All The Ethereum Terms You Need To Know

ethereum-terms

This is a list of all the ethereum terms you need to be acquainted with as you trade ethereum. This terms will assist you trade ethereum with no constraints.

They are thoroughly simplified and explained in details to give you a concise insight into what they mean and how they are used.

We wrote a concise article on All The Cryptocurrency Terms You Need To Know. You should read it first because we shared some terms used in trading ethereum also.

This list on ethererum terms is only for terms related specifically to the trading of ethereum. In our previous post, we talked about general trading terms that applies to ethereum to.

ethereum terms

Ethereum is considered the second largest cryptocurrency after Bitcoin. It is a decentralized open source blockchain featuring smart contract functionality.

Ether by Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without any fraud, interruption, control, or interference from a third party.

In trading Ethereum, you may come across the acronym ETH. Do not fret, it means Ether or Ethereum just like BTC which refers to Bitcoin.

The following are a list of Ethereum specific terms and their definition. We have provided some outbound links to help you understand what each term means and how they are used.

Smart contract:

Smart contract is a code that is deployed onto the Ethereum blockchain, often directly interacting with how money flows.

Usually a transaction involves sending money from one person to another. In smart contract, sending money from one person to another is only possible when a certain condition is met.

Solidity:

Solidity is a language smart contracts can be written in. It shares some similarities with JavaScript.

DApp:

DApp means Decentralized Application. It refers to an application that uses an Ethereum smart contract as it’s back-end code.

The Flippening:

Ethereum believes it will become the world’s most valuable coin overtaking Bitcoin.

This future event which will see Ethereum’s market cap surpassing Bitcoin’s market cap to make Ethereum the most ‘valuable’ cryptocurrency in the world is called The Flippening.

 http://www.flippening.watch/ shows the rate of the flippening in real-time.

Gas:

Gas is the measurement of how much processing is required by the Ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.

Gas price:

The amount of ether to be spent for each gas unit on a transaction. The initiator of a transaction chooses and pays the gas price of the transaction. Transactions with higher gas prices are prioritized by the network.

Wei:

The same way you have denominations in local currencies, Ethereum has denominations to.

Wei is the smallest denomination of ether. 1 Ether = 1000000000000000000 Wei (1018)

Gwei:

Gwei is another denomination of ether. Gas prices are most often measured in Gwei. 1 Ether = 1000000000 Gwei. (109)

Finney, Szabo:

These are common denominations of ether. For the full denomination chart visit: https://ethereum.stackexchange.com/questions/253/the-ether-denominations-are-called-finney-szabo-and-wei-what-who-are-these-na

Raiden Network:

An upcoming protocol change to Ethereum that will enable high-speed transfers across the network. It is similar in some aspects to Bitcoin’s planned Lightning Network.

The name, possibly comes from the Mortal Kombat character named Raiden that can shoot lightning.

Read on at: https://themerkle.com/what-is-the-raiden-network/

Frontier, Homestead, Metropolis, Serenity:

The four planned stages of the Ethereum development roadmap. We are currently in the Homestead phase. The Metropolis update is likely to be available sometime in the next year.

MEW:

MyEtherWallet. A free site that can generate ethereum software wallets for you.

EEA:

This is an acronym which stands for Enterprise Ethereum Alliance.

It is a coalition of startups and corporations trying to figure out the best way to use this dang thing.

Vitalik Buterin:

One of the primary co-founders of Ethereum (and certainly the most well-known).Wikipedia has a biography you may want to read: https://en.wikipedia.org/wiki/Vitalik_Buterin

DAO:

This acronym stands for Decentralized Autonomous Organization. An investor-directed venture capital fund built on the Ethereum network that was hacked in June 2016.

The hack stole about a third of the DAO’s funds and led to Ethereum being hard-forked the following month. The DAO is often cited as one of Ethereum’s biggest stumbles thus far.

Conclusion:

I trust that with this list of Ethereum terms, your trading in Ethereum has been made easy. This list would go long way in demystifying the world of Ethereum and allow you trade successfully.

ALSO READ: All The Cryptocurrency Terms You Need To Know

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