STABLECOIN, SHITCOIN, SCAMCOIN, VIRGIN COIN, PRIVACY COIN, EQUITY TOKEN, UTILITY TOKEN

In a previous article by Crypto Jargon, we explained the difference between a coin and a token. So now, let’s break down the types of coins and tokens that are currently most commonly used in crypto. In this post I’ll break down the following:

  • STABLECOIN
  • VIRGIN COIN
  • PRIVACY COIN
  • SHITCOIN
  • SCAMCOIN
  • EQUITY TOKEN
  • UTILITY TOKEN
  • SECURITY TOKEN

Starting with Stable Coins which were born in opposition to the very volatile nature of cryptocurrencies in general.

As you know, prices of most cryptocurrencies fluctuate in extremes, sometimes by more than 100% in a day or even in hours, so the necessity for traders to have alternatives gave birth to these so-called “Stable Coins”.

Typically, a stable coin is an asset (not a currency), which offers price stability characteristics. It is mainly designed to be used as a unit of account or as a store of value. Most stable coins today are cryptocurrencies that are pegged to another stable asset, like silver, gold or a fiat currency such as US dollar.
Some prominent examples of stable coins are USDT, PAX, TUSD and USDC.
Many exchanges that do not operate directly with fiat money, are using stable coins as alternatives to the fiat money these coins are pegged to. Stable is used in this case as a broad term of course, as the US Dollar itself is not 100% stable but as a world reserve currency, it is accepted as the standard for determining the Bitcoin value worldwide so most stable coins are fixed to be at 1:1 ratio with the US DOLLAR for that purpose.

Virgin Coin is simply a term referred to a brand-new coin acquired through mining that has not yet been used in a transaction and not being spent yet.

Privacy coin is, as the name suggests, a type of cryptocurrency that has privacy features, such as enhanced level of anonymity or masking layers that obfuscate the addresses of its sender and receiver. Since Bitcoin is not fully anonymous but all its transactions are traceable and publicly visible, some alt coins are focusing on providing anonymous features in order to compete with it. Such coins are Monero, Zcash, Dash, Zen and many others.

Now when we mention Scamcoin and Shitcoin, it becomes clear what we’re talking about – something that is not very legit or at least, not very trustworthy.

Shitcoin is a term typically given to those alts that have no use or potential value. It could be any new altcoin that is not mainstream or does not add innovation to the market. In the trading world, however, this is not necessarily a bad term. Traders don’t avoid a coin because it has weak fundamentals. They care mostly about TA and often would trade these for short term gains. However, if you see yourself as an investor rather than a speculator, you should not really touch these, simply because they don’t have a future in the long term.

A “Scamcoin” on the other hand, is a term referring to a cryptocurrency that is dubious in nature and doesn’t have any specific tech behind it. Its sole purpose is to make its “creators” rich and usually becomes a subject to Pump’n’Dump practices and market manipulation until it loses all value. Bitconnect and Onecoin are two such examples of Scamcoins – no real tech in them, no use-case and heavy MLM compensation plans to attract new investors. Stay away from any MLM crypto is my advice, I’ve never seen a decent cryptocurrency come out from this network marketing model. Ever.

Moving onto Tokens.

Tokens are different from coins due to the fact that they are created as smart contracts on an existing blockchain such as Ethereum, EOS, Stellar, NEO and others.
Tokens have various functions, they can be protocol tokens – those that act as a platform on which to build decentralized applications (DApps) such as Gnosis, Stellar.
Other types of tokens can be utility tokens.

A Utility token is a unit of currency consumed in a process, providing access to a product or service. For example, an arcade token that gets used when a videogame is played or a coin like Binance (BNB), which is used to pay exchange fees, hence the word “utility”, because it has used.

Security tokens are tokens on the blockchain that represent real assets. An example of a security token would be shared in a company-issued on the blockchain.

A token is considered a security if it fulfils the following criteria:

  • It is an investment of money
  • The investment is in a common enterprise
  • There is an expectation of profit from the work of the promoters or the third party.

Because these tokens are deemed a security, they are subject to government regulations. Examples: Tezos and Polymath.

Commodity tokens – these are tokens backed by real-world commodities, whether it is gold, silver or oil. The rate of these tokens depends on the rate of the commodity backing it. For instance: Digix, El Petro and others.

