Protocol

Protocol in crypto is a set of rules and procedures that govern how cryptocurrencies operate, including aspects like transaction validation, consensus mechanisms, and network communication.

Related Words

P2E

P2E is a shortened form of “Play to earn games.” Blockchain-based games that users tokens play to gain crypto.

P2P

P2P is a decentralized network, where each computer acts as a server and a client simultaneously. Two people can interact straightly with each other without a third party.

Pump and Dump

Pump and Dump is a way of price manipulation where the price of crypto is going up based on fake recommendations (pump) before the assets are sold at a higher price (dump).

Public Ledger

A Public Ledgre is a system that keeps records and could be called a data storage container. The ledger manages participants' identities anonymously, their cryptocurrency balances, and records all the transactions between network participants.

PoS

Proof-of-Stake (or PoS) is a consensus mechanism for blockchain needed to verify transactions and create new blocks, which is an alternative to PoW. Users lend their coins so that validators can verify transactions without the need for expensive hardware and computing power.

PoW

Proof-of-Work (or PoW) is a consensus mechanism needed to validate transactions and create new blocks. PoW requires miners to solve complex mathematical puzzles using hardware and a lot of computing power to validate transactions and add new blocks.

Private Key

A private key is a confidential, alphanumeric code that provides access to a user's digital assets and the ability to sign transactions on a blockchain. It must be kept secret and secure, as anyone with access to it can control and manage the associated crypto holdings.