In the digital age, blockchain technology has emerged as a revolutionary topic. As a decentralized data storage technology, blockchain serves as the foundation for cryptocurrencies like Bitcoin and holds vast potential across sectors such as finance, supply chain management, and healthcare. This article introduces 10 key blockchain terms and concepts to help readers grasp the fundamentals of this transformative technology.
Blockchain Basics
Blockchain
A decentralized digital ledger maintained by a network of computers globally. Data is organized into cryptographically secured blocks, offering transparency, immutability, and anonymity.
DeFi (Decentralized Finance)
Financial services built on blockchain (primarily Ethereum), including decentralized trading, lending, and investment strategies.
DAO (Decentralized Autonomous Organization)
A blockchain-based organization governed by smart contracts, enabling stakeholder voting and decentralized decision-making.
DEX (Decentralized Exchange)
A peer-to-peer marketplace powered by smart contracts, eliminating intermediaries.
CEX (Centralized Exchange)
Traditional platforms (e.g., Binance) where transactions are managed by a central authority.
NFT (Non-Fungible Token)
Unique digital assets (e.g., art, collectibles) verified via blockchain.
Wallet Address
A unique alphanumeric identifier for sending/receiving cryptocurrencies.
Gas Fee
Transaction processing fees paid to blockchain validators ("miners").
Staking
Locking crypto assets to support network operations and earn rewards.
Smart Contract
Self-executing agreements triggered by predefined conditions.
Investment Terms
Bull/Bear Market
- Bull Market: Prices rise (like an upward bull charge).
- Bear Market: Prices fall (like a downward bear swipe).
ATH (All-Time High)
An asset’s peak historical price.
FOMO (Fear of Missing Out)
Irrational buying driven by hype.
HODL
Holding crypto despite volatility.
DYOR (Do Your Own Research)
A reminder to analyze investments independently.
FAQs
Q: What’s the difference between DEX and CEX?
A: DEXs are peer-to-peer; CEXs rely on intermediaries (e.g., Coinbase).
Q: Why are Gas Fees necessary?
A: They compensate validators for securing transactions.
Q: How do NFTs create value?
A: Scarcity and verifiable ownership drive demand for digital assets.
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References: Industry reports, Ethereum Foundation.