Last but not least, collectible tokens (Cryptokitties, RarePepe).
These tokens represent a virtual collectible unit, like baseball cards, adorable kitties or memes. And they are built on the blockchain.

As you probably know I also post these definitions on my YouTube channel, here’s my episode with today’s terms:

If you liked this article, you will most certainly love my eBook “Crypto Jargon A-Z” – this is the most up-to-date publication of its kind. With over 700 terms, acronyms and trading slang, it contains everything related to cryptocurrencies and blockchain tech – all the complex terminology we use in media articles, blogs, forum chats, social media posts and of course video content too so go check it out on Amazon at one of the following links:

r_5z9VFhAGXB4lkIi

US https://www.amazon.com/dp/B07Y9DT3H6
UK https://www.amazon.co.uk/dp/B07Y9DT3H6
Germany https://www.amazon.de/dp/B07Y9DT3H6
France https://www.amazon.fr/dp/B07Y9DT3H6
Spain https://www.amazon.es/dp/B07Y9DT3H6
Italy https://www.amazon.it/dp/B07Y9DT3H6
Netherlands https://www.amazon.nl/dp/B07Y9DT3H6
Japan https://www.amazon.co.jp/dp/B07Y9DT3H6
Brazil https://www.amazon.com.br/dp/B07Y9DT3H6
Canada https://www.amazon.ca/dp/B07Y9DT3H6
Mexico https://www.amazon.com.mx/dp/B07Y9DT3H6
Australia https://www.amazon.com.au/dp/B07Y9DT3H6
Asia-Pacific https://www.amazon.in/dp/B07Y9DT3H6

=== ===

🏆Exchanges I use for trading crypto:

Binance
Kucoin 
Bittrex
Bitfinex
HitBtc 

=== ===

Where I buy crypto:

BitPanda (Europe)
Cex (Global)
Coinmama (Global)
Changelly (good for instant coins swaps)(Global)
Payeer (Europe, Asia, alternative to paypal)
Bitfinex 
Coinbase (USA, EU, Africa) Get $10 worth of Bitcoin on your first $100 crypto purchase with this link: http://bit.do/coinbase_join

=== ===

Where I store my crypto:

  • Ledger Nano – the best hardware wallet (offline storage)
  • Trezor – also one of the best wallets out there.
  • Exodus – desktop wallet
  • Coinomi – mobile phone wallet with instant coin swap feature
  • Crypto.com – mobile wallet and exchange

Types of Forks in Crypto Explained.

Welcome to another edition of my short series “Crypto Jargon”.
In these series, I break down the complex terminology we use in reference to cryptocurrencies and blockchain technology.

In this article are featured the following acronyms for software changes and upgrades (known as software forks):

  • Soft Fork (SF)
  • Hard Fork (HF)
  • User-Activated Soft Fork (UASF)
  • User-activated Hard Fork (UAHF)
  • Miner-Activated Soft Fork (MASF)
  • Contentious & Non-Contentious Forks.

These are some of the types of forks most commonly referred to, so let’s explain the differences.

First, what is a fork?

In programming terms, a fork is a (permanent) modification, upgrade, divergence or simply any change in the original code of a software.

Forks generally happen in the crypto world when new “rules” are built into a blockchain’s code. Sometimes a fork is used to test a process, but with cryptocurrencies, it is mostly used to implement a fundamental change or to create a new asset with similar (but not equal) characteristics as the original.

There are two main types of programming fork: hard and soft.

FORKS

A Soft Fork is an upgrade in the software that is compatible with the original version. When the changes are implemented, they are backward compatible, meaning that even users who haven’t upgraded to the new software, are still able to run their nodes and mine blocks on that blockchain. In the case of Segwit for instance, which was a soft fork on the bitcoin blockchain, users and node operators could choose if they want to run the older version (legacy) or the new version (segwit) of the protocol. And still, to this day there are certain economical nodes, such as the Blockchain.com Wallet and KeepKey for instance, which are running the legacy version and you can tell by the wallet address – a Legacy Bitcoin address begins with the number 1 while a Segwit wallet address begins with the number 3.

A User Activated Soft Fork (UASF) is when a soft fork is activated on a specified date and is enforced by full nodes; a concept sometimes referred to as the economic majority. A UASF requires a lot of industry support and coordination. Originally Segwit was going to be implemented as a UASF and as a response to that Bitmain, a major mining firm, announced A contingency plan against it in the form of a User Activated Hard Fork UAHF which they did anyway and thus Bitcoin Cash was born.

