Cryptospedia
In this section you can find all the Cryptocurrency definitions with easy to understand explanations and paradigms.
What is a “block” and “Blockchain”?

What is a “block” and “Blockchain”?

A block is a file where data (pertaining to a specific cryptocurrency network) are permanently recorded. A block records  the most recent digital coin transactions that have not yet been recorded to any prior blocks. You can imagine that a block is like...

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What is a Cryptocurrency?

What is a Cryptocurrency?

Cryptocurrency is a form of digital asset, split into units like virtual coins or tokens, that can be used as a digital currency.  Cryptocurrencies use cryptography for security and a network of computers that verify each transaction. Each user can have...

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Some information about the legendary Bitcoin

Some information about the legendary Bitcoin

The root problem with conventional currencies is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.Bitcoin(₿) was launched in 2008-2009 and...

read more
What is a minable and a non-mineable coin?

What is a minable and a non-mineable coin?

A mineable digital coin (cryptocurrency) is a coin that is created and can be acquired through the mining process. Miners and mining rewards The minable coins are created by (and are rewarded to) the miner, for successfully verifying transactions on the network and...

read more
What is a “Genesis block”?

What is a “Genesis block”?

A genesis block is the very first block of a blockchain. It is usually mentioned as block 0 or block 1. For a Cryptocurrency Project having its own genesis block means a few important things about its integrity and the fair distribution of the digital...

read more
What is a Community Driven coin ?

What is a Community Driven coin ?

A Community driven coin is a cryptocurrency project that is has no specified owner and of course not a company structure behind it or a CEO deciding for its future. Instead of it , it has Community-driven development that provides the control of the...

read more
What is a blockchain explorer?

What is a blockchain explorer?

A block explorer allows you to explore the whole blockchain of the cryptocurrency you are using.   Can I use one explorer for every coin? Definitely no! It needs to be underlined that you can’t use a block explorer for a blockchain it wasn’t meant for. For...

read more
What is Proof of Work (PoW)?

What is Proof of Work (PoW)?

In a cryptocurrency network the users send each other digital coins. A decentralized ledger gathers all the transactions into blocks. However, the confirmation of the transactions and the arrangement of blocks are necessary. Proof-of-Work, or PoW, is the...

read more
What is FIAT currency?

What is FIAT currency?

Fiat currency or (fiat money) is currency that is issued by governments and central banks and is not backed by a precious commodity, such as gold or silver. Instead of this, the government or central bank that issued it is backing it up. The term...

read more
What is “Premining”

What is “Premining”

Premining is the creation of a number of crypto coins before the cryptocurrency is launched to the public and their allocation to specified coin addresses. Premining has a negative connotation in the cryptospace due to the ability of developers to privately mine and...

read more
What is “Instamining”?

What is “Instamining”?

Instamining (from the words "instant" and "mining") is usually used alternatively for premining in the cases where closed groups , usually consisted of the developers of a cryptocurrency project, mine a huge number of the coins before launching it to the public....

read more
What is “Proof of Stake”?

What is “Proof of Stake”?

Proof of Stake (PoS) model states that a person can validate block transactions according to how many coins he or she holds. This means that the ownership (stake) of more coins leads to the increase of the validating power and the associated rewards. What all...

read more
What is Hashrate ?

What is Hashrate ?

What is a hash function and what is hash rate?  A hash function is any function that can be used to map data of arbitrary size to fixed-size values. The values returned by a hash function are...

read more
What is a “Payment Gateway”?

What is a “Payment Gateway”?

A Payment Gateway is a decentralized payment platform where the users can pay, receive and transfer money to another user using digital coins (cryptocurrencies).  The payment gateway is reducing the intermediaries involved in the process and makes fast the...

read more
What is BITCOINZ’s “VAULTZ”?

What is BITCOINZ’s “VAULTZ”?

