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Explore Crypto Terms & Definitions
Paper Wallet
The most basic form of bitcoin cold storage. A piece of paper with both public and private keys printed on it. Read more about crypto storage in our Knowledge Base.
Permissionless
Used in reference to a public blockchain where no permission is required to participate, for example by downloading the relevant network software and running a node. Bitcoin is an example of a permissionless blockchain. The opposite to Permissioned.
Prediction Market
A platform enabling binary option bets on any discrete event. Some specialise in Politics and Economic indicators such as the IEM (Iowa Electronics Market). Contracts are purchased between 0 and 100, which respectively represent incorrect and correct predictions.
Price Discovery
The process by which market participants - buyers and sellers - arrive at what they consider a fair price.
Privacy Coin
A type of cryptocurrency that is designed to maximise privacy of the user, examples being Monero or Zcash.
Proof Of Keys
The idea that you can only truly own cryptocurrency by proving that you hold the Private Keys. The main proponent is Trace Mayer who advocates cryptocurrency investors withdraw their crypto from exchanges and hold them in hardware wallets. Celebrated on Proof Of Keys day, January 3rd.
Proof of Work (PoW)
A blockchain consensus mechanism where the ability to mine or validate blocks is in proportion to the amount of work committed, measured in CPU power.
Public Blockchain
A blockchain that any member of the public with an internet connection can access by running a node.
Pump and Dump
Describes the coordinating buying of a cryptocurrency (Pump) to create a short term increase in price, followed by coordinated selling (Dump).
QR Code
A Quick Response code is a machine readable two-dimensional bar code with specific information about the product or service it is attached to. In crypto QR codes are used for addresses and within the Lightning Network, generating Invoices.
Permissioned
Used in reference to a blockchain that is only accessible to nodes/validators that are invited or given specific permission. The opposite to Permissionless.
Ponzi Scheme
A type of fraudulent investment scheme that lures investors in with high returns that are solely funded from the deposits of newer investors. Also known as a Pyramid Scheme, as that is the shape of investor growth over time, until the fraud is mathematically unsustainable and collapses.
Premine
Describes the issuance of tokens or coins by a new cryptocurrency project prior to any mining activity. Premining is considered controversial as it disproportionately rewards founders/developers/early investors and dilutes the value of genuinely mined coins. In some early ICOs Premining was a characteristic of an Exit Scam.
Primitive
A decentralised options market which allows users seeking yield on cryptocurrencies to provide liquidity for the options trading, receiving trading fees in return.
Private Key
A 64 character alphanumeric string which controls the movement of unspent funds associated with a cryptocurrency address. Modern HD Crypto Wallets use Seed Phrases rather than requiring the handling of private keys, but the term Private Key is widely used to underscore the importance of being in control of your funds.
Proof of Stake (PoS)
A blockchain consensus mechanism where the ability to mine or validate blocks is in proportion to funds staked.
Protocol
The set of rules that governs how a blockchain functions.
Public Key
A 64 character alphanumeric address which allows view only access of unspent funds and used to receive funds. The equivalent of bank account details, the address to which crypto can be sent, and the balance seen by anyone.
Put Option
The right, but not the obligation, to sell a security or cryptocurrency at a given price within a given time frame. See also Call Option.
Raspberry Pi
A low cost credit card sized computer that plugs directly into a monitor or TV. Designed by the UK based charity Raspberry Pi Foundation to make computing low-cost and accessible to everyone. Often used for running a Bitcoin Node.
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