Following a boom 2021 for the crypto universe, 2022 posed a big challenge. Secure blockchain decentralization, its scalability and new applications apart from those of cryptocurrencies are currently dominating debates among the experts. Let’s have a look at some of the most important buzz words for 2023.
Altcoins
This is the name generally given to all those currencies that are not bitcoin (BTC). They were created to diversify and enhance the cryptographic ecosystem. A host of cryptocurrencies fall into the altcoin category, including the Ethereum network's ether (ETH). Many of these are not greatly different from Bitcoin. Nonetheless, they offer different, unique characteristics, such as distribution methods or mining algorithms.
Cold, warm or hot wallets
Virtual wallets are used to manage cryptographic assets. Cold wallets use keys generated from a source that is not connected to blockchain or to the network. They are hardware or hard copy (QR code) tools that are much more secure than what are called hot wallets, software connected to the network subject to attacks or key theft. However, they are less convenient for daily transactions. Warm wallets combine the security of the former and the speed of the latter: they are connected online but have additional security layers and require human intervention to authorize transactions.
CBDC
Central Bank Digital Currencies (CBDC) are digital currencies issued by a country’s central bank. In other words, these are digital versions of fiat currencies like the digital yuan (also known as e-CNY), the pilot program for which has been extended to several provinces, or Britcoin, a digital sterling announced by the Bank of England and focused on payments. Meanwhile, the European Central Bank is still studying the viability of a European digital currency. Over 100 countries are already seriously considering the idea of issuing digital currencies.
Dapps
These are decentralized applications, they work independently and are based on a network of interacting nodes according to a set of pre-established rules set out in smart contracts. They enable blockchain users to interact directly without any central authority.
DeFi
DeFi is the ecosystem of smart contracts and applications that aim to build a set of decentralized financial services backed by blockchain technology.
Bitcoin Halving
This happens when the bitcoin reward for miners for having created a block is reduced by half to reduce the issue level. In fact, every time miners validate a block they receive a BTC reward. This halving mechanism occurs approximately every four years and serves to reduce the currency in circulation and thereby maintain its scarcity.
Crypto winter
It indicates bearish phases of the markets, when the prices of digital assets fall and remain well below their last peak or the ATH (All-Time High).
NFT
A token digitally represents the value of an asset. Non-fungible tokens (NFTs), unlike fungible ones (such as cryptocurrencies), are unique and cannot be interchanged or replicated.
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