VaultZ is the Community Fund of the BitcoinZ Project. It is a major upgrade for the Project and came with the 2.05 version, after a massive 96% YES vote by the Community.   How does exactly this model work? The idea consists of getting a sophisticated and...

read more
What is “ZHash”?

What is “ZHash”?

ZHash is a variant of the popular Equihash Proof of Work algorithm, which was developed as a solution that would increase the resistance of the algorithm versus the ASIC miners.   Why Zhash algorithm was so much needed ? Bitmain, the well known ASIC manufacturer,...

read more
What is “transactions privacy” and “Zk-snarks”?

What is “transactions privacy” and “Zk-snarks”?

A privacy coin is defined as a cryptocurrency that allows private transactions hiding data about its users . Such data are the amount of cryptocurrency traded and held in wallets.   Which cryptocurrencies offer privacy? Bitcoin and many popular cryptocurrencies...

read more
What is a cryptocurrency Wallet and Multiwallet?

What is a cryptocurrency Wallet and Multiwallet?

A cryptocurrency wallet is an application that allows cryptocurrency users to store and retrieve their digital coins. Usually each coin has its own wallet options, aka its own applications for every operating system and device type. So, with their e-wallets , the...

read more
What is Maximum Supply?

What is Maximum Supply?

Max Supply for a cryptocurrency is the total amount of coins that can be issued. The total supply or  circulating supply is the amount of the already issued coins. These coins are either circulating in the market or are stored in specific addresses. When the...

read more
What is “btcz.app”?

What is “btcz.app”?

Btcz.app is the second developers team that joined the BTCZ project on 2019. The btcz.app team has worked hard for delivering a series of applications and features that make the ecosystem of the BitcoinZ digital coin much richer. Some examples of the BTCZ.APP...

read more
What is KioskZ ?

What is KioskZ ?

KioskZ is an innovative Point of Sale Terminal which is especially designed for the restaurant industry, enabling the customer to make cryptocurrency payments to the business that uses the KioskZ. The prototypes have been designed by the BitcoinZ and SafeCoin Projects...

read more
What is the BitcoinZ “Dynamic Roadmap”?

What is the BitcoinZ “Dynamic Roadmap”?

BitcoinZ is the first Cryptocurrency Project that presented and adopted a totally Community oriented Roadmap on August 2019.  Why it is called "Dynamic" Roadmap ?   This is what we called "Dynamic Roadmap" because it is not a static plan that a specific team...

read more
What is “Decentralization”?

What is “Decentralization”?

Decentralization is the process of distributing and dispersing power away from a central authority. In the world of cryptocurrencies , decentralization plays a critical role in many aspects. Some of them are safety, security and their very philosophy which has...

read more
What is “txtZ”?

What is “txtZ”?

txtZ is a unique feature of the BitcoinZ cryptocurrency that makes possible for a user with a very simple, old tech mobile device, to use his digital coins with just a txt message! Without the need of an internet connection or any application installed in a...

read more
What are the ICO Sales?

What are the ICO Sales?

 "ICO" comes from "Initial Coin Offering" and it is a procedure that acts as a way to raise funds, when a company is looking to raise money to create a new cryptocurrency, application, or service. It has the same logic with the stock IPO (Initial Public Offer) so the...

read more
What is an “airdrop”?

What is an “airdrop”?

In the world of cryptocurrencies, an "airdrop" is the distribution of free coins to specific coin addresses.   In which cases we have an "Airdrop"? Usually there are two common scenarios of airdrops. a) The airdrop because of a blockchain fork, by coins that have...

read more
What is “Equihash”?

What is “Equihash”?

Equihash is a memory-hard Proof of Work algorithm. How Equihash is functioning?  It was introduced by the University of Luxembourg's Interdisciplinary Center for Security, Reliability and Trust (SnT) at the 2016 Network and Distributed System Security Symposium. The...

read more
What is a Cryptocurrency Exchange?

What is a Cryptocurrency Exchange?

