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Crypto Key Words - February 16

Crowdfunding: a specific form of crowdsourcing where funding for a project or business is raised from a number of people, oftentimes via campaigns launched via the Internet.

Crypto protocol: A crypto protocol is the underlying set of rules upon which Dapps are built; prominent crypto protocols are Ethereum, NEO, Stellar, Lisk, QTUM.

Full Node: A full node is a component of a network built on distributed ledger technology (‘DLT’) that fully validates every transaction and block presented to it through the network by verifying them against the network’s consensus mechanisms.

Halving: The process of reducing the rewards per mined block in order to maintain the total supply of a coin or token; this was first applied to Bitcoin where the reward is halved after the first 210,000 blocks are mined and then every 210,000 thereafter.

IEO (initial exchange offering, ICO as a service): An initial exchange offering (IEO) - or ICO as a service (IaaS) - is a process in which cryptocurrencies are sold via a crypto exchange: The exchange takes the position of the issuing project in the offering process and after the project has provided the newly mined cryptocurrencies to the exchange, the exchange collects funds (e.g. Ether , Bitcoin, Fiat money etc.) from contributors and allots the newly mined > coins or > tokens to the contributors.

Initial Coin Offering (ICO): An initial coin offering is an unregulated means of crowdfunding applied by cryptocurrency businesses as an alternative to the rigorous and regulated capital-raising process required by venture capitalists, banks, or stock exchanges. In an ICO a percentage of the newly issued cryptocurrency is sold to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin.

Initial Token Offering (ITO): An Initial Token Offering is largely identical to an > Initial Coin Offering, yet it typically pertains to projects built on the Ethereum blockchain.

What words are you adding to your vocab? Let us know in the comments!

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