Smart Contracts Terms Glossary: Smart Contracts Terms in 2024
A
Atomic Swap
An atomic swap is a peer-to-peer exchange of cryptocurrencies or tokens between different blockchain networks without the need for a trusted third party.
B
Block Explorer
A block explorer is a tool that allows users to explore and view information about blocks, transactions, and addresses on a blockchain.
Blockchain
A blockchain is a decentralized and distributed digital ledger that records transactions across multiple computers.
Burn
In the context of cryptocurrencies, burn refers to the permanent removal of tokens from circulation by sending them to an unspendable address.
C
Code Upgradeability
Code upgradeability refers to the ability to modify or upgrade the code of a smart contract while preserving its state and functionality.
Consensus
Consensus is the agreement among participating nodes in a blockchain network on the validity of transactions.
Cross-Chain
Cross-chain refers to the ability to perform transactions or transfer assets between different blockchain networks.
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Cryptoeconomics
Cryptoeconomics is an interdisciplinary field that combines cryptography, economics, and game theory to study the design and incentives of blockchain networks.
Cryptographic Hash Function
A cryptographic hash function is a mathematical algorithm that takes an input and produces a fixed-size string of characters, used for data integrity and security.
D
Dao
DAO (Decentralized Autonomous Organization) is an organization that operates through smart contracts on the blockchain, eliminating the need for traditional intermediaries.
Dao Attack
A DAO attack refers to an exploit or vulnerability in a decentralized autonomous organization that can be exploited to manipulate or steal funds.
Dapp
DApp (Decentralized Application) is an application that runs on a blockchain network and utilizes smart contracts.
Decentralization
Decentralization refers to the distribution of control and decision-making across a network, rather than being concentrated in a single authority or central entity.
Decentralized
Decentralization refers to the distribution of authority, control, and decision-making among a network of participants.
Decentralized Autonomous Organization (Dao)
A decentralized autonomous organization is an organization that operates on a blockchain with predefined rules enforced through smart contracts.
Defi
DeFi stands for Decentralized Finance, referring to financial applications and services built on top of blockchain technology, often utilizing smart contracts.
Digital Identity
Digital identity refers to the representation of an individual or entity in a digital form, typically used for authentication and verification purposes.
Digital Signature
A digital signature is a cryptographic tool that verifies the authenticity of a digital message or document.
Distributed Application (Dapp)
A distributed application (dApp) is an application that operates on a decentralized network, often utilizing smart contracts and blockchain technology.
Distribution
Distribution in the context of blockchain refers to the allocation or dispersal of tokens or assets to certain participants, often through token sales or airdrops.
E
Erc-20
ERC-20 is a standard for creating fungible tokens on the Ethereum blockchain.
Escrow
Escrow is a financial arrangement where a third party holds and regulates the payment of funds or assets until the completion of a predetermined condition or event.
Ethereum
Ethereum is an open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dapps).
Evm
The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts on the Ethereum network.
F
Flash Loan
A flash loan is a type of uncollateralized loan offered within a decentralized finance (DeFi) ecosystem that must be repaid within the same transaction.
Fork
A fork is a split or divergence in a blockchain's transaction history, resulting in two separate chains with a shared history up until the fork point.
Fungibility
Fungibility is the property of a good or asset being interchangeable with other individual goods or assets of the same type.
Fungible
Fungible means that each unit of a token or asset is interchangeable and identical in value to every other unit.
Fungible Token
A fungible token is an interchangeable and divisible token that is mutually interchangeable with other tokens of the same type and value.
G
Gas
Gas is the unit used to measure computational effort in executing transactions or contracts on the Ethereum blockchain.
Gas Estimation
Gas estimation is the process of estimating the amount of gas required to execute a smart contract function or transaction on the Ethereum network.
Gas Limit
Gas limit is the maximum amount of gas that can be used in executing a transaction or contract on the Ethereum network.
Gas Price
Gas price is the amount of cryptocurrency required to be paid per unit of gas for executing a transaction or contract.
