Virtual currency terminology blog
link: https://www.hu.com/question/22023800/answer/22741288
source: Zhihu
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the first conclusion: ripple is not a currency, but a payment network; XRP currency used in the network is a kind of currency. Compared with bitcoin, the former is a payment system, while the latter is money, which is not the same kind of things, so there is no substitutability
bitcoin has been fried rotten, and hushang's answer is close to saturation, so we don't need to repeat our work. Let's focus on ripple
what is ripple
ripple is an open payment network. Just like ripple, the word ripple emphasizes the flow and transmission of funds
in life, acquaintances borrow money from each other and may not write IOU. Sometimes, several friends borrow money from each other, generate multi angle debts, and may adjust the relationship of debts and creditor's rights according to the alienation of relatives. For example, a owes B 5 yuan, B owes C 5 yuan, and a and C are familiar with each other. Once three people discuss, they may directly ask a to repay C. In fact, not only between acquaintances, many small shops and small companies will allow acquaintances to write off on credit
that is to say, everyone is more willing to have debt relationship with the people they trust or are familiar with, and through the trust network between people, funds can flow smoothly
the above is the money network between people in the real world. If all this happens in the Internet world, it is the money flow system that ripple is trying to achieve
but in this network, the relationship between you and your trusted acquaintances is transformed into the relationship between you and your trusted gateway. As the name suggests, a gateway is a "gateway" between one network and another, that is, a network gateway. To go from one room to another, you have to go through a door. Similarly, to send information from one network to another, you have to go through a "gateway", which is the gateway. As the interface between network and network, network and the real world, gateway is like a bank counter, which converts your currency into a series of numbers in your account
what happens in ripple is just like the reality. When you change 100 RMB into FCY issued by gateway a through gateway a, you will have an extra amount of 100fcy in your ripple account. You can transfer the 100fcy to a stranger through gateway a, such as Xiao Ming, Xiaoming can exchange the money into real-world RMB through gateway a. In the whole process, the relationship between creditor's rights and debt changes as follows:
1. You deposit 100 RMB into gateway a, and gateway a owes you 100 RMB and gives you a 100fcy IOU
2. You pass the IOU of 100fcy to Xiaoming through gateway A. at this time, gateway a no longer owes you money, but owes Xiaoming RMB 100, because the IOU is in Xiaoming's hands
3. Xiao Ming takes the IOU to go to gateway a to cash RMB 100
in the whole process, you and Xiao Ming only establish a trust relationship with gateway a, but you and Xiao Ming do not need to establish a trust relationship
what is XRP coin
what is XRP coin at the beginning? Its main function is to pay transaction costs
XRP is a kind of cryptocurrency embedded in ripple system. Unlike bitcoin, ripple issued 100 billion XRP coins at the beginning of its establishment, and the total amount is no longer increasing, that is to say, it has g up the mine ahead of time. Each transaction (for example, you transfer 100fcy to Xiaoming) requires a small amount of XRP currency, which is technically destroyed directly. At the same time, XRP coins are also used as margin. When you open a ripple account, you need to put 50 XRP coins in it as a guarantee
according to opencoin, the issuing and maintenance company of ripple, the first 100 billion XRP coins will be given to investors and founders, 50 billion will be distributed free of charge (that is, opening accounts for free for a period of time), and the other 30 billion will be held by opencoin, which will be sold from time to time to make profits. Opencoin also admits that holding and selling XRP coins is the only way to make a profit<
ripple's influence
at the beginning of ripple's birth, rumors abound. Many people claim that ripple is more in line with the operation mode of money flow in reality, and will replace bitcoin in the future
but in fact, it is too early to judge whether ripple system can succeed. As soon as ripple started to operate, many problems have been exposed, including that its security is not as good as the official propaganda
at the beginning, ripple itself is just a new currency circulation system or payment network, and the essence of XRP currency is the lubricant to assist the currency circulation in the system. If this system is successful one day, it will only have a positive impact on the circulation of bitcoin. To say that "Ripple can replace bitcoin" is actually equivalent to saying that "Alipay can replace the renminbi" is wrong: the former is the payment system, the latter is the currency, not the same thing, so there is no replaceability. The emergence of Alipay has facilitated the payment and flow of RMB. Similarly, if the Ripple system is successful, its role is only to facilitate the payment and circulation of legal tender and bitcoin.
