Cryptocurrencies General Glossary
- Cryptocurrency: A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
- Blockchain: The blockchain is a never-ending story of every transaction throughout the network from day 1 (genesis). The first time you run CloakCoin, it is downloaded and verified on your computer. Every new transaction is added to the end of this chain and verified by the network to be valid.
- Address: A CloakCoin address, represents a possible destination for a CloakCoin payment. Addresses can be generated at no cost by any user of CloakCoin. For example, using CloakCoin wallet, one can click "New Address" and be assigned an address. Whenever you send a coin, you are actually sending a cryptographically signed message, associating your coin with the recipient's address. This effectively transfers ownership to the recipient. Once they own the coin, they are free to transfer it to another person.
- Wallet: A wallet is a collection of adresses.
- Fiat currency: Traditional centralized currencies such as USD or EUR.
- Wallet: A wallet is a software program that stores private and public keys and interacts with the blockchain to enable users to send and receive digital currency and monitor their balance. To use a cryptocurrency, a digital wallet is needed.
- Blockexplorer: A Block Explorer is a web tool that provides detailed information about Cloakcoin blocks, addresses, and transactions.
- Proof-of-Stake (PoS): Type of algorithm by which a blockchain aims to achieve consensus. The generator of the next block is determined by the size of his stake. The bigger his stake, the higher his chance. Also referred to as minting or staking. Much more energy effincient as compared to Bitcoin's POW.
- Proof-of-Work (PoW): Type of algorithm by which a blockchain aims to achieve consensus. The algorithm rewards network participants who solve cryptographical puzzles in order to submit & validate transactions and create new blocks. Also referred to as mining. POW's energy inefficience is so low, it cant be supported on the long term.
- Cryptocurrency Exchanges: Online cryptocurrency exchanges are websites where you can buy, sell or exchange cryptocurrencies for another digital currency or fiat money (USD, EUR, BTC, CLOAK, etc).
- Paper Wallet: A paper wallet is a document often used to store Cloakcoins offline. It is a secure way of storing cloakcoins, since paper wallets are not exposed to malware.
CloakCoin Specific Glossary
- Requests Accepted: How many Enigma sends you have offered to be a cloaker for.
- Requests Refused: How many Enigma sends you have refused to cloak (bad data from sender).
- Requests Signed: How many Enigma requests you have signed for a transaction.
- Requests Expired: How many Enigma requests you offered to help cloak but were not needed.
- Fees Received: Amount of fees earned (current session) from enigma cloakings.
- Requests Completed: How many Enigma requests you have cloaked successfully.
- Enigma Reserve Balance: The amount made available by the user that can be used to offuscate transactions on the network. Typically set at 50%.
- PoSA3: Proof-of-Stake-Annonimous version 3 (Later renamed Enigma).
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