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51% Attack

A condition in which more than half the computing power on a cryptocurrency network is controlled by a single miner or group of miners. That amount of power theoretically makes them the authority on the network. This means that every client on the network believes the attacker’s hashed transaction block.


A Terracoin address is used to Send / Receive a Payment on the Terracoin network. It contains a string of alphanumeric characters, but can also be represented as a scannable QR code. A Terracoin address is also the public key in the pair of keys used by Terracoin holders to digitally sign transactions (see Public key).


In mathematics and computer science, an algorithm is a self-contained step-by-step set of operations to be performed. Algorithms perform calculation, data processing, and/or automated reasoning tasks. Wikipedia definition:


Since Bitcoin was the first cryptocurrency and has the largest market capitalization, it is considered as the reference. An altcoin, or alternative coin, is any cryptocurrency other than Bitcoin.


Anti-Money Laundering techniques are used to stop people from making illegally obtained funds appear as though they have been earned legally. AML mechanisms can be legal or technical in nature. Regulators frequently apply AML techniques to Terracoin exchanges.


In computer programming, an application programming interface (API) is a set of routines, protocols, and tools for building software and applications.

An API expresses a software component in terms of its operations, inputs, outputs, and underlying types, defining functionalities that are independent of their respective implementations, which allows definitions and implementations to vary without compromising the interface. A good API makes it easier to develop a program by providing all the building blocks, which are then put together by the programmer.


An application-specific integrated circuit (ASIC) /ˈeɪsɪk/, is an integrated circuit (IC) customized for a particular use, rather than intended for general-purpose use. For example, a chip designed to run in a digital voice recorder or a high-efficiency Terracoin Mining is an ASIC.


Auxiliary Proof-of-Work (POW) a.k.a "AuxPOW". This is the way that merged mining can exist; it is the relationship between two blockchains for one to trust the other's work as their own and accept AuxPOW blocks. Merge Mining, or AuxPow, allows the work being done for a parent coin (such as Bitcoin or Litecoin) to be used to find valid blocks on Terracoin's blockchain.


Backlog generally refers to an accumulation over time of work waiting to be done or orders to be fulfilled.


The process of making copies of a computer file to ensure its integrity in case of loss, theft, or damage. Terracoin has the feature of allowing users to make backup copies of their digital wallets. This protects against losing one's money in the event of a computer crashing or losing one’s mobile device. This would be the equivalent of being able to backup the cash in your wallet, so that if you lost it, you could restore the cash from a backup.

Bitcoin 2.0

This is a term explaining the next new level of Bitcoin projects which started as a fork of Bitcoin but extended their code into the next level of Blockchain Projects (Smart Contracts, Decentralized Voting,....).


Is a distributed database that maintains a continuously-growing list of data records hardened against tampering and revision. It consists of data structure blocks—which hold exclusively data in initial blockchain implementations, and both data and programs in some of the more recent implementations—with each block holding batches of individual transactions and the results of any blockchain executables. Each block contains a timestamp and information linking it to a previous block.


Transactions on the Blockchain are collected in "blocks" which record and confirm when and in what sequence transactions enter and are logged in the block chain. Blocks are created by users known as "miners" who use specialized software or equipment designed specifically to create blocks.

Budget System / DGBB

The development of Terracoin and the Terracoin ecosystem is self-funded by the network. Each time a block is discovered, 45% of the block reward goes to miners and 45% goes to masternodes. Ten percent is withheld by the network and used to fund projects that are approved by the masternode network. For a fee, anybody can submit a proposal to the network, and will be paid directly by the blockchain if approved by the masternodes. The Budget System is sometimes called the Treasury System; the two terms are interchangeable.

Self-sustainable Decentralized Governance by Blockchain (Budget System)

Cloud Wallet

Third parties that will store your Terracoin on their servers for you, so that you can access your funds from any device connected to the internet. If their website is hacked or if their servers are damaged, you run the risk of losing your Terracoin. Any online wallets should be secured with strong passphrases and 2FA. You cannot make backup copies of your online wallet, because you do not have access to the private keys. We do not recommend that you store large quantities of funds in online wallets.

