Glossary
51% Attack
The term given to a malicious attack on a blockchain network achieved by taking control of 51% (over half) of the mining nodes.
ASIC Mining
An Application-Specific Integrated Circuit is a device that is designed for the sole purpose of mining a particular digital currency.
Address
An address is an alphanumeric identifier providing a virtual location to where cryptocurrency transactions can be sent. They are intended to be single use and only refer to the destination of a transaction, not where it came from.
Affiliate Program
A marketing approach that incentivises anyone with a source of potential customers - such as a website or social media channel - to act as an Affiliate and refer visitors to a website in return for an agreed level of commission or fixed acquisition fee.
Airdrop
The free distribution of a specific cryptocurrency to a targeted group as a means of promoting its adoption or increasing its visibility.
Algorithmic Peg
Method for maintaining parity of a Stablecoin to a fiat equivalent.
All Time High (ATH)
Refers to the highest price a cryptocurrency has ever reached, commonly abbreviated to ATH. See also ATL.
All Time Low (ATL)
Refers to the lowest price a cryptocurrency has ever reached, commonly abbreviated to ATL. See also ATH.
Altcoins
A commonly used term to refer to cryptocurrencies that came after Bitcoin; literally alternative coins, i.e coins that are designed to work differently from Bitcoin.
Anti-Money Laundering (AML)
Legislation and best practice focused on preventing the laundering of the proceeds of crime.
Application Specific Integrated Circuit (ASIC)
A type of computer chip adapted to perform a very specific function, in the case of Bitcoin, ASIC chips are adapted solely for the mining process.
Arbitrage
A technique in trading or betting whereby price inefficiencies for an asset or market quoted across different sources can be exploited to guarantee a profit e.g buying a cryptocurrency on exchange A and instantly selling on Exchange B where it is offered for a higher price. Arbitrage of bitcoin's price will, for example, try to exploit price premium arising due to demand in specific countries because of currency controls, hyperinflation or anti-bitcoin legislation e.g Turkey, Venezuela or Nigeria.
Ask Price
The lowest price that a seller is willing to accept for a cryptocurrency via an exchange; the opposite of the Bid Price. The difference between the Ask and Bid is known as the Spread.
Astroturfing
The practice of hyping a product or service such as an ICO without disclosing personal interest. Famous celebrities such as Steven Seagal and Floyd Mayweather have been fined by the SEC for astroturfing ICOs in the past. Also, see Initial Coin Offering (ICO)
Atomic Swap
The name given to the exchange of cryptocurrencies across separate blockchains without the need for a centralised exchange or intermediary.
Automated Market Maker
A method of pricing assets based on an algorithm rather than the traditional method of deriving price from the point where buyers and sellers meet.