2023 Glossary
A
AI, Artificial Intelligence: is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans
ASIC Application-Specific Integrated Circuit: A certain type of computer processing chip with the capabilities to perform a specific function. ASIC boards are suitable additions in the blockchain industry for performing SHA256 hashing that is needed for Proof-of-Work mechanisms. This usually refers to an integrated circuit, custom-built for cryptocurrency mining
Account: An object containing an address, balance, nonce, and optional storage and code and is a program-derived account
Account Number: Like an account at a traditional bank, account numbers give you access to, and control over, the tokens held under a specific address. The blockchain itself keeps track of what tokens are held in by each account.
Actor An actor in the blockchain industry basically refers to any entity with the capabilities for participating in a specific network or an action.
Address The address refers to the public address related to a private key. The addresses work as the identity of an actor or an account.
Airdrop is a method for token distribution that helps in sending tokens or cryptocurrency to wallet addresses. Airdrops are also utilized in the case of marketing purposes for simple tasks such as app downloads and reshares, and referrals.
Algorithm a set of well-defined instructions in sequence to solve a problem. Algorithms are used as specifications for performing calculations and data processing
Altcoin The digital currency alternatives for Bitcoin are called altcoin, with most altcoins forks of Bitcoin, or Ethereum.
Anti-Money Laundering (AML) Anti-money laundering refers to the collection of international laws implemented for reducing the possibilities of money laundering through cryptocurrencies. set of international laws enacted to diminish the potential for criminal organizations or individuals to launder money. These rules and laws are applied to cryptocurrencies with varying effects in different jurisdictions.
Application a program (software application, or application, or app for short) is a computer program designed to carry out a specific task other than one relating to the operation of the computer itself, typically to be used by end-users.
API Application Programming Interface refers to the software application which serves as an intermediary between two applications. A set of definitions for how to use a piece of software. An API sits between an application and a web server and facilitates the transfer of data between them.
Architect Blockchain chooses the appropriate blockchain system for a use case, analyzing both business and technical components to consider in designing a blockchain application. Decisions as to the type of blockchain, cost-benefit analysis, and security design consideration are the architect’s responsibility.
Asymmetric Encryption as public-key cryptography, is a method for encrypting and decrypting data.
Atomic Swaps: Additional features in these wallets lets you “swap” one cryptocurrency for another. The application provider acts as the intermediary to secure the transactions from one chain to the other.
Attestation A claim made by an entity that something is true. In context of Ethereum, consensus validators must make a claim as to what they believe the state of the chain to be.
Augmented Reality Augmented Reality is a digital overlay that projects in the real world. It is an interactive experience of real-world environments that present relevant digital information in associated contexts of the physical environment.
Avatar refers to the persona or identity of an individual in a virtual world. The avatar of an individual in a virtual environment might look like them, like a cartoon, NFT or like the characters in online games.
Beacon Chain the Beacon Chain was the blockchain that introduced proof-of-stake and validators to Ethereum. It ran alongside the proof-of-work Ethereum Mainnet from December 2020 until the two chains were merged in September 2022 to form the Ethereum of today.
Bitcoin- the very first decentralized, peer-to-peer, digital currency. Bitcoin was created in 2009 by Satoshi Nakomoto — a pseudonym for an individual whose real identity is unknown — and the concept of cryptocurrency was outlined in a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Block- a batch of transactions written to the blockchain. Every block contains information about the previous block, thus, chaining them together. A block contains an ordered set of transactions. It is cryptographically linked to the preceding block, and in turn it is linked to be subsequent blocks. The first block in such a chain of blocks is called the genesis block. Blocks are created by the ordering service, and then validated and committed by peers.
Blockchain- a publicly-accessible digital ledger used to store and transfer information without the need for a central authority. Blockchains are the core technology on which cryptocurrency protocols like Bitcoin and Ethereum are built.
Block Explorer- a tool for browsing information on a blockchain, such as transactions, wallet addresses, market caps, and hash rates.
Block Hash A unique value (hash) that identifies the records in a block, contains the hash from the previous block.
Block Height The number of blocks beneath the current block. The first block after the genesis block has height one.
Block Reward The reward given to a miner after it has successfully hashed a transaction block. Block rewards can be a mixture of coins and transaction fees. The composition depends on the policy used by the cryptocurrency in question, and whether all of the coins have already been successfully mined. The current block reward for the Bitcoin network is 12.5 bitcoins per block.
Block Time The time interval between blocks being added to the blockchain.