Cryptocurrency exchanges are online platforms in which you can exchange one kind of digital asset for another based on the market value of the given assets.   How a cryptocurrency exchange is working Every exchange is hosting a list of cryptocurrencies and tokens...

read more
What is mining and mining algorithm?

What is mining and mining algorithm?

In the Cryptocurrency world, the block reward (or mining reward) is the number of coins that are given as reward to those who found the next block, by solving a mathematical puzzle. The whole procedure of finding the next block in a cryptocurrency blockchain, is...

read more
What is ZBrain?

What is ZBrain?

ZBrain acts as a Community feedback for the development of the BTCZ ecosystem and the the general progress of its Dynamic Roadmap. In these e-meetings the community members discuss the recent advancements and the measures that need to be taken in order to address any...

read more
What is a Project’s “Roadmap”?

What is a Project’s “Roadmap”?

The project roadmap is a graphical, high level overview of the project's goals presented on a timeline andthe major steps or milestones needed to reach it. Unlike the project plan where details are fleshed out, the roadmap should be simple and free of special details....

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What is an address for payments with cryptocurrencies?

What is an address for payments with cryptocurrencies?

An address for cryptocurrency payments is a unique identifier that serves as a virtual location where the cryptocurrency can be sent. People can send digital coins to these addresses similarly to the way that printed money (FIAT) can often be sent to email addresses...

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What is “Developer’s Fee”?

What is “Developer’s Fee”?

In the cryptocurrency world, developer's fee is a percentage of the mining rewards that is automatically allocated to specified coin addresses.   How to find out for this tax? Usually, the developers of a coin are mentioning this percentage and the time frame...

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What is an “ASIC”?

What is an “ASIC”?

Application-specific integrated circuit (abbreviated as ASIC) is an  intergrated circuit (IC) customized for a particular use, rather than intended for general-purpose use. In Bitcoin mining hardware ,ASICs were the next step of development after CPUs, GPUs and FPGAs....

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What is a “Fork”?

What is a “Fork”?

A cryptocurrency fork is a critical update to a network's protocol  that makes existing rules either valid or invalid.  Sometimes this procedure may result in "independent" and new versions of a cryptocurrency. Usually with the "Fork" definition we mean a hard fork. ...

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What is a “Fork”?

A cryptocurrency fork is a critical update to a network's protocol  that makes existing rules either valid or invalid.  Sometimes this procedure may result in "independent" and new versions of a cryptocurrency. Usually with the "Fork" definition we mean a hard fork.  In simple words, you can...

What is a node?

Coming Soon!

What is an “ASIC”?

Application-specific integrated circuit (abbreviated as ASIC) is an  intergrated circuit (IC) customized for a particular use, rather than intended for general-purpose use. In Bitcoin mining hardware ,ASICs were the next step of development after CPUs, GPUs and FPGAs. Capable of easily...

What is “Developer’s Fee”?

In the cryptocurrency world, developer's fee is a percentage of the mining rewards that is automatically allocated to specified coin addresses.   How to find out for this tax? Usually, the developers of a coin are mentioning this percentage and the time frame that this process of accumulation...

What is an address for payments with cryptocurrencies?

An address for cryptocurrency payments is a unique identifier that serves as a virtual location where the cryptocurrency can be sent. People can send digital coins to these addresses similarly to the way that printed money (FIAT) can often be sent to email addresses in digital form with services...

What is a Project’s “Roadmap”?

The project roadmap is a graphical, high level overview of the project's goals presented on a timeline andthe major steps or milestones needed to reach it. Unlike the project plan where details are fleshed out, the roadmap should be simple and free of special details. This makes the project...

What is ZBrain?

ZBrain acts as a Community feedback for the development of the BTCZ ecosystem and the the general progress of its Dynamic Roadmap. In these e-meetings the community members discuss the recent advancements and the measures that need to be taken in order to address any possible shortcoming. A type...

What is mining and mining algorithm?

