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Explore Crypto Terms & Definitions
Token
A type of cryptocurrency that is designed to provide specific utility within a blockchain ecosystem.
Token Velocity
As with measuring the velocity of money, token velocity will tell you have frequently tokens are being transacted. It is measured by dividing total transaction value by the market capitalisation. Token velocity is essentially measuring whether tokens are staying within the blockchain ecosystem or being sold/exchanged. A high velocity suggest lower utility and vice versa.
Total Supply
A measure of the total amount of cryptocurrency in existence, minus coins that have been burned. Circulating Supply is a subset of Total Supply, while Total Supply is a subset of Maximum Supply.
Tradfi
Abbreviation for traditional finance. The existing range of financial products available through traditional financial businesses and institutions e,g. banks and credit cards.
Trading Pair
When trading cryptocurrency (or any other asset) you are looking to exchange one asset for another e.g Euros for Bitcoin. This is described as a Trading Pair and uses three letter ticker symbols, in this case EUR/BTC. Trading Pairs generally rely on base currencies against other trading options are offered, commonly major Fiat currencies, BTC and ETH.
Trezor
A popular brand of hard wallet, a device for securely storing cryptocurrency offline.
Tumbler
A service designed to obfuscate the tracing of cryptocurrency transactions by breaking the link from your address to the recipient. This is achieved by breaking down large transactions into random sizes, or aggregating then dividing, adding time delays and utilising a network of unrelated users to obfuscate each other’s funds. Also see Mixer.
Two-Factor Authentication (2FA)
An extra layer of protection for online accounts - in addition to username and password - requiring the input of code generated by SMS or ideally an authentication App like Google Authenticator or Authy.
Unconfirmed
When a proposed transaction cannot be added to the blockchain, usually because it is yet to have the process of broadcasting to the blockchain network and verification from miners.
Unit Bias
Describes an irrational perception that owning whole units of cheaper cryptocurrencies is preferable to fractions of more expensive ones. See this article Do you suffer from Unit Bias.
Token Distribution
The allocation of tokens specific to a new cryptocurrency project when it is launched. Usually dispersed among founders, investors, staff, the community and for operational/marketing requirements.
TOR
A browser designed to enhance anonymity by scrambling your location. Tor is often used to access the dark web.
Total Value Locked (TVL)
A useful measure of the amount of cryptocurrency currently staked with a Defi protocol.
Trading Fee
A charge applied by a cryptocurrency exchange for facilitating a trade, usually a percentage of the trade value.
Transaction Fee
The cost of sending a cryptocurrency transaction; Fees are collected by miners who validate transactions grouped into blocks. Fees are relative to the specific cryptocurrency, the data size of transaction and the network congestion at the time. As miners earn fees for the blocks they mine (in addition to the block reward) they prioritise transactions with higher fees.
Trustless
Describes a system that does not require participants to know or trust each or a third party in order to function.
Turing Completeness
The characteristic of a computer or computer language which means it is able to simulate any other computer/computer language and with enough time/resource solve any computational problem. The Ethereum Virtual Machine is an example and is described as the ‘world computer’ as it is intended to be able to support any computational problem, though it isn’t infinitely scalable.
Tx
Abbreviation for transaction, the collective term for all of the details associated with a specific movement of funds or information on a blockchain.
Unique Node List (UNL)
The most trusted validators on the Ripple network, trusted with confirming transactions using a voting system.
Unit of Account
A widely agreed measure of economic value. One the three major functions of money alongside Medium of Exchange or Store of Value.
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