editor on February 22, 2014
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@ Feng Chiyu
only mentioned the scene of ripple when users and users pay, but ripple is far more than that. I add two points: trading system and automatic path search
through a gateway, you can deposit RMB, US dollars or virtual currencies, such as bitcoin and Leyte currency, into ripple wallet. And in this system, you can achieve any currency to buy or sell a single transaction. Trading here is better than trading platform. The transaction information of traditional trading platform is not open and opaque. In ripple, every order, cancellation and transaction record can be fully inquired. Through websocket interface, developers can also implement automatic trading program, and basically get real-time data in addition to network delay Network delay depends on the situation, the delay of using US server may be less than 0.1 second!) However, most of the traditional trading platforms have a certain cache time for the API interface. A few seconds of cache time may be fatal to the automatic trading program
with this trading market, ripple can realize a very advanced means of payment - automatic path search
to give a practical example, if I was a Chinese programmer working for a company in the United States, I might get us dollars through Western Union remittance or other ways before, and then I would go to the bank to exchange them for RMB. In the middle of this, the handling cost is relatively high. With ripple, I can do this now:
I trust a RMB gateway, such as ripplecn or ripplechina gateway, which is one of the best RMB gateways in China. Then American companies deposit bitcoin or US dollars through bitsmap gateway and send them to ripple. The service charge is only about 0.000012xrp, It is equivalent to about RMB 0.00000108. Then I will directly receive the CNY quota in the ripple system and withdraw it at the RMB gateway. The service charge for withdrawal is 3% for ripple CN gateway and 6% for ripple China gateway. It only takes a few seconds to complete the automatic exchange payment in ripple system
the full-automatic exchange in the payment step is the automatic path search of ripple, which is the essence of ripple system. Path automatic search relies on the above-mentioned hanging single transaction system. If the above American company deposits bitcoin, the system will complete the following calculation in a few seconds: query the amount of XRP after BTC / XRP exchange, and then the amount of CNY after XRP / CNY exchange. If there is a more appropriate path, such as BTC / USD - & gt; USD/XRP-> XRP / CNY, or BTC / USD - & gt; USD / CNY, the system will also automatically calculate and find the cheapest path for the sender to complete the exchange payment
once, I used ripplecn gateway CNY, and my friend only trusted ripplechina. He wanted me to give him 10 yuan, so I entered the sending interface to input 10 yuan, but the system showed that I only needed to send 9.9998 yuan. Because there is a price difference between the two gateways in the CNY / XRP trading market, the system automatically realizes the path search and provides me with the cheapest payment path
there will be many applications on ripple in the future, and ripple's second payment experience is excellent. If you have a ripple wallet, try clicking send in the wallet and the recipient enters it [email protected] perhaps [email protected] There will be a call fee and Q coin recharge interface, which is an application I made for ripple. You can use XRP, U.S. dollar, RMB, bitcoin and other currencies to purchase q-coin, and exchange it into RMB in seconds to complete the recharge request automatically
ripple is likely to go against the weather in the future. As for bitcoin? His role in the virtual currency instry is similar to that of legal currency, which is totally different from ripple's payment system<
editor on February 27, 2014
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ripple basic concept and principle, others have answered, simply speaking, it is a payment network, anyone can become a node of this network to issue currency and then circulate throughout the network. There are some innovations
but in the long run, it must grow faster than bitcoin, otherwise it is likely to lose in the competition, because at present, most of its functions can be realized in bitcoin network
