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Explore Crypto Terms & Definitions
Gas
The unit for measuring the cost of executing Smart Contracts on the Ethereum Network. Gas is paid for in Ether and denominated in Gwei, one Gwei being equal to 0.000000001 ETH (10-9 ETH) so instead of a Gas Fee being 0.000000001 Ether it would be written as 1 Gwei.
Genesis Block
The first block in a blockchain, with block height zero. Bitcoin’s Genesis Block had special significance as the coinbase transaction had a signed message within it “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
Governance
A set of rules that defines how a system or organisation works. Within crypto, projects that issue governance tokens offer the ability to participate in the setting of its rules, with voting proportionate to the amount of tokens held.
Gwei
A unit of Ether equal to 10-9 ETH, so 1 Gwei equals 0.000000001 Ether.
Hard Wallet
A physical device with USB connection that enables non-custodial management and storage of cryptocurrency. Hard wallets by default are offline making them a safe storage option. Common manufacturers are Ledger and Trezor.
Hash Function
A mathematical function designed to map an input of any length to a fixed size called a Hash. Bitcoin uses the SHA-256 Hash function for the proof-of-work part of the mining process.
Hierarchical Deterministic Wallet (HD Wallet)
A type of wallet that can derive all private keys from one point via a Seed, usually 12 or 24 unique words.
Hodl
A slang term used within the crypto community meaning to steadfastly hold on to your crypto assets especially through big price dips. Hodling is a mentality driven by belief in the underlying use case for crypto. Read about the story of hodl and its origin in our blog.
Howey Test
A test that applies to any contract, scheme or transaction to assess if something qualifies as an “investment contract” and is thereby subject to disclosure and registration requirements. Has become the standard test to decide whether a cryptocurrency should be classified as a security.
Immutable
Something that cannot be changed; in relation to blockchains, data that has been verified by consensus and because of the way consensus is achieved cannot be changed, and is therefore immutable.
Gas Limit
The most a user is willing to pay as a processing fee when they make a transaction on the Ethereum network. The higher the limit, the more processing power available to process the transaction validation and the faster the task will be completed.
Gold Standard
Refers to the backing of notes and coins in circulation with an equivalent of gold lodged with a central bank. Money supply can only grow if an equivalent amount of gold is added to bank reserves. The Gold Standard was finally abandoned in 1971 by the USA's decision to stop converting dollar reserves to gold at a fixed value.
GPU mining
Cryptocurrency mining using a Graphics Processing Unit (GPU) a graphics card commonly used in gaming, rather than an ASICs chip, which is designed solely for mining and nothing else.
Halving
Name given to the halving in the block reward paid to Miners for completing the Proof of Work and adding and a new block to the Bitcoin blockchain. It halves every four years and is currently set at 6.25 BTC
Hash
The unique identifier given to every cryptocurrency transaction, which enables you to view all input details.
Hashed TimeLock Contract (HTLC)
A type of smart contract that requires the receiver of a payment to acknowledge their receipt within a certain time period. HTLC is the approach used by the Bitcoin Lightning Network.
High Frequency Trading (HFT)
A automated trading method used to trade securities and crypto. HFT utilises powerful computer algorithms to transact large numbers of orders in fractions of seconds. HFT can take advantage of small market inefficiencies as well as front-running orders.
Hot Wallet
A cryptocurrency wallet that by default is online (connected to the internet). Hot Wallets are convenient for transacting and trading but are more susceptible to the threat of hacking. Examples are hot wallets are Mobile Wallets and Web Wallets.
Hyperinflation
Describes an economy where price increases become out-of-control. Most economies aspire to a modest increase in general prices (inflation) e.g 2% annually. Hyperinflation is characterised by inflation of more than 50% per month.
Initial Coin Offering (ICO)
When a cryptocurrency’s creator offers some of the tender at a discounted price or even for free as a means of raising funds and attempting to generate exposure to the market.
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