Our dictionary

Just as the name implies, microtransaction is a transaction with a relatively small value; this kind of transaction can often be seen in video games monetization systems. 

It's a process of obtaining cryptocurrency via the verification of cryptocurrency blocks and their introduction into the blockchain. The process of mining serves as a backbone for all the transactions conducted using a particular cryptocurrency because miners provide their computing power for blockchain verification purposes.

The mining algorithm is a hash function used in mining programs to mine cryptocurrencies. There are several kinds of mining algorithms, such as SHA-256, Scrypt, and CryptoNight.

Nowadays, mining takes a heavy toll on miner's hardware and requires a lot of computing power. A mining contract is an agreement of sorts that allows individual miners to make use of remote hardware farms for certain payments. This concept makes mining affordable for mining enthusiasts without access to powerful hardware.

A mining pool is a result of the cooperation of numerous miners. They share their computing power via network and split the reward in accordance with the level of contribution an individual miner makes to the common effort. The proof-of-work concept is used to distribute the reward fairly.

A mining rig is a pre-built set of hardware components dedicated explicitly to cryptocurrency mining. It usually consists of multiple heavy-duty GPUs linked together.

Minting is a process of handling information on the creation of new blocks in the blockchain and storing this information. It includes verifying transactions and receiving new coins as a reward for users.

Mixing services are a way of increasing anonymity of cryptocurrency transactions. By default, all the transactions are stored in the blockchain and can be publicly visible, because any person could trace it back to the original transmitter. The process of tumbling streams of cryptocurrency makes identification harder.

A mobile wallet is a cryptocurrency wallet stored on your mobile device, such as a smartphone or tablet as an app. Mobile cryptocurrency wallets usually have the same functionality as wallets dedicated to desktops.

Bitcoin is frequently mislabeled as an ‘anonymous’ currency, which is not quite correct. Monero (XMR), on the other hand, is a cryptocurrency that focuses on privacy – using the ring signature technology, XMR is ‘secure, private and untraceable’.

A process of removing connections between illegal activities and the funds obtained from it. In the cryptocurrency world, it is often connected with mixing and tumbling services, which is why they are illegal in some jurisdictions.

"Mooning" is a term describing the rate and speed of an upward price change. It originates from the "Going to the moon" expression, meaning that the price is changing with the speed of a flying rocket.

Namecoin is an alternative coin that was created as a result of the Bitcoin fork. It shares similar code, and the proof-of-work procedure is also the same, just like the 21 million coins limitation. However, it uses its own independent blockchain database.

NFC stands for Near-Field communication, a protocol widely used for communication between two electronic devices in very close proximity (about 4cm) to each other. It is mostly used for payment processing; this technology allows mobile device users to pay for goods and services easy and fast.

Just as the name implies, off-blockchain transactions are transactions during which the cryptocurrency value moves outside of the blockchain. Such transactions are especially popular between large participants because their cost is usually zero or very low.

A term used to describe the software with "open", publicly accessible code. Anyone could inspect it and modify it at will, as well as use it in one's own projects.

A block that wasn't accepted into the blockchain due to various reasons; the main reason is usually a time lag occurring during the procedure of acceptance. The other term used for such blocks is "detached" because they are isolated from the blockchain.

"OTC" stands for "Over-the-counter." The term refers to the process of security trading for the companies that are not listed on a formal exchange such as the London Stock Exchange (LSE). Securities that are traded over-the-counter are traded via a broker-dealer network as opposed to on a centralized exchange.

Outputs are sets of instructions for coin spending. The value of outputs equals the total amount of coins claimed. The sum of outputs must always be equal to the sum of inputs, no matter how many outputs there are (transaction fee is excluded). 

Peer-to-peer, (or its abbreviated form P2P) refers to a type of computer network, which use a distributed architecture. In P2P networks, all the interconnected devices and computers are called peers, and workloads are shared and exchanged among them. Each participant in such a peer-to-peer network is considered equal to all the others. Primary administration devices are absent in such patterns as well as privileged peers.