Cold Storage

A method of generating and storing private keys completely offline. One could use a desktop or laptop computer disconnected from the internet, a dedicated hardware wallet, a USB stick, or a paper wallet. To learn more, visit our Cold Storage Guide Section.

Confirm(ed) Transaction

When a Terracoin transaction is made, a miner must verify that the transaction is valid. When the inputs and outputs are verified, the transaction is included in a block in the blockchain. The transaction can then be considered complete and irreversible. The confirmation number increases as more blocks are added to the blockchain.

Confirmation Number

The number of confirmations for a specific Terracoin transaction. Zero confirmations means that the transaction is unconfirmed. One confirmation means that the transaction is included in the latest block in the blockchain. Two confirmations means the transaction is included in two blocks, three confirmations for three blocks, and so on. The probability of a transaction being reversed (double spent) diminishes exponentially with every block and subsequent confirmation. Six confirmations is usually considered "safe" and irreversable.

Confirmed Transactions

Transactions that are processed by miners and considered irreversible, usually after six confirmation. In the case of InstantSend, funds can be considered irreversible after a few second but must still be written to the blockchain (and thus "confirmed.").


A central processing unit (CPU) is the electronic circuitry within a computer that carries out the instructions of a computer program by performing the basic arithmetic, logical, control and input/output (I/O) operations specified by the instructions. The term has been used in the computer industry at least since the early 1960s. Traditionally, the term "CPU" refers to a processor, more specifically to its processing unit and control unit (CU), distinguishing these core elements of a computer from external components such as main memory and I/O circuitry.


A cryptocurrency (or crypto currency or crypto-currency) is a medium of exchange using cryptography to secure the transactions and to control the creation of new units.

Wikipedia definition:


Cryptography or cryptology (from Greek κρυπτός kryptós, "hidden, secret"; and γράφειν graphein, "writing," or -λογία -logia, "study," respectively) is the practice and study of techniques for secure communication in the presence of third parties called adversaries. More generally, cryptography is about constructing and analyzing protocols that prevent third parties or the public from reading private messages; various aspects in information security such as data confidentiality, data integrity, authentication, and non-repudiation are central to modern cryptography. Modern cryptography exists at the intersection of the disciplines of mathematics, computer science, and electrical engineering. Applications of cryptography include ATM cards, computer passwords, and electronic commerce.

Dark Gravity Wave / DGW

In concept, DGW is similar to Kimoto Gravity Well, adjusting the difficulty levels every block (instead of every 2016 blocks like Bitcoin) by using statistical data of the last blocks found. In this way block issuing times can remain consistent despite fluctuations in hashpower. However it doesn't suffer from the time-warp exploit.

Dark Gravity Wave


Original name of PrivateSend. See PrivateSend.


Many of Terracoin's features are taken from the cryptocurrency Dash, which was originally launched as Xcoin and later renamed to Darkcoin, the currency was later renamed "Dash" to avoid association with the darknet markets. Dash is a portmanteau of "Digital Cash." Dash is an open source peer-to-peer cryptocurrency that solves many of Bitcoin's problems. Dash's features include PrivateSend, InstantSend, Decentralized Governance by Blockchain (DGBB), a 2nd tier network (referred to as the masternode network). For a full list of Dash's features, see:

Wikipedia definition:


A distributed denial of service attack uses large numbers of computers under an attacker’s control to drain the resources of a central target. They often send small amounts of network traffic across the Internet to tie up computing and bandwidth resources at the target, which prevents it from providing services to legitimate users. Terracoin exchanges have sometimes been hit with DDoS attacks.


Decentralized computing is the allocation of resources, both hardware and software, to each individual workstation or office location. In contrast, centralized computing exists when the majority of functions are carried out or obtained from a remote centralized location. Decentralized computing is a trend in modern-day business environments. This is the opposite of centralized computing, which was prevalent during the early days of computers. A decentralized computer system has many benefits over a conventional centralized network. Desktop computers have advanced so rapidly that their potential performance far exceeds the requirements of most business applications. This results in most desktop computers remaining nearly idle most of the time. A decentralized system can use the potential of these systems to maximize efficiency. However, it is debatable whether these networks increase overall effectiveness.

