Unit 25: Vocabulary

Please study the 21 vocabulary terms below. Then press the Mark Complete button to continue.
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altcoin
Any cryptocurrency other than Bitcoin.
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The majority of early altcoins were just forks of Bitcoin with minor changes to the proof-of-work algorithm.
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blockchain
A decentralised digital ledger of transactions maintained by consensus.
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The Bitcoin blockchain is maintained by a network of specialized computers designed for mining.
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cipher
A coded message or secret way of writing.
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The boy had a difficult time decoding the cipher in which his father's diary was written.
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consensus process
A group of peers responsible for maintaining a distributed ledge.
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A blockchain's consensus process is a vital part of its success because it must be fast, reliable, and verifiable by everyone using it.
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cryptocurrency
A digital asset using secure computer algorithms to secure its transactions, create additional units, and verify transfe.
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Bitcoin was the first decentralized cryptocurrency to reach public attention.
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dapps (decentralized applications)
Software designed to run on a blockchain without any central owner, server, or controlle.
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One can split dapps into three major types: financial transactions, traditional commerce, and “other”, including everything from games to governance.
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double spend problem
A single financial transaction potentially happening in two places at once.
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The double spend problem is difficult to solve without a blockchain or trusted third party like a bank.
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fiat
Any currency established by a government without inherent value or scarcity such as the US dollar or EU euro.
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The value of fiat currency is tied to governmental authority, convenience, and trust in market forces such as supply and demand.
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fintech
Innovation that aims to compete with traditional delivery of financial services.
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This rise of fintech has had a positive impact for society, including increased competition, a reduction in prices, and wider access to financial services.
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fungible
Interchangeable and replaceable.
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Monero is a fungible cryptocurrency, meaning that every unit can be substituted by another unit without fear of a possibly tainted past.
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lambo (Lamborghini)
A sports car closely associated with cryptocurrency millionaire memes.
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Some early adopters of cryptocurrency are in love with blockchain technology, but others just want to be seen on Youtube driving a lambo.
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mining
Being rewarded with cryptocurrency for providing routine bookkeeping and verification services.
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Cryptocoin mining is not really a reliable way to make substantial money for most people.
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money laundering
The illegal process off making criminal income look legitimate.
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Successful criminals need to be experts at money laundering and often make deals with "cash only" businesses or crooked banks to conceal the true source of their income.
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mooning
The term when a crypto coin's market activity and price go way up in a short amount of time.
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ZoomCoin has been mooning for the past 24 hours, but it's likely just a "pump and dump scheme" and will fall back to earth when reality hits.
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paper wallet
A printed version of a cryptocoin's private key.
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The woman did not trust technology so she printed out her paper wallet with 25 Bitcoin on it and put it in her safe.
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private key
A long random string of text used to create your digital signature.
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If someone knows your private key, they can fake your signature and steal your cryptocurrency.
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pump and dump
A coordinated effort to quickly raise the price of a coin and then sell it.
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A pump and dump is a coordinated scheme to make money from a failing or stagnant coin.
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satoshi
A common measurement of the worth of altcoins, measuring one hundred millionth of a Bitcoin..
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The satoshi value of altcoins may vary, but one Bitcoin is always worth 100,000,000 satoshis.
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shitcoin
A slang term for a pointless or worthless cryptocurrency with no future.
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I laughed when my friend traded $100 worth of Ether for a shitcoin that crashed literally 10 minutes later.
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stable coin
A cryptocurrency whose sole purpose is to be pegged to a fiat pair like the USD, thus providing a safe place in times of volatility.
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There is some debate over whether stablecoins are really backed by fiat and aren't just used to artificially pump other crypto prices.
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the dark web
The portion of the web that has been intentionally hidden and is inaccessible through standard web browsers.
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The dark web first became known as the home of the Silk Road marketplace which sold guns and drugs via mail and took payments in bitcoin.
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