A Hard Fork is an upgrade in the software that requires all users to switch to the new version of that software. It is not backward compatible, meaning that anyone who wants to mine blocks on that blockchain has to use the latest version of the code.

It can be a “Planned hard fork” – which is simply an upgrade to the protocol that had already been made clear in advance by the project developers and there’s no conflict in its implementation. Usually, a high-degree of consensus from the project developers and the community would have already been reached, before the hard fork occurred. Examples of a planned hard fork is Monero’s hard fork in January of 2017, which saw the addition of a new privacy feature known as Ring Confidential Transactions (RingCT) and the 2019 Ethereum change to a Proof Of Stake protocol which was announced years ahead of implementation.

In this regard it’s also known as a non-contentious hard fork which means everyone upgrades and moves on.

The opposite is a “Contentious hard fork“, which is not being accepted by everyone and some users decide to continue running the older version and this way the chain splits into two: one path which follows the new, upgraded blockchain; and one path which continues along with the old blockchain version. This is how Ethereum Classic was created and also Bitcoin Cash when it split from Bitcoin in 2017.

A hard fork can also be initiated if a 51% attack occurs, or due to a bug in the system so it doesn’t always create a new coin.

A User Activated Hard Fork (UAHF) is where developers add a mandatory rule set to change the node software. These changes make previously invalid blocks become valid after a flag day, which does not require a majority of hash power to be enforced.

The most significant example for applying UASF and UAHF is the forking of Ethereum.

In May 2006, Ethereum started The DAO project. But a month later the project was hacked and a sum of about $55,000,000 was stolen. This amounted to more than 10% of the circulating supply of Ether at the time. After the incident three solutions were suggested:

  1. To accept the theft and do nothing
  2. To roll back the Blockchain to the time before the theft which would be through a hard fork
  3. To accept all the transactions to the hacker’s wallets false and return the money back which would be done as a soft fork.

The Ethereum community chose to go with the second proposal, but some users weren’t happy with that. They assumed that “code is law” and is the main concept of cryptocurrency. These users accepted the theft and decided to stick to the original version without any rollback, so when the hard fork was executed, there were two chains. One that is known as Ethereum, ETH, and another, known as Ethereum Classic, ETC.

The signaling for consensus on a fork proposal can also be handed to the miners which are known as a Miner Activated Soft/Hard Fork (MASF).

There are also Accidental forks – a rare occasion when two or more blocks have the same block height, forking the blockchain. Typically occurs when two or more miners find blocks at nearly the same time. It can also happen as part of an attack.

As you probably know I also post these definitions on my YouTube channel, here’s my episode with today’s terms:

If you liked this article, you will most certainly love my eBook “Crypto Jargon A-Z” – this is the most up-to-date publication of its kind. With over 700 terms, acronyms and trading slang, it contains everything related to cryptocurrencies and blockchain tech – all the complex terminology we use in media articles, blogs, forum chats, social media posts and of course video content too so go check it out on Amazon at one of the following links:

r_5z9VFhAGXB4lkIi

US https://www.amazon.com/dp/B07Y9DT3H6
UK https://www.amazon.co.uk/dp/B07Y9DT3H6
Germany https://www.amazon.de/dp/B07Y9DT3H6
France https://www.amazon.fr/dp/B07Y9DT3H6
Spain https://www.amazon.es/dp/B07Y9DT3H6
Italy https://www.amazon.it/dp/B07Y9DT3H6
Netherlands https://www.amazon.nl/dp/B07Y9DT3H6
Japan https://www.amazon.co.jp/dp/B07Y9DT3H6
Brazil https://www.amazon.com.br/dp/B07Y9DT3H6
Canada https://www.amazon.ca/dp/B07Y9DT3H6
Mexico https://www.amazon.com.mx/dp/B07Y9DT3H6
Australia https://www.amazon.com.au/dp/B07Y9DT3H6
Asia-Pacific https://www.amazon.in/dp/B07Y9DT3H6

=== ===

🏆Exchanges I use for trading crypto:

Binance
Kucoin 
Bittrex
Bitfinex
HitBtc 

=== ===

Where I buy crypto:

