Cryptocurrency Basics

These flashcards cover fundamental vocabulary and concepts related to cryptocurrency, including definitions of key terms and technology.

Cryptocurrency

A digital currency in which transactions are verified and records maintained by a decentralized system using cryptography.

Blockchain

A digital system where money can be sent from user to user without the need for intermediaries, built on a peer-to-peer network.

Fungible

Individual units are essentially interchangeable, indistinguishable from one another.

Non-fungible

Individual units are essentially not interchangeable and may have distinct differences.

Bitcoin

The first decentralized digital currency, operating without a central authority.

Public Key

A cryptographic key that can be shared with others to allow them to send encrypted messages.

Private Key

A secret cryptographic key used with a public key to decrypt messages.

Proof of Work

A consensus mechanism that requires participants (miners) to commit computational power to solve complex problems to add new blocks to the blockchain.

Nodes

Computers in the blockchain network that maintain and verify all transactions.

Ethereum

An alternative cryptocurrency that allows for smart contracts and decentralized applications.

Smart Contract

A self-executing contract with the terms of the agreement directly written into code.

Non-Fungible Token (NFT)

A unique digital asset that represents ownership of a specific item or piece of content, verified using blockchain technology.

Digital Wallet

An online platform for storing cryptocurrencies and managing transactions.

Hot Wallet

A type of digital wallet connected to the internet that's used for quick access to funds.

Cold Wallet

A type of digital wallet that is stored offline to provide greater security from online threats.

Metaverse

A collective virtual space created by the convergence of virtually enhanced physical reality and physically persistent virtual reality.

Web 3.0

The decentralized web that emphasizes user control, privacy, and the use of blockchain technology.

Altcoins

Alternative cryptocurrencies to Bitcoin, often with unique features or purposes.