All the Cryptocurrency terms you need to know..!!!

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After the post All the Trading terms you need to know i though in creating a cryptocurrency terms for all the newcorners in the cryptocurrency world...

Blockchain
Is a continuously growling list of records, called blocks, which are linked and secured using cryptography. Basically is a public decentralized database where everyone can read and write on it, instead of the traditional way of storing data in a centralized server, the data is copied across computers worldwide (Nodes). More detailed info here.

Node
A computer/machine that is the connected to the network and helps maintain it.

Mining
The process of solving complex math problems in order to verify transactions and create blocks. It requires a very huge computer processing power to do it, the reward is the coin of the blockchain (example: bitcoin)

PoS / PoW / etc...
How transactions are verified and blocks are created. Here is a steemit post that explains everything -> The different proofs of crypto currency

Fork
A event when some new rules have to be implemented in the blockchain code and it needs general consensus in the community and specially the miners.

Soft Fork
A simple software change that is backward compatible, doesn't need to be upgraded.

Hard Fork
A software upgrade that introduces a new rule to the network that isn't compatible with the old software. Nodes need to upgrade the software in order to use and help the community.

A good CoinDesk article about Forks -> Short guide bitcoin forks explained

Wallet
A "place" to store the cryptocurrencies, almost every coin has his own wallet. You are the owner of a certain wallet if you hold the private key, is the best way to store coins, don't use exchanges to hold your coins.

Software Wallet
Storage for cryptocurrencies that is powered by software in a computer. Mainly each coin has his own software wallet.

Hardware Wallet
A device that can securely store cryptocurrencies, they are often talked as the best way to store coins. Example : Ledger Nano, Trezor.

Online Wallet
A website/platform online to storage cryptocurrencies, is very convenient and practically but not much secure. Example: Blockchain , MyEtherWallet

Paper Wallet
A secure way to store a wallet, you only need to write the private key and store it.

Cold Storage
A process to move cryptocurrencies to a offline place, mainly used by exchanges or big cryptocurrencies holders as a way to safekeeping coins from hackers. It can be done using a paper wallet, hardware wallet or the wallet file in a usb drive.


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