Last Updated on 2 weeks by Ameer Hamza
For those who are unfamiliar, the jargon and technical concepts used in cryptocurrency and blockchain technology might be bewildering. In order to assist you in understanding the world of digital currencies, we’ll demystify five less well-known crypto words in this article and offer clear explanations with linkable facts and examples.
Unpopular Terms In Crypto
What it means: In the world of cryptocurrencies, a fork describes a significant and occasionally contentious modification to the protocol or guidelines of a blockchain. As a result, the blockchain splits into two distinct chains with unique rules.
Example: The 2017 Bitcoin fork that created Bitcoin Cash (BCH) is the most well-known cryptocurrency fork ever. By increasing the block size, this fork sought to enable quicker transactions.
What it means: In the crypto space, a “whale” is an entity that holds a large amount of cryptocurrency. Whales often have the power to influence the market due to the sheer volume of assets they control.
As an illustration, a whale placing a sizable buy or sell order might result in sizable price changes for a particular cryptocurrency.
What it means: “HODL” is a transliteration of the word “hold.” It first appeared in a Bitcoin forum post in 2013, and since then, the crypto community has adopted it as a meme and slang phrase. It entails keeping your cryptocurrencies rather than selling them, frequently with the hope that their value would rise.
An illustration of a meme would be, “When in doubt, HODL your Bitcoin.”
What it means: The term “tokenomics” is a combination of the words “token” and “economics.” It refers to a cryptocurrency or token’s financial incentives and features, such as how it is distributed, produced, and used in the blockchain ecosystem.
A decentralized application’s use of tokens, their total supply, and other factors are all covered under tokenomics, for instance.
What it means: A smart contract is a self-executing contract with the terms of the consensus directly written into code. These contracts automatically execute when predefined conditions are met, without the need for intermediaries.
Example: Ethereum is a blockchain known for its smart contract capabilities, enabling the creation of decentralized applications (DApps) with automated, trustless agreements.
When you come across unfamiliar phrases like “fork,” “whale,” “HODL,” “tokenomics,” and “smart contract,” navigating the world of cryptocurrencies can occasionally feel like deciphering a difficult code. In this post, We clarified these less well-known ideas by giving clear explanations and illustrations to help you understand them.
Understanding these obscure crypto terminology will help you become more confident and make more educated decisions in the quickly changing world of digital currencies, not only to fit in with the crypto-savvy crowd. You’re more equipped to participate in meaningful crypto debates and explore this fascinating technological world now that you’re aware of forks, the impact of whales, the art of HODLing, the complexities of tokenomics, and the power of smart contracts.