FREQUENTLY USED TERMS IN THE CURRENCY MARKET
Basic knowledge – Part 05
TO INTRODUCE
If you find that you don’t understand exactly what people are talking about in the cryptocurrency market or not, do these terms really influence your investment decisions?
Unfortunately, your lack of basic understanding will definitely reduce your chances of making money entering this market. Because part of this market is so new, part of it is also related to complex and emerging technologies.
A little understanding of the basic terms will help you a lot in entering this market.
Note: Articles of the series “Basic knowledge for newcomers“Although it is only basic knowledge, the terms and the knowledge in them are relatively ambiguous for those first encountered. So grab a drink and clear your mind before you get ready to learn this new knowledge.
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P.
- Paper Wallet: An electronic wallet that is printed on paper to be kept off the computer to prevent theft by hackers.
- Pump – price move up: push the price up.
- Peers: Refers to the peer-to-peer network nodes in the network that carries the goods (peer-to-peer).
- Pool: This term is used by miners, meaning they provide their equipment to validate transactions in a digital currency and people are paid in return. When a lot of people join the mining industry, competition becomes difficult and it is difficult to win. If you don’t team up and divide the risk evenly, there are people who mine all year and don’t win a block. This is how many miners can bundle their computing power to look for a price together. If one of the miners finds the block, it is divided equally among the members of the group according to the computing power of each person. So the probability of winning the block for the whole group is high, but it is split evenly, so the miners receive a small reward to cover the costs. Pool is a way to gather many miners together to mine together and share the price. Usually each pool of known coins like Bitcoin can have thousands of different miners / miners, even more.
- Private key: Means private key or secret key. In the field of encryption, there is an area called asymmetric encryption or public encryption. In this field we need 2 keys to encrypt and decrypt information, one to lock (encrypt information) and one to open (decrypt information). The key used for encryption is known as the public key, which can be given to anyone who wants to receive encrypted information from them, while the private key (also known as the private key) is used to decrypt it, once we keep it private, the information gets with it encrypted with the public key; only those who have the private key can decrypt it in order to read the message. This secret key is known as the private key (also known as the secret key) and the public key is known as the public key.
- PrivateSend: This is an anonymous money transfer service provided by Dash. Dash was developed from Bitcoin, so inherits the money transfer service with transparency and semi-anonymity from Bitcoin. This means that Bitcoin transfers do not contain sender and recipient names, but the addresses are nested key strings. However, if we know a person’s address, we can know what balance that address has and how they deal with other addresses. The PrivateSend service helps ensure privacy by encrypting input and output sources to ensure the information is private and there is no way to track or know someone’s money. We do business with someone other.
- Suggestion: Means a suggestion. In the Dash ecosystem, programmers, programming teams, marketing, etc. can propose a project that adds value to the Dash ecosystem and masternode owners can vote on it. When a proposal is voted on, the proposal owner receives a capital amount so that he or his team can fund the work. This is an interesting feature of Dash that makes this ecosystem function like a decentralized automated organization.
- Protocol: Refers to the standard protocol or the way that parties can communicate with one another, usually computers that can work with one another over a network. Usually there are network protocols such as TCP / IP, IPX / SPX etc. for computer networks and electronic money systems also have protocols such as Bitcoin protocol, Dash protocol etc. for components involved to work and communicate with one another.
- Proof of work: Translated into Vietnamese means proof of work. This is a technique for choosing which miners are worth getting the right to create blocks and get rewards for validating transactions. It’s also a way to encourage users to invest in transaction validation machines and keep the payment network secure. This technology enables people with faster computing power (hash functions) to have a greater chance of mining and winning prizes. By competing with each other to win by upgrading faster devices, the ability to ensure the security of the payment network is higher.
- Proof of Stake: This is another technique used to validate transactions, but instead of competing for processing power to validate and receive rewards, this technique gives holders a larger and longer amount of coins in their wallet a. This technique does not use miners and does not compete in terms of computing power for mining, so it saves equipment and energy costs for running the machine, but only gives preference to people who have a lot of coins at first and the wallet software for multiple operations. This does not create motivation for those who know late, and the payout is based on the number of coins in advance so there is no incentive to compete for participants. There is a lot of debate about the pros and cons between Proof of Work and Proof of Stake, but so far none of the coins have been successful with Proof of Stake.
- Fire proof: Fire proof. Personally, I don’t understand this term either.
- Proof of capacity (poc): Proof of capacity
- Activity record: Activity record
- Proof of Authority: continuous proof of consensus
- Proof of Service: This is a technique used in Dash. It is not used to validate transactions or create blocks, but rather a technique that helps users invest in machines and deposit a certain number of coins in order to provide technical infrastructure for additional services to the ecosystem. This technique motivates the mechanical participants to build the infrastructure for the second-order network, ie network nodes of the masternode type.
- Private blockchain: private blockchain block
- Public blockchain: public blockchain
- Public key: As explained in the “Private key” section, the public key is the key used to encrypt information. E-money systems do not directly use encryption of information, but use an application of information encryption which is electronic signature technology. This technique helps ensure that information remains transparent but is not tampered with. The public key is used as the address (do not use this key directly, but encrypt it in a readable form) and the private key is used as the key for the money transfer.
- Pump: Pumping out money to buy a particular coin can drive the price of that coin up if many people are pumping out money to buy it.
- Pump and Dump: Means injecting money to buy and then sell to make a profit, not wanting to hold for long or the repetitive cycle of an altcoin gets a lot of attention, which leads to a super-fast price increase and then the price is constantly decreasing. A coin called a pump and dump is a coin that is not worth holding for long, it can only generate profits for a short period of time.
- Psp: payment service provider. Psp acts as a bitcoin agent for merchants who accept online payments
Q
- Quorum: the minimum number of people who will vote for an election to take effect. In the case of decentralized technology (DAO), it is necessary to vote for participating actors (can be agents that can be software operated on individual computers) who can automatically take part in the vote on conditions.
- Qr Code: is a two-dimensional block image that contains a black and white pattern that represents a series of data. The images are scannable and are often used to encrypt Bitcoin addresses
CHEAP
- Rig: In the mining field, a rig is a mining rig, or a rig that consists of a computer with a certain number of graphics cards that are used for mining.
- Roi: “Return on Investment”, the percentage of money made versus the original investment (i.e. 100% whip means someone has doubled their money).
- Raiden Network: an upcoming protocol change to Ethereum that allows high-speed transmission over the network. It is similar in some ways to Bitcoin’s proposed lightning network.
- Real-time billing: real-time billing
- Rect: heavy loss. Derive the word “destroyed”.
- Reverse indicator: someone who constantly predicts the wrong price movement.
S.
- Sats: Abbreviation for Satoshi, a way of saying the price of a coin, e.g. 3000 sats are 0.00003 BTC.
- Satoshi: Satoshi Nakamoto is the code name of the inventor of Bitcoin, commonly referred to as Satoshi. In addition, Satoshi is also the name of the smallest unit of Bitcoin. One satoshi is equal to 0.00000001 bitcoin.
- Fraud: a plan, a dishonest act to deceive for personal gain.
- Scaling: It is the expansion of the system (usually computer and software) in order to be able to cover the increased need for access.
- Secret…
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