Terms & definitions

Below is a list of some of the most frequently used terms and their definitions. Please note that this list is not exhaustive nor are the definitions definitive. All investors are encouraged and deemed to conduct their own research:

• Altcoin: An alternative coin to Bitcoin that is generally accepted as the first cryptocurrency. All other coins are generically referred to as ‘Altcoins’
• Bitcoin: The world’s first decentralized digital currency that can be sent from user to user on the peer-to-peer network without the need for intermediaries. Transactions are verified by network nodes and recorded on a distributed ledger called a blockchain. Short-form, or symbol, is “BTC”
• Blockchain: A Distributed Ledger system in which a sequence of blocks, or units of digital information, are stored consecutively in a public database and secured using cryptography.
• Coin : A Cryptocurrency that can operate independently from a centralized monetary system such as a Central Bank. The term can also refer to a single unit of such Cryptocurrency
• Crypto Asset: Any Digital Asset that uses cryptographic technology to maintain its operation as a currency and/or decentralized application. 
• Cryptocurrency: A binary piece of data designed to work as a medium of exchange wherein ownership records are stored in a public ledger commonly known as a Blockchain. Such data use cryptography to secure transactions and records. 
• Decentralize(d): The process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location, person, or group. 
• DeFi : “DeFi” is the short form for the phrase ‘Decentralized Finance’. This phrase refers to a movement encouraging decentralized alternatives to traditional, centralized forms of financial services. 
• Digital Asset: The digital representation of something of value. Most commonly this term is used in reference to cryptocurrencies and NFTs but it can also refer to common items such as email accounts, Twitter handles, and Instagram accounts. 
• Distributed Ledger: Ledgers in which a consensus of data is stored across a network of decentralized nodes without a central administrator. A distributed ledger does not necessarily involve a cryptocurrency and may be permitted or private. 
• Ethereum: A decentralized open-source blockchain with smart contract functionality. ‘Ether’ (“ETH”) is the native cryptocurrency to Ethereum and is second only to Bitcoin in terms of market capitalization. 
• FIAT: A currency established as money often by Government Regulation. The value of FIAT currency is typically maintained by a Central Bank or other monetary authority and is determined by agreement between parties engaging in an exchange for value. The US Dollar is an example of FIAT currency.
• ICO: A type of crowdfunding using cryptocurrencies as a means of raising capital for early-stage crypto projects. In an ICO a quantity of cryptocurrency is sold in the form of Tokens and/or Coins in exchange for other exchange of value/tender such as Bitcoin or Ether.  
• Ledger: A digital record of financial transactions that cannot be changed but can be appended with new transactions. 
• NFT: “NFT” is a short form for ‘Non-fungible token’. NFT’s are a unit of data stored on a blockchain that dictates ownership of a Digital Asset that is unique and not interchangeable. Unlike Bitcoin each NFT represents a different underlying asset and thus each NFT has a different value. Digital art has been an early use case for NFT’s. 
• Node: The most basic unit of blockchain infrastructure that stores data. 
• OTC: “OTC” is short for ‘Over the Counter’ and is commonly referred to as a transaction made outside of an exchange, often through peer-to-peer and/or private trades.
• Pair: Trade between one Cryptocurrency and another. The Pairing of BTC/ETH is most common.
• PoS: “PoS” is a short form for ‘Proof of Stake’ which is a blockchain consensus mechanism that maintains the integrity and security of the blockchain by requiring validators to hold a quantity of the cryptocurrency associated with a particular blockchain. This mechanism is often contrasted with ‘Proof of Work’ blockchains which use the computational prowess of individuals and/or computers to validate transactions. 
• PoW: “PoW” refers to ‘Proof of Work’ which is a blockchain verification method that requires an amount of computational effort to be expended for a transaction to be verified on the blockchain. 
• Satoshis (SATS): A nod to the person and/or group of persons that created Bitcoin, a ‘Satoshi’ is the smallest bitcoin unit with a value of 0.00000001 BTC.
• Security Token: A digital form of a traditional centrally regulated security. 
• Smart Contract: A computer protocol intended to facilitate, verify and enforce a contract on the blockchain without third parties. 
• Stablecoin: A Coin or Token in which the value is pegged to the value of another common and stable asset such as Fiat Money precious metals such as Gold. 
• Token: A digital unit designed with some functional utility; typically to provide access to a larger crypto economic system. 
• Utility Token: Tokens are designed to specifically assist with a transaction on a specific blockchain.