Blockchain Terms Glossary: Blockchain Terms in 2024
5
51% Attack
A potential attack where more than half of the computing power in a network is controlled by a single entity, allowing them to control transactions and potentially disrupt the blockchain.
A
Address
An address is a unique identifier used to receive or send cryptocurrencies on a blockchain.
Atomic Swap
An atomic swap is a direct peer-to-peer exchange of cryptocurrencies across different blockchain networks, without the need for intermediaries or centralized exchanges.
B
Bitcoin
Bitcoin is the first and most well-known cryptocurrency, created by an anonymous person or group of people using the pseudonym Satoshi Nakamoto.
Block
A block is a collection of data that is stored on a blockchain and contains a list of transactions.
Block Explorer
A tool or website that allows users to search and explore the contents of a blockchain, including transactions, addresses, and block information.
Block Height
Block height refers to the number of blocks that have been added to the blockchain from the genesis block.
Blockchain
Blockchain is a decentralized, distributed ledger technology that records transactions across multiple computers.
Blockchain Explorer
A blockchain explorer is a tool that allows users to view and analyze the activity on a blockchain network.
Blockchain-As-A-Service (Baas)
Blockchain-as-a-Service (BaaS) allows businesses or individuals to create, host, and operate their own blockchain network using cloud-based services.
Byzantine Fault Tolerance
Byzantine Fault Tolerance (BFT) is the ability of a distributed system to reach consensus despite the presence of faulty or malicious nodes.
C
Central Bank Digital Currency (Cbdc)
Central Bank Digital Currency (CBDC) refers to a digital form of fiat currency issued and regulated by a country's central bank.
Centralized Exchange
A centralized exchange is a platform or organization that facilitates the buying, selling, and trading of cryptocurrencies or digital assets.
Cold Storage
The practice of keeping cryptocurrencies offline in a secure, offline storage device to mitigate the risk of hacking.
Consensus
Consensus is the agreement among participants of a blockchain network on the validity of transactions and the order in which they are added to the ledger.
Consensus Algorithm
A set of rules or protocols that determine how consensus is achieved in a blockchain network.
Consensus Mechanism
The process or algorithm used in a blockchain network to achieve agreement among participants on the validity of transactions and the order in which they are added to the blockchain.
Cross-Border Payments
The transfer of funds or value across different countries or jurisdictions, often facilitated by blockchain technology for efficiency and cost reduction.
Cross-Chain
Cross-chain refers to the ability to transfer assets or data between two or more different blockchain networks.
Cross-Chain Atomic Swap
Cross-chain atomic swap is a trustless mechanism that allows for the direct exchange of cryptocurrencies between different blockchain networks without the need for intermediaries or centralized exchanges.
Cryptocurrency
Cryptocurrency is a digital or virtual form of currency that uses cryptography for security.
Cryptographic Hash
A fixed-size string of characters generated by a hash function, used to verify data integrity and security.
Cryptographic Puzzle
A cryptographic puzzle is a computational problem used to secure blockchain networks.
Cryptography
Cryptography is the practice of securing communication by converting information into an unreadable format.
D
Dapp
Short for Decentralized Application, refers to an application that is built on a blockchain platform.
Decentralization
Decentralization refers to the distribution of control or authority away from a central entity or organization.
Decentralized Application (Dapp)
A decentralized application is an application that runs on a decentralized network, such as a blockchain.
Decentralized Autonomous Organization
An organization governed by smart contracts and run on a blockchain with no central authority.
Decentralized Exchange (Dex)
A decentralized exchange (DEX) is a platform that allows for the peer-to-peer trading of cryptocurrencies without the need for a central authority or third-party intermediary.
Defi
Short for Decentralized Finance, refers to the use of blockchain technology and cryptocurrencies to recreate traditional financial systems and services in a decentralized manner.
Digital Identity
Digital identity refers to an online representation of an individual, organization, or entity that can be verified and used for interactions on a blockchain network.
Distributed Ledger
A distributed ledger is a type of database that is shared, replicated, and synchronized across multiple nodes in a network.
Distributed Ledger Technology
The technology that underlies blockchain, enabling the recording, sharing, and synchronization of data across multiple entities.
Double Spending
Double spending is a potential issue in digital currencies where the same amount of cryptocurrency is spent twice.
E
Ethereum
Ethereum is a decentralized, open-source blockchain platform that enables the development of smart contracts and decentralized applications (dApps).
