Altcoins is an abbreviation for “Alternative Coins” and includes all other coins in addition to Bitcoin. There are currently an estimated 700 altcoins that have their origins in the mother of cryptocurrencies, Bitcoin. Liocoin, Litecoin, Monero or Dash are examples of Altcoins.
The cryptographic algorithm on which cryptocurrencies are based. The blockchain is a decentralized network that is fed mainly or exclusively from the computing power of its participants. It is programmatically designed to allow transactions to be completed without a fiduciary intermediary (such as a bank). The possible uses of these cryptographic applications are by no means limited to cryptocurrencies! Contracts can also be processed in this way, provided the blockchain allows this technically.
In order to maintain the integrity and security of the blockchain and the coherence of transactions and to make external attacks fruitless, blockchains use different models that calculate plausibility and thus generate consensus. The best-known methods are Proof of Work and Proof of Stake. The blockchain gains security because this chain of data records is getting longer and longer. Since this is completely checked for plausibility with every transaction, hackers hardly have the opportunity to falsify entries within a blockchain, since they can never muster so much computing power in such a short time. After all, they would have to fake all previous transactions in order for their intention to fool the algorithm. But this is impossible in such a short time.
Size of a single block within a blockchain. The size of a block determines its storage capacity. If this is exhausted, a new block must be generated. The size of blocks is crucial for the scalability of a blockchain as well as for the computing power that is demanded by a blockchain. The larger the blocks, the more transactions can be realized promptly. However, the computing requirements to confirm these transactions also increase accordingly. The circle of those who can mine is shrinking.
Coins in the crypto world correspond to digital “coins”. So money, with all its functions like the euro, the dollar or the pound.
Cloud mining (or cloud hashing) is the term used to describe the mining of cryptocurrencies. But not at home, but via hardware in data centers in your own country or abroad (in order to mine the costs for the equipment and at low electricity prices, for which a lot of electricity is required).
In the context of cryptocurrencies and blockchain, decentralization means distributing the database instead of managing it in a central place. Our current banking system worldwide is based on a central model.
An exchange (“exchange”) is a stock exchange for cryptocurrencies where they can be traded.
ECpay is the means of payment at MatrixChange. Regardless of whether you want to buy cryptocurrencies or “tangible assets” tokens, the ECpay is the reference currency with which you pay for your purchase. An ECpay always corresponds to exactly one EURO (exchange rate ECpay/Euro = 1:1). Technically, it is an ERC-20 token, a digital asset based on the blockchain and to which a fixed value is assigned.
In the context of cryptocurrencies, fiat money corresponds to all common currencies except cryptocurrencies such as the euro, dollar, pound, yen, etc. Accordingly, money with no material equivalent.
A process in which computing power is made available as part of the Proof of Work to check new transactions for plausibility. As a reward for successful calculation (before all other participants), new issues and/or fees of the cryptocurrency “mined” in this way beckon. Exactly how the “miners” are remunerated depends on the cryptocurrency model.
A mining pool is an association of several nodes that want to increase their computing power together in order to do mining together and increase their chances of success. Realized gains are split within the pool.
A node is a computer connected to a blockchain. In principle, this can be any computer on which the blockchain services are used. However, it is only described as a node in the sense that it is used for calculations for the blockchain. However, a node does not necessarily use the entire blockchain for its calculations. Only a full node does that.
Peer2Peer (“equal to equal”) underlines the decentralized model on which a blockchain is built. A blockchain is a peer2peer network, since all participants have equality within the blockchain and there is no central institution that has hierarchical influence on what is happening.
Scamcoins are fraudulent attempts to launch a cryptocurrency and popularize it through aggressive advertising and lofty promises. Most of the time, the initiators of the scam set it up in such a way that they hold large shares themselves, so that their initially worthless coins suddenly increase in value exorbitantly as soon as enough people jump on this bandwagon to nowhere. At some point, an “exit scam” usually follows, in which the scammers throw their shares onto the market with a high profit, which until then will probably only stop the rudimentary development of the cryptocurrency anyway and disappear without a murmur. A pyramid scheme, if you will. BitConnect is a particularly sad example of such an exit scam,
The scaling/scalability of a blockchain refers to the fundamental technical challenge of how to keep a blockchain efficient as its use and size grows, without slowing down due to the ever-growing data sets and increasing traction in its service. Good scalability is an absolute must for future mass adoption of blockchain technologies.
A “smart contract”. Even more than cryptocurrency, smart contracts are the true innovation by blockchains. Smart contracts are largely or even completely self-executing contracts that can be about anything. As soon as certain target parameters are registered as fulfilled on the blockchain, the contract is completed. A simple example of this is a delivery contract in which payment is automatically ordered the very second in which receipt or delivery of the goods is registered. And all this purely algorithmically, without an intermediary bureaucracy that has to record and manage this process!
The almost endless examples of smart contract use cases are the reason why blockchain technology will definitely prevail in the medium to long term. It is to bureaucracy what automation was and is to industry. A change that only raises the question of when it will come to its full extent – not if.
A token represents an asset, asset or commodity.
In contrast to coins, tokens do not have their own blockchain, but can be generated on existing blockchains with relatively little effort.
Tokens are often used like stocks or shares in a project. Therefore, they can serve as fuel for the network on the one hand, and as company shares or voting rights on the other. Tokens are therefore fundamental building blocks for operations with crypto assets. They serve as an aid for identifying and authenticating users of a computer network.
Only those who have a valid token are authorized to execute a transaction on the associated blockchain. Payments on the Internet can be carried out very easily, quickly, securely and inexpensively.
Utility token are tokens that can be used to purchase a service, such as a service or a product.
A digital wallet in which cryptocurrency(s) will be deposited. Some wallets are specific to a certain cryptocurrency, while some may contain multiple types. A distinction is also made between online and offline wallets. The former are always online and are more like a cloud. Whereas the latter only have to be online for use. They may be less convenient, but they are usually more secure as they do not maintain permanent connectivity to the network and can also be stored on external storage media for even more security.
The white paper is the written and published concept of a cryptocurrency or blockchain technology. Both from a business point of view (roadmap etc.) and from a technical point of view (explanation of the technical attributes). It is considered an important indicator of the seriousness of a project and should always be read when considering investing. The white paper can of course be formulated in a very technical and dry way, sometimes have a length of significantly more than ten pages and be correspondingly intimidating for non-professionals. That shouldn’t be an excuse not to read it, though. In order to make an informed investment, the white paper should be known!