from a technical point of view, because bitcoin has "dyeing" technology, anyone can issue currency, stocks, funds and so on by becoming a node on the bitcoin network. Assuming that the bitcoin is fully legalized, Alipay will turn 1 bitcoin "dyed" into the one and only special bitcoin that is unique and unforgery in the bitcoin network. Then it will promise the public that the stained coin can be exchanged for Alipay by 1 yuan. So the public can use Renminbi to exchange Alipay's "bit yuan" for consumption and payment. So these special bitcoins have what experts call "guarantee" or "anchor". As long as Alipay is credible, these "bit yuan" will always be valuable and can be used safely. At the same time, as bitcoin transactions are open throughout the network, everyone can see how much Alipay has issued "bit yuan", whether it has spammed money and oversold its own assets to guarantee the currency. So the only advantage of ripple in technology is that it can transfer money quickly. It doesn't need bitcoin to wait for dozens of minutes. But in the long run, bitcoin can speed up the transfer speed to a few minutes in the future through technical upgrading
blockchain blockchain is a new application mode of computer technology such as distributed data storage, point-to-point transmission, consensus mechanism and cryptocurrency algorithm. Is a shared distributed ledger in which transactions are permanently recorded through additional blocks
2, block - block
in the bitcoin network, data will be permanently recorded in the form of files, which we call blocks. A block is a set of records for some or all of the latest bitcoin transactions and is not recorded by other previous blocks
3. Node -- a of the ledger operated by the participants of the blockchain network
Decentralization is a phenomenon or structure, which can only appear or exist in a system with many nodes or in a group with many indivials. The influence between nodes will form nonlinear causality through the network5. Consensus mechanism
consensus mechanism is to complete the verification and confirmation of the transaction in a very short time through the voting of special nodes; For a transaction, if several nodes with unrelated interests can reach a consensus, we can think that the whole network can also reach a consensus
6. POW -- proof of work refers to how much money you get depends on the amount of work you contribute to mining. The better the performance of the computer, the more money you will be given
In POS mode, your "mining" income is directly proportional to your currency age, and has nothing to do with the computing performance of the computer8. Smart contract
smart contract is a kind of computer protocol which aims to spread, verify or execute the contract in an information way. Smart contracts allow trusted transactions without a third party, which are traceable and irreversible
9, time stamp
time stamp refers to the string or encoding information used to identify the recorded time and date. The international standard is ISO 8601
Turing completion refers to the ability of a machine to perform calculations that any other programmable computer can perform DAPP decentralized application is an open source application that runs automatically, stores its data on the blockchain, motivates it in the form of cryptocurrency token, and operates with protocols showing valuable proof Dao, a decentralized autonomous organization, can be regarded as a company that operates without any human intervention and gives all forms of control to a set of unbreakable business rules13. Privatekey - private key
a private key is a string of data that allows you to access a token in a specific wallet. As cryptocurrency, they are hidden except for the owner of the address
14. Publickey -- public key
is paired with private key. The public key can calculate the address of the currency, so it can be used as a certificate to own the address of the currency
15, miner
try to create a block and add it to the computing device or software on the blockchain. In a blockchain network, when a new effective block is created, the system will automatically give the block creator (miner) a certain number of tokens as a reward
16. The mine pool is a fully automatic mining platform, which enables mining machines to contribute their computing power to mine together to create blocks, obtain block rewards, and distribute profits according to the proportion of computing power contribution (that is, mining machines access the mine pool - provide computing power - obtain income)
17, public chain
fully open blockchain, refers to anyone can read, anyone can send transactions and transactions can be effectively confirmed, people all over the world can participate in system maintenance, anyone can read and write data through transactions or mining
18. Private chain
write permission is only for the blockchain of a certain organization or a specific few objects. Read permission can be open to the outside world or restricted to any extent
19, alliance chain
consensus mechanism is a blockchain jointly controlled by several designated institutions
20, side chain
wedged side chains technology, which will realize the transfer of bitcoin and other digital assets between multiple blockchains, which means that users can access the new cryptocurrency system when they use their existing assets
21, cross chain technology
