I give you an explanation in a few simple words of many terms from the industry of digital currency
API - Application Programming Interface The method, understood as a strictly defined set of rules and their descriptions, in which computer programs communicate with each other. The API is defined at the level of the source code for such software components as eg applications, libraries or operating system. The API's task is to provide the appropriate subprogram specifications, data structures, object classes and required communication protocols. An example of API is POSIX or Windows API.
Bitcoin (BTC) - cryptocurrency introduced in 2009 by a person (or group of people) with the pseudonym Satoshi Nakamoto. The name also refers to using its open source software and the peer-to-peer network it creates. Bitcoins can be saved on a personal computer in the form of a wallet file or held in an external third party service that stores such wallets. In each of these cases bitcoins can be sent to another person via the Internet to any owner of the bitcoin address. Each bitcoin is divided into 100,000,000 smaller units, called satoshi. Unlike most currencies (so-called fiat or fiat), bitcoin is not based on trust towards the central issuer. Bitcoin uses a decentralized database, distributed between peer-to-peer nodes to store transactions and cryptography to provide basic security functions, such as making sure that bitcoins can be issued only once by the person who owns them at any given time. Peer-to-peer peer-to-peer network and lack of central administration make bitmonet value manipulation by producing a larger number of them unmanageable for any government institution or other organization or unit, however, a speculative bubble is still possible. The construction of bitcoin allows for anonymous possession of property and its transfers. Bitcoin is based on the transfer of quotas between public accounts using public key cryptography. All transactions are public and stored in a distributed database. In order to prevent double publishing, the network implements a kind of distributed time server, using the concept of chain-based mathematical proof of performed actions (proof of work, abbreviated PoW). Therefore, the entire transaction history must be stored in the database, and the tree of the hash function is used to limit the size of the store.
Dash (DASH) - Darkcoin is designed to provide financial privacy by preventing transaction tracking. This was achieved thanks to a technology called Darksend, which mixes users' coins. The Darksend technology is based on the Masternodas network, currently there are over 900 distributed worldwide decentralized servers managed by the users of this network. Initially, Darksend was developed as a closed-source technology until the beta testers helped them find all the bugs and shortcomings. As of today, Darkcoin's developers, including lead developer Evan Duffield, are convinced that the software is ready for general use and decided to open the source code. Darkcoin is currently the first cryptocurrency with open code that provides complete privacy. Opening the source code of the Darkcoin cryptocurrency is extremely important. This allows users to gain confidence in the software. What's more, everyone can see the source code, build on it, help in its further development as it has been done for the last few years in the case of Bitcoin. Further Darkcoin updates are expected every few months and will include technologies of encrypted communication between users. Everyone, without revealing their IP address, will be able to connect to the Darkcoin network. Also, the identity of the mixing Masternods will be hidden, so that attempts to spy on data will be even more difficult, if not impossible.
Monero (XMR) - This project was launched in April 2014. Monero, is the only small cryptocurrency that was created on the basis of the CryptoNote algorithm, which is considered one of the most modern technologies with open source code. CryptoNote is a new technology with an open code that allows you to create cryptocurrencies, different from Bitcoin and its altkoinów, created on its code. CryptoNote technology provides users with an overall anonymous transfer system of their coins. Anonymity is achieved thanks to the group signature. In this case, the signature indicates that the transaction was carried out, but who exactly realized the group can not be detected, because the users in the system do not differ from each other. As far as the Monero cryptocurrency itself is concerned, it stands out above all because of a very complicated procedure of analyzing the block chain, you can not link transactions with each other, and you can not trace the payment. All these characteristics distinguish Monero from other cryptocurrences available on the market. At the moment there is no other cryptocurrency that would create a competition for Monero, so you can count on the fact that the cryptocurrency will continue to attract the attention of many participants of this anonymous market.
Ethereum (ETH) - Is a protocol based on decentralized Blockchain, on which operate the so-called smart contracts, i.e. applications that execute precisely programmed functions without the possibility of any break, censorship, fraud or interference by third parties. Ethereum can also boast of the highest in the history of the cryptocurrency industry collected in presales amounting to over $ 19 million. The market has very enthusiastically reacted, among others, to this information which translates into a price increase. More or less from mid-February, the price is growing significantly now reaching a price of over $ 9.4 and market capitalization of over $ 700,000,000 making it the third largest cryptocurrency right after Bitcoin.
