Knowledge base "KTC Investing"
We will help you to start to navigate the terminology of the cryptocurrency world
Cryptocurrency in the bulk of a decentralized, i.e. do not depend on any single computer. The cryptocurrency has a Creator (a programmer, a team, a project based on which the cryptocurrency is released), but there is no owner, an owner who could take away everything from everyone, or force it to devalue, as well - prohibit to use. By the way, all this, if you think well, you can do with the usual money - and from time to time it happens.
One of the factors in the growth of the value of Bitcoin is the constant number of coins with a constant increase in the population of the planet. The more people there are, the fewer coins each person will have, potentially making Bitcoin an excellent means to accumulate and save.
Satoshi is a small, indivisible particle of bitcoin cryptocurrency. The name comes from the name of the Creator (or possible alias) of the Bitcoin Protocol - Satoshi Nakamoto. One Bitcoin contains one hundred million Satoshi, or, in other words, 1 PTS is equal to 100 000 000 Satoshi, that is 0.00000001 part of bitcoin.
Altcoin - alternative cryptocurrency. After Bitcoin reached the popularity of the new coins began to appear with enviable regularity, every day was created by a few names. Most of them came out of the game as quietly and quickly as they entered it, but some became popular and in demand. For example, Litecoin, Dogecoin, etc., remain well-known and popular cryptocoins, although their cost is many times less than the cost of Bitcoin. Altcoins, for the most part, make it possible to trade more productive on the stock exchange, but unlike Bitcoin, less stable, in connection with which trade in altcoin more risky business.
A token is produced in any project or payment system for collection of investment. Tokens can be called the internal cryptocurrency of the company. In fact, they do not cost anything, but when they are backed up with money and if the company withdraws its tokens to the exchange, then such tokens can become a full-fledged cryptocurrency.
Bitcoin address - a unique combination of uppercase and lowercase Latin letters, as well as numbers, lasting from 34 characters and less. Most bitcoin addresses consist of 34 or 33 characters, but may contain less than 30 characters. This is explained by the presence of zeros at the beginning of the address, since zeros are omitted, then there is a "short" address.
Each Bitcoin address created is unique and is recorded in the blockchain and therefore it is impossible to create two identical Bitcoin addresses. If you use a Bitcoin wallet on your computer, it allows you to generate Bitcoin addresses, usually one address is created by default, but you are free to create any number of new addresses by clicking the appropriate button, "create a new wallet".
Bitcoin wallet is a software or web site installed on a computer or smartphone that allows you to store keys and perform operations of sending, storing and receiving Bitcoins. In fact, the wallet does not store Bitcoins, it only contains keys to access some Bitcoins in the shared network. However, the loss of the wallet leads to the loss of keys, which makes "tied" to these Bitcoin keys inaccessible.
The blockchain is a key component of Bitcoin. All transactions in Bitcoins, ever committed, are recorded in the" blockchain", in other words,"open book". All bitcoins mined by miners are part of the blockchain. In the process, the blockchain grows, increases in volume, but so far, the size is not so large as not to fit on the hard disk of one computer. That is why one of the variants of cryptocurrency storage is storage on the local computer.
Mining - the use of computers, farms, asiks, for the extraction of cryptocurrency. In fact, the computer consumes electricity and its uses processing power to find the desired code sequence, i.e., solves mathematical problems - picks up the passcode to open the next chain. Mining can be called a "printing press", since cryptocurrency can be exchanged for" Fiat " or goods.
Confirmation of the transaction - procedure to be executed automatically by the Bitcoin network. When sending Bitcoins, a number of randomly selected computers confirm the authenticity of the transaction, after receiving several confirmations, the transaction is considered valid and more, no one can ever claim that such a transaction was not. There are two types of mining, cloud and conventional mining.
All transactions of the Bitcoin network are stored forever in an "open book" called "public ledger ". Although Bitcoin is considered an anonymous network, data on the involved wallets, amounts, dates are recorded in the "open book" and are available for viewing by anyone at any time. "Open book" can be downloaded to your computer at any time and have at hand records of all transactions in the Bitcoin network, ever committed.