cross chain technology can be understood as a bridge connecting the blockchains, and its main application is to realize atom transaction, asset conversion, information exchange within the blockchain, or solve Oracle problems among the blockchains
22. The hard fork
blockchain has permanent divergence. After the release of the new consensus rules, some nodes that have not been upgraded cannot verify the blocks proced by the upgraded nodes, and usually the hard fork will occur
23, soft forking
when the new consensus rules are released, nodes that have not been upgraded will proce illegal blocks because they do not know the new consensus rules, which will lead to temporary forking
24, hash -- hash value
generally translated as "hash", but also directly transliterated as "hash". In short, it is a function that compresses messages of any length to a message digest of a fixed length
25, main chain
the word "main chain" comes from the main network (, relative to the test network), that is, the officially online and independent blockchain network
for those who don't know the "jargon" in the currency circle, let's learn it as soon as possible:
1. What is legal currency legal currency is legal tender, which is issued by the state and the government. It is only guaranteed by the government credit, such as RMB, US dollar and so on 2. What is a token token, usually translated into token. Token is one of the important concepts in blockchain. Its more well-known name is "token". However, in the view of professional "chain circle" people, its more accurate translation is "token", which represents a proof of rights and interests on the blockchain, rather than currency token one is digital proof of rights and interests, which must be in the form of digital certificate of rights and interests, representing a right, an inherent and intrinsic value
3. What is warehouse building
the establishment of a position in a currency circle is also called opening a position, which refers to a trader's new purchase or sale of a certain amount of digital currency
What is Sohasuoha refers to investing all the principal
What is airdrop
airdrop is a very popular marketing method of cryptocurrency. In order to let potential investors and cryptocurrency enthusiasts get token related information, token teams often air drop tokens
6. What is lockup position locking generally refers to investors opening a new position opposite to their original position when the market moves in the opposite direction after the sale and purchase contract, which is also called lock, lock order, or even butterfly double flying doughnut candy is a kind of free digital currency issued to users when all kinds of digital currencies are just issued in ICO. It is a kind of momentum and publicity of the project itself by the issuers of virtual currency projects
breaking refers to falling below, and issuing refers to the issuing price of digital currency. Broken currency circle refers to the price of a digital currency falling below the issue price
What is private placementprivate placement is a way to invest in cryptocurrency projects, and it is also the best way for cryptocurrency project founders to raise funds for platform operation
What do you think of the K-line diagram
K-line chart is also called candle chart, Japanese line, yin-yang line, bar line, red and black line, etc., commonly referred to as "K-line". It is based on the opening price, the highest price, the lowest price and the closing price of each analysis cycle
What is hedging
General hedging refers to two transactions which are related to the market, opposite in direction, equal in quantity and balanced in profit and loss. In the futures contract market, buy the same number of positions with different directions. When the direction is determined, close out the positions in the opposite direction and keep the positive direction to make profits
What is the positionposition is a kind of market agreement, which promises the initial position of the sale and purchase contract, and the buyer is long and in the expected position; The selling contract is short and in the expected position
What are the advantagesgood news: refers to the news that the currency gets the attention of the mainstream media, or a breakthrough in the application of a technology, which is concive to stimulating the price rise
14. What is bad news
bad news: news that causes the price of bitcoin to fall, such as technical problems of bitcoin, central bank's crackdown, etc
What is reboundthe phenomenon of currency price rising e to rapid decline in the downward trend. The recovery is less than the decline
What is leverage
leverage trading, as the name suggests, is to use small amount of funds to invest several times the original amount, in order to obtain multiple returns or losses relative to the fluctuations of the investment object
