10 December 2024

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Dictionary

Blockchain Glossary

Blockchain Glossary

Blockchain Glossary

Introduction

A glossary containing explanations of fundamental terms related to blockchain technology and the world of cryptocurrencies.

A

Address

Cryptocurrency addresses are private account addresses in investors’ digital wallets. They are used during transfer transactions.

Airdrop

The process by which crypto projects distribute free cryptocurrencies to users under certain conditions or unconditionally.

API (Application Programming Interface)

An interface that allows one software to use the functions of another software.

ASIC (Application-specific Integrated Circuit)

Special integrated circuits designed to solve specific problems.

Smart Contracts

Digital contracts that run on the blockchain and enforce the terms of an agreement between buyer and seller through code sequences.

B

Blockchain

A distributed ledger where data is encrypted and stored in blocks, with each block containing a summary of the previous block.

Block Reward

The reward paid to miners for valid and correct blocks.

C

Wallet

Software that stores, sends, and receives digital assets. They store private keys.

Multi-Signature

Technology that allows multiple users to collectively sign digital documents and cryptocurrency transactions.

Double Spending

An attempt to transfer the same digital asset multiple times simultaneously.

D

Node

Computers on the blockchain that record transactions and ensure the security of the network.

Deterministic Wallet

A wallet system generated based on a specific algorithm and seed.

Digital Signature

Secure transaction signatures encoded electronically.

DDoS Attack (Distributed Denial of Service Attack)

An attack on a service or network with malicious internet traffic.

E

ERC-20

A standard protocol for creating tokens on the Ethereum network.

EVM (Ethereum Virtual Machine)

The virtual machine where applications are executed on Ethereum.

EIP (Ethereum Improvement Proposal)

Proposals containing development suggestions for the Ethereum network.

ERC-721

A standard protocol for creating unique tokens on Ethereum.

F

Fork

A split that occurs in a project due to a disagreement.

Consensus

The operational method used in blockchain networks.

G

Gas

The unit of computational power required to execute a transaction on the Ethereum network.

Genesis Block

The first block processed in a blockchain project.

H

Halving

The process of halving cryptocurrency mining rewards.

Hash

The process of encrypting a text to make it algorithmically unpredictable.

I

ICO (Initial Coin Offering)

The initial public offering of a cryptocurrency project.

M

Decentralization

A distributed structure where data is stored and validated at multiple points.

Mainnet

The network where a project operates on its own blockchain.

N

Non-Fungible Token (NFT)

Unique tokens, each one distinct, often used in artistic activities.

S

Scalability

The ability of a system to handle increasing demand.

Proof of Stake

A transaction validation mechanism used in the blockchain.

Proof of Work

An algorithm used in the blockchain to ensure the security of transactions.

Protocol

The fundamental code layer that defines the operational method of a blockchain.

Private Key

A private key used to sign transactions.

Public Key

A key that can be seen by everyone and is used in transfers.

R

Rinkeby

A test network for Ethereum.

Ropsten

A test network for Ethereum.

S

Solidity

A programming language used to write smart contracts on Ethereum.

T

Token

The cryptocurrency of projects that operate on another blockchain network.

Testnet

A network used by developers to test blockchain projects.

Z

Difficulty

The difficulty of producing blocks in a Proof of Work model.

This glossary contains explanations of fundamental terms frequently used in the blockchain and cryptocurrency world. Each term provides a valuable reference for both beginners and experienced users in the technology.

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