Blockchain: vocabulary from A to Z the words Bitcoin, Mining and Ethereum are everywhere - and the language of the cryptomedean universe does not end here. If you want to better understand the world of digital currencies the vocabulary will help:
Acronym for Application Specific Integrated Circuit. Often compared to GPUs, ASICs are designed specifically for mining and can offer significant savings in terms of energy.
A digital code generated by the encryption of a public key - which is attached to an electronically transmitted document so that its contents and the identity of the sender are verified.
51% Attack occurs when more than half of the computing power of an encryption network is controlled by a single entity or group, with this entity or group being able to issue conflicting transactions to harm the network if it has malicious intent to do so.
Bitcoin was the first decentralized, open-source cryptomoeda to run on a global peer-to-peer network without the need for intermediaries or centralized issuers.
Block Explorer is an online tool for querying all past and current transactions in blockchain. Provides useful information such as the network hash rate and changes in the number of transactions.
Block Height refers to the size of the blocks connected in a blockchain.
Block Reward is an incentive for miners who were able to successfully calculate the hash of a block during mining. Checking transactions in the blockchain generates new coins in the process and the miner is rewarding with a portion of them.
A blockchain is a shared ledger where transactions are recorded on a permanent basis by block appending. The blockchain serves as a history of all transactions ever made, from the genesis block to the last block - hence the name block chain.
The first - or first - block (s) of a blockchain. Transaction block A transaction block is a collection of transactions assembled in a block that can be checked and added to a blockchain.
Blocks are data packets that contain transaction information - information that is permanently stored in the blockchain network.
A wallet is a file that contains private keys. It allows the visualization and creation of transactions in a specific blockchain - for which it was designed.
Central ledger is the central ledger maintained by a central agency.
A private key is a set of data that allows access to tokens in a specific wallet. It works as a password, kept hidden from everyone except the address holder.
When a transaction is successful, it is added to the blockchain. Consensus reached when all network participants agree on the validity of transactions, ensuring that their ledgers are exact copies of each other.
Smart contracts encode business rules in programmable language in the blockchain and are applied by network participants.
Also known as tokens, crypto-coins are representations of digital assets.
Decentralized Autonomous Organizations (DAO) or Decentralized Autonomous Organizations are managed without any human intervention - control being ensured by an incorruptible set of rules.
A dapp, decentralized application is an open source application that operates autonomously and has its data stored in a blockchain.
Double expense occurs when an amount of money is spent more than once. Difficulty This term refers to the ease with which a data block of information, a transaction, can be successfully mined.
A distributed ledger is a ledger in which data is stored on a decentralized network of nodes. A decentralized ledger does not have to have its own currency and can be private, requiring authorization to access.
A public address is the cryptographic hash of a public key. It functions as an email address, which can be published anywhere (as opposed to verified with private keys).
Crypto-address addresses are used to send or receive transactions over the network. An address generally appears as a sequence of alphanumeric characters.
Ethereum is a decentralized platform, based on blockchain, for applications that execute smart contracts. It is intended to address issues related to third party censorship, fraud, and interference.
The Ethereum Virtual Machine (EVM) is a complete virtual machine that allows the execution of arbitrary algorithmic complexity code. Each Ethereum node runs with EVM to maintain consensus across the blockchain.
Forks create an alternate version of the blockchain, allowing two blockchains to run simultaneously on different parts of the network.
Cryptographic hash function
Cryptographic hashes produce a single, fixed-dimension hash value from the variable-size transaction input. The SHA-256 computational algorithm is an example of a cryptographic hash.
A type of fork that makes previously invalid transactions valid and vice versa. This type of fork requires all nodes and users to use the latest version of the protocol software.
The act of executing a hash function on output data. Used to confirm currency transactions.
Mining is the act of validating transactions in the blockchain. The need for validation works as an incentive for miners, usually in the form of coins. In the boom of criptomoedas that one lives today, mining can be a profitable business when carried out correctly. If you choose efficient hardware and set proper mining targets, mining can become a stable form of passive income.
Multi-signature addresses provide greater security by requiring more than one key to authorize a transaction.
The oracles function as a bridge between the real world and the blockchain when providing data for intelligent contracts.
Peer to Peer
Peer to Peer (P2P) are decentralized interactions between two parts or more in a highly interconnected network. Participants of a P2P network deal with each other directly through a single point of mediation.
PoS / PoW hybrid
A PoS / PoW hybrid allows the use of Proof of Stake (PoS) and Proof of Work (PoW) as distributed consensus algorithms in the network. With this method, a balance can be reached between miners and holders of coins, creating a management system that takes into account the interests of insiders and outsiders.
Proof of Participation
Proof of Stake (PoS) is a distributed consensus algorithm that rewards based on the number of currencies held. The more you invest in a currency, the more you earn by mining with that currency.
Proof of Work
Proof of Work (PoW) is a distributed consensus algorithm that requires an active role in the mining of data blocks, usually consuming resources, such as electricity. The more "work" you do or the greater the processing power you provide, the more coins you will receive as a reward.
A type of network in which the processing power and data are distributed by the nodes instead of having a centralized data center.
A type of cryptographic algorithm used by Litecoin. Compared to SHA-256 it is faster because it does not require as much processing time. SHA-256 The SHA-256 is a cryptographic algorithm used by crypto-coins such as Bitcoin. It draws on the vast amount of computing power and processing time, forcing the miners to form mining groups for gain.
A soft fork differs from a hard fork in that only transactions that were already considered valid are valid. Since old we recognize the new blocks as valid, a soft fork is essentially backwards compatible. This type of fork requires most miners to upgrade, while a hard fork requires all nodes to agree to the new version.
Ethereum's programming language for the development of smart contracts.
The hash rate, hash rate, measures the performance of a mining platform. Yield is expressed in hashes per second.
All crypto-currency transactions involve a small transaction fee. These transaction rates are collected and accounted for the reward a miner receives when he successfully processes a block.
Test blockchain used by programmers to prevent assets from being spent on mainstream.
The term Turing Complete refers to the ability of a machine to perform calculations. An example: EVM, Ethereum Virtual Machine