In my opinion, we can start with mainstream value currencies such as BTC now. Judging from the trend of BTC in the past year, it is basically at the bottom now. Even if it is possible to fall further, it will not fall too much. Ten years of history shows that BTC is certainly valuable, and BTC will definitely appreciate in the future. After all, it is the gold of the currency circle, which is rare and has the greatest consensus. The above is just a personal statement and does not constitute an investment proposal. Investment should be cautious! Finally, I declare that if you lose money by investing in virtual currency, I will not bear any legal responsibility
Virtual currency wallets and local wallets are wallets specially used to store virtual currency
difference: local wallets are installed on their own computers or mobile phones, while online wallets encrypt the private key and put it on the server
personal computers may be implanted with Trojans; The wallet server also has the risk of being attacked by hackers, and the encrypted private key is cracked. Server security is better than personal computers, but it is easier to attract hackers' attention
virtual currency Wallet:
there are three main types: Online wallet, client wallet (mobile client, computer client) and hard wallet
1. Online Wallet: it refers to the operation of virtual currency relative to wallet by users in the form of network; The main form is website, which users can visit through computer and mobile phone
2. Client Wallet: it is an installation software, which needs to be downloaded to the computer or mobile phone, and can only be used after installation; This is the type of mobile app wallet that I just mentioned
3. Hard Wallet: it is similar to the wallet in the form of U disk, which is a real type of wallet
local Wallet:
the English name of local wallet is local wallet. Local wallet is to store private key and transaction data in local terminal, such as computer, mobile phone or other local devices; It refers to the storage location of the key, and its concept is independent of online wallet and offline wallet
the English name of local wallet is local wallet. It is one of the terms related to bitcoin wallet in blockchain. Local wallet is to store private key and transaction data in local terminal, such as computer, mobile phone or other local devices; Local wallet refers to the storage location of key, which is independent of online wallet and offline wallet
the local wallet is installed on your own computer or mobile phone, while the online wallet is encrypted and put on the server. Personal computers may be implanted with Trojans. Hackers may steal your wallet files and record your wallet password; The wallet server may also be attacked by hackers, and the encrypted private key may be cracked. Server security protection is better than personal computers, but it is also easier to attract hackers' attention. In terms of security, I think these two types of wallets are similar
to enhance the security of local wallet and online wallet, it's better to set a more complex password, and don't forget it. Both local wallet and online wallet are easy to use and easy to use. Because online wallet is not limited by clients, it is easier to use than local wallet. Bitcoin core, Bitai wallet and bitpai wallet all belong to this category
local Wallet_ Network
Money laundering is a professional term in the financial instry, which is the act of legalizing illegal gains. Mainly refers to the illegal income and its income, through various means to conceal, conceal its source and nature, make it legalized in form. In the 1920s, a financial expert from the Chicago Mafia bought a coin operated washing machine and opened a laundry. Every night, he adds illegal money to the settlement of the day's laundry income, and then returns to the tax bureau. After tax, all the illegal income becomes his legal income, which is & lt; Money laundering; The origin of the word
money laundering can coexist with most crimes and is the downstream crime of these crimes. From the judicial point of view, money laundering has become a kind of crime; Crime barriers;, It not only hinders judicial activities, but also encourages criminals to be fearless and encourage them to continue to commit crimes. From the perspective of financial management order, money laundering activities often use the legal financial network to launder money, which not only violates the financial management order, but also seriously destroys the rules of fair competition and the free competition between the main bodies of market economy, thus bringing a certain negative impact on the normal and stable economic order. Money laundering is usually aimed at hiding the source of assets
this is a professional term of trading platform, which is easy to understand
the current virtual currency circle is full of weeds, so investors need to be more cautious, especially for the new virtual currencies, which are mostly MLM currencies. The old virtual currencies include bitcoin, Ruitai coin, Laite coin, Ethereum and so on.