BitPanda (Europe)
Cex (Global)
Coinmama (Global)
Changelly (good for instant coins swaps)(Global)
Payeer (Europe, Asia, alternative to paypal)
Bitfinex 
Coinbase (USA, EU, Africa) Get $10 worth of Bitcoin on your first $100 crypto purchase with this link: http://bit.do/coinbase_join

=== ===

Where I store my crypto:

  • Ledger Nano – the best hardware wallet (offline storage)
  • Trezor – also one of the best wallets out there.
  • Exodus – desktop wallet
  • Coinomi – mobile phone wallet with instant coin swap feature
  • Crypto.com – mobile wallet and exchange

War on Privacy Coins – the future of Anonymous crypto transactions is bleak…

There have been a number of crypto exchanges that recently delisted privacy coins from their platforms. The likes of Zcash, Monero, ZEN, PIVX and many other privacy oriented coins have been taking a beating from the regulated exchanges due to compliance concerns raised after the FATF ruled them unfit to meet AML criteria and threatened to follow up with closures, and other compliance penalties to those who do not follow their “Travel Rule” about reporting all details on their customers transactions.

Is this a WAR on PRIVACY COINS? What is the future of anonymity in crypto?

These are two of the questions discussed in my recent chat with Rob Viglione – co-founder of ZEN (Horizen) – a privacy oriented coin and multi-facet crypto project that is working toward creating greater privacy to the end-user.

This is my Crypto Corner video podcast episode #80 and you can watch it here in its entirety:


🚩Relevant links:

To get ZEN for free use this link: https://getzen.cash/auth/register?ref=126946

Find out more about Horizen: https://www.horizen.global/technology/
Academy : https://academy.horizen.global/
Bloomberg article: https://www.bloomberg.com/news/articles/2019-09-19/privacy-coins-face-existential-threat-amid-regulatory-crackdown
Nodes count : https://medium.com/coinmonks/ranking-cryptos-by-number-of-nodes-57a12e4ae51a?

=== === ===

Where I buy crypto:

►BitPanda (Europe) http://bit.do/bit-panda

►Cex (Global) http://bit.do/c-io

►Coinmama (Global) http://bit.do/coinma

►Changelly (good for instant coins swaps)(Global) http://bit.do/changelli

►Payeer (Europe, Asia, alternative to paypal) http://bit.do/payeer-join

►Bitfinex https://bitfinex.com/?refcode=Zh_5OPGD

►Coinbase (USA, EU, Africa) Get $10 worth of Bitcoin on your first $100 crypto purchase with this link: http://bit.do/coinbase_join

=== ===

🏆Exchanges I use for trading crypto: ►Binance http://bit.do/B1NANCE

►Kucoin http://bit.do/ku-coin

►Bittrex bittrex.com

►Bitfinex https://bitfinex.com/?refcode=Zh_5OPGD

►HitBtc http://bit.do/hit-btc

=== ===

🔑My Top hardware Wallet for Crypto is Ledger Nano X (offline wallet/cold storage) – http://bit.do/ledgerNano
here’s my tutorial on How to set it up – https://youtu.be/lHzFY4ucTYQ

And lastly, here is my top choice for safe storage of my top cryptocurrencies, check out the Ledger Nano S, it can store a large selection of coins, it is a definite MUST HAVE.

Ledger Nano S - The secure hardware wallet

 

5 Reasons to use Kucoin exchange

Kucoin exchange is having a great choice of cryptocurrencies, all the most popular coins are listed as well as many lesser known ones and their bonus features are what really sets Kucoin exchange apart from its competition….

I’ve written about my preference to Kucoin exchange on a few occasions and I will point out here the top 5 things I consider to be the main points of advantage over other exchanges.

Now, I am not trying to say that Kucoinis the best exchange out there, I wouldn’t go as far as to claim it is better than Binance, Bitfinex, Bittrex or the other giants on the market, after all, we all know that liquidity is king and this is why Binanceis always coming on top of the list when comparing exchanges. However, there are a few things that Kucoin does differently and these make it one of my top exchanges to use, so here we go.

  1. Choice of coins.

    Kucoin exchange supports a great variety of small-cap altcoins that are often in their infancy which makes it ideal for those who prefer to trade the less-known coins for greater gains. It is not unusual to catch a winning trade with 10x or more gains on a low-cap cryptocurrency (experience needed*) and this is one of the main reasons why many traders prefer Kucoin over the more established competitors.