In the Cryptocurrency world, the block reward (or mining reward) is the number of coins that are given as reward to those who found the next block, by solving a mathematical puzzle. The whole procedure of finding the next block in a cryptocurrency blockchain, is called mining and those who...

What is a Cryptocurrency Exchange?

Cryptocurrency exchanges are online platforms in which you can exchange one kind of digital asset for another based on the market value of the given assets.   How a cryptocurrency exchange is working Every exchange is hosting a list of cryptocurrencies and tokens and generate an address for...

What is “Equihash”?

Equihash is a memory-hard Proof of Work algorithm. How Equihash is functioning?  It was introduced by the University of Luxembourg's Interdisciplinary Center for Security, Reliability and Trust (SnT) at the 2016 Network and Distributed System Security Symposium. The algorithm is based on a...

What is an “airdrop”?

In the world of cryptocurrencies, an "airdrop" is the distribution of free coins to specific coin addresses.   In which cases we have an "Airdrop"? Usually there are two common scenarios of airdrops. a) The airdrop because of a blockchain fork, by coins that have been launched without their...

What are the ICO Sales?

 "ICO" comes from "Initial Coin Offering" and it is a procedure that acts as a way to raise funds, when a company is looking to raise money to create a new cryptocurrency, application, or service. It has the same logic with the stock IPO (Initial Public Offer) so the interested investors can buy...

What is “txtZ”?

txtZ is a unique feature of the BitcoinZ cryptocurrency that makes possible for a user with a very simple, old tech mobile device, to use his digital coins with just a txt message! Without the need of an internet connection or any application installed in a smartphone. BitcoinZ is the first...

What is “Decentralization”?

Decentralization is the process of distributing and dispersing power away from a central authority. In the world of cryptocurrencies , decentralization plays a critical role in many aspects. Some of them are safety, security and their very philosophy which has lead to their design and future...

What is the BitcoinZ “Dynamic Roadmap”?

BitcoinZ is the first Cryptocurrency Project that presented and adopted a totally Community oriented Roadmap on August 2019.  Why it is called "Dynamic" Roadmap ?   This is what we called "Dynamic Roadmap" because it is not a static plan that a specific team has designed and presented....

What is KioskZ ?

KioskZ is an innovative Point of Sale Terminal which is especially designed for the restaurant industry, enabling the customer to make cryptocurrency payments to the business that uses the KioskZ. The prototypes have been designed by the BitcoinZ and SafeCoin Projects and the terminal's platform...

What is “btcz.app”?

Btcz.app is the second developers team that joined the BTCZ project on 2019. The btcz.app team has worked hard for delivering a series of applications and features that make the ecosystem of the BitcoinZ digital coin much richer. Some examples of the BTCZ.APP advancements   - The improved...

What is Maximum Supply?

Max Supply for a cryptocurrency is the total amount of coins that can be issued. The total supply or  circulating supply is the amount of the already issued coins. These coins are either circulating in the market or are stored in specific addresses. When the maximum supply is achieved? The...

What is a cryptocurrency Wallet and Multiwallet?

A cryptocurrency wallet is an application that allows cryptocurrency users to store and retrieve their digital coins. Usually each coin has its own wallet options, aka its own applications for every operating system and device type. So, with their e-wallets , the users are able to create new...

What is “transactions privacy” and “Zk-snarks”?

A privacy coin is defined as a cryptocurrency that allows private transactions hiding data about its users . Such data are the amount of cryptocurrency traded and held in wallets.   Which cryptocurrencies offer privacy? Bitcoin and many popular cryptocurrencies are not true privacy coins....

What is “ZHash”?

ZHash is a variant of the popular Equihash Proof of Work algorithm, which was developed as a solution that would increase the resistance of the algorithm versus the ASIC miners.   Why Zhash algorithm was so much needed ? Bitmain, the well known ASIC manufacturer, released ASIC miners that...

What is BITCOINZ’s “VAULTZ”?