lightning network is a kind of chain breaking technology, which uses layer 2 to eliminate the transaction processing capacity of bitcoin
examples of terminology usage
bitfinex plans to implement tether based lightning network (usdt)
detailed description
if lightning network is introced, it is possible to trade outside the crowded blockchain, so as to speed up the transaction speed and rece the cost. If you can speed up transactions and rece costs, you can make small payments, which is expected to create new procts and services
Mining pool is an organized server, which is created to collect the hash value of each miner and cooperate in mining
examples of terminology usage
the rewards earned by the virtual currency exchange binance in the mining pool can be directly traded by binance
detailed description
in the mining business of vital scale, a mechanism for multiple miners to cooperate in mining. The reward is paid according to the contribution of the mining
7. Half lifehalf life refers to the time when the mining reward (= new circulation) of bitcoin and other virtual currencies is reced by half
examples of terminology usage
cryptocurrency bitcoin (BTC) will reach its third half-life on May 12, 2020, and the mining reward will be reced from 12.5 BTC to 6.25 BTC
detailed description
many virtual currencies have "issuance limits" to prevent inflation, and the new issuance will be reced by half every certain interval of half-life. This is also a noteworthy event unique to virtual money, because with the decrease of supply and the rising of price, the scarcity value increases significantly
utility token is a utility token that acts as a right to use a specific service
examples of terminology usage
utility tokens are premised on the use of services
detailed description
you can settle the price of goods and meals instead of cash, and you can access it by having cloud storage. For utility tokens, there is no need to audit the classification of the report
public chain is a highly "public" blockchain, anyone can freely participate in the network
example of terminology usage
as an infrastructure project for mediating data exchange between blockchains, a mechanism for data exchange on public blockchains will be established
detailed description
in the blockchain used to record the transaction information of encrypted assets (virtual currency), this is a mechanism used by an unspecified number of participants to establish transaction information by consensus without a specific management entity. It is very safe to prevent forgery of transaction information, but it requires a lot of calculation, so its disadvantage is that it takes a long time to complete the transaction when there are many participants
7. Scalabilityscalability refers to the scalability of delayed transaction processing
examples of terminology usage
soaring gasoline prices highlight Ethereum's scalability issues
detailed description
e to the nature of blockchain and the limited amount of transaction data that can be written in a block, the processing is delayed. Remittances can take a long time, which can lead to higher transaction costs. Bitcoin is the first cryptocurrency born, which has been considered as a special problem, but efforts to solve this problem have been implemented, such as using other technologies such as lightning network and developing new blockchain
8. Gas costgas cost is the (Network) transaction cost on Ethereum blockchain
examples of terminology usage
this week, on the Ethereum blockchain, although there are a small amount of remittances, there are still many cases of high natural gas bills being paid
detailed description
the gas fee of user specified amount is the secondary reward. Eth, the virtual currency, is used for payment. Since the transaction with higher cost should be dealt with first, the gas cost may increase with the increase of transaction number
9. Liquidity mining (liquidity mining)considering the provision of liquidity (currency pair), liquidity mining is to grant governance token in addition to interest, so as to attract those who implement the rate of return balance
examples of terminology usage
detailed description
in liquidity mining, by storing specific assets in the liquidity pool and providing liquidity that traders can buy and sell, the swap fee at that time can be obtained as income. These liquidity mining originated from the largest decentralized exchange "uniswap", and many liquidity mining contracts were born, such as curve finance and balancer
10. Defi (distributed Finance)defi (decentralized Finance) refers to the financial services or systems that use blockchain and provide without a central administrator
examples of terminology usage
since June 2020, the market of defi has developed rapidly
specify the abbreviation of "decentralized finance". The financial services offered by defi include the issuance of stable coins, lending currency and cryptocurrency exchanges. Many platforms use Ethereum blockchain
11. POS (proof of equity)POS is a consensus algorithm, which allows you to approve and generate new block rights according to the percentage (equity) of your own virtual currency
According to vitalik buterin, co-founder of Ethereum, migrating eth's consensus algorithm from POW to POS will improve security and scalabilityspecify the abbreviation of
proof of interest. We can also consider the holding period of virtual currency. It was born as an alternative to the "proof of work (POW)" consensus algorithm, which requires high-performance computers to approve transactions and consumes a lot of energy. If approved, you can receive a new virtual currency as a reward
12. DappsDAPP is an application developed with open source blockchain
examples of terminology usage
Galaxy store, the largest Samsung Electronics app store in South Korea, has started to use Tron's blockchain to process dapps
detailed description
the abbreviation of "distributed application" is called "distributed application" in Japanese. One of the main features is that there is no centralized administrator. The most popular is Ethereum blockchain, which is developing applications such as games and decentralized exchange (DEX)