Crypto Abecedarium
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Public Key: A cryptographic key that is used to encrypt data and create digital signatures. It is part of a public-private key pair and is shared openly.
Private Key: The counterpart to a public key, the private key is kept secret and is used for decrypting data encrypted with the corresponding public key and for creating digital signatures.
Peer-to-Peer (P2P): A decentralized network architecture where participants interact directly with each other without the need for a central authority. Many cryptocurrencies, like Bitcoin, operate on a P2P network.
Proof of Work (PoW): A consensus algorithm used by some blockchains, including Bitcoin. In PoW, participants (miners) solve complex mathematical problems to validate transactions and create new blocks, requiring computational power and energy.
Proof of Stake (PoS): Another consensus algorithm used in some blockchains where validators are chosen to create new blocks and validate transactions based on the amount of cryptocurrency they hold and are willing to "stake" as collateral.
Protocol: In the context of cryptocurrency and blockchain technology, a "protocol" refers to a set of rules and specifications that define how data is transmitted, validated, and processed within a network. These rules govern the interactions between participants in the network and ensure the secure and consistent operation of the system.
Pledge: In the context of cryptocurrency and blockchain, "pledge" is often used interchangeably with "collateral." Pledging refers to the act of committing or locking up a certain amount of cryptocurrency as collateral to participate in various blockchain-based activities.
Paper Wallet: A paper wallet in the context of cryptocurrencies refers to a physical document or printout that contains the essential information needed to access and manage a cryptocurrency wallet. It's a form of cold storage, meaning that the private keys necessary for controlling the associated cryptocurrency holdings are kept offline, making it less susceptible to hacking or online threats.
Pegged Asset: A pegged currency in the context of cryptocurrencies refers to a digital asset whose value is tied or "pegged" to the value of another asset, typically a fiat currency or a commodity. This pegging is usually done to provide stability and reduce volatility in the price of the cryptocurrency.
"Play-to-Earn" (P2E): refers to a gaming model in which players can earn real-world value or cryptocurrency by participating in and progressing through a game. This concept has gained popularity with the integration of blockchain and non-fungible tokens (NFTs) into the gaming industry. In traditional gaming models, players might spend money on in-game items or currency, but these items typically have no real-world value outside the game.