Miner - a person engaged in the extraction of cryptocurrency on everything that is able to produce the necessary computational operations. For this purpose, both personal computers and laptops, and smartphones are suitable, but it must be said that for 2018, all this is ineffective and hardly covers the cost of electricity. The profitability of cryptocurrency mining at home tends to be negative, so advanced miners have become farmers and mines cryptocurrency using specialized equipment, cryptocurrency farms and asiks.
ASIC is an integrated circuit for special purposes. This means that the ASIC can be used for a specific task or for a narrow range of tasks. In relation to cryptocurrency mining, watches are designed to work with a set of algorithms, which increases their efficiency in comparison with personal computers, but only in a narrow area - cryptocurrency mining.
Watches are intended for the extraction of a certain type of cryptocurrency(s).
Farm-equipment designed for mining cryptocurrency. Farms can look completely different. The usual system unit of a personal computer, four graphics cards in the rack and a hangar with device racks-all farms. Farm productivity varies depending on the equipment and software optimization, but all farms are characterized by high electricity consumption and high heat generation, so they need cooling. Serious projects require serious investments, so the cost of such equipment is huge compared to the "Amateur" mining.
Farms, where cryptocurrency is extracted on an industrial scale, are mixed in places with cheap electricity and cool climate, as a rule, this is inherent to the "cloud" mining. In order to extend the life of the equipment, minimize maintenance costs and reduce the cost of the extracted cryptocurrency, which ultimately increases profitability. At the moment (and so will always be) the use of home computers for mining, is inappropriate! Large farms equipped with asiks have reached the leading positions in mining.
Hashrate - a criterion of farm productivity, characterizes the ability of the computer to perform a number of operations per second. The higher the hashrate, the higher the performance, the more chances to "find" the desired sequence of code, which will be the desired unit of cryptocurrency. If the performance of the farm "home" type hundreds of kilobases per second (or megahexe per second), then the largest farm in the world, characterized by carahasani and petheram per second. Figure Hasrat plotted in the form: 1 H/s 1 KH/s, MH 1/s, 1 GH/s 1 TH/s to 1 PH/s.
Pool - service presented on the Internet site, which simultaneously uses a large number of miners to extract cryptocurrency. The pool can be both specialized (i.e. its participants extract the same cryptocurrency) and diversified (i.e. its participants extract different types of cryptocurrencies).
The complexity of the network is a parameter that reduces the probability of finding the desired area of code at some intervals. At this point, miners say "the complexity of the network has grown". In other words, tomorrow less bitcoin Will be produced than it was yesterday, unless the technical capacity changes. That is why, the technical capacities are constantly increasing and improving, the equipment becomes obsolete within several months.
Emission - in relation to the economy, this term is called the issue of money, in turn, the institution that issues money is called the Issuer. Usually the Issuer of the national currency is the Central Bank of the country. The result of the issue may also be the creation of securities, or, as in the case of Bitcoin, cryptocurrencies.
Inflation is an increase in the money supply due to the increase in emissions, which leads to a gradual or sharp decrease in the purchasing power of money.
Deflation-the rise in price of money. In a market economy, this phenomenon is rare and short - lived, so it is said much less often than antipode - inflation. Under the "rise in price of money", it should be understood to increase purchasing power, ie in the future, the same amount of deflationary money, you can buy more and more goods and services.
Bitcoin has a deflationary nature, since the number of coins is limited in advance by the Protocol by which these coins are created (mined), unlike the usual money, whose emission is controlled by the interests of financial groups and can go against the needs of the population.
Fiat is not just a car brand. On the slang of stock exchanges, this word denotes the currency (any) Dollars, rubles, hryvnia, euros, British pounds, Swiss francs - all Fiat.
Master node (Proof of stake) - a technology that can be purchased from the developers of cryptocurrency, in order to increase the profitability of POS mining..
Transaction - transfer of currency from one wallet to another.
Captcha - term, indirect cryptomemetic. Captcha is a computer test that determines whether you are a user in reality, or it is a bot that tries to bypass the control system. Captcha is needed in order to enable only the live user to perform the action.