F
Fork
A fork occurs in a blockchain when there is a divergence in the protocol, resulting in two or more different versions of the blockchain.
Fungibility
Fungibility refers to the interchangeability of individual units of a particular asset or currency.
Fungible
Fungible means that individual units of a asset or currency are identical and can be exchanged on a one-to-one basis.
G
Gas
Gas is a unit used to measure the computational effort required to execute operations or contracts on the Ethereum blockchain.
Gas Fees
The fees paid by users for executing transactions, running smart contracts, or using resources on a blockchain network.
Gas Limit
The maximum amount of gas that can be used in a block to execute transactions on a blockchain.
Genesis Block
The first block of a blockchain, often hardcoded with special properties.
Governance
Governance refers to the process and structure by which decisions are made and implemented within a blockchain network or organization.
H
Hard Fork
A hard fork is a major protocol upgrade or change that is not backward-compatible, resulting in a permanent divergence from the previous version of the blockchain.
Hash
A hash is a fixed-size string of characters generated by a cryptographic algorithm to uniquely identify data.
Hash Function
A hash function is a mathematical algorithm that takes an input and produces a fixed-size string of characters, which is typically used for data integrity verification in blockchain.
Hash Rate
Hash rate refers to the computational power used in mining cryptocurrency and securing the blockchain network.
Hot Wallet
A software-based cryptocurrency wallet that is connected to the internet and used for frequent transactions.
Hybrid Blockchain
A combination of public and private blockchains, offering both transparency and privacy based on the specific use case.
Hyperledger
An open-source collaborative project focused on developing cross-industry blockchain technologies.
I
Immutable
Immutable means that once something is recorded on a blockchain, it cannot be altered or tampered with.
Immutable Ledger
A ledger or record that cannot be modified, tampered with, or deleted, ensuring the integrity and transparency of data.
Initial Coin Offering
A fundraising method where a new cryptocurrency or token is sold to investors to finance a project or venture.
Initial Coin Offering (Ico)
An Initial Coin Offering (ICO) is a fundraising method in which a company or individual issues and sells tokens in exchange for funding, often used by blockchain startups.
Interoperability
Interoperability refers to the ability of different blockchain networks or systems to communicate and interact with each other.
M
Merkle Tree
A Merkle tree is a data structure used in blockchain technology to efficiently verify the integrity of large amounts of data.
Merklized Abstract Syntax Tree (Mast)
Merklized Abstract Syntax Tree (MAST) is a technique used to optimize the storage and verification of complex smart contracts on a blockchain.
Mining
Mining is the process of validating transactions and adding them to the blockchain through computational puzzle solving, often associated with proof-of-work consensus algorithms.
Multi-Signature
A digital signature scheme that requires multiple signatures to authorize a transaction on a blockchain.
Multi-Signature (Multi-Sig)
Multi-signature (multi-sig) is a feature that requires multiple parties to sign off on a transaction before it can be executed, adding an extra layer of security.
Multisig
Multisig, or multisignature, refers to requiring multiple signatures to authorize a transaction on a blockchain.
N
Node
A node is a participant in a blockchain network that maintains a copy of the blockchain and follows the consensus rules.
Non-Fungible
Assets or tokens that are unique and cannot be replaced by another identical asset or token.
Non-Fungible Token (Nft)
A non-fungible token (NFT) is a type of token that represents something unique, indivisible, and cannot be exchanged on a like-for-like basis.
O
Off-Chain
Off-chain refers to actions, transactions, or data that occur or are stored outside of the blockchain network.
Off-Chain Scaling
Off-chain scaling refers to solutions that enable increased transaction throughput without directly adding load to the main blockchain network.
On-Chain
On-chain refers to actions, transactions, or data that occur or are stored directly on the blockchain network.
On-Chain Scaling
On-chain scaling refers to solutions that directly increase the transaction capacity of the main blockchain network.
Oracle
An oracle is a trusted external source of data that can provide information to a smart contract on a blockchain network.
Oracles
Oracles are third-party services that provide external data to be used in smart contracts on a blockchain.
Orphan Block
A block that is valid but not included in the main blockchain because it was mined too late or conflicts with another longer chain.
P
Permissioned
Permissioned refers to a blockchain system that requires participants to have specific permissions or credentials to access and operate within the network.