Desktop Wallet

A wallet is a piece of software that stores your Terracoin. There are many different wallet options, but it is imperative to choose a secure one. We recommend any of the following: TerracoinCore Wallet / Hardware Wallets


This number determines how difficult it is to hash a new block. It is related to the maximum allowed number in a given numerical portion of a transaction block’s hash. The lower the number, the more difficult it is to produce a hash value that fits it. Difficulty varies based on the amount of computing power used by miners on the Terracoin network. If large numbers of miners leave a network, the difficulty would decrease. Terracoin's age and the availability of specialized ASIC miners have caused the difficulty to increase over time.

Digital Wallet

A digital wallet is similar to a physical wallet except that it is used to hold digital currency. A Terracoin wallet holds your private keys, which allow you to spend your Terracoin. You are also able to make backups of your wallet in order to ensure that you never lose access to your Terracoin. Digital wallets can exist in many different forms and on many devices:

  • Desktop/Software Wallet (Terracoin QT): Wallet programs that you install on a laptop or desktop computer. You are solely responsible for protecting the wallet file and the private keys it contains. Make backup copies of your wallet files to ensure that you don't lose access to your funds.
  • Mobile Wallet (Android, iPhone): These wallets can be downloaded through Google Play or Apple (iTunes) App Stores. Mobile wallets allow you to use Terracoin on-the-go by scanning a QR code to send payment. Make backup copies of your mobile wallet files to ensure that you don't lose access to your funds. Due to security issues with mobile phones, it is advised that you don't store large amounts of funds on these wallets.
  • Online/Cloud/Web Wallet: Third parties that will store your Terracoin on their servers for you, so that you can access your Terracoin from any device connected to the internet. If their website is hacked or if their servers are damaged, you run the risk of losing your Terracoin. Any online wallets should be secured with strong passphrases and 2FA. You cannot make backup copies of your online wallet, because you do not have access to the private keys. We strongly urge that you NEVER store large amounts of Terracoin in any online wallet or cryptocurrency exchange.

Hardware Wallets (Trezor, KeepKey, Ledger Nano)

A hardware wallet is a specialized, tamper-proof, hardware device that stores your private keys. This device is able to sign transactions with your private key without being connected to the internet. However, you must have an internet connection to send the transaction to the Terracoin network. This allows your private keys to be accessed easily while still keeping them securely protected. This is widely regarded to be the safest form of storage for your Terracoin.

Offline/Cold Storage (Paper wallet)

A special wallet that is created offline and is never exposed to the internet. Accomplished by using software to generate a public and private key offline and then recording the generated keys. They keys can be printed out on paper or even laser-etched in metal. Copies can be made and stored in a personal safe or bank deposit box. This is an extremely secure way to store Terracoin. There is no risk of using software wallet files, which can become corrupt, or web wallets, which can be hacked. NOTE: USB sticks are not safe for long-term (multi-year) storage because they degrade over time.

Digital Signature

A digital signature is a mathematical mechanism that allows someone to prove their identity or ownership of a digital asset. When your digital wallet signs a transaction with the appropriate private key, the whole network can see that the signature matches the address of the Terracoin being spent, without the need to reveal the private key to the network. You can also digitally sign messages using your private key, to prove for instance that you are the owner of a certain Terracoin address.


In cryptography, encryption is the process of encoding messages or information in such a way that only authorized parties can read it. Encrypted messages which are intercepted by a third-party are indecipherable gibberish without the private key. In an encryption scheme, the plaintext message is encrypted using an encryption algorithm, generating ciphertext that can only be read if decrypted by the intended recipient. For technical reasons, an encryption scheme usually uses a pseudo-random encryption key generated by an algorithm. Increases in computing power have "broken" many past encryption algorithms, but a well-designed modern system such as AES-256 is considered essentially "uncrackable."

Escrow Services

An escrow is a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties; or an account established by a broker for holding funds on behalf of the broker's principal or some other person until the consummation or termination of a transaction; or, a trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums.

