you will be able to understand the meanings of frequently used terms about blockchain, cryptocurrencies, and digital assets.
They have been used for different purposes by both businesses and individuals. For those who are new to this new world, here are the meanings of some of the most commonly used terms:
Blockchain is a digital ledger technology that verifies and encrypts data and transactions. Cryptocurrencies maintain their decentralized and secure structure.
While central authorities control traditional banking services, blockchain networks are decentralized. Therefore, cryptocurrencies are also decentralized.
Cryptocurrency is a digital asset created on the infrastructure of blockchain technologies. They are not dependent on any central bank.
It can be used to pay for goods or services to be purchased. They are designed with blockchain technology and equipped with challenging algorithmic problems.
Bitcoin is the most widely used cryptocurrency, introduced in 2009. It is decentralized and is the most preferred type of digital asset for transactions on cryptocurrency exchanges.
Altcoin is a type of cryptocurrency other than Bitcoin that works with the blockchain technology infrastructure. Other digital assets other than Bitcoin are simply called altcoins. There are hundreds of altcoins for different purposes on cryptocurrency exchanges.
A wallet, or digital wallet, is an area where the data of the digital assets owned is securely stored. It can sometimes be in physical form and sometimes in software form. It is similar to a bank account, a traditional banking service.
One of the most frequently used concepts in the cryptocurrency ecosystem is mining. Mining is the process of verifying data and adding it to blockchains.
Mining is the process by which new cryptocurrency rewards are obtained by solving and verifying the difficult algorithms contained in blockchains.
Solving these difficult mathematical problems requires highly sophisticated computers and electrical energy. In recent years, many investors have been working in the field of mining.
A stablecoin is a type of secure digital asset that maintains a stable value in line with fiat currencies such as the euro.
Examples include cryptocurrencies such as EURK euro stablecoin. It is a good option for investors and businesses with its stable value.
There are also types that try to maintain stable value by referencing commodity assets, not just fiat currencies. GLC is an example of a stablecoin that follows the gold mine.
Wallet as a Service, or WaaS in short, is a digital wallet service that professionals in the blockchain technology industry provide to developers or businesses. It is a cloud-based service model.
Businesses that want to accept payments with cryptocurrencies receive WaaS services from intermediary companies. WaaS providers typically deliver it quickly.
Crypto as a Service, or CaaS, is a blockchain technology service offered to businesses that want to accept payments through cryptocurrencies. Businesses that want to integrate with blockchain technology use it as a tool.
The units that enable blockchain technology to function in a secure and decentralized manner are called nodes. They are usually well-equipped computers.
There are manydifferent types of nodes. They are divided according to their function. They are important elements of blockchain networks and keep them moving forward.
There is a distinction between coins and tokens. Tokens are often generated through the use of a smart contract hosted on the Ethereum blockchain.
Today, there are thousands of tokens, and a significant number of the tokens based on Ethereum are included in the top 100 coins by market cap.
A non-fungible token is one of the varieties of Ethereum tokens. They are similar to other tokens in that they can be transferred between banks and utilized in smart contracts. But they are not "fungible," which means that each unit is different and can't be copied or split.
Proof-of-stake, also known as PoS, is a consensus-building mechanism that blockchains can use to ensure that only accurate data is added to the distributed ledger.
Proof-of-stake blockchains allow users to participate in making new blocks and earning block rewards by entering cryptocurrency into the network (known as "staking").
Proof-of-work, also known as PoW, is a further method for arriving at a consensus. It does this by utilizing a decentralized network of computing machines, which are referred to as "miners," to validate transactions in exchange for digital currency incentives.
A mining job is open to anyone who wants to do it. Miners use computers to solve hashes to create new blocks. Whoever does this first gets to add another block to the chain.
With the private key, you can find out who owns the token in your digital wallet. It functions in a manner very similar to that of a password, and anyone who possesses a private key can use the connected wallet address to get the money from the wallet.
In addition to your private key, your public key consists of a very long string of characters. This string of characters, along with your private key, is used in a calculation to determine your wallet address.
The hash rate is the rate at which the yield of assets earned per hour by devices that perform mining operations in the field of cryptocurrency is calculated.
It is an accounting of how much more the energy cost of a platform to be mined is than the cryptocurrency to be received as a reward.
A fork is a disagreement that prevents the safe and harmonious functioning of the elements of blockchain technology.
An initial coin offering (ICO) is a crowdfunding program for cryptocurrency projects.
It means "simplified payment verification". It is a cryptocurrency protocol.
The areas where you buy and sell your digital assets in the form of cryptocurrencies are called cryptocurrency exchanges. There are many different cryptocurrency exchanges. You should choose the one that offers the most suitable solutions for you or your business.
The self-propagating, decentralized way of working in blockchain networks is called a smart contract. Cryptocurrency exchanges automatically accept these contracts and continue to operate at a fast pace. It differs from contracts in traditional banking.
Floating Exchange Rate
The intervention of exchange rates with foreign exchange buying and selling according to the supply and demand balances in the market is called the floating exchange rate.
Networks where transactions are not controlled by any central bank or authority are called decentralized. Security and decentralization are maintained through nodes.
We offer you the global payment solutions you need to accept cryptocurrencies as a payment method. As Cryptobunq, a one-stop-shop crypto service provider, we offer the elements of blockchain technology for fast and secure crypto payments.
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