  2.  “Buy with Fiat” option.

    Kucoin exchange is one of a few that offers the option to buy crypto directly with a credit card on their platform which for many is an important feature when starting their online trading experience.

  3.  Lesser fees.

    Compared to many other exchanges, Kucoin exchange has trading fees starting at 0.1% which is below the industry standard (most commonly fees range between 0.15% to 0.25%), with the option to reduce your fees further by holding a certain amount of KSC which is the native Kucoin token.

  4.  Numerous competitions.

    The incentives run by Kucoin exchange are a great way to get some extra coins for free. Whether by taking part in competitions or completing tasks. These are happening pretty much every week.

  5.  Regular airdrops to token holders.

    If competitions are not your cup of tea, then you can just get lucky one day and find out that you’re being awarded an airdrop simply for holding a certain coin. This happened to me on a few occasions (see screenshots below), most recently for having some Tron in my account which was a nice bonus.
    They do airdrops quite often and they always make announcements about these on their telegram news channel so it’s good to keep an eye on these.

 

And here’s an EXTRA point to make: The Kucoin Bonus offers.
Members of this exchange can make additional profit from the KCS – the Kucoin native token that pays a daily bonus for holding the tokens and the second offering is the commission-based affiliate side of the business that will bring some extra coins to your wallet should you choose to promote them.

kucoin-referral bonus.jpgI am taking advantage of both of these bonus offerings and I am getting small rewards on a daily basis paid to me for holding some KCS coins and from the fees that Kucoin collects from the trading activity of my peeps so while this is by no means big money, it’s still something extra that comes passively and without any effort, so it’s worth considering it.

The bottom line is: Kucoin exchange is having a great choice of cryptocurrencies, all the most popular coins are listed as well as many lesser known ones and their bonus features are what really sets Kucoin exchange apart from its competition so go check it out here >>> kucoin-exchange <<<

 


Other posts you may like:

KuCoin Exchange – The Basics

Buy Bitcoin (and other crypto) in Kucoin exchange with a Credit Card.

 

LEDGER BLACK FRIDAY SALE is ON

It’s that time of the year again.

My favourite hardware wallet – Ledger Nano is having a massive sale offer ALL WEEK.

I’ve been using the Ledger devices ever since I got my first Bitcoin and throughout the years they improved their devices so much.
Ledger has been a solid little vault since the early days but the latest model and the upgrades to their firmware made it even better. Gone are the days where we had to choose between only 3 or 4 coins to store, the early Nano S model was having a very limited capacity but with the latest upgrade to its firmware, we can now store up to 10 different coin apps on the device and there are over 1000 to choose from.

What’s even better, the latest model – NANO X can store over 100 and it even has a Bluetooth option to navigate it from your mobile phone on the go – which is what I’m doing most of the time and this has really changed everything for me. I used to store smaller amounts of my coins in cloud wallets just to have the convenience to use them when I’m not at home or on short travels where I don’t carry my laptop with me but since I got the Nano X I don’t have to worry about this anymore, I just sync it with my phone app and I’m able to access all my crypto assets from anywhere – how good is that.

I’ve posted many tutorials on the Ledger devices over the past few years, the latest one was my Start-to-Finish tutorial on how to set up your Nano X device and how to restore it as a previous device – if you have already used a previous one, so make sure you check these out too.

So, if you’ve been eager to get your hands on one of these devices, now is your chance to get them at a great discount all week…

Yes, it’s really a week-long black Friday event and the sales are now ON. Click the banner below or to the right ——>>>
or use this link  to get the discount offer straight from their official website.

https://shop.ledger.com/pages/black-Friday?r=ea2f

Thank me later.

Ledger Nano X - The secure hardware wallet


Other posts you might like:

ICO, IEO, STO, IPO and FREECO Explained.

Segwit, Lightning Network & Big-blockers Vs Small-blockers Explained.

ADDY | WIRE | WALLET ADDRESS|Private and Public Key Explained.

20 Facts about Bitcoin you need to know

How to pay LESS FEES for Bitcoin transactions

CYA, CYOA, DYOR, ELI5, IMO & YABC Explained.

