Top Crypto Terms You Need to Know | Part 3

• Scalability: The capability of a system, network, or process to handle a growing amount of work or its potential to be enlarged in order to accommodate that growth.
• Seed Phrase: A series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet.
• Segregated Witness (SegWit): Implemented to improve the block size limit and allow for more transactions to be processed in a single block.
• Sharding: A type of database partitioning that separates very large databases into smaller, faster, more easily managed parts called data shards.
• Smart Contract: Contracts that are written in code and automatically execute when predetermined conditions are met.
• Soft Cap: The minimum amount of capital a project aims to gather from its initial coin offering.
• Soft Fork (Compatibility): A fork where only previously valid transactions are made invalid, and the old nodes can still process transactions.
• Stablecoin: A cryptocurrency pegged to a stable asset like gold or fiat currencies to minimize price volatility.
• Staking: The process of actively participating in transaction validation on a proof-of-stake (PoS) blockchain.
• Staking Pools: A group of coin holders merging their resources to increase their chances of validating blocks and receiving rewards.
• Token: A digital asset created on existing blockchains, representing a particular asset or utility.
• Token Swap: A process by which one cryptocurrency is exchanged for another at a predetermined rate, often used when a project switches from one blockchain to another.
• Tokenomics: The study of the economics of tokens, including the supply and demand characteristics that determine the price.
• TPS (Transactions Per Second): The number of transactions a blockchain network can process each second.
• Transaction Fee: Any amount of fee that is necessary to conduct a transaction or execute a contract on a blockchain system.
• Trezor: A brand of hardware wallet for securely storing cryptocurrencies.
• UTXO (Unspent Transaction Output): The amount of leftover cryptocurrency that remains after each transaction has been executed.
• Validator: A participant in the network who is responsible for verifying transactions and creating new blocks in a blockchain that uses a proof-of-stake consensus mechanism.
• Volatility: Describes how quickly and how much the value of an asset changes.
• Crypto Wallet: A digital wallet for managing the user's cryptocurrencies, supporting various facets such as transferring, receiving, spending, and saving.
• Whale: A term used to describe investors who own large amounts of cryptocurrency, they can potentially manipulate currency valuations.
• Whitepaper: Document stating the technology behind a blockchain project, and other specifics.
• Wrapped Token: A cryptocurrency token pegged to the value of another crypto but issued on another blockchain, and it is often used to allow the exchange of tokens between different blockchains.
• Yield Farming: A financial strategy that involves locking up cryptocurrencies in return for rewards.
• Zero-Knowledge Proof: A method by which one party can prove to another party that they know a value (e.g., a secret key), without conveying any information apart from the fact that they know the value.

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