Permissioned Blockchain
A blockchain network that requires participants to have permission to access and participate in the network.
Permissionless
Permissionless refers to a blockchain system that allows anyone to participate in the network without needing authorization or approval.
Permissionless Blockchain
A blockchain network that allows anyone to join and participate in the network without requiring permission.
Poison Pill Attack
A poison pill attack is a type of cyber attack in which an attacker intentionally adds malicious code or data to a blockchain, compromising its integrity or performance.
Privacy
Privacy is the protection of sensitive information and the ability to control its disclosure.
Privacy Coin
Privacy coins are cryptocurrencies that emphasize and provide enhanced privacy and anonymity features to protect the identity and transactions of users.
Private Blockchain
A private blockchain is a blockchain that is restricted to a specific group of participants and may require permission to access and participate.
Private Key
A private key is a randomly generated string of characters that allows access to the ownership and control of digital assets.
Proof Of Stake
Proof of Stake is a consensus algorithm that selects validators based on the amount of cryptocurrency they hold.
Proof Of Work
Proof of Work is a consensus algorithm that requires participants to solve a computational puzzle to validate transactions.
Proof-Of-Stake (Pos)
Proof-of-Stake (PoS) is a consensus algorithm in which the creator of a new block is chosen in a deterministic way, based on their ownership stake in the network.
Proof-Of-Work (Pow)
Proof-of-Work (PoW) is a consensus algorithm in which participants must solve a computationally intensive puzzle to create a new block and secure the network.
Public Blockchain
A public blockchain is a blockchain that is open to anyone and allows anyone to participate in the network, view, and validate transactions.
Public Key
A public key is derived from a private key and is used to receive and verify transactions on the blockchain.
S
Scalability
Scalability refers to the ability of a blockchain system to handle increasing transaction volumes and user demand without impacting performance.
Sharding
Sharding is a technique used to partition a blockchain's data into smaller parts, called shards, to improve scalability.
Sidechain
A sidechain is a separate blockchain that is interoperable with a main blockchain, allowing for the transfer of assets between the two chains.
Smart Contract
A smart contract is a self-executing contract with the terms of the agreement directly written into code, stored on a blockchain.
Smart Grid
A smart grid is an electrical grid that integrates blockchain technology to enable more efficient and secure energy transactions.
Smart Property
Smart property refers to physical or digital assets that are controlled via smart contracts on a blockchain.
Soft Fork
A soft fork is a backward-compatible protocol upgrade or change in which blocks or transactions that were previously valid remain valid in the new version of the blockchain.
Stablecoin
A stablecoin is a type of cryptocurrency designed to maintain a stable value, often pegged to a fiat currency like the US dollar.
Supply Chain Management
The management and monitoring of goods, products, or materials as they move from the supplier to the end consumer, often utilizing blockchain technology for transparency and traceability.
T
Timestamp
A unique identifier that records the date and time at which a transaction or event occurs on the blockchain.
Timestamping
Timestamping is the process of securely recording the date and time of a specific event or transaction on a blockchain.
Token
A token represents a digital asset that can be fungible or non-fungible and is often used to represent ownership, access rights, or utility within a blockchain system.
Token Economy
The ecosystem and economic system built around the use and exchange of digital tokens.
Token Swap
A token swap is the process of exchanging one type of token for another, often on different blockchain networks.
Tokenization
Tokenization is the process of converting real-world assets into digital tokens on a blockchain.
Tokenomic
Tokenomics is the study of the underlying economic and incentive design principles of a token-driven ecosystem.
Tokenomics
The economic and financial aspects of a blockchain project or cryptocurrency, including the distribution, creation, and value of tokens.
Transaction
An action or event that changes the state of information stored on a blockchain.
Transaction Fee
The fee paid to miners or validators to process and prioritize transactions on a blockchain network.
W
Wallet
A wallet is a software application or physical device used to store, manage, and interact with digital assets like cryptocurrencies.
Z
Zero Confirmation Transaction
A zero confirmation transaction is a transaction that has been broadcasted to the network but not yet included in a block.
Zero-Knowledge Proof
A zero-knowledge proof is a cryptographic method that allows one party to prove to another party the validity of a statement without revealing any additional information.
Zero-Knowledge Succinct Non-Interactive Argument Of Knowledge (Zk-Snark)
Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARK) is a cryptographic method that allows for the verification of information without revealing the underlying data.