Confused by all the cryptocurrency terms out there? Delve into our easy to understand glossary of terms. This week, the letter E.
ELI5: Short for “explain like I’m five” — a plea for simplicity when crypto concepts are being explained.
Ethereum: Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. After bitcoin, it is the largest cryptocurrency by market capitalization. It was created in 2015 by Vitalik Buterin
ERC-20: This is the standard to which each Ethereum token complies. It defines the way that each token behaves so that transactions are predictable. Other cryptocurrencies also use the ERC-20 standard, piggybacking on the Ethereum network in the process.
ERC-721: A token standard for non-fungible Ethereum tokens.
Escrow: When an intermediary is used to hold the funds during a transaction, those funds are being held in escrow. This is usually a third-party between the entity sending and the one receiving.
Enterprise Ethereum Alliance (EEA): A group of organizations and companies working together to further develop the Ethereum network.
Ether: The form of payment used in the operation of the distribution application platform, Ethereum.
Ethereum Ice Age: The mechanism increases the difficulty exponentially over time, eventually leading to what is referred to as the “Ice Age.” This is when the blockchain becomes so difficult to mine that it freezes and stops producing blocks.
Ethereum Improvement Proposal (EIP): Ethereum Improvement Proposals (EIPs) describe standards for the Ethereum platform, including core protocol specifications, client APIs, and contract standards. [Similar to BIP for Bitcoin]
EVM: An acronym for Ethereum Virtual Machine
Exchange: A cryptocurrency exchange, or a digital currency exchange, is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital…