Litecoin (LTC) - cryptocurrency, as well as an open source project under license X11. Inspired and almost technically identical to bitcoins, litecoin is created and transferred without the participation of the central issuer. It differs from bitcoin with three basic features: Firstly, the litecoin network processes the block every 2.5 minutes, while bitcoin does it every 10 minutes, which according to the developers of litecoin allows for faster confirmation of the transaction. Similarly to Bitcoin, the network difficulty adapts to the available computing power, using a rolling average, so that each new block is extracted once every 2.5 minutes. Secondly, the litecoin network will produce 84 million litecoins, which is four times more than in the case of bitcoin networks. Thirdly, Litecoin relies on Scrypt as a proof of work for the activities performed. The creation of FPGA and ASIC excavators using Scrypt seems much more difficult than the systems using SHA-256 for bitcoin networks and more expensive due to the necessity of using fast memories. In addition, the performance of any systems should not differ significantly from the currently used GPUs, because the greatest impact on the performance of the Scrypt calculations is the speed of memory. Each litecoin is divided into 100,000,000 smaller units.
Open source - it is a differently open source code of the software, which gives each of us the ability to check the code, or any modification under Us, for example, the application that we downloaded does not contain any functions that we are spying on. This is a huge advantage over closed software such as Windows or Skype.
P2P network (peer to peer) - it is a decentralized network used to transfer payments, files, information from the user to the user, there is no so-called administrator or manager in the network, each user has equal power and no one can disable it anyway network.
GitHub - used to check the source code, for example, what source code, if there is no backdoor (backdoor) in it, whether the application will respond to us.
E-commerce - this is a general-concept Internet trade operating through various sales channels. The most popular form are online stores.
Payment processor - these are companies that mediate in a financial transaction between, for example, an online store, a stock exchange and a user, thanks to the fact that they have accounts in all banks, they accelerate transactions. Acceleration of transaction costs from 1% to even 5% (Dotpay, Sofort, Tpay, Zpay, etc.)
Bitcoin wallets and their types
👉Lightweight wallet: it is a computer application that we download and install, we can store our cryptocurrency on it, eg Electrum.
👉Paper portfolio: One of the safest wallets (if no one has access to it, it is recommended to keep in a safe place, as you have a lot of BTC it is best in the safe, because it has your private and public key on it)
👉Heavy wallet: This is usually an application that downloads all blocks from the network, eg Bitcoin Core.
👉Hardware wallet: This is a wallet that is located on USB, we store private keys on it, e.g. Trezor or Ledger.
👉Web wallet - web wallets are such portfolios that are on private websites / servers, we do not have access to your private keys (the website administrator has them), these are very dangerous wallets, because at any moment we can lose your money if you e.g. the administrator of these portfolios will be unfair.
👉Mobile wallet - also called as (Mycelium) is an application installed on the phone, it is also a dangerous wallet, because the private key is not always well protected.
Fraud - these are Internet scams.
Phising - this is a copy of the original page, usually a dot or one letter is added to which we will not pay attention. We must pay attention to the presence of page security through the so-called padlock on the left side of the address.
Blocks - create users by sending payments, eg you send someone an amount "x" in BTC and in this way a block is created, which is called the miner must decode.
Hash - this is a unique encrypted password, number or identifier, e.g. transaction.
"Public book "(Blockchain) - this is called a chain of blocks, forming together the entire blockchain network, i.e. a place where each user can see each transaction. At this point you can also check if the user has sent you a cryptocurrency transfer. The easiest way to do this is via the blockchain.info website
Node - the node is every network user, that is, the one who has the Bitcoin Core application running.
Daemon - this is the main software of a given currency, the so-called client, i.e. Bitcoin Core.
Seed - these are unique phrases thanks to which you can regain access to your wallet, among other things. (seed should be stored in a safe place and not disclosed to anyone, thanks to him you can recover your wallet without having a private key)
Mining - digging (of a given cryptocurrency), producing it, operating the network.
Mining pool - otherwise a mine that decrypts blocks.
SHA 256 - encryption code (this code is Bitcoin encrypted)
Altcoin - all other cryptocurrencies, which are currently very many. Recommended page: CoinMarketCap
Fork - change in the code of cryptocurrencies (update)
Escrow - this is a very popular method, it consists in the fact that the third party (independent), secures the transaction between two parties, for example you buy from the product "x", but you do not trust "x" so you choose a company that provides such a service, if Mr. "x" agrees to this type of transaction, then, you put money into such a company, you
"X" sends the product and when you receive your product, you confirm to the company that the product is consistent with the description and then this company slows money for Mr. "x"
Faucet - this is the so-called tap with free playful microbitches (in other cryptocurrencies there are also so-called taps, but not in all)
Hash rate - information about a given cryptocurrency with respect to mining difficulties.
Fee - it is a transaction fee for each transaction in the network of a given cryptocurrency.
mBTC - one thousandth of Bitcoin
VAT a Bitcoin - in the EU Bitcoin is exempt from vat.
Capitalisation - the number of units of cryptocurrencies multiplied by the price.
Volume - turnover of a given cryptocurrency.
