An easy to understand list of crypto terms used in my blog

Table of Contents

Airdrop

a way for crypto projects to send their native tokens directly to the wallets of their users in order to grow awareness and adoption.

Altcoin

Coins alternative to Bitcoin.

Blockchain

A digital ledger in which data are recorded.. In the case of cryptocurrencies, it is a decentralized, public ledger that contains transactional information. Blockchain refers in a bigger sense to the entire technology and design of the ledger system.

Decentralized

Any system without centralized points of organization or compromise; with no central authority. The ongoing aim of decentralization in the cryptocurrency community is to keep every moving part in the system (exchanges, wallets, coins and tokens, the blockchain, etc) to remain decentralized. Unfortunately, exchanges were the first to capitulate to government control and regulation. As a counterpoint, much of the architecture of decentralization is designed to maintain its advantages of privacy and self-determination.

KYC

Stands for “Know Your Customer”, a procedure in which exchanges and other transaction entities are required to verify the identity of their clients. Ostensibly, the excuse of governments at the national and state/provincial levels for forcing these business entities to have increasingly stringent KYC is to reduce money-laundering and other financial crime. The overreach of government imposed KYC further curtails the ability of individuals and companies to manage their own financial affairs as they so choose.

L1 (Layer 1)

refers to the blockchain itself; also called the base layer, mainchain, or mainnet.
e.g. Bitcoin, Ethereum, Cardano, Litecoin, Solana, Polkadot

LUNA

Luna is Terra protocol’s native token. Users can invest in it and stake it for passive income. You can purchase Luna through an exchange or from within many wallets, including Terra Station wallet. The other side to Terra tokens is its family of stablecoins, such as UST. These are pegged to fiat currencies such as the US dollar.

Staking

The act of locking in amounts of crypto tokens with a validator in order to participate in passive rewards on your investment. Interest rates paid out can range from 5 to 20% and higher.

Terra

The Terra protocol is a well established decentralized and open-source blockchain protocol for both its LUNA token and its stablecoins.

The Terra protocol creates stablecoins that remain pegged with the price of any fiat currency (such as UST to the US dollar). Users can trade, spend, save, or exchange Terra stablecoins instantly via the Terra blockchain. LUNA provides its holders with investment opportunity, staking rewards and governance ability. Terra’s ecosystem is a growing network of decentralized applications and many other initiatives in the crypto space.


Please note. This content is NOT financial advice. This content is for entertainment purposes only. All readers are advised to do their own research and act upon their own personal and independent conclusions. All opinions are my own, or those of this team. – Crypto Guy Paul