Crypto Abecedarium
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Hash :: In the context of cryptocurrency, a hash is a function that takes an input (or 'message') and returns a fixed-size string of characters, which is typically a hexadecimal number. Hash functions play a crucial role in blockchain technology for data integrity and security.
Halving: Halving refers to an event in some cryptocurrency protocols, such as Bitcoin, where the reward that miners receive for validating transactions is reduced by half. This process occurs at regular intervals and is programmed into the cryptocurrency's code. The most well-known example is the Bitcoin halving, which happens approximately every four years.
Hot Wallet: A cryptocurrency wallet that is connected to the internet. Hot wallets are used for frequent transactions and are more susceptible to security risks compared to cold wallets.
Hardware Wallet: A physical device designed to securely store cryptocurrency private keys offline. Hardware wallets are considered more secure than software wallets because they are less vulnerable to hacking attempts.
Hard Fork: A hard fork is a significant and irreconcilable divergence in the blockchain's protocol, leading to a split into two separate chains. This usually occurs when there is a fundamental disagreement among the community or developers regarding the rules governing the blockchain. Participants who do not upgrade to the new protocol may continue on the old chain, while others move to the new one, resulting in the creation of two distinct cryptocurrencies.
Harvest: In DeFi, particularly in yield farming protocols, users can "harvest" their earnings. Yield farming involves participants providing liquidity to decentralized finance platforms in exchange for rewards, typically in the form of additional tokens or a percentage of transaction fees. The process of harvesting refers to the act of claiming and collecting these rewards.
Hard Cap: In the context of cryptocurrency, the "hard cap supply" refers to the maximum, predetermined limit of tokens or coins that will ever be created for a particular cryptocurrency. This limit is encoded in the cryptocurrency's protocol or smart contract and serves as a fundamental aspect of its tokenomics. The hard cap is designed to create scarcity and influence factors such as supply and demand dynamics, token value, and economic sustainability.
"HODL": It is a term that originated from a misspelling of "hold" in a Bitcoin forum post in 2013. The post, titled "I AM HODLING," essentially conveyed the idea of holding onto one's cryptocurrency investments despite market fluctuations rather than selling them.
Hybrid Consensus: Hybrid consensus refers to a combination of different consensus mechanisms within a blockchain network. For example, a cryptocurrency may use a combination of proof-of-work (PoW) and proof-of-stake (PoS) to achieve consensus. This hybrid approach aims to leverage the strengths of multiple consensus mechanisms while mitigating their individual weaknesses.