TXID - otherwise hash transaction ID, thanks to it we can easily find our transaction.
Satoshi - the smallest bitcoin unit. (1: 1,000,000,000)
QR code - checking and making transactions by scanning the code. (This method is applicable in many industries)
Public key - this is the key thanks to which other users can identify you in the network.
Private key - is used to sign transactions (you can also export a private key, for example to USB)
2FA - it is an application for a smartphone that protects our account, we can set for example when logging in so that the application generates you the code on your phone, for example. Google Authenticator installed on your smartphone, which you confirm your login or transaction (as in the bank when transferring).
Confirmation from the network - each transaction receives confirmation from the network of a given cryptocurrency regarding its confirmation. The time needed to obtain confirmation depends on the transaction fee. A few confirmations are usually enough to post funds, for example, a stock exchange or a currency exchange office. Confirmations from the network are checked, for example, by Blockchain.info
Fiat - this is traditional money, for example PLN
Crypto - this is an abbreviation of cryptocurrency eg BTC
Canor of digital currencies - this is a place where you can buy a digital currency using traditional currency, and also convert a digital currency into a traditional currency and pay it out.
The digital exchange market - offers on the stock exchange are concluded between users, of course, this results in a better purchase and sale price as opposed to money changers that impose their margins (exchange offices buy on the stock exchanges)
Types of exchange orders - a few basic orders are distinguished.
👍Market - you buy at the current lowest price on the market.
👍Stop loss - otherwise it is an order thanks to which you will be able to limit your losses by setting this option, the computer will automatically sell your digital currency when it starts to fall, for example. BTC costs PLN 4000 and you have set that at 3800 PLN is to sell, or like BTC will fall to this price, the computer will automatically sell your cryptocurrency.
👍Stop loss - otherwise it is an order thanks to which you will be able to limit your losses by setting this option, the computer will automatically sell your digital currency when it starts to fall, for example. BTC costs PLN 4000 and you have set that at 3800 PLN is to sell, i.e. like BTC will fall to this price, the computer will automatically sell your cryptocurrency.
👍Take profit - thanks to this order you can set when the computer is to sell your virtual currency, for example your BTC costs PLN 4000 and you want to sell when the price reaches PLN 4,200 by setting this option, the computer performs the order at PLN 4,200.
👍Limit - in this option we set ourselves at what price we want to buy or sell a cryptocurrency.
AML - this is a list of legal regulations regarding counteracting money laundering.
Animation of the market - in other words, an artificial movement, aimed at triggering, for example, trading on the stock exchange, where it does not exist.
Testnet - a test network of a given cryptocurrency for testing on a virtual currency.
Excavator - this is usually a few powerful graphics cards with high computing power used to dig a given cryptocurrency.
KYC - "Know Your Customer" - regulations regarding customer identification, eg by sending a scan of an ID card.
Mixer - a place on the Internet, usually in the TOR network used to anonymize the origin of cryptocurrencies
TOR - a decentralized network used for anonymous browsing the Internet (it is never 100% anonymous) through special operating systems, onion routing, or multi-layer encryption, or your own browser, eg Tor Browser.
Gateway payment - payment gateway used for quick payment service for a given good or service by a given cryptocurrency.
Financial leverage - a type of loan used to increase the value of its position on the market, eg on Forex markets up to 1: 500 in relation to its capital
Resistance price - these are the places on the price chart, where the price stopped for some time and had problems in order to beat those places when moving up the price.
Price support - these are the places on the price chart, where the price stopped for some time and had problems in order to beat those places when moving down the price.
Forex - a currency market with huge turnover, where mainly institutional clients make transactions.
Segwit - update of the Bitcoin network, improving the technical parameters of, for example, transactions.
ETF (Exchange Traded Fund) - It is an investment fund whose shares can be traded on the stock exchange, as well as company shares. Typical ETFs usually track a stock market index. The bitcoin ETF simply follows the Bitcoin rate (the value of the share is linked to the rate), moreover, such a fund is required to have full coverage in the assets it tracks.
SEC- This is a financial supervision commission in the USA
ICO - Internet of Coins - an unregulated method of raising capital for various business ventures related to the Fintech industry. The collection is divided into stages, for the funds acquired in digital currencies, such as Bitcoin or Ethereum, tokens, i.e. units of the digital currency associated with ICO, are offered.
Arbitraising - It is a transaction that, regardless of the turmoil in the stock market, will always bring a profit to the investor, because its characteristics are to know the effects, just before concluding the transaction. In theory, arbitration consists in concluding two opposite positions, so that after a time both these instruments become equal. But in order to achieve such a result, two identical instruments of a different specification need to be used, while remembering that both instruments are not too liquid, because in the case of their liquidity, such instruments will always be valued at a similar or similar price as irrevocably undoes any chances of successful arbitration.
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