Gas Refund
Gas refund is the return of unused gas to the sender's account after executing a transaction or contract on the Ethereum network.
Governance
Governance refers to the decision-making processes and structures that determine the rules, policies, and direction of a blockchain network or decentralized organization.
H
Halving
Halving is an event that occurs in certain cryptocurrencies where the block rewards for miners are reduced by half at specific intervals.
Hard Fork
A hard fork is a major change or upgrade to a blockchain protocol that is not backwards-compatible, resulting in a permanent divergence from the previous version.
Hash Function
A hash function is a mathematical function that takes an input and produces a fixed-size string of characters, used in cryptography.
I
Immutable
Immutable means that once data is written on the blockchain, it cannot be altered or deleted.
Immutable Ledger
An immutable ledger is a record-keeping system, such as a blockchain, that cannot be modified or tampered with once data is recorded.
Initial Coin Offering
Initial Coin Offering (ICO) is a fundraising method where new projects or companies sell digital tokens in exchange for cryptocurrencies.
Initial Coin Offering (Ico)
An Initial Coin Offering is a fundraising method where a new cryptocurrency or token is sold to early supporters in exchange for funding.
Interoperability
Interoperability refers to the ability of different blockchain networks to interact and exchange information with each other.
L
Layer 2 Scaling
Layer 2 scaling refers to technologies or solutions built on top of a blockchain to increase its transaction processing capacity and scalability.
Liquidity
Liquidity refers to the ease with which an asset or token can be bought or sold without causing a significant change in its price.
M
Miner
A miner is a participant in a blockchain network who validates and adds new transactions to the blockchain by solving a computational puzzle.
Multi-Signature (Multisig)
Multi-signature (multisig) is a feature in smart contracts that requires multiple signatures or approvals to authorize a transaction or contract execution.
Multisig
Multisig, short for multisignature, is a security measure that requires multiple signatures to authorize and execute a transaction.
N
Network Congestion
Network congestion refers to the condition where the demand for network resources exceeds the available capacity, resulting in slower transaction processing times and higher fees.
Non-Fungible
Non-fungible means that each unit of a token or asset is unique and not interchangeable with other units.
Non-Fungible Token (Nft)
A non-fungible token (NFT) is a unique token that represents ownership or proof of authenticity of a specific asset or digital collectible.
Nonce
A nonce is a random number generated by a miner in the process of mining a block, used to solve the proof-of-work puzzle.
O
Off-Chain
Off-chain refers to operations or transactions that occur outside of the blockchain network.
Off-Chain Computing
Off-chain computing refers to the process of performing computational tasks or operations outside of the blockchain network, often using traditional computing resources.
On-Chain
On-chain refers to operations or transactions that occur directly on the blockchain network.
Onboarding
Onboarding is the process of bringing new participants or users onto a blockchain network or platform.
Oracles
Oracles are trusted sources of off-chain data that provide inputs to smart contracts on the blockchain.
P
Permissioned Blockchain
A permissioned blockchain is a blockchain where access and participation are restricted to a specific group of known entities.
Permissionless
Permissionless means that anyone can participate in a blockchain network without the need for approval or authority.
Permissionless Blockchain
A permissionless blockchain is a blockchain where anyone can participate and contribute to the network without requiring approval.
Plasma
Plasma is a scaling solution for the Ethereum blockchain that creates additional layers or subchains to process transactions and reduce the load on the main chain.
Privacy
Privacy in a blockchain context refers to the protection of sensitive information and the identities of participants.
Private Key
A private key is a cryptographic key used for decryption and the creation of digital signatures, known only by the owner.
Proof Of Stake
Proof of Stake (PoS) is a consensus algorithm where the probability of creating a new block is determined by a participant's stake in the network.
Proof Of Work
Proof of Work (PoW) is a consensus algorithm where participants must solve complex computational puzzles to validate transactions and create new blocks.
Proof-Of-Stake (Pos)
Proof-of-Stake is a consensus algorithm that allows participants to validate and add new blocks to a blockchain based on their ownership stake in the network.
