Unit 21: Vocabulary

To pass this unit, please study the 22 vocabulary words below.
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altcoin
any cryptocurrency other than Bitcoin
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The majority of early altcoins were just forks of Bitcoin with minor changes to the proof-of-work algorithm.
awdaw (awdawd)
daw
dawdaw
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blockchain
a decentralised digital ledger of transactions maintained by consensus
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The Bitcoin blockchain is maintained by a network of specialized computers designed for mining.
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cipher
a coded message or secret way of writing
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The boy had a difficult time time decoding the cipher in which his father's diary was written.
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consensus process
a group of peers responsible for maintaining a distributed ledger
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A blockchain's consensus process is a vital part of its success because it must be fast, reliable, and verifiable by everyone using it.
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cryptocurrency
a digital asset using secure computer algorithms to secure its transactions, create additional units, and verify transfer
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Bitcoin was the first decentralized cryptocurrency to reach public attention.
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daps (decentralized applications)
programs designed to work without a central owner, server, or controller
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One can split dapps into three major types: financial transactions, traditional commerce, and “other” including everything from games to governance systems.
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DAO (distributed autonomous organization)
a decentralised organisation often enabling users to purchase shares and vote for rule changes
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A DAO is the combination of blockchain, smart contracts, and people which can form anything from a shoe company, to a baseball team, to an entire government.
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double spend problem
a single financial transaction potentially happening in two places at once
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The double spend problem is difficult to solve without a blockchain or trusted third party like a bank.
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fintech
innovation that aims to compete with traditional delivery of financial services
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This rise of fintech has had a positive impact for society, including increased competition, a reduction in prices, and wider access to financial services.
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fungible
interchangeable and replaceable
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Monero is a fungible cryptocurrency, meaning that every unit can be substituted by another unit without fear of a possibly tainted past.
immutable
unable to be changed
51 percent attacks can challenge the immutable properties of blockchains by rewriting their history
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lambo (Lamborghini)
a sports car closely associated closely with cryptocurrency millionaire memes
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Some early adopters of cryptocurrency are in love with blockchain technology, but others just want to be seen on Youtube driving a lambo.
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mining
being rewarded with cryptocurrency for providing routine bookkeeping and verification services
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Cryptocoin mining is not really a reliable way to make substantial money for most people.
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mooning
the term when a crypto coin's market activity and price go way up in a short amount of time
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ZoomCoin has been mooning for the past 24 hours, but it's likely just a "pump and dump scheme" and will fall back to Earth when reality hits.
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paper wallet
a printed version of a cryptocoin's private key
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The woman did not trust technology so she printed out her paper wallet with 25 Bitcoin on it and put it in her safe.
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privacy coin
a coin that focuses on anonymous transactions over other features
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Privacy coins like Zcash or Monero use techniques such as "ring signatures" or "zero knowledge proofs" to shield to buyer, the seller, and the amount of a transaction.
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private key
a long random string of text used to create your digital signature
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If someone knows your private key, they can fake your signature and steal your cryptocurrency.
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satoshi
a common measurement of the worth of altcoins, measuring one hundred millionth of a Bitcoin.
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The value of altcoins can vary, but one Bitcoin is always worth 100,000,000 satoshis.
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shitcoin
a slang term for a pointless or worthless cryptocurrency with no future
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I laughed so hard when my friend traded $100 worth of Ether for a shitcoin that crashed literally 10 minutes later.
stable coin
a cryptocurrency whose sole purpose is to be pegged to a fiat pair like the USD, thus providing a safe place in times of volatility.
There is some debate over whether stablecoins are really backed by fiat and aren't just used to artificall pump other crypto prices.
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the dark web
the portion of the Web that has been intentionally hidden and is inaccessible through standard web browsers
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The dark web first became known as the home of The Silk Road marketplace which sold guns and drugs via mail and took payments in Bitcoin.
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