Cryptocurrency glossary of terms – Letters “H” and “I”


Confused by all the cryptocurrency terms out there? Delve into our easy-to-understand glossary of terms. This week, the letters H and I.

Hal Finney: Hal Finney was a cryptographer and programmer who pioneered the development of Bitcoin and worked with Satoshi Nakamoto. Sadly, Hal Finney died in Phoenix, Arizona on August 28, 2014 as a result of complications from ALS and was cryopreserved by the Alcor Life Extension Foundation. He was the recipient of the first bitcoin transaction when Satoshi Nakamoto sent him ten coins as proof, the amount at the time worth next to nothing.

cut in half: A bitcoin halving event is when the reward for mining bitcoin transactions is halved. This event also halves the inflation rate of bitcoin and the rate at which new bitcoins come into circulation. The halving occurs approximately every 4 years or, more precisely, every 210,000 blocks.

Hard cover: A cap is the absolute maximum supply of a digital asset. for example, the maximum limit for bitcoin is 21,000,000 bitcoin.

hardware wallet: A hardware wallet is a wallet for cryptocurrencies that usually looks like a USB stick. Both Trezor and Ledger are examples of hardware wallets.

hash rate: The hash rate is the unit of measurement of the processing power of the Bitcoin network. The Bitcoin network must perform intensive math for security purposes. When the network reached a hash rate of 10 Th/s, it meant that it could perform 10 trillion calculations per second.

hd wallet: An HD wallet, or hierarchical deterministic wallet, is a new-age digital wallet that automatically generates a tree-like hierarchical structure of private/public addresses (or keys). At creation, HD wallets also create a 12- or 24-word seed phrase that can be used to recreate the wallet.

HODL: “Hodl” is meant to encourage people not to impulsively sell when a cryptocurrency falls sharply or rises to become very profitable to sell. “HODL” also acts as an acronym for “Hold on for dear life”. You will often see the term in various cryptocurrency forums and social media circles. The term originated in 2013 with a misspelling of HOLD on the bitcointalk forum.

Hosted Wallet: A wallet managed by a third party service.

hot storage: The online storage of private keys that allows faster access to cryptocurrencies. It is never recommended to store large amounts of cryptocurrencies in hot storage.

hot purse: A cryptocurrency wallet that is connected to the internet for hot storage of crypto assets, as opposed to an offline cold wallet with cold storage.

Howey test: The Howey Test refers to the US Supreme Court case to determine whether a transaction qualifies as an “investment contract” and therefore would be considered a security and subject to disclosure requirements and registration under the Securities Act of 1933 and the Securities Exchange Act of 1934.

Hyperbitcoinization: The turning point where bitcoin becomes the world’s preferred medium of exchange.

ICO– an event where a company (usually a startup) attempted to raise capital by selling a new cryptocurrency, which investors can buy in the hope that the value of the cryptocurrency will rise, or to later exchange for the services offered for that company. . Keep in mind that there are many fraudulent ICOs, that is, without roadmaps, without white papers, or that disproportionately favor the development team.

Dex’s initial offer: An initial dex offering (IDX) is an alternative to an initial coin offering (ICO).

Initial exchange offer: A type of crowdfunding in which cryptocurrency startups raise capital by listing through an exchange.

Initial Public Offering (IPO): An initial public offering (IPO) is the process of a company offering shares for purchase on the stock market for the first time.

Initial Token Offering (ITO): ITOs are similar to initial coin offerings, but are more focused on offering tokens with intrinsic utility in the form of software or use in an ecosystem.

Insider trading: Insider trading occurs when someone buys or sells stock while in possession of material nonpublic information about that stock.

Instant: When a large portion of a coin’s total supply is distributed to investors shortly after launch.

Insurance Fund: An exchange insurance fund is used to cover any unexpected losses from leveraged trades. This fund is used to prevent traders from going bankrupt in the event of liquidations.

Interplanetary File System (IPFS): The InterPlatery File System is a distributed peer-to-peer system for storing and accessing files, as well as websites and applications, based on content addressing rather than location.

Intercontinental Exchange (ICE): Intercontinental Exchange (ICE) is an American company founded in 2000 to buy and operate global stock exchanges and clearinghouses.

Interest rates: A time-dependent charge or return made in proportion to the amount of money deposited, loaned, or borrowed.

Intermediary/Intermediary: A person or entity that acts as an intermediary between different parties to reach agreements or carry out directives.

Internet of Things: The Internet of Things (IoT) is a global interconnected network of devices, sensors, and software that can collect and exchange data with each other in real time over the Internet.

Intrinsic value: The intrinsic value of an asset represents the real value of the asset based on a complex financial calculation rather than its current price.

Invest: Investing is when you put money into a financial scheme with the intention of making a profit.

By Stephen Whitelaw