Decoding the Crypto Jargon: Understanding What the Terms Really Mean

Feeling intimidated with the new terms that keep popping up during a conversation about cryptocurrency? Don’t you worry as we are back with our latest edition of crypto vocabulary session.

The internet and mainstream media are filled with cryptocurrency jargon and vocabulary.
With LYOPAY you will learn about crypto words, making it easier for both newbies as well crypto professionals.
Also visit the LYOPAY Crypto Lingo section to get familiar with some of the fancy crypto terms and phrases every week.

From mainstream media to the most niche corners of the internet, cryptocurrency jargon and the hip vocabulary appears to be everywhere. For those who are new into the industry, overcoming the intimidation of an already challenging subject gets even harder with the crypto terminology.

We’ve created a list of the most common terms that you’ll hear in the world of cryptocurrency, making it easier for you to get your head around. We hope this glossary serves as a reference for your crypto journey and is beneficial for both newcomers and crypto professionals alike.

Mining

Crypto mining refers to the process of creating new digital coins and verifying new transactions.

Gas

Transactions on the Ethereum network carry a fee. Crypto gas refers to the cost required to perform a transaction on the Ethereum network.

Seed Phrase

A seed phrase is a cluster of 12-24 random words generated by your crypto wallet when setting it up, which is essential to store safely because it also serves as a recovery password for your wallet.

DAO

DAO stands for Decentralized Autonomous Organization. A DAO is a collectively-owned, blockchain-governed organization working towards a shared mission.

ICO

ICO is an Initial Coin Offering which is the cryptocurrency equivalent of an Initial Public Offering (IPO), and refers to a formerly popular method of fundraising capital for early-stage cryptocurrency projects.

Genesis Drop

This is the very first NFT collection of a project released by a creator.

Hashing

Hashing is a cryptographic function that converts a string of characters of any length into a unique output, or hash, of fixed length.

Layer 1 and Layer 2

In the decentralized ecosystem, a Layer-1 network refers to a blockchain, while a Layer-2 protocol is a third-party integration that can be used in conjunction with a Layer-1 blockchain.

Whitelist

A whitelist in crypto is list of registered and approved participants for an event that are given exclusive access to contribute to an initial coin offering (ICO) or a presale.

Zero-Knowledge Proof

Also referred to as a ZK protocol, zero-knowledge proof is a verification method that takes place between a prover and a verifier.

Fork

A fork is a technical phenomenon that occurs when a blockchain splits into two separate branches. The change marks a forking-off from the previous iteration of the blockchain in a new direction.

Halving

The Bitcoin halving is when the reward for Bitcoin mining is cut in half. Halving takes place every four years. This happens to counteract inflation by maintaining scarcity.

Hash Rate

Hash rate is the measure of the computational power on a blockchain network. Mining hashrate is a key security metric; the more hashing (computing) power in the network, the greater its security and its overall resistance to attack.

We also recommend you to check out the LYOPAY Crypto Lingo section where we help you get familiar with some of the fancy crypto terms and phrases every week:

This week's episode on Crypto Lingo: FOMO. Did you already know the meaning of this word? 💡#LYOPAY #cryptocurrency #cryptolingo pic.twitter.com/Slxt3ORIWR
— LYOPAY (@lyopayofficial) February 13, 2023