Bridge- a protocol allowing separate blockchains to interact with one another, enabling the transfer of data, tokens, and other information between systems.
Burning- the process of removing tokens from a cryptocurrency’s circulating supply, usually done by sending them to an inaccessible wallet address. Other digital assets, such as NFTs, can also be burned via the same process.
Byzantine Fault Tolerance Byzantine Fault Tolerance basically refers to the ability of the network to reach consensus properly at any given time while also assuming that no more than one-third of the network actors are malicious.
C
Central Bank Digital Currency (CBDC) refers to the proposals that involve digital currency, issued by a central bank. Although the term is not well-defined, it represents a new form of central bank money.
Certificate Authority (CA)Certificate Authority or CA refers to a centralized authority that helps in correlating identities with a public-private key pair in private key infrastructures.
Chaincode - Smart contracts in Hyperledger Ecosystem. A smart contract defines the executable logic that generates new facts that are added to the ledger. A chaincode is typically used by administrators to group related smart contracts for deployment, but can also be used for low level system programming of Fabric
Consensus is an important process in the blockchain industry that is essential for helping different sections of a network in determining a single source of truth. Blockchain networks depend on consensus algorithms for reaching an agreement in terms of the blogs eligible for addition to the chain and the validity of nodes.
ConsenSys a blockchain software technology company founded by Joseph Lubin and based on developing the Ethereum ecosystem.
Coin in terms of blockchain is basically a representation of digital asset value generated through personal, independent blockchain.
Cold Wallet The cold wallet or cold storage in blockchain points out to an offline wallet that is not connected to the internet ever. The cold wallets are helpful in safeguarding cryptocurrencies from online hacking attacks.
Corda is basically an open-source blockchain project tailored for business functions. It helps in developing interoperable blockchain networks with formidable indications for conducting transactions in complete privacy. Corda features smart contract technology for enabling businesses to complete direct transactions with better value.
Creator Economy The creator economy is a significant concept for facilitating equal and lucrative opportunities for creators without any restrictions. The concept basically focuses on creating an independent market for content by different creators.
Credential A digital assertion containing a set of Claims made by an Entity about itself or another Entity. Credentials are a subset of Identity Data. A Credential is based on a Credential Definition.
Crypto Exchange Crypto exchange basically refers to the platform that can enable trading cryptocurrencies for other assets such as digital or fiat currency. They serve as intermediaries between the buyer and seller while operating on a commission-based model.
Cryptography is the technique of combining mathematical and logical problem-solving skills for encryption or decryption of encoded messages. Computer cryptography depends considerably on mathematical proofs alongside the difficulty of computation for certain mathematical problems.
A Crypto Wallet is a device or application that stores a collection of keys and can be used to send, receive, and track ownership of cryptocurrencies. Wallets can take many forms. A wallet might be a directory or file in your computer's file system, a piece of paper, or a specialized device called a hardware wallet. There are also various smartphone apps and computer programs that provide a user-friendly way to create and manage wallets. A Bitcoin wallet allows you to trade Bitcoin, an Ethereum wallet accommodates Ether. You cannot send Bitcoin to the Ethereum blockchain, each cryptocurrency must transact on its own blockchain.
Consensus Consensus is an important process in the blockchain industry that is essential for helping different sections of a network in determining a single source of truth. Blockchain networks depend on consensus algorithms for reaching an agreement in terms of the blogs eligible for addition to the chain and the validity of nodes.
Types of Consensus Mechanisms are:
Proof of Work
Proof of Stake
Proof of Stake Delegated
Proof of Activity
Proof of Authority
Proof of Burn
Proof of Capacity / Space
Proof of Elapsed Time
Proof of History
Proof of Importance
Proof of Work
Consortium refers to the private blockchain network operated by a company or a group of agencies. Consortium chains generally management information that is not fit for public release albeit needs to be communicated immutably between two concerned parties.
Currency In most specific terms, money in any form, when used in circulation as a medium of exchange is known as currency. Every country has its own currency, like the US dollar is the currency of the USA.
Cryptocurrency refers to currencies that are digitally distributed and traded with establishing proof of ownership through cryptographic methods. For instance, it is not possible to transfer Ether from an account without any control over the private key related to the concerned account.