VaultZ is the Community Fund of the BitcoinZ Project. It is a major upgrade for the Project and came with the 2.05 version, after a massive 96% YES vote by the Community.   How does exactly this model work? The idea consists of getting a sophisticated and democratized funding mechanism for...

What is a “Payment Gateway”?

A Payment Gateway is a decentralized payment platform where the users can pay, receive and transfer money to another user using digital coins (cryptocurrencies).  The payment gateway is reducing the intermediaries involved in the process and makes fast the payment process.  How a...

What is Hashrate ?

What is a hash function and what is hash rate?  A hash function is any function that can be used to map data of arbitrary size to fixed-size values. The values returned by a hash function are called hash values, hash codes or...

What is “Proof of Stake”?

Proof of Stake (PoS) model states that a person can validate block transactions according to how many coins he or she holds. This means that the ownership (stake) of more coins leads to the increase of the validating power and the associated rewards. What all these mean in simple words ? In...

What is “Instamining”?

Instamining (from the words "instant" and "mining") is usually used alternatively for premining in the cases where closed groups , usually consisted of the developers of a cryptocurrency project, mine a huge number of the coins before launching it to the public.   How Instamining benefits the...

What is “Premining”

Premining is the creation of a number of crypto coins before the cryptocurrency is launched to the public and their allocation to specified coin addresses. Premining has a negative connotation in the cryptospace due to the ability of developers to privately mine and allocate a number coins to...

What is FIAT currency?

Fiat currency or (fiat money) is currency that is issued by governments and central banks and is not backed by a precious commodity, such as gold or silver. Instead of this, the government or central bank that issued it is backing it up. The term fiat derives from the...

What is Proof of Work (PoW)?

In a cryptocurrency network the users send each other digital coins. A decentralized ledger gathers all the transactions into blocks. However, the confirmation of the transactions and the arrangement of blocks are necessary. Proof-of-Work, or PoW, is the default consensus algorithm in a...

What is a blockchain explorer?

A block explorer allows you to explore the whole blockchain of the cryptocurrency you are using.   Can I use one explorer for every coin? Definitely no! It needs to be underlined that you can’t use a block explorer for a blockchain it wasn’t meant for. For example, you won't be able to track...

What is a Community Driven coin ?

A Community driven coin is a cryptocurrency project that is has no specified owner and of course not a company structure behind it or a CEO deciding for its future. Instead of it , it has Community-driven development that provides the control of the development process, resources and...

What is a “Genesis block”?

A genesis block is the very first block of a blockchain. It is usually mentioned as block 0 or block 1. For a Cryptocurrency Project having its own genesis block means a few important things about its integrity and the fair distribution of the digital coin rewards.   What...

What is “mining” , “block reward” and “reward halving” ?

In the Cryptocurrency world, the block reward (or mining reward) is the number of coins that are given as reward to the miner that first "found" the next block by solving the a mathematical puzzle. The whole procedure of finding the next block in a cryptocurrency blockchain, is called mining....

What is a minable and a non-mineable coin?

A mineable digital coin (cryptocurrency) is a coin that is created and can be acquired through the mining process. Miners and mining rewards The minable coins are created by (and are rewarded to) the miner, for successfully verifying transactions on the network and adding it to the newly created...

Some information about the legendary Bitcoin

The root problem with conventional currencies is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.Bitcoin(₿) was launched in 2008-2009 and it is the first digital coin....

What is a Cryptocurrency?

Cryptocurrency is a form of digital asset, split into units like virtual coins or tokens, that can be used as a digital currency.  Cryptocurrencies use cryptography for security and a network of computers that verify each transaction. Each user can have public addresses for storing his...

What is a “block” and “Blockchain”?

A block is a file where data (pertaining to a specific cryptocurrency network) are permanently recorded. A block records  the most recent digital coin transactions that have not yet been recorded to any prior blocks. You can imagine that a block is like a page of a huge ledger or...
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