• Cryptocurrencies: 8 613

Glossary

Scrypt

An alternative Proof-of Work (PoW) algorithm to SHA-256, used in Bitcoin mining. Scrypt mining relies more heavily on memory than on pure CPU power, aiming to reduce the advantage that ASICs have and hence increasing network participation and energy efficiency.

Second-Layer Solutions

A set of solutions built on top of a public blockchain to extend its scalability and efficiency, especially for micro-transactions or actions. Examples include: Plasma, TrueBit, Lightning Network, and more.

Securities and Exchange Commission (SEC)

An independent agency of the United States federal government, responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, and other related activities and organizations.

Seed

A single starting point when deriving keys for a deterministic wallet. It is usually presented as a series of words to enable the owner to quickly backup or restore a wallet.

Segregated Witness (SegWit)

A Bitcoin Improvement Proposal (BIP) that aimed to fix transaction malleability on Bitcoin. In the past, when changing the “witness” information (signatures) on blocks, it would change the transaction ID and its subsequent hash; SegWit was aiming to fix this by segregating signature and block content; a side effect of this change was smaller block sizes and the ability to support second layer solutions.

Selfish Mining

A situation in which a miner mines a new block but does not broadcast this new block to the other miners. If this miner is able to find a second block faster than all other miners, then they would have created the longest public chain, invalidating all other blocks discovered in the time it took to execute this attack.

Sell Wall

A situation where a large limit order has been placed to sell when a cryptocurrency reaches a certain value. This can sometimes be used by traders to create a certain impression in the market, preventing a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed.

Side Chain

A blockchain ledger that runs in parallel to a primary blockchain, where there is a two-way link between the primary chain and sidechain. This allows the sidechain to operate independently of the primary blockchain, using their own protocols or ledger mechanisms.

Simplified Payment Verification (SPV)

A lightweight client to verify blockchain transactions, downloading only block headers and requesting proof of inclusion to the blockchain in the Merkle Tree.

SHA-256

A cryptographic hash function that generates a 256-bit signature for a text, used in Bitcoin Proof-of-Work (PoW). Standing for “Secure Hash Algorithm”, it is one of the SHA-2 algorithms, first designed by the NSA.