Proof-Of-Work (Pow)
Proof-of-Work is a consensus algorithm that requires participants to solve a computational puzzle to validate and add new blocks to a blockchain.
Protocol
A protocol is a set of rules and standards governing how data is transmitted, received, and interpreted between participants in a network.
Public Key
A public key is a cryptographic key used for encryption and authentication, known by all network participants to verify digital signatures.
S
Scalability
Scalability refers to the ability of a blockchain network to handle a large number of transactions or users.
Scaling
Scaling refers to the effort of improving the capacity and performance of a blockchain network to handle a larger number of transactions.
Scaling Solution
A scaling solution is a technology or approach implemented to improve the scalability and transaction throughput of a blockchain network.
Self-Executing
Self-executing refers to the automated execution of a smart contract's terms and conditions without the need for human intervention.
Self-Sovereign Identity
Self-sovereign identity is a concept where individuals have complete control over their personal data and digital identity, with no reliance on centralized authorities.
Sha-256
SHA-256 is a cryptographic hash function used in many cryptocurrencies, including Bitcoin, to verify the integrity of data.
Sidechain
A sidechain is a separate blockchain that is interoperable with the main blockchain, allowing for certain transactions or processes to be conducted off the main chain.
Smart Contract
A smart contract is a self-executing contract with the terms of the agreement directly written into code.
Smart Contract Audit
Smart contract audit is the process of reviewing and assessing the security, reliability, and functionality of a smart contract.
Smart Contract Execution Environment
A smart contract execution environment is the runtime environment where smart contracts are executed within a blockchain network.
Smart Contract Platform
A smart contract platform is a blockchain platform that supports the development and execution of smart contracts.
Smart Contract Template
A smart contract template is a pre-defined and reusable code structure that can be used as a foundation for creating customized smart contracts.
Smart Contract Verification
Smart contract verification is the process of ensuring that a smart contract's code matches its intended functionality and has been written correctly.
Smart Contract Wallet
A smart contract wallet is a type of digital wallet that is governed by a smart contract and enables more advanced features and functionality compared to a traditional wallet.
Smart Legal Contract
A smart legal contract is a legally enforceable agreement written in code that incorporates elements of traditional contracts with the capabilities of smart contracts.
Smart Legal Contracts
Smart legal contracts are smart contracts that are designed to have legal enforceability and can be used for legally binding agreements.
Smart Property
Smart property refers to physical or digital assets that can be controlled, managed, or transferred using smart contracts on a blockchain.
Soft Fork
A soft fork is a minor change or upgrade to a blockchain protocol that is backward-compatible, allowing nodes with the new software to still communicate with nodes using the old software.
Solidity
Solidity is a programming language used to write smart contracts on the Ethereum blockchain.
Staking
Staking is the process of participating in a proof of stake blockchain network by holding and 'staking' tokens to support the network's operations.
T
Timestamp
Timestamp is a record of the date and time when a specific event or transaction occurred.
Token
A token is a digital asset that represents ownership or access rights on a blockchain.
Token Economy
A token economy refers to the use of tokens as a form of value exchange and the economic system built around those tokens.
Tokenization
Tokenization refers to the process of converting real-world or digital assets into digital tokens on a blockchain.
Turing Complete
Turing complete refers to a system or programming language that has the ability to simulate any Turing machine.
U
Upgradeability
Upgradeability is the ability of a smart contract to be updated or modified without affecting its previous functionality and state.
V
Virtual Machine
A virtual machine is a software emulation of a computer system that can run programs or applications.
W
Wallet
A wallet is a digital tool or application that allows users to securely store, manage, and interact with their cryptocurrencies and digital assets.
Whitepaper
A whitepaper is a document that outlines the key details, purpose, technology, and roadmap of a blockchain project.
Z
Zero-Knowledge Proof
Zero-knowledge proof is a cryptographic technique that allows one party to prove knowledge of a specific piece of information without revealing the information itself.