Cold storage refers to storing cryptocurrency on a place where the private key cannot be accessed via the internet. This can be done on a hardware wallet, paper wallet or software wallet in an offline environment.
A ‘51% attack’ refers to a possible attack on a blockchain by a group of ‘miners’, who hold more than 50% of the hashrate. In such a situation the ‘miners’ have the possibility to deliberately not confirm transactions or to issue transactions twice (double-spend).
Proof of work is a system used to confirm transactions and produce new blocks in a blockchain network. It requires miners to perform a certain amount of computational work before they can add a new block to the chain. This helps ensure the security and integrity of the blockchain, as it makes it difficult for any single entity to manipulate the network.
AML is the abbreviation for ‘anti-money laundering’. AML stands for policy and legislation on money laundering. This prevents illegally acquired funds from being converted into a legal variant. Within the crypto world, it is no longer unusual for AML techniques to be used by exchanges and wallets. This term is often used as AML/KYC, where KYC stands for ‘Know your customer’.
Bounties are simple tasks of jobs by the team behind a coin. These can be as simple as joining a Telegram channel or by (re)tweeting. It could also be a bit more difficult like a translation job for example. The participants receive rewards in the form of coins in exchange for completing these bounties.
Proof of stake is a consensus mechanism used by some blockchain networks to achieve distributed consensus. In proof of stake, the creator of a new block is chosen in a deterministic way, depending on their stake in the network (how many coins they hold). This means that the more coins a validator holds, the more likely they are to create the next block and earn the block reward. Proof of stake is intended to be a more energy-efficient alternative to proof of work, which is used by networks like Bitcoin.
