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| TRANSACTION FEE | a softfork is a change to the bitcoin protocol wherein only previously valid blocks/transactions are made invalid. since old nodes will recognize the new blocks as valid, a softfork is backward-compatible. this kind of fork requires only a majority of the miners upgrading to enforce the new rules |
| SOFTFORK | these are theoretical, independent blockchains which are “two way pegged” to the bitcoin blockchain. these can have their own unique features and can have bitcoins sent to and from them |
| PROOF- OF- STAKE (POS) | a consensus distribution algorithm that requires an active role in mining data blocks, often consuming resources, such as electricity. the more ‘work’ you do or the more computational power you provide, the more coins you are rewarded with. |
| ASIC | is an intermediary used in trade to avoid the inconveniences of a pure barter system. fiat currencies are the generally accepted mediums of exchange. their most important and essential function is to provide a measure of value. |
| MINING | a type of fork that renders previously invalid transactions valid, and vice versa. this type of fork requires all nodes and users to upgrade to the latest version of the protocol software. |
| ETHEREUM | concept states that a person can mine or validate block transactions according to how many coins he or she holds. this means that the more bitcoin or altcoin owned by a miner, the more mining power he or she has. |
| MEDIUM OF EXCHANGE | mining is the act of validating blockchain transactions. the necessity of validation warrants an incentive for the miners, usually in the form of coins. in this cryptocurrency boom, mining can be a lucrative business when done properly. by choosing the most efficient and suitable hardware and mining target, mining can produce a stable form of passive income. |
| PROOF OF WORK | short form for ‘application specific integrated circuit’. often compared to gpus, asics are specially made for mining and may offer significant power savings. |
| HARD FORK | ethereum is a blockchain-based decentralised platform for apps that run smart contracts, and is aimed at solving issues associated with censorship, fraud and third party interference. |
| SIDECHAIN | all cryptocurrency transactions involve a small transaction fee. these transaction fees add up to account for the block reward that a miner receives when he successfully processes a block. |
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| TRANSACTION FEE | all cryptocurrency transactions involve a small transaction fee. these transaction fees add up to account for the block reward that a miner receives when he successfully processes a block. |
| SOFTFORK | a softfork is a change to the bitcoin protocol wherein only previously valid blocks/transactions are made invalid. since old nodes will recognize the new blocks as valid, a softfork is backward-compatible. this kind of fork requires only a majority of the miners upgrading to enforce the new rules |
| PROOF- OF- STAKE (POS) | concept states that a person can mine or validate block transactions according to how many coins he or she holds. this means that the more bitcoin or altcoin owned by a miner, the more mining power he or she has. |
| ASIC | short form for ‘application specific integrated circuit’. often compared to gpus, asics are specially made for mining and may offer significant power savings. |
| MINING | mining is the act of validating blockchain transactions. the necessity of validation warrants an incentive for the miners, usually in the form of coins. in this cryptocurrency boom, mining can be a lucrative business when done properly. by choosing the most efficient and suitable hardware and mining target, mining can produce a stable form of passive income. |
| ETHEREUM | ethereum is a blockchain-based decentralised platform for apps that run smart contracts, and is aimed at solving issues associated with censorship, fraud and third party interference. |
| MEDIUM OF EXCHANGE | is an intermediary used in trade to avoid the inconveniences of a pure barter system. fiat currencies are the generally accepted mediums of exchange. their most important and essential function is to provide a measure of value. |
| PROOF OF WORK | a consensus distribution algorithm that requires an active role in mining data blocks, often consuming resources, such as electricity. the more ‘work’ you do or the more computational power you provide, the more coins you are rewarded with. |
| HARD FORK | a type of fork that renders previously invalid transactions valid, and vice versa. this type of fork requires all nodes and users to upgrade to the latest version of the protocol software. |
| SIDECHAIN | these are theoretical, independent blockchains which are “two way pegged” to the bitcoin blockchain. these can have their own unique features and can have bitcoins sent to and from them |