Popular Cryptocurrencies
Algorand (ALGO)
https://www.algorand.com
Ethereum
https://ethereum.org/en
Qtum (QTUM)
https://www.qtum.org/
ApeCoin (APE)
https://apecoin.com
Ethereum Classic (ETC)
https://ethereumclassic.org
Ravencoin (RVN)
https://ravencoin.org/
Basic Attention Token (BAT)
https://basicattentiontoken.org
Fantom (FTM)
https://fantom.foundation/
Shiba Inu (SHIB)
https://shibatoken.com/
Bitcoin (BTC)
https://bitcoin.org/
Filecoin (FIL)
https://filecoin.io/
Solana (SOL)
https://solana.com/
Bitcoin Cash (BCH)
https://bitcoincash.org/
Golem (GLM)
https://www.golem.network
Somnium Space (CUBE)
https://somniumspace.com/
Bitcoin SV (BSV)
https://bitcoinsv.com
Hedera Hashgraph (HBAR)
https://hedera.com/
Steem (STEEM)
https://steem.com/
Cardano (ADA)
https://cardano.org
IOTA (MIOTA)
https://www.iota.org/
Stellar (XLM)
https://stellar.org/
Chainlink (LINK)
https://chain.link/
Monero (XMR)
https://www.getmonero.org/
Storj (STORJ)
https://www.storj.io/
Civic (CVC)
https://www.civic.com/
NEM (XEM)
https://nemproject.github.io/nem-docs/pages/
Tezos (XTZ)
https://tezos.com/
Crypto.com Coin (CRO)
https://crypto.com/
Neo (NEO & GAS)
https://neo.org/
Theta Network (THETA & TFUEL)
https://www.thetatoken.org/
Dash (DASH)
https://www.dash.org/
Ocean Protocol (OCEAN)
https://oceanprotocol.com/
TRON (TRX)
https://tron.network/
Dogecoin (DOGE)
https://dogecoin.com/
Orchid (OXT)
https://www.orchid.com/
XRP (XRP)
https://ripple.com/xrp/
EOSIO (EOS)
https://eos.io/
Polkadot (DOT)
https://polkadot.network/
Zcash (ZEC)
https://z.cash/
D
DAML Digital Asset Modelling Language, a blockchain open-source smart contract language that focuses on business logic by writing distributed applications in a correct, quick, and concise manner.
DApp Decentralized application. At a minimum, it is a smart contract and a web user interface. More broadly, a DApp is a web application that is built on top of open, decentralized, peer-to-peer infrastructure services. In addition, many DApps include decentralized storage and/or a message protocol and platform.
Decentralization The concept of moving the control and execution of processes away from a central entity.
Decentralized Autonomous Organization (DAO) A decentralized autonomous organization (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity. Popularized through cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions in a bottoms-up management approach. DAO may also refer to a contract named "The DAO" launched on April 30, 2016, which was then hacked in June 2016; this ultimately motivated a hard fork (codenamed DAO) at block 1,192,000, which reversed the hacked DAO contract and caused Ethereum and Ethereum Classic to split into two competing systems.
Decentraland is a community-owned virtual world based on Ethereum which allows users to play, explore and interact with different games and activities. It also allows users to create their own environments, applications, and marketplaces and is one of the early pioneers to include metaverse as their core product.
DeFi Short for "decentralized finance," a broad category of DApps aiming to provide financial services backed by the blockchain, without any intermediaries, so anyone with an internet connection can participate.
Decentralized Exchange (DEX) A type of DApp that lets you swap tokens with peers on the network. You need ether to use one (to pay transactions fees) but they are not subject to geographical restrictions like centralized exchanges – anyone can participate.
Designer Blockchain creates the interfaces that the system needs to interact with participants. UX designers facilitate adoption by users and require a basic understanding of workflows and design elements.
DID Method Decentralized Identifier method is a specification that defines a particular type of DID conforming to the W3C DID specification. A DID Method specifies both the format of the particular type of DID as well as the set of operations for creating, reading, updating, and deleting (revoking) it. Decentralized identifiers.
Denial-of-Service (DoS) A (DoS) attack is when an attacker makes it impossible for a system to serve its users as designed. This can be accomplished by exploiting a flaw in the system, but, more commonly, is accomplished by performing legitimate actions at a rate higher than the target can handle. To be effective, denial-of-service attacks typically focus on a system’s weakest link or bottleneck.
Developer Blockchain designs and codes the smart contracts that supply the logic behind business decisions. They create and test the software and systems. The two types of developers are Core developers – work on protocols and Software developers work on end user experiences.
