Digital Asset Glossary 3.0
M
Memecoin:
A cryptocurrency that is associated with a mem or a viral online joke. Well known meme coins such as Dogecoin and Shiba Inu are two of the most well-known ones. Often stories of successful 'investors' make the headlines, but these coins have little to no use case and, therefore, no sustainable future. Many ape in at peak levels, and for every person who profits, many more never see a ROG (Return on gamble).
Metaverse:
Web 3.0. A vision for the future of the internet and of society. Whether it is a good vision is yet to be seen. The metaverse is an immersive virtual reality world where people will be able to work and socialise, essentially experiencing all aspects of life in a digital universe.
Mining:
The act of solving the cryptographic calculations that verify cryptocurrency transactions. One participant solves the puzzle that creates the next block in the chain, and other participants verify it. Miners are rewarded with tokens for maintaining the blockchain when being the first to solve the cryptographic proof. Mining is a multi-billion dollar industry across the world. It is not profitable for individuals to mine Bitcoin anymore unless they have access to energy less than 3 cents per kilowatt. With this in mind, many miners are part of a mining pool where computing power is combined, and rewards are distributed accordingly.
Mooning:
Something that when I was a child, kids would do for a laugh, but I won't say any more about that here.
In the world of digital assets, mooning is when the price and trading volume of a cryptocurrency are both soaring. This tends to be experienced in a bull market after a period of distribution - accumulation and then lift off. However, it's best not to live for this moment but instead invest wisely, consistently and have reasonable expectations regarding your ROI.
O
Opensea:
One of the world's most prominent peer-to-peer market places for trading NFTs. In 2021 opensea grew significantly, but in 2022 Coinbase launched its own marketplace for NFTs and will inevitably be a significant force in the future.
Oracle:
A third party acting as a bridge between traditional markets and the digital asset space. An oracle gathers various information that can be used in smart contracts in conventional markets and other crypto projects. Chainlink is one of the most significant oracles in the crypto market.
N
Nakamoto, Satoshi:
The pseudonymous creator or creators of Bitcoin in 2008 after the Lehman Brothers collapse amind the global financial crisis. Bitcoin was created to solve the failing monetary policy still pervading in 2022.
NFT:
Non-fungible token. Unique and can only have one owner. Many companies are exploring the use case for NFTs, and they have the potential to play a significant role in the future more than people currently comprehend.
NGMI:
Short for "Not going to make it" - slang that can be applied to a failing project, investors who aren't going to survive the bear market or traders who miss out on the profits of a trade.
Node:
The physical point on a computer network where an activity takes place. It can occasionally be used to collect and distribute information, and it is sometimes where transactions on a blockchain are verified.
P
Pancake swap:
A decentralised trading protocol based on the Binance blockchain. Decentralised exchanges do not use KYC (know your customer) processes, and the protocol uses automated market makers to trade assets.
Private key:
A complex password which is needed to access a digital wallet. 'Not your keys, not your coins' is a well-known turn of phrase in the crypto community.
Proof-of-stake: PoS
An alternative system to PoW for mining cryptocurrencies that requires users to stake their coins as collateral to become a verifier on the network. As no coins are mined, the process requires less computing energy than PoW. However, less computing power means less complexity; therefore, some argue PoS is not as secure as the Bitcoin network. Additionally, critics believe PoS favours more affluent participants because the more coins a miner owns, the more mining power it has, meaning PoS is often less decentralised than PoW. Market participants can stake their coins to earn rewards which are fastly becoming associated as interest and taxable.
Proof-of-work: PoW
Primarily associated with Bitcoin, PoW is used in mining to evidence it has solved the cryptographic puzzle to validate a transaction. It solves the accounting double-spend problem, thus preventing the same coins from being spent twice with two different parties. There is much evidence to counter the environmental impacts of BTC mining, so don't believe everything you read in mainstream media.