Welcome to another post from “Crypto Jargon” – the series where we break down the complex crypto terminology. Today’s article features the following slang acronyms:

These are acronyms mostly used on chat forums and twitter and haven’t quite made it into the mainstream yet, so if you happen to spot them and not sure what they stand for, keep reading:

  • CYA
  • CYOA
  • DYOR
  • ELI5
  • IMO
  • YABC

Starting with CYA and CYOA are referring to pretty much the same thing Cover Your Ass or Cover Your Own Ass and can mean two things:

First, it is referred to as covering your digital footprint, your online activity in order to not be identified. But more often it is used simply as a warning about careless investments of those who are new to the crypto space. It means that one should do a lot of research before they make a buy position of a cryptocurrency and make sure they set a stop-loss to protect against possible reverse in the market.

In that respect, similar usage has the acronym DYOR which stands for: Do Your Own Research. Not to be confused with the luxury fashion house of Dior. The warning here is that you really must protect yourself against losses and scams by doing a lot of research and mainly, Your Own Research, rather than just following other people’s advice blindly, which can get you in trouble.

There are too many Shills, Trolls and Scam artists, who can easily misguide you and cause you great losses. So, most of the influencers and content creators would always tell you to Cover Your Ass by Doing Your Own Research. By the way, Shill and Troll are terms I cover in another article in these series so look in the description here for the link.

Another common expression on forums and chat rooms is ELI5, which stands for: Explain Like I’m a 5-year-old, basically calling for a simple, easy to follow explanation of something that is usually more complex. Just what I am doing here with these series.

IMO, in My Opinion, I am doing a good job, wouldn’t you agree? This is what IMO stands for.

And lastly, YABC means “Yet Another Bitcoin Company” or it can also be used as “Another Blockchain Company”. It’s a term indicating that there is really nothing special with this specific company and that it is just trying to jump on the Bitcoin/Blockchain trend for more gains. There are thousands of companies that want to be associated with Bitcoin just to appear as cool and in 2017 there were many instances where businesses added the word Bitcoin or Blockchain to their brand name and saw huge increases in revenue as a result.

As you probably know I also post these definitions on my YouTube channel, here’s my episode with today’s terms:

If you liked this article, you will most certainly love my eBook “Crypto Jargon A-Z” – this is the most up-to-date publication of its kind. With over 700 terms, acronyms and trading slang, it contains everything related to cryptocurrencies and blockchain tech – all the complex terminology we use in media articles, blogs, forum chats, social media posts and of course video content too so go check it out on Amazon at one of the following links:

r_5z9VFhAGXB4lkIi

US https://www.amazon.com/dp/B07Y9DT3H6
UK https://www.amazon.co.uk/dp/B07Y9DT3H6
Germany https://www.amazon.de/dp/B07Y9DT3H6
France https://www.amazon.fr/dp/B07Y9DT3H6
Spain https://www.amazon.es/dp/B07Y9DT3H6
Italy https://www.amazon.it/dp/B07Y9DT3H6
Netherlands https://www.amazon.nl/dp/B07Y9DT3H6
Japan https://www.amazon.co.jp/dp/B07Y9DT3H6
Brazil https://www.amazon.com.br/dp/B07Y9DT3H6
Canada https://www.amazon.ca/dp/B07Y9DT3H6
Mexico https://www.amazon.com.mx/dp/B07Y9DT3H6
Australia https://www.amazon.com.au/dp/B07Y9DT3H6
Asia-Pacific https://www.amazon.in/dp/B07Y9DT3H6

=== ===

🏆Exchanges I use for trading crypto:

Binance
Kucoin 
Bittrex
Bitfinex
HitBtc 

=== ===

Where I buy crypto:

BitPanda (Europe)
Cex (Global)
Coinmama (Global)
Changelly (good for instant coins swaps)(Global)
Payeer (Europe, Asia, alternative to paypal)
Bitfinex 
Coinbase (USA, EU, Africa) Get $10 worth of Bitcoin on your first $100 crypto purchase with this link: http://bit.do/coinbase_join

=== ===

Where I store my crypto:

  • Ledger Nano – the best hardware wallet (offline storage)
  • Trezor – also one of the best wallets out there.
  • Exodus – desktop wallet
  • Coinomi – mobile phone wallet with instant coin swap feature
  • Crypto.com – mobile wallet and exchange

Ledger Nano X - The secure hardware wallet

DAPP, DAO, DAC, DAICO, DLT & DIF EXPLAINED.

