The most comprehensive crypto glossary for Intermediate level

The most comprehensive crypto glossary out there.

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SHO (strong holder offering)

A fundraising mechanism where investors are selected based on their online activity. This method allows the project to attract funding from persons who are holders of its cryptocurrency.

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Level: Intermediate

Sharpe ratio

This is the ratio that investors and economists use to estimate the potential return on investment (ROI) in relation to risk. Technically, it measures the past performance of a portfolio - or its expected future performance - by taking into account the excess risk that the investor has taken on.

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Level: Intermediate

Shadow vote

The voice of a token holder with no economic interest in the protocol. This can be achieved by borrowing a governance token, voting for it, and then returning it to the lender. An attacker issues a flash loan, votes and returns the loan in one atomic transaction, without incurring capital maintenance or interest payments.

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Level: Intermediate

Sentiment

The general attitude of the community towards cryptocurrency or within investors towards a particular financial market, which usually shows a very subjective perception of market conditions. This is a common emotion in relation to the price behavior of a particular asset.

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Level: Intermediate

Semantic Web

A version of the World Wide Web that can expand on the parameters set by the World Wide Web Consortium (W3C). The semantic web is designed to allow Internet data to become machine-readable, leading to a much richer experience for transacting, data usage, and the sharing of information.

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Level: Intermediate

Sell wall

The term means one very large or collection of sell limit orders at the same price level in the order book. Although a sell wall can be created by a single order, a sum of several orders placed at the same price level can also form it. Usually, when a wall is created by one trader, they are called whales.

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Level: Intermediate

Self funding

Definitely means ​​providing money for a project or course of action oneself. Self-funded blockchain uses a built-in mechanism in which part of the block reward goes to funding the development.

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Level: Intermediate

Selfish mining

A strategy that involves the formation of a cartel of miners who "hide" their generated blocks from the main blockchain. It’s proved that miners can earn more bitcoins by hiding newly generated blocks from the main blockchain and creating a separate fork.

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Level: Intermediate

Security audit

Systematic analysis to assess how secure a blockchain or a crypto platform is against attacks or technical failures. It consists of the systematic analysis of the system and database to assess its reliability and security. In the context of blockchains, a security audit consists of a peer review of a smart contract or blockchain code to identify potential bugs or flaws.

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Level: Intermediate

Security (financial asset)

A fungible, negotiable financial instrument that holds some type of monetary value. It can be any tradable financial asset like a stock, bond, commodity, or derivative. However, the term varies by geographical location because different jurisdictions use different legal classifications to determine what constitutes a security. Even some cryptocurrencies are considered securities in different regions.

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Level: Intermediate

Securitization

A process of pooling an asset into a security. These can include residential and commercial mortgages, car loans, credit card debt, and other forms of debt, which are packaged, bought, securitized, and sold to prospective investors. Securitization often comes in the form of mortgage-backed securities (MBS) and asset-backed securities (ABS).

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Level: Intermediate

Secret smart contract

A type of smart contract that allows private data to be used in decentralized applications without revealing the raw data.

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Level: Intermediate

Secondary market

The term refers to the traditional stock market. It is known as the secondary market because before bonds, stocks, derivatives, and other financial instruments are sold on the stock market, they are sold on the primary market. In a broader context, a secondary market is any trading platform that is used to exchange goods or assets that are not used for their primary purpose (for example, corn for ethanol instead of food or livestock feed).

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Level: Intermediate

Scrypt

A hash function that converts an input of symbols into an encrypted output. Scrypt is one of the first hashing algorithms implemented on blockchain networks. It was developed as a solution to mitigate the growing dominance of ASIC mining platforms and the subsequent centralization of cryptocurrency mining.

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Level: Intermediate

Schnorr signature

A digital signature scheme that allows for multi-signature aggregation, while also providing both scaling and privacy benefits.

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Level: Intermediate

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