Difficulty A network-wide setting in proof-of-work networks that controls how much average computation is required to find a valid nonce. The difficulty is represented by the number of leading zeroes that are required in the resulting block hash for it to be considered valid. This concept is deprecated in Ethereum since the transition to proof-of-stake
Digital Signature A short string of data a user produces for a document using a private key such that anyone with the corresponding public key, the signature, and the document can verify that (1) the document was "signed" by the owner of that particular private key, and (2) the document was not changed after it was signed
Digital Twin A digital twin is a term for the virtual representation of a real-life structure or object. For example, NASA has employed the digital twin technology to simulate space capsules in 2010.
Distributed Ledger Distributed ledger is the database spread throughout various sites, institutions, and countries with sequential storage of records in a continuous manner. The data in distributed ledger could be permissioned or un-permissioned, depending on the control privileges for viewership of the data.
Double Spend Spending the same asset twice.
E
ECDSA Elliptic curve digital signature algorithm is a cryptographic algorithm used by Ethereum to ensure that funds can only be spent by their owners. It's the preferred method for creating public and private keys. Relevant for account address generation and transaction verification.
EWASM refers to the web assembly or WASM version implemented by the Ethereum Virtual Machine for ensuring improved functionalities in blockchains.
Encryption Encryption is the conversion of electronic data into a form unreadable by anyone except the owner of the correct decryption key. Encryption is an essential element enabling blockchain networks to be simultaneously public and secure.
Engineer, Blockchain, determines the infrastructure of the blockchain solution designing and developing a distributed blockchain network. They work with open-source code and determining programming languages, algorithms, nodes, data structures, and cryptography is needed to design peer-to-peer networks.
Ether Ether, also known as ETH, is the base cryptocurrency tailored for the Ethereum blockchain network. The native cryptocurrency used by the Ethereum ecosystem, is used to cover the gas costs when executing transactions.
Ethereum Ethereum is a technology for building apps and organizations, holding assets, transacting, and communicating without being controlled by a central authority. Ethereum has its own cryptocurrency, Ether, which is used to pay for certain activities on the Ethereum network. Ethereum switched to a Proof-of-Stake or PoS algorithm for better scalability in September 2022.
Ethereum Enterprise Alliance or EEA refers to a group of medium to large businesses with a public commitment to support Ethereum development and creating applications tailored for the protocol.
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Ethereum Improvement Proposals (EIP)
Ethereum Improvement Proposals or EIPs provide a description of standards for the Ethereum platform, such as contract standards, core protocol specifications, and client APIs. A design document providing information to the Ethereum community, describing a proposed new feature or its processes or environment
ERC-20 Token Standard. https://eips.ethereum.org/EIPS/eip-20
ERC-165 Standard Interface Detection. https://eips.ethereum.org/EIPS/eip-165
ERC-173 Owned Standard. https://eips.ethereum.org/EIPS/eip-173
ERC-223 Token Standard. https://github.com/ethereum/EIPs/issues/223
ERC-677 transferAndCall Token Standard. https://github.com/ethereum/EIPs/issues/677
ERC-721 Non-Fungible Token Standard https://eips.ethereum.org/EIPS/eip-721
ERC-827 Token Standard. https://eips.ethereum.org/EIPS/eip-827
ERC-1155 Multi-Token Standard https://eips.ethereum.org/EIPS/eip-1155
ERC20 Token Standard
ERC refers to Ethereum Request for Comment and is associated with an assignment number related to the standard. ERC20 is a technical standard for smart contracts implemented by the majority of Ethereum tokens. The ERC20 standard lists certain rules which specify requirements that a token should fulfill for maintaining compliance and functioning in the Ethereum network.
Eth1 is a term that referred to Mainnet Ethereum, the existing proof-of-work blockchain. This term has since been deprecated in favor of the 'execution layer.
Eth2 is a term that referred to a set of Ethereum protocol upgrades, including Ethereum's transition to proof-of-stake. This term has since been deprecated in favor of the 'consensus layer
Ethereum Virtual Machine (EVM) Ethereum Virtual Machine is a simulated state machine that depends on eWASM bytecode for processing transactions
Events Allows the use of EVM logging facilities. DApps can listen for events and use them to trigger JavaScript callbacks in the user interface.
Exchange An Exchange is one of the vital components of the crypto ecosystem as they are the platforms for exchanging cryptocurrencies with fiat currency and other cryptocurrencies. Crypto exchanges could vary considerably in terms of the types of supported currency conversions and fee structures.
Extended Reality or XR represents a comprehensive term for different overlapping concepts pertaining to AR, and VR. XR would become the appropriate term for encompassing everything related to AR, and VR.
