Glossary

From CloakCoin Wiki
Revision as of 14:23, 6 November 2017 by Exslave (talk | contribs)
Jump to: navigation, search

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.

  • 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.

  • 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.

  • 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).