Welcome to another edition of my short series “Crypto Jargon”. In these series, I break down the complex terminology we use in reference to cryptocurrencies and blockchain technology.

In today’s article: What is a

  • DAPP
  • DAO
  • DAC
  • DAICO
  • DLT
  • DIF

It seems we are stuck with the letter “D” today, so let’s get started.

First let’s look at the definition of DAPP, which stands for Decentralized Application – an application that is run by many users on a decentralized network on many computers instead of one, single unit and therefore is outside the purview and control of a single authority.

A standard web app, like Amazon or Twitter, runs on a computer system that is owned and operated by an organisation giving it full authority over the app and its workings. There may be multiple users on one side, but the back-end is controlled by one single organisation. In the context of cryptocurrencies, a dApp exists and runs on the blockchain network in a public, open-source, decentralised environment and is free from control and interference from any single authority. With trust-less protocols.

For example, a developer can create a Twitter-like dApp and run it on a blockchain where any user can tweet messages. Once posted, no one – including the app creators – can delete the tweets. Editing may be possible by the sender, but the original tweet would be retained forever. Many such applications use Ethereum smart contracts as their back-end code since Ethereum was built with the purpose of being a platform that specifically caters to the creation of dApps.

DApps can also serve as an acronym for Distributed Applications, which are software applications that are stored mostly on cloud computing platforms and that run on multiple systems simultaneously. The systems run on the same network and communicate with each other in an effort to complete a specific task or command.

The next acronym in this episode is DAO which in cryptocurrency terms stands for Decentralized Autonomous Organization. Also known as a DAC (the C stands for cooperative), so the DAO is a company or organization, that could carry out business according to rules that are encoded as smart contracts, needing no human management.

These rules are not susceptible to one person’s permission or control and cannot be changed by anyone person’s decision.

The best-known attempt at creating such an organisation was called “The DAO” and was hacked soon after it launched in June 2016 resulting in a loss of a third of its funds. The Ethereum developers just wanted to reverse the huge hack, it was accepted by consensus, but a small group wanted to retain it as it was before the hack, as they “believe it goes against their core values”. This led to Ethereum being hard-forked the following month and splitting to ETH (Ethereum) and ETC (Ethereum Classic). The DAO is often cited as one of Ethereum’s biggest stumbles to date.

Moving onto DAICO – an acronym for Decentralised Autonomous Initial Coin Offering.  A type of capital raising, originally proposed by Vitalik Buterin (founder of Ethereum). DAICOs have many features different from regular Initial Coin Offerings, but the most prominent feature is that the investors in a DAICO can take back their funds if the relevant project team does not fulfil certain conditions. In this respect, it acts similar to a STO which I explained on the previous episode of Crypto Jargon, you will find it popping up here right now or also in the description box of this video, so check it out.

Next is DLT – Distributed Ledger Technology. What is a Distributed Ledger then? In most simple terms this is publicly shared, replicable and synchronised data, spread across multiple networks, across many computers. It is a dynamic, independently maintained database, unlike a central ledger that is kept by a central agency, such as a bank and usually is not publicly accessible. So, DLT is the technology behind a Distributed Ledger.

And the last one for this article is DIF, an acronym for Decentralised Identity Foundation. This is a group of businesses and organisations working together to build a globally accepted identity verification system. The DIF uses blockchain technology to create a system that doesn’t require a centralised authority for purposes of identification.

As you probably know I also post these definitions on my YouTube channel, here’s my episode with today’s terms:

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🏆Exchanges I use for trading crypto:

Binance
Kucoin 
Bittrex
Bitfinex
HitBtc 

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Where I buy crypto:

BitPanda (Europe)
Cex (Global)
Coinmama (Global)
Changelly (good for instant coins swaps)(Global)
Payeer (Europe, Asia, alternative to paypal)
Bitfinex 
Coinbase (USA, EU, Africa) Get $10 worth of Bitcoin on your first $100 crypto purchase with this link: http://bit.do/coinbase_join

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Where I store my crypto:

  • Ledger Nano – the best hardware wallet (offline storage)
  • Trezor – also one of the best wallets out there.
  • Exodus – desktop wallet
  • Coinomi – mobile phone wallet with instant coin swap feature
  • Crypto.com – mobile wallet and exchange

Ledger Nano X - The secure hardware wallet