Cryptocurrency Terms and Meaning (3).

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16 Jan 2024
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Cryptocurrency Terms and Meanings.

Index Fund
A type of mutual fund or exchange-traded fund (ETF) that is designed to track the returns of a market index such as the ASX 200.

Harsh Rate
The speed at which miners are computing hashes. In the cryptocurrency space, measurements of hash rate are typically approximations.
Harsh
A code change in a blockchain protocol so significant that it becomes incompatible with older versions.

Hard Fork
A code change in a blockchain protocol so significant that it becomes incompatible with older versions.

Halving
A scheduled event in which the amount of newly minted cryptocurrency awarded for successfully mining a block (i.e., the block subsidy) halves.

Gwei
Short for GigaWei. Wei is the smallest unit of ether. Just like cents to dollars.

Governance
Governance refers to the processes of governing a given system. In the crypto space, governance describes the mechanisms through which decisions are made on key risk parameters, proposed improvements and other matters.

Genesis Block
The first block in a blockchain. Because its block height is always equal to zero, the genesis block is also referred to as ‘block zero’.

Gas
A unit value that quantifies the work Ethereum does. Gas exists in order to incentivise node operators on the Ethereum network to process transactions. More on gas.

Futures
A type of derivative contract that represents a binding agreement to buy or sell a given cryptocurrency at a specified price and date. Upon expiration, futures are either cash-settled or physically delivered.

Funding Rate
Periodic payments made to either long or short traders, calculated based on the difference between perpetual futures markets and spot prices. When the market is bullish (bearish), the funding rate is positive (negative) and long (short) traders pay short (long) traders.

Fundamental Analysis
The process of looking at a company or cryptocurrency at the most fundamental financial level.


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Cryptocurrency Terms and Meaning


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