Cryptocurrency Glossary

A physical piece of paper containing a private key, a public key, and often corresponding QR codes.

Similar to a password but often longer. Where a password is generally a single word -- a pass phrase can be a combination of words.

Short for Price Down Limit. PDL is a price set by DeFi platforms. If the collateral crypto price decreases below the PDL set , customers' collateral's will be sold.

A cryptocurrency that uses both PoW and PoS in its consensus mechanism to offer increased security.

Permission less refers to public block chains (like Bitcoin) - anyone can generate an address and transact BTC.

PoI stands for Proof-of-Importance. It is a new consensus algorithm that requires users to stake currency to participate in the consensus. Compared to PoS, it adds importance to staking. Thus, it takes into account one’s involvement in the network. PoI was introduced by NEM.

Proof of Stake. A consensus mechanism in which individuals use their holdings of a cryptocurrency to secure the platform in exchange for rewards.

Proof of Stake and Trust. A consensus mechanism used by Waltonchain that relies on token holders (nodes) to verify transactions while retaining information about nodes' past performance to give higher rewards to the most reliable nodes.

Proof of Work. A consensus mechanism for verifying transactions with computing power that creates new coins in the process.

A portion of the total supply of a cryptocurrency reserved for its founders. These funds are often marked as funds to pay developers or fund future ventures, but cryptocurencies with premines are generally viewed as less legitimate and fair those without premines.

A public or private offering of tokens to interested investors, generally offering a cheaper price than the coin’s ICO price. Pre-sales are commonly seen as marketing gimmicks.

Any cryptocurrency that focuses on maintaining private transactions between users. Examples are Dash, ZCash, and Monero.

Private keys are used to spend cryptocurrencies.

A consensus mechanism for verifying a block chain in which miners send coins to an unspendable address

A process of storing information that cannot be changed or deleted.

Proof-of-Importance is a consensus algorithm similar to PoS. Nodes "vest" currency to participate in the creation of blocks. Unlike PoS, Proof-of-Importance quantifies a person’s support of the network. NEM is using Proof-of-Importance.

PoP for short. A consensus mechanism used by DigixDAO to track the movements of physical assets, identify their ownership, and ensure their security.

PoS. A method of minting new coins and securing a platform by allowing users to stake their coins and receive more coins as a reward. Introduced as an energy efficient alternative to PoW (Proof of Work).

The consensus algorithm introduced by Bitcoin. PoW requires miners to compete against each other to add new block and earn rewards