F
Faucet A faucet is an application, sometimes a very simple website, other times more complex, that dispenses cryptocurrency. While some networks, especially those in early launch stages, offer “real Mainnet” tokens via faucets, it is much more common for a faucet to be present on a test network, or testnet. These faucets are used by developers to test out DApps or smart contracts before deploying them on Ethereum Mainnet, or users who want to practice an action on the blockchain with no risk. Tokens dispensed by a test faucet stay on the test networks and cannot be exchanged for mainnet equivalents.
Fiat Currency Government-issued currency. For example, US Dollars (USD), Euros (EUR), Yuan (CNY), and Yen (JPY).
Final, Finality A transaction is considered “final” once it can no longer be changed. In a sense, this happens once there are sufficient confirmations of the transaction, a transaction is final once the block that contains it is mined or validated. Unlike traditional financial systems where charges can be “reversed”, there is no “undoing” a transaction on the blockchain. Once finality is reached, the transaction is immutable.
Fork A ledger derived from common entries but then diverged. “Forking’ is a term that comes from the world of collaborative software development and refers to the action of copying an existing application or set of code and modifying it to create an alternate version. At the blockchain protocol level, a ‘fork’ creates an alternative version of a blockchain.
Fungibility refers to the property of an item that could be easily exchanged with another identical item. A particular asset class becomes fungible when all units of the asset feature similar market value and validity.
G
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Gas in the blockchain terminology refers to a measure of the computational difficulty needed for processing a smart contract function.
Gas Limit is the maximum amount of Gas a user is willing to pay to make a transaction on the Ethereum network. The transaction is rejected if the cost of the transaction exceeds the gas limit.
Gas Price refers to the number of tokens charged as fee for every unit of gas consumed by function of smart contract. Gas prices can help a network in responding dynamically to fluctuations in bandwidth demand on the grounds of market forces.
Gwei is the basic and specific denomination for ETH; it is also a unit for gas price.
Genesis Block It is the initial, first block or block zero in any blockchain-based system. It is the prototype of all other blocks in the blockchain.
Golang Commonly referred to as Go, Golang is an open-source programming language developed by Google. A vast portion of the Hyperledger’s chaincode built using Hyperledger Fabric is written in the Golang programming language.
Gossip Protocol refers to the way nodes communicate. A process through which actors in a network can exchange information with other members easily. Upon receiving new information, an actor relays the information to all other actors. The cumulative connection of all actors in a network ensures that all of them receive the information eventually.
Governance Tokens Tokens that represent voting power in decentralized organizations.
Graphical User Interface the Graphical User Interface or GUI is basically an instrument for displaying information to users through personalized design of on-screen elements such as taskbars and windows.
H
Halving Many cryptocurrencies have a finite supply, which makes them a scarce digital commodity. For example, the total amount of Bitcoin that will ever be issued is 21 million. The number of bitcoins generated per block is decreased 50% every four years. This is called “halving.” The final halving will take place in the year 2140.
Hard fork A hard fork occurs when there is a change in the blockchain that is not backward compatible (not compatible with older versions), thus requiring all participants to upgrade to the new version to be able to continue participating on the network.
Hardware Wallet A physical device that can be connected to the web and interact with online exchanges but can also be used as cold storage (not connected to the internet).
Hash is a digital fingerprint of a sequence of bytes. A programmatic function that takes an input, and then outputs an alphanumeric string known as the “hash value”..
Hash Function refers to a cryptographic function that enables mapping of inputs to a particular yet visibly random outputs.
Hashrate The number of hash calculations made per second by computers running mining software.
Holder In a digital identity model, the holder is a role played by an Entity when it is issued a Credential by an Issuer. The Holder may or may not be the Subject of the Credential.
Hot wallet / Hot storage A wallet that is directly always connected to the internet, for example one that is held on a centralized exchange. Hot wallets are considered to have lower security than cold storage systems or hardware wallets.
Hyperledger is an ecosystem of open-system tools, libraries, and products designed to enable and support enterprise-grade blockchain technology. In general, the products focus on creating solutions for permissioned blockchains–that is, non-public blockchains, with alternative consensus mechanisms other than Proof of Work (PoW) or Proof of Stake (PoS).
I
Initial Coin Offering ICO or Initial Coin Offering, also known as Initial Token Offering, is like the public offering of stocks in the financial markets. It offers a way for tokenized businesses to obtain investment from the public. ICOs come under the regulation of the Securities and Exchange Commission or SEC.
Immutability is the property of data for showcasing additional resistance to modifications. It is a key aspect of blockchain networks and ensures that data written on a blockchain ledger cannot be modified.
