51% attack
When more than half of the computing power in a cryptocurrency network is controlled by a single individual or group, if that individual or group is malicious, they may send out contradictory transactions to disrupt the network.
address
Send or receive transactions over the network. An address is usually presented as a string of alphanumeric characters.
ASIC
ASIC is short for 'Application-Specific Integrated Circuit'. Typically, ASICs are dedicated to mining and may offer significant energy savings compared to graphics processing units (GPUs).
bitcoin
Bitcoin is the first decentralized open source cryptocurrency to operate on a global peer-to-peer network without the need for middlemen and centralized issuers.
block
Blocks are packets of data that are stored permanently on the blockchain network.
blockchain
A blockchain is a shared ledger in which transactions are permanently recorded by additional blocks. The blockchain is a historical record of all transactions that have occurred from the genesis block to the latest block, hence the name blockchain.
Block Explorer (Block Explorer)
Block Explorer is an online tool to view all past and present transactions on the blockchain. They provide useful information such as network hash rate and transaction volume growth.
block height
The number of blocks connected on the blockchain.
block reward
A form of incentive for miners to successfully calculate the hash value of a block when mining. New coins are generated during transaction verification on the blockchain, and miners are rewarded with some of the new coins.
central ledger
A ledger maintained by a central authority.
confirm
That is, the operation of successfully hashing a transaction and adding it to the blockchain.
consensus
Consensus is reached when all network participants agree on the validity of the transaction and ensure that copies of each ledger are accurate.
cryptocurrency
Cryptocurrencies are also known as tokens, which stand for digital assets.
cryptographic hash function
A cryptographic hash function is a function that can map fixed-length and unique data from an input value of arbitrary length. The SHA-256 algorithm is an example of hash encryption.
Decentralized Application (Dapp)
A decentralized application (Dapp) is an open source, autonomously running application whose data is stored on the blockchain, incentivized in the form of cryptographic tokens, and operates on a protocol that displays proof of value.
Decentralized Autonomous Organization
A Decentralized Autonomous Organization can be thought of as a corporation free from any human interference that entrusts various forms of control to an unbreakable set of business rules.
distributed ledger
A distributed ledger is a ledger in which data is stored in a decentralized network of nodes. A distributed ledger doesn't have to have its own currency, and it may be accessible, private.
distributed network
A network where the computing power and data for processing data are spread across nodes without a centralized database.
difficulty
This refers to how easy it is to successfully mine a block of transaction information.
digital signature
A digital code generated by public key encryption attached to an electronically transmitted document, used to verify the document's content and the identity of the sender.
double spend
Double spending occurs when a sum of money is spent more than once.
Ethereum
Ethereum is a blockchain-based decentralized platform for applications running smart contracts, designed to solve problems related to censorship, bullying, and third-party interference.
Ethereum Virtual Machine
The Ethereum Virtual Machine (EVM) is a Turing-complete virtual machine that allows anyone to execute arbitrary EVM bytecode. Every Ethereum node runs on the EVM to maintain consistency across the blockchain.
fork
Forks create alternate versions of the blockchain, allowing two blockchains to run concurrently on different parts of the network.
genesis block
The first or first few blocks of the blockchain.
hard fork
A type of fork that makes a previously invalid transaction valid, and vice versa. Such forks require all nodes and users to upgrade the protocol software to the latest version.
hash
Perform the operation of a hash function on the output data. This is used to confirm currency transactions.
hash rate
The performance measurement of a mining rig is expressed in hashes per second.
Hybrid Proof of Stake/Proof of Work
Hybrid proof-of-stake/proof-of-work enables both proof-of-stake and proof-of-work as distributed consensus algorithms on the network. In this way, miners and voters (token holders) can be balanced, and insiders (holders) and outsiders (miners) can create a community-based governance system.
mining
Mining is the operation of validating blockchain transactions. The need for verification ensures that miners are rewarded in the form of tokens. During this cryptocurrency boom, mining can be a lucrative business if done right. By choosing the most efficient and suitable hardware and mining targets, mining can generate a stable form of passive income.
multi-signature
Multi-signature requires more than one key to authorize transactions, adding a layer of security.
node
A copy of the ledger operated by the participants of the blockchain network.
Oracle
Oracles act as a bridge between the real world and the blockchain by feeding data to smart contracts.
Peer to Peer
Peer-to-peer (P2P) refers to the decentralized interaction between two parties or more in a highly interconnected network. Participants in a P2P network can directly interoperate with each other through a single intermediary point.
public key address
The public key address is the result of hash encryption of the public key. Unlike private keys, addresses can be published anywhere, like email addresses.
private key
A private key is a string of data that gives you access to tokens in a particular wallet. The private key is the password and cannot be accessed by anyone except the owner of the address.
Proof of Stake
A distributed consensus algorithm that rewards you based on the amount of coins you own or hold. The more coins you invest, the more you earn by mining with this protocol.
proof of work
A distributed consensus algorithm requires active participation in mining data blocks, often consuming resources such as electricity. The more 'work' you do or the more computing power you provide, the more coins you will be rewarded.
Scrypt
Scrypt is an encryption algorithm used by Litecoin. Compared to SHA256, Scrypt is faster because it doesn't take as long to process.
SHA-256
SHA-256 is an encryption algorithm used by cryptocurrencies like Bitcoin. But it takes a lot of computing power and processing time, forcing miners to set up mining pools to earn more.
smart contract
Smart contracts encode business rules in a programming language onto the blockchain and are enforced by network participants.
soft fork
A soft fork is different from a hard fork in that only previously valid transactions become invalid in a soft fork. Soft forks are inherently backward compatible because old nodes acknowledge new blocks as valid. Such forks require an upgrade from the majority of miners to execute, whereas hard forks require all nodes to agree on a new version.
Solidity language
Solidity is the programming language Ethereum uses to develop smart contracts.
testnet
A test blockchain used by developers to prevent assets on the main chain from being consumed.
transaction block
A block of many transactions is added to the blockchain after hashing.
transaction fee
All cryptocurrency transactions include a small transaction fee. These transaction fees add up to pay the block reward miners receive for successfully processing blocks.
Turing completeness
Turing completeness refers to the ability of a machine to perform operations that other programmable computers can perform. The Ethereum Virtual Machine (EVM) is an example of Turing completeness.
wallet
A file that stores the private key. Files typically contain a software client that allows viewing and creating transactions on a specific blockchain for which the wallet is designed.