A trusted escrow service is often used when purchasing cryptocurrency or other goods/services over the internet. Both the buyer and seller will choose a trusted third-party, the seller will send the item (or currency) to the escrow agent, and the buyer will send the purchasing funds to the escrow agent as well. Once the escrow agent is satisfied that both parties have satisfied the terms of the agreement, he/she will forward the funds and the product (or currency) being purchased to the appropriate party.


Digital currency exchangers (DCEs) or bitcoin exchanges are businesses that allow customers to trade digital currencies for other assets, such as conventional fiat money, or different digital currencies. They can be market makers that typically take the bid/ask spreads as transaction commissions for their services or simply charge fees to customers and serve as a matching platform. Do not store large amounts of money on any exchange. Several prominent exchanges have been hacked, and others have stolen users' funds and disappeared. Only deal with reputable exchanges, and only put as much money on an exchange as you are willing to lose.

Exchange Rate

The current price of one Terracoin compared to the price of other currencies, like the US dollar, Yen, Euro, or Bitcoin. Because most trading volume takes place on the BTC/TRC markets, price is often quoted in fractions of a bitcoin. For instance, the price of one Terracoin at the end of March 2017 was 0.00000490 (bitcoins per Terracoin). An excellent site for following the exchange rate of Terracoin is CoinMarketCap. Businesses wishing to reduce the risk of holding a volatile digital currency can avoid that risk altogether by having a payment processor do an instant exchange at the time of each transaction.


Faucets are a reward system, in the form of a website or app, that dispenses rewards in the form of a microterracoin or Duff, which is a hundredth of a millionth Terracoin, for visitors to claim in exchange for completing a captcha or task as described by the website.

Fiat Gateway

An exchange, ATM, or other service that allows the conversion of fiat currency (Dollars, Euros, etc.) to Terracoin, and allows the conversion of Terracoin to fiat currency.

Fiat Money

Fiat money has been defined variously as:

Any money declared by a government to be legal tender. State-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard. Intrinsically valueless money used as money because of government decree. Examples include the US dollar, the Euro, the Yen, and so forth.


Financial technology, also known as FinTech, is an economic industry composed of companies that use technology to make financial services more efficient. Financial technology companies are generally startups trying to make financial processes more efficient or eliminate middle-men. Recently many fintech companies have begun utilizing blockchain technology, which is the same technology that underpins Terracoin and Bitcoin.


When the blockchain diverges or splits, with some clients recognizing one version of the blockchain as valid, and other clients believing that a different version of the blockchain is valid. Most forks resolve themselves without causing any problems, because the longest blockchain is always considered to be valid. In time, one version of the blockchain will usually "win" and become universally recognized as valid. Forks can, however, be extremely dangerous and should be avoided if possible.

Forking is most likely to occur during software updates to the network. Terracoin uses a Multi-Phased Fork (“Spork”) system for greater flexibility and safety.

Full Nodes

Any Terracoin client that is serving a full version of the blockchain to peers. This can be a user running a QT wallet on his/her desktop, or it could be a masternode. Full nodes promote decentrailzation by allowing any user to double check the validity of the blockchain.


Every unit of the currency is worth the same as any other unit.

Genesis Block

The very first block in the block chain.


A graphics processing unit (GPU), also occasionally called visual processing unit (VPU), is a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display. GPUs are used in embedded systems, mobile phones, personal computers, workstations, and game consoles. Modern GPUs are very efficient at manipulating computer graphics and image processing, and their highly parallel structure makes them more efficient than general-purpose CPUs for algorithms where the processing of large blocks of data is done in parallel. In a personal computer, a GPU can be present on a video card, or it can be embedded on the motherboard or—in certain CPUs—on the CPU die. Certain cryptocurrencies use mining algorithms which are most efficiently run on GPUs.

Hardware Wallet

These are among the safest type of wallet for storing your Terracoin. Your private key is protected inside a piece of hardware, and is never exposed to the internet. You are still able to sign transactions as normal, making it both safe and convenient.

Hardware Wallets


A mathematical process that takes a variable amount of data and produces a shorter, fixed-length output. A hashing function has two important characteristics. First, it is mathematically difficult to work out what the original input was by looking at the output. Second, changing even the tiniest part of the input will produce an entirely different output. Hashrate The number of hashes that can be performed by a Terracoin miner in a given period of time (usually a second).


InstantSend technology uses the masternode network to "lock" transaction inputs, preventing Terracoin from being double-spent. Unlike Bitcoin, where it takes an hour or longer for transactions to fully confirm, transactions using InstantSend are "locked" and irreversible after only a few seconds.


The ability to buy and sell an asset easily, with pricing that stays roughly similar between trades. A suitably large community of buyers and sellers is important for liquidity. The result of an illiquid market is price volatility, and the inability to easily determine the value of an asset.


A special type of full node that performs services for the network and is paid a portion of the block reward. Masternodes require proof of ownership of 5000 Terracoin.

Masternodes serve as the second tier of the Terracoin network, and power InstantSend, PrivateSend, the Budget System.



Miners process transactions on the Terracoin network and publish them on the blockchain. As a reward for doing this, miners are paid 45% of the block reward.


Mobile Wallet

These are wallets available on mobile phones (iPhone & Android).

Mobile Wallets


Multi-signature addresses provide additional security by requiring multiple people to sign a transaction with their private key before the transaction can be sent. For example, in 2 of 3 multisig, two out of three possible signatories have to sign a transaction for it to be processed. Multi-signature addresses are commonly used by exchanges and other organizations that are in possession of large sums of cryptocurrency, since it makes theft much more difficult.


A node is any device running Terracoin wallet software. Full nodes are software clients that have downloaded the entire blockchain and serve it to other clients on Terracoin's peer-to-peer network.


Over the counter (OTC) trades are trades that occur off exchanges. In an OTC trade, a buyer and seller trade with each other directly, or through an intermediary. OTC trading is useful when a person wants to either buy or sell a large amount of cryptocurrency and is afraid that a large buy or sell order will move the price (called "slippage").


Peer-to-peer. Decentralized interactions that happen between at least two parties in a highly interconnected network. An alternative system to a 'hub-and-spoke' arrangement, in which all participants in a transaction deal with each other through a single mediation point.

Paper Wallet

These are offline wallets, printed on paper for safety. If properly secured and stored they are considered the safest way to store cryptocurrency.

Paper Wallet


Privacy is the ability of an individual or group to seclude themselves, or information about themselves, and thereby express themselves selectively. The boundaries and content of what is considered private differ among cultures and individuals, but share common themes. When something is private to a person, it usually means that something is inherently special or sensitive to them. The domain of privacy partially overlaps security (confidentiality), which can include the concepts of appropriate use, as well as protection of information. Terracoin includes PrivateSend, which allows users to maintain financial privacy.

Private Key

A private key is a long alphanumeric passcode that allows Terracoin to be spent. Every Terracoin wallet contains one or more private keys which are saved in the wallet file. The private keys are mathematically related to all Terracoin addresses generated for the wallet.

Because the private key is the "ticket" that allows someone to spend Terracoin, it is important that these are kept secure and secret.


PrivateSend obscures the source of funds in order to maintain financial privacy between users. It can be turned on or off at the users' discretion.


Proof of Work - PoW

Consensus mechanism that keeps all nodes honest by requiring computational power to be expended in order to create new blocks. Miners must use expensive equipment and burn electricity to add blocks to the blockchain. Without a consensus mechanism of some sort, any node could add blocks to the chain and the network's nodes would never agree on which chain was valid.

Proof of Stake - PoS

Consensus mechanism that relies on ownership of a cryptocurrency to maintain the blockchain. In Proof of Stake systems, each owner of the currency can use their wallet to "stake," and there's a small chance that they will be chosen to create the next block and add it to the chain. In this way consensus is maintained across all nodes. Proof of Stake saves electricity and does not require specialized computer hardware. It does however suffer from several pitfalls, including the "nothing at stake" problem. Since no electricity is consumed, in the event of an attack it is actually beneficial for Proof of Stake nodes to "vote" to accept both the legitimate chain and the attacker's chain.

Public Key

The public key is derived from the private key but is not secret and can be revealed to anybody. When a private key is used to sign messages, the public key is used to verify that the signature is valid.

Pump and Dump

Inflating the value of a financial asset that has been produced or acquired cheaply, often using aggressive publicity and misleading statements. The publicity causes others to acquire the asset, forcing up its value. When the value is high enough, the perpetrator sells their assets, cashing in and flooding the market, which causes the value to crash. This is particularly common in markets with low liquidity, such as some altcoins.

QR Code

A two-dimensional graphical block containing a monochromatic pattern representing a sequence of data. QR codes are designed to be scanned by cameras, including those found in mobile phones, and are frequently used to encode Terracoin addresses.

Satoshi Nakamoto

Satoshi Nakamoto is the name used by the person or people who designed Bitcoin and created its original reference implementation.


Terracoin is minable with the SHA256 algorithm. Though SHA256 is relatively costly and extremely energy inefficient, The Terracoin Foundation decided to keep this method of mining and added merge mining (See AuxPOW) to keep our loyal legacy miners. Merge mining (AUXPOW) allows someone with an ASIC miner to mine a variety of coins including Bitcoin all at once. This makes the environmental impact nearly zero as the energy and effort is already in use.


The Terracoin development team created a mechanism by which updated code is released to the network, but not immediately made active (or “enforced”).

Communication is sent out to users informing them of the change and the need for them to update their clients. Those who update their clients run the new code, but in the event of errors occurring with that new code, the client’s blocks are not rejected by the network and unintended forks are avoided. Data about the error can then be collected and forwarded to the development team. Once the development team is satisfied with the new code’s stability in the mainnet environment – and once acceptable network consensus is attained – enforcement of the updated code can be activated remotely. Should problems arise, the code can be deactivated in the same manner, without the need for a network-wide rollback or client update.

Multi-Phased Fork (Spork)

Tainted Coins

Taint is a measure of correlation between two (wallet) addresses. It is only important if the user is trying to remain anonymous.

Terracoin Client

Terracoin clients are software programs used to interface with the Terracoin network. They store the private keys needed to conduct Terracoin transactions as well as a copy of the entire blockchain. A Terracoin client connects to the Terracoin network and becomes a node in the network. A node shares and propagates new transactions with the rest of the network, creating a robust infrastructure.

Terracoin Core Wallet

The Terracoincore Wallet (known also as the QT wallet) is the "official" Terracoin wallet that is compiled by the Terracoin Foundation and allows both PrivateSend and InstantSend. The TerracoinCore wallet will download the entire blockchain and serve it over the internet to any peers who request it.

Terracoin Core Wallet


Testnet is a network only for testing (parallel to the mainnet), test wallets, test coins, test masternodes, test miners, and test users all simulate their mainnet counterparts in a safe environment where errors or forks are not harmful.



An anonymous routing protocol used by people wanting to hide their identity online.

Transaction Block

A collection of transactions on the Terracoin network, gathered into a block that can then be hashed and added to the blockchain.

Transaction Fee

A small fee imposed on some transactions sent across the Terracoin network. The transaction fee is awarded to the miner that successfully hashes the block containing the relevant transaction.


Test Terracoin (TRC), used on testnet

Unconfirmed Transactions

Transactions that are not yet processed by miners or held via InstantSend are "unconfirmed on the blockchain." Unconfirmed transactions can be reversed and should not be considered as "final."

Vanity Address

A Terracoin address with a desirable pattern, such as a name.

Virgin Terracoin

Terracoin received as a reward for mining a block or running a masternode. These have not yet been spent anywhere and are "virgin."


The measurement of price movements over time for a traded financial asset (including Terracoin).


A method of storing Terracoin for later use. A wallet holds the private keys associated with Terracoin addresses. The blockchain is the record of the Terracoin balances (and transactions) associated with those addresses.


A white paper is an authoritative report or guide that informs readers concisely about a complex issue and presents the issuing body's philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.

Wikipedia definition:


X11 is a hashing algorithm created by Terracoin core developer Evan Duffield. Terracoin uses SHA256. See SHA256.

Wikipedia definition:

Zero Confirmations

Is a transaction without any confirmations from the blockchain. It is reversible (unless InstantSend was used).


A transaction (tx) consists of one or more inputs and one or more outputs. The vin is the list of inputs to the transaction, and vout is the list of outputs. Masternodes require a 5000 Terracoin vin (exactly that amount) in order to work.