InterPlanetary File System (IPFS) IPFS basically refers to a system for decentralized file storage and referencing for the Ethereum blockchain. It is an open-source protocol for enabling the storage and sharing of hypermedia in a distributed manner. Most important of all, IPFS does not depend on a single point of failure.
Identifier A text string or other atomic data structure used to provide a base level of Identity for an Entity in a specific context. In Self-Sovereign Identity systems, Decentralized Identifiers (DIDs) are the standard Identifier in modern identity platforms.
Issuer The Entity that issues a Credential to a Holder.
J
Java The most popular programming language tailored for server-side applications.
JavaScript is the ideal programming language tailored for browsers and web pages on the grounds of its flexibility. It follows the ECMAScript and is also an interpreted language for developing back-end and front-end solutions.
K
KYC (Know Your Customer) is a procedure in which a business verifies the genuineness of the customers by verifying their background and identity.
Keypair A public key and corresponding private key for accessing an account.
Key Recovery The process of recovering access to and control of a set of Private Keys—or an entire Wallet—after loss or compromise. Key Recovery is a major focus of the emerging standard for cryptographic key management.
Keystore File A keystore file is a special, encrypted version of a private key in JSON format.
L
Layer 2 are improvement to the base layer of a system. These improvements are related to transaction speeds, cheaper transaction fees, and transaction privacy.
Ledger A list of entries containing transactions signed by clients.
Liquidity The availability of liquid assets to a company or market. An asset is considered more liquid if it can easily be converted into cash. The harder the ability to turn an asset into cash the more illiquid the asset. The liquidity of an asset affects its risk potential and market price.
M
Mainnet The primary network where actual transactions take place on a specific distributed ledger. For example, The Ethereum mainnet is the public blockchain where network validation and transactions take place.
Market Cap Short for Market Capitalization, this term refers to the total value held in a particular industry, market, company, or asset. For a publicly traded company, the market cap is the total dollar market value of a company’s outstanding shares. For Bitcoin or Ethereum, the total market cap reflects the current existing supply times the market price.
Merge The Merge refers to the original Ethereum Mainnet merging with a separate proof-of-stake blockchain called the Beacon Chain, now existing as one chain. Upgrade from the original proof-of-work mechanism to proof-of-stake, The Merge reduced Ethereum's energy consumption by ~99.95%.
Merkle Patricia Trie is a data structure in which a single hash code function (a type of cryptographic code) splits into smaller branches. In a similar way to a family tree, where a parent branch splits into child branches, which are then extrapolated into grandchild branches, a Merkle Patricia trie keeps a record of the filiation and history of each element. This type of data structure enables for faster verification on a blockchain network.
Merkle Root refers to the cryptographic hash of all other hashes in the Merkle Tree. In the case of a blockchain, the Merkle Root refers to a hash of all the transaction hashes in the chain.
Mesh ConsenSys Mesh is a network of loosely coupled, tightly aligned teams, products, and investments advancing the Ethereum ecosystem and the arrival of Web 3.0.
MetaMask, either in its mobile app form on iOS and Android, or in its browser extension form, is a tool to access and interact with blockchains and the decentralized web. Its functions include that of a wallet, a DApp permissions manager, and token swap platform.
Metaverse refers to the concept of a shared virtual world made up of 3D objects and virtual spaces which offer an interactive, collaborative, and immersive experience. The examples of metaverse are evident in massive online social games such as Fortnite or user-generated virtual worlds like Minecraft.
Mining The process by which blocks, or transactions are verified and added to a blockchain using a Proof of Work (PoW) consensus mechanism. To verify a block a miner must use a computer to solve a cryptographic problem. Once the computer has solved the problem, the block is considered “mined” or verified. In the blockchain, the first computer to mine or verify the block receives bitcoin or ether as a reward.
Multi-currency Wallets allow you to hold multiple cryptocurrencies in the same application. In these wallets, each cryptocurrency will have its own balance. To initiate a transaction, the application will create a cryptographically secure address (specific for the blockchain). This address acts as your account number and lets you send and receive the cryptocurrency.
Multi Signature (MultiSig) A crypto-asset wallet that requires multiple keys to access. Typically, a specified number of individuals are required to approve or “sign” a transaction before they can access the wallet. This is different from most wallets which only require one signature to approve a transaction
Minting is the process of creating new tokens and bringing them into circulation so that they can be used. It's a decentralized mechanism to create a new token without the involvement of the central authority.
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N
Network The set of actors interconnected collectively for achieving a single purpose is referred to as a network.
