Cryptocurrency Glossary / dictionary

Also known as a P2P network. This is a type of computer network where each computer linked on the network (called a node) has equal abilities and equal obligations. There is no central controller of the network. So, there is also no central point of failure. No node acts as solely a server or receiver of data. All nodes do both serve and receive data for the network. For this reason, each node on the network is considered a peer. All cryptocurrencies use P2P networking to host their blockchains. Earlier uses of peer-to-peer networks from the 1990s were often set up to share music and videos

The term Permissionless is usually used in regards to a blockchain. It means that anyone can interact with that blockchain. It is also known as a "public" blockchain without any omniscient controlling entity. Everyone and yet no one fully controls it. Anyone can create an address, make/monitor/validate transactions, mine the cryptocurrency, etc. Most, but not all, cryptocurrency blockchains are permissionless. Examples of blockchains that are not permissionless are Corda, Ripple, Quorum, and more. Note that many private businesses are starting to use blockchain technology for their own unique data needs, and they use private "permissioned" blockchains.

A hacker technique with an amusing play on the word "to fish". But in this case, it is fishing for victims on the internet. The method attempts to "hook" the victim to do something that they shouldn't do. The "hook" is usually some sort of cellular text message or email that can be sent to 1000s or even millions of people at the same time. The message usually sounds legit, like from a trusted friend, an organization, or the government. It usually will tell the recipient to click on a link in the message, which will lead to a malicious website. Sometimes that website will download a virus to your computer. Or it may imitate a real banking or investment website and ask you to enter your login information. Or the website may even try to convince you to enter your cryptocurrency private key. That information will then be sent to the hackers.

A more targeted kind of phishing is called "Spear Phishing".

See a much longer description of phishing here.

A PIN is a "Personal Identification Number". It is usually 4 or 6 digits long (no letters) and is commonly associated with a phone lock screen, a Mobile wallet, and/or a Hardware wallet. It will give you access to any of these devices.  For security sake, you should not use the same PIN for all of your devices.

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Means "Proof of Stake".  PoS is a type of "consensus algorithm" which defines who (which node on the blockchain) gets to validate and add the next group of transactions to the blockchain. PoS was proposed as an alternative to the Proof-of-Work consensus algorithm to try to improve on some of the drawbacks of the PoW consensus algorithm

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PoW means "Proof of Work". PoW is a type of "consensus protocol". It is the key to ensuring that the decentralized blockchain will only contain data that all actors on the blockchain network agree is valid. Performing PoW requires repeated trial-and-error effort to find a magic number that can pass a mathematical Hash test. The test is to hash part of a new block of transactions and compare it to a Target Hash value. When the test hash value is less than the Target hash, then the block is declared valid, the PoW is complete, and the block is added to the blockchain. Solving for this magic number (called a nonce) takes a lot of processing power and time. That is what is referred to as the "work" in Proof of Work. The amount of difficulty to pass the test can be adjusted over time to control the rate at which blocks are created. The design of bitcoin uses this system that intentionally requires a lot of work from the miners. PoW acts like a guard to the blockchain. It makes it challenging to add invalid transactions to the blockchain without being detected unless the bad miner(s) control at least 51% of all mining power at one time. RELATED TERMS

• PoS - Proof of Stake
• Nonce
• Target Hash
• Mining

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A Private Key is a very long and complex Hexadecimal number composed of letters and digits. (Example: 1F38B0ECCC....) It is also known as a "Secret Number." This key proves ownership of (your) cryptocurrency. The key allows you to unlock your currency and spend it. If you lose the key, then you effectively lose your currency. A private key is tightly coupled, one-for-one, with a Public key. Together, they are used to fully control your currency. Public/Private key encryption is the fundamental tool of all cryptocurrency security. You risk losing your cryptocurrency if you ever divulge your Private key.

This key represents an address where cryptocurrency can be sent to you. Every cryptocurrency owner has one or more Public keys. The key is represented by a long string of hexadecimal digits. A public key is paired with a private key, and together, they are the cryptographic "keys" to the security of cryptocurrency. A Public key allows anyone to send you cryptocurrency. But you need your Private key to be able to spend those funds.

These keys can be compared to your email system. Your email address is like your public key. Anyone in the world can know it, so they can send you messages. Your private key is like your email password. You need that password to get into your email account to read and send messages. Similarly, You need your private key to get access to your cryptocurrency to send it.

See also Private Key.

Pump and Dump is a type of scam where the perpetrators use various means to increase the price of a crypto that they own, and then they sell it all after the price goes up. Typically they drive the price higher by inducing others to buy the coin. That influence is often via the use of overwhelmingly positive social media and/or messaging posts touting how great the coin is. They often rely on the population's FOMO as a motivator to cause the near panic buying. This is only an effective scam when the currency has low volume. If the currency is already owned by lots of people then it is much more difficult to influence their collective purchasing decision. If the scammers are actually the founders of the coin, then that would be called an "Exit Scam".