Last time, we kicked off our A-Z journey through crypto key concepts, starting with 'A' as the first part of our blog post series. Now, we're digging deep into the buzzing world of blockchain and cryptocurrencies, explaining some major 'B' common concepts you need to understand.
So, read, learn and enjoy!
1. Bitcoin: Our journey begins with the granddaddy of them all – Bitcoin. Created by the pseudonymous Satoshi Nakamoto in 2009, Bitcoin revolutionized the financial world by introducing decentralized digital currency. Its meteoric rise in value, from virtually zero to over $60,000 per coin at its peak, captured global attention.
2. Blockchain: The backbone of cryptocurrencies, blockchain is a decentralized ledger technology that records transactions in an immutable and transparent manner. Notable blockchain platforms include Ethereum, Binance Smart Chain (BNB), and Cardano.
3. Bull Market: A period of rising cryptocurrency prices driven by optimism and investor confidence. Recall the bull market of 2017, where Bitcoin reached an all-time high of nearly $20,000. It is expected that another bull run is forthcoming in 2024.
4. Bear Market: The opposite of a bull market, a bear market signifies a prolonged decline in crypto prices. The crypto winter of 2018 saw a bear market that lasted for almost two years. Since November 2021, the crypto market has been struggling due to the bearish trends in the market.
5. Binance: One of the largest cryptocurrency exchanges globally, Binance offers a multitude of trading pairs and services. Its rapid growth and innovations have made it a powerhouse in the industry.
6. Bitfinex: Known for its advanced trading features, Bitfinex has been a prominent player in the crypto exchange space. It has weathered its share of controversies but remains a significant exchange.
7. Bitcoin Halving: Approximately every four years, the Bitcoin network undergoes a halving event, reducing the block reward miners receive by half. The most recent halving occurred in May 2020, and historically, it has preceded significant price increases. Another Bitcoin halving is expected to happen in 2024.
8. Bagholder: Someone who holds onto a cryptocurrency that has decreased in value, hoping for a rebound. Many bagholders emerged during the ICO craze of 2017.
9. BUIDL: A play on the HODL meme, BUIDL encourages people to focus on building and developing blockchain projects instead of just holding tokens.
10. Blockchain Interoperability: The ability of different blockchain networks to communicate and share data. Projects like Polkadot and Cosmos aim to bridge the gap between blockchains.
11. BIPs (Bitcoin Improvement Proposals): These are documents outlining proposed changes or upgrades to the Bitcoin network. BIP 148 and BIP 141 were crucial in the development of Bitcoin's Segregated Witness (SegWit) upgrade.
12. Bitcoin ETF: Exchange-traded funds that track the price of Bitcoin. The approval of a Bitcoin ETF by the U.S. SEC is a hotly debated topic that could significantly impact the market.
13. Bounty: In the crypto world, a bounty is a reward offered for completing certain tasks related to a blockchain project. This can include finding and reporting bugs, marketing efforts, or community building.
14. Bug Bounty: Programs offered by crypto projects to incentivize security researchers to find and report vulnerabilities. Ethereum's bug bounty program, for instance, rewards those who uncover security flaws.
15. Binance Coin (BNB): The native cryptocurrency of Binance, BNB has seen substantial growth, fueled by its various use cases within the Binance ecosystem.
16. Blockchain Gaming: The integration of blockchain technology into gaming, allowing players to own, trade, and sell in-game assets as NFTs (non-fungible tokens). CryptoKitties, one of the first blockchain games, created a frenzy in 2017.
17. Bitcoin Maximalism: A belief that Bitcoin is the only true cryptocurrency, often shunning other blockchain projects. This philosophy has proponents like Max Keiser.
18. Blockchain Scalability: A pressing issue in the crypto space, scalability refers to a blockchain's ability to handle increased transaction volume. Solutions like Lightning Network for Bitcoin and sharding for Ethereum are actively being developed.
19. Bitcoin Pizza Day: On May 22, 2010, Laszlo Hanyecz made history by purchasing two pizzas for 10,000 BTC, marking the first-known commercial transaction with Bitcoin. It's a humorous reminder of Bitcoin's humble beginnings and the incredible journey it has taken since.
20. Bridge: A bridge in the crypto context refers to a technology that connects two different blockchains, allowing assets to move between them. For instance, the Wrapped Bitcoin (WBTC) on Ethereum is a bridge between the Bitcoin and Ethereum networks. Soon, we will be talking all about txBridge- which is one of our unique products txSync, representing the native bridge of zkSync.
There you have it frens, some key 'B' concepts that are fundamental to the world of blockchain and cryptocurrency. From Bitcoin's groundbreaking debut to the exciting innovations of DeFi and beyond, the crypto industry is continually evolving.
But our journey doesn’t end here. Stay tuned for 'C', where we'll continue to decode the cryptic language of the blockchain, enriching your crypto knowledge one letter at a time.
See you at the next letter!
*This article is also published on txFusion Medium channel.