Nifty Gateway is a unique portal for NFT sales and purchases through the Ethereum blockchain. The platform offers a uniquely tailored collection of NFTs from many renowned content creators, artists, and musicians.
Non-custodial in the context of blockchain refers to a specific variant of a decentralized wallet where the customer has ownership of the wallet’s private keys. Users receive a file with private keys and a mnemonic phrase so they can retrieve their assets in non-custodial wallets.
Non-Fungible refers to the property of an asset that has unique qualities and cannot be exchanged with another asset in a similar class. Basically, non-fungible tokens are unique and are not interchangeable.
NFT A non-fungible token is a type of token that is a unique digital asset and has no equal token. This is in contrast to cryptocurrencies like ether that are fungible in nature. The ERC-721 introduces a standard for NFT, in other words, this type of Token is unique and can have different value than another Token from the same Smart Contract.
Node Any computer connected to the blockchain network is referred to as a node. A full node is a computer that can fully validate transactions and download the entire data of a specific blockchain. In contrast, a “lightweight” or “light” node does not download all pieces of a blockchain’s data and uses a different validation process.
Nonce The word ‘nonce’, originally formed from a contraction of a phrase meaning “not more than once”, on the Ethereum mainnet, “nonce” refers to a unique transaction identification number that increases in value with each successive transaction to ensure various safety features (such as preventing a double-spend).
O
Open Governance A governance model in which the Governance Authority is open to public participation, operates with full transparency, and does not favor any particular contributor or constituency. The Sovrin Foundation operates under an Open Governance model.
OpenSea a decentralized P2P marketplace tailored for purchasing, selling, and trading in rare digital assets, including gaming items, artwork, and collectibles created over the non-fungible token (NFT) technology.
Oracles are services for connecting real-world data and blockchain applications.
P/Q
P2P (Peer-to-peer) refers to interactions that happen between two parties, usually two separate individuals. A P2P network can be any number of individuals. In a blockchain network, individuals can transact or interact with each other without relying on an intermediary or single point of failure.
Permissioned Ledger refers to a ledger where users need to be granted permission to execute the consensus protocol to help determine which blocks get added to the chain and maintain the shared ledger.
Private Blockchain A blockchain or distributed ledger that has a closed network where participants are controlled by a single entity. A private blockchain requires a verification process for new participants. A private blockchain may also limit which individuals are able to participate in consensus of the blockchain network
Private Key The private key of a keypair. In MetaMask, corresponds to a single specific account in a wallet. Private keys can be thought of as a password that enables an individual to access their crypto account.
Proof of Authority (PoA) A consensus mechanism used in private blockchains, granting a single private key the authority to generate all of the blocks or validate transactions.
Proof of History (PoH) A stack of proofs, each of which proves that some data existed before the proof was created and that a precise duration of time passed before the previous proof.
Proof-of-Liquidity is a cryptographic assertion method by third-party auditor for verifying that an actor holds a specific number of resources.
Proof of Stake (PoS) A consensus mechanism in which an individual or “validator” validates transactions or blocks. Validators “stake” their cryptocurrency, such as ether, on whichever transactions they choose to validate. If the individual validates a block (group of transactions) correctly then the individual receives a reward. If a validator verifies an incorrect transaction, then they lose the cryptocurrency that they staked. PoS requires a negligible amount of computing power.
Proof of Work (PoW) A consensus mechanism in which each block is ‘mined’ by a group of individuals or nodes on the network. Hashing a block, which is in itself an easy computational process, under PoW requires each miner to solve for a set, difficult variable. In effect, the process of hashing each block becomes a competition. PoW is significantly more energy-intensive than other consensus mechanisms.
Protocol A set of rules that dictate how data is exchanged and transmitted. This pertains to cryptocurrency in blockchain when referring to the formal rules that outline how these actions are performed across a specific network.
Public Blockchain A globally open network where anyone can participate in transactions, execute the consensus protocol to help determine which blocks get added to the chain, and maintain the shared ledger.
Public Key The public key of a keypair. You can derive a public key from a private key but cannot derive a private key from a public key. By pairing a public key with a private key, transactions not dependent on trusting involved parties or intermediaries.
R
Reward an amount of cryptocurrency included in each new block as a reward by the network to the miner who found the proof-of-work solution.
Ring signature is a private-key focused cryptographic signature with an option for decryption or verification through multiple valid keys.
Rollups are one element in the set of tools and infrastructure being built as Layer 2, the scaling solutions for the Ethereum network. They consist, in general, of solutions in which the transaction data is kept on Layer 1, the original Ethereum network, while transaction computation occurs on a side network, freeing up computational power on Layer.
