Wednesday, June 27, 2018

[Hilarium ICO Talk] Blockchain Cryptocurrency Terms



Hello Everyone, this is Chris Kim from the HILARIUM FOUNDATION. 

When first reading an article related to Blockchain-based cryptocurrency or participating in ICO, you may be caught up in the middle of bizarre terminologies. 
Therefore, I thought it would be useful to give you some explanations of the terms you may come across.





Whitepaper
It is kind of a ‘business plan’ that describes everything about coin, such as its concept or technique, before the issuance of coin or token. 
The white paper specifies blockchain techniques to be commercialized and details related to cryptocurrency supply—similar to the securities report issued during the IPO process. Normally, you can check it through the website of the issuer.

Hard Fork
A hard fork is when a different kind of cryptocurrency is created in a new blockchain that is incompatible with existing blockchains. 
It changes into a new method that is incompatible with the existing blockchain for the purpose of improving the function, correcting the error and adjusting other problems of the previous blockchain.

Air Drop / Snap Shot
Air Drop means ‘dropping from the air’; in the cryptocurrency market, it means giving free coins to a person who holds a certain cryptocurrency according to the holding ratio. 
It is a similar concept to the stock market dividend or free capital increase. 
It is usually used as a marketing element when listing a new coin or creating a hard fork.

In addition, when a specific coin is air dropped, it goes through the process called snapshot— it records the balance of the holding cryptocurrency at a certain point to calculate the amount to be paid when air drop occurs. 
For example, saying that the snapshot schedule is day 1, the transaction for that coin is suspended from day 1. 
Then, after two days, coins will be distributed to this coin holder according to the given ratio.


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