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Fintech: a glossary to understand the world of blockchain and crypto-currencies
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Fintech: a glossary to understand the world of blockchain and crypto-currencies

New Fintech interviews of entrepreneurs active in blockchain and cryptocurrency in Switzerland are in preparation. Before they are published, we invite you to discover the meaning of the abbreviations and terms used to better understand this fascinating world.

 

The crypto-glossary
 

Blockchain:

Blockchain is a technology that can structure data, identify and track transactions, and share information across a distributed network of computers, creating a "distributed trust network". Founding crypto-currencies like Bitcoin, the Blockchain provides a transparent and secure way to track asset ownership and transfer.

The technology makes it possible to share a large digital book on a computer network without the need for a central authority and without any party being able to alter a file, which is why it is considered as the most potential technological innovation. important since the internet.

 

Cryptocurrency:

A cryptocurrency is a virtual currency that exists only numerically and relies on cryptography for its security. Difficult to counterfeit thanks to this characteristic, its main attraction is its organic nature. It uses a decentralized system to record transactions and manage the issuance of new units. A cryptocurrency is not issued by any central authority, which makes it theoretically not vulnerable to government interference or manipulation.

 

Bitcoin (BTC):

Launched in 2009, Bitcoin is the first cryptocurrency to see the light of day. It offers a purely peer-to-peer electronic payment system and follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose identity has not yet been verified.

Supported by no central bank or government, its success has spawned a number of competing cryptocurrencies.

 

Cryptocurrency exchange or Digital Currency Exchange (DCE):

Cryptocurrency exchange platforms allow instant transactions with cryptocurrencies. You can buy or sell them for conventional currencies, or exchange them for units of another digital currency. Most of these exchanges take place 24 hours a day. One of the advantages of these platforms is anonymity. All transactions are reliably protected by modern technological solutions.

 

DAO (Decentralized Autonomous Organization):

DAOs are based on an ideal: the entity lives on the internet, operates through a computer program that provides governance rules to a community and exists independently while relying on the hiring of individuals to perform the tasks which can not be automated. First autonomous global decentralized organization: wikileaks - designed to fight against political censorship and bring transparency to the international level. While banks and PayPal closed their accounts, the Bitcoin community created a BTC portfolio and allowed the company to survive and obtain financing.

DAOs are also known as smart contracts systems, records and programs are kept on the blockchain.

 

DMS (Decentralized Meritocratic System):

Groups of people and businesses who share the same values, partner to create a community-centric platform. Depending on the contributions, each member is rewarded. The community develops around a common vision and ideology.

 

ICO (Initial Coin Offering):

ICO is an unregulated way for a cryptocurrency company to raise money. It is used by startups to bypass rigorous capital raising processes. This method works by issuing digital assets exchangeable for cryptocurrencies.

It was with Ethereum that raised over $ 18 million that the scale of ICOs began. A success that shows how much the economy was waiting for a new form of financing.

 

Smart Contract:

These are intelligent contracts with automatic execution, whose terms between the seller and the buyer are defined in the lines of code. Its content exists on a decentralized blockchain network that allows for transactions and agreements of trust without the need for a central authority, legal system or external enforcement mechanism. Transactions are thus made traceable, transparent and irreversible.

 

Token:

Digital assets purchased through an ICO are called tokens (tokens in French) and denote an identifier.