The cryptocurrency buzz started with most of the people going after Bitcoins. Once they ventured into the space, they learnt about a whole new world of jargon that this sector used. Here are five words that most of us did not know about before 2017:
HODL was born out of a comment thread on a bitcoin forum. It is the misspelled version of Hold. It refers to holding on to your crypto coins during the good times i.e. when the prices rise and during the bad times i.e. when the prices drop. Hodlers are usually cryptocurrency optimists who believe that the markets for cryptocurrencies are going to pick up even though they might see some low points.
Trustless refers to a blockchain network. Unlike what the name suggests, this is the most trustworthy network of them all. The identities of both the payer and payee are hidden. In fact, one doesn’t have to trust the person they’re paying to! Hence, trustless.
A distributed ledger is a way of keeping a record of transactions. In this case, each transaction is recorded in multiple places i.e. on multiple servers. This makes it almost impossible to tamper with the transaction records. The distributed ledger system keeps the blockchain secure.
Also known as cryptocontracts, a smart contract is basically a digital program that stores the conditions and agreements of a transaction on the blockchain so as to prevent further alterations. A smart contract has certain logical operations similar to a real world contract that ensures that rules and penalties are enforced on each of the conditions and persons mentioned in the contract.
If you’re looking for more words to add to your crypto vocabulary check out these most important crypto terms!