Rust a low-level statically typed programming language that is fast and memory efficient, making it very scalable. One of the fastest blockchains, Solana, is built with Rust as its core.
S
Sandbox is a new 3D virtual environment in which users can interact with each other and play games as well as create assets and attend concerts.
Satoshi Nakamoto It’s the name that was used by the assumed individual/ individuals who developed bitcoin. Nakamoto published the white paper in 2008, describing about the project. He also invented the first blockchain database.
Scalability refers to the ability of a blockchain project to handle the network traffic, capacity of application, and future growth.
Second Life is an online virtual world that started in 2003 and presented one of the first examples of social experiences for the metaverse. It continues to be an open-world social network featuring different avatars for users.
Secure Hash Algorithm or SHA is a cryptographic hashing function tailored by the United States National Security Agency.
Seed Phrase or Secret Recovery Phrase, a crucial part of public blockchain technology, originally created for Bitcoin, and goes by many names. However, they all refer to a set of ordered words which correspond to determined values. These values never change, and therefore the same string of words in the same order will always produce the same number–this is the underlying functionality that allows seed phrases to back up wallets.
Self-Sovereign Identity an identity system architecture based on the core principle that Identity Owners have the right to permanently control one or more Identifiers together with the usage of the associated Identity Data.
Solidity is a popular smart contract programming language specifically tailored for the Ethereum Virtual Machine.
Smart Contract in blockchain refers to the code that you can execute in the environment of a virtual machine.
SNARK Short for "succinct non-interactive argument of knowledge", a SNARK is a type of zero-knowledge proof.
Stablecoin is a cryptocurrency variant that has its value pegged against another asset class such as gold or fiat currency in order to achieve stability in its price. Stablecoins help in addressing price volatility by associating cryptocurrency value with stable assets
Sharding is the process of splitting the complete network into many small portions, shards. Each shard has an independent state i.e. unique smart contract and account
Staking depositing a quantity of cryptocurrency (your stake) to become a validator and secure the network. A validator checks transactions and proposes blocks under a proof-of-stake consensus model. Staking gives you an economic incentive to act in the best interests of the network.
STARK Short for "scalable transparent argument of knowledge", a STARK is a type of zero-knowledge proof.
SuperRare is an NFT marketplace that offers the functionalities necessary for collection and trading of unique and single-edition artworks. All artworks on SuperRare are created by artists in the network and are available and tokenized digital collectibles for purchasing and trading.
Syncing The process of downloading the entire latest version of a blockchain to a node.
T/U
Testnet short for "test network," a network used to simulate the behavior of the main network.
Token A tradable virtual good defined in smart contracts on the Ethereum blockchain.
Token Standard Introduced by ERC-20 proposal, this provides a standardized smart contract structure for fungible tokens, ECR721 for non-fungible tokens.
Transaction Data committed to the Blockchain signed by an originating account, targeting a specific address. The transaction contains metadata such as the gas limit for that transaction.
Transaction Fee A fee you need to pay whenever you use the network. Examples include sending funds from your wallet or a DApp interaction, like swapping tokens or buying a collectable. You can think of this like a service charge. This fee will change based on how busy the network is. This is because validators, the people responsible for processing your transaction, are likely to prioritize transactions with higher fees – so congestion forces the price up.
Transmission Control Protocol/Internet Protocol, INTERNET PROTOCOL SUITE (TCP/IP) The TCP/IP protocol provides identifiers for machines, but not for the people and organizations operating the machines. A framework for organizing the set of communication protocols used in the internet.
Trustlessness the ability of a network to mediate transactions without any of the involved parties needing to trust a third party.
Trust Triangle Three parties that make up the Decentralized Identity model: Issuer, Holder, Verifier.
Turing Complete A concept named after English mathematician and computer scientist Alan Turing - a system of data-manipulation rules (such as a computer's instruction set, a programming language, or a cellular automaton) is said to be "Turing complete" or "computationally universal" if it can be used to simulate any Turing machine.
V
Validator A full participant in a Solana network cluster that produces new blocks. A validator validates the transactions added to the ledger.
Verifiable Credential a credential is a set of one or more claims made by an issuer. A Verifiable Credential is a tamper-evident Credential that has authorship that can be W3C Verifiable Claims Working Group cryptographically verified.
Verifier an Entity who requests a Credential or Proof from a Holder and verifies
Viper a programming language heavily influenced by Python programming language. The three design principles Viper uses to build a solid foundation are Auