Crypto Glossary

Hello Myners! Here are some more cryptocurrency terms for you to write down.

What is a crypto airdrop?

Airdrops are when cryptocurrency projects distribute free tokens to their community to stimulate adoption.

Crypto users who interact with new and existing platforms regularly are likely to receive an airdrop at some point. As part of a larger marketing campaign, blockchain-based organizations and developers distribute free tokens to members of their communities.

The fundamental concept is to deliver newly created tokens to hundreds or thousands of different wallet addresses in the hopes that receivers will become more interested in the corresponding project — even if it’s just to learn how to cash out the free tokens into anything else.

What is gas?

The charge or pricing value, necessary to complete a transaction or execute a contract on the Ethereum blockchain network is referred to as gas. The gas is used to allocate resources of the Ethereum virtual machine (EVM) so that decentralized applications such as smart contracts can self-execute in a secure but decentralized manner. It is priced in small fractions of the cryptocurrency ether (ETH), commonly called gwei and sometimes called nanoeth.

The actual price of gas is controlled by supply and demand between network miners, who can refuse to execute a transaction if the gas price falls below their threshold, and network users looking for processing capacity.

What is peer-to-peer networking?

The interchange or sharing of information, data, or assets between parties without the intervention of a central authority is referred to as peer-to-peer. Peer-to-peer (P2P) contact is characterized by decentralized interactions between people and groups. This method has been utilized in computers and networking (peer-to-peer file sharing) and virtual currency trading.