FinTech is easy to get wrapped up in. It’s an exciting field that’s taking power away from traditional, bloated banks and giving the industry a much needed facelift. It’s helping the underbanked (as any FinTech enthusiast will tell you a hundred times), and many popular FinTech technologies are becoming integrated into everyday life. But what’s with all the lingo? Despite the excitement, understanding exactly what’s happening in the field can be hard. There’s banking terms, tech lingo, and pure FinTech jargon. Here’s a primer to get you ready for the next time you encounter FinTech.
AML: Anti-Money Laundering (AML) refers to existing laws or procedures meant to reduce illegally obtained income.
API: Application Programming Interface (API) represents the functionalities of a certain program. These are important because they enable other programmers to use components of existing software, allowing for faster and more reliable software development—a major component of the FinTech movement!
Cryptocurrency: A digital currency using cryptography for regulation and security. It’s a decentralized system, meaning no central entity exists to oversee the processes. Instead, it uses a blockchain. There are several different kinds of cryptocurrency, including Bitcoin, Ethereum, and Ripple.
Bitcoin: The most popular cryptocurrency, generally deemed the first of its kind. The open source software comes with an elusive and mysterious history. No one is really sure who made it.
Blockchain: Where cryptocurrency transactions get recorded. It operates like a public ledger where information, once entered, can’t be altered. Blockchain technology also has several non-cryptocurrency applications including smart contracts and the recording of digital assets.
This article originally appeared on dataconomy.com. To read the full article, click here.