GLOSSARY (Crypto Jargon)FINTECH TERMINOLOGY
FinTech The contraction of Financial Technology.
CryptoCurrency A digital currency that use cryptography to validate and secure transactions.
BitCoin The first and most popular cryptocurrency that enables peer to peer transactions in a network not supervised or verified by a bank or centralised authority.
Mining/Miners People/software who verify transactions.
Encryption The process of converting information or data into a code, especially to prevent unauthorized access
Peer to peer/ P2P Transaction directly between the seller and the buyer without going through a bank or other centralised point of authority.
Decentralized Without the use of a bank or other authority.
Blockchain The technology that allows P2P transactions. A digital ledger in which transactions are recorded chronologically and publicly.
Wallet A place to keep/store your crypto coins/money.
Exchange A place to buy cryptocurrencies with actual currency. Or to swap one kind of cryptocurrency for another.
ICO Initial Coin Offering. A means of crowd funding used as a source of funding for a cryptocurrency startup. Investors are given tokens of the currency itself.
Open-Source Refers to something people can modify and share because its design is publicly accessible.
Shared Ledger/Distributed Ledger Technology A consensus of replicated, shared and synchronized digital data. Basically, a way of verifying transactions without a centralised point; by making it public.
Satoshi The term for a decimalisation of a Bitcoin. There are 100,000,000 (100 Million) Satoshi to a BitCoin
Smart Contracts Software that runs on blockchain technology and can automatically enforce the terms of an agreement – such as making interest payments to investors.
Oracles A data-feed that provides information for use in smart contracts.
Robo-Advice Investment management with moderate to minimal human intervention. Digital financial advice based on algorithms.
Underbanked/Overbanked Describes people or organisations that do not have sufficient access to mainstream financial services.
Equity-Crowdfunding A mechanism that enables broad groups of investors to fund start-up campaigns in return to equity.
KYC Know Your Customer. The process of a business identifying and verifying its clients. Used for Anti-Money Laundering purposes.
Ripple Started the Ripple Payment Protocol and exchange network.
Double Spend One transaction that’s sent to two different recipients. Essentially spending the same £5 note twice. Blockchain technology does not allow this due to the chronological assimilation of successful transactions within the chain.
AltCoin All other cryptocurrencies that aren’t BitCoin.
Hard Fork When a blockchain splits into two ledgers creating a new digital currency.
BitCoin Cash An alt-coin clone/fork of BitCoin created in 2017 when a group of Chinese miners initiated a fork of bitcoin’s blockchain.
Genesis Block The first block in a new blockchain.
Hash Rate The speed of a BitCoin transaction.
Nodes Connection points for the transmission of data.
Digital Wallet Software that allows users to make electronic payments, purchases and store currency online.
Private Keys Form of cryptography that allows users to access their cryptocurrency – an essential part of the security.
Hardware Security Modules A device that secures data like private keys in a very secure way.
Ethereum Another type of blockchain network. The digital currency of the Ethereum network is called Ether.
Fiat Term used to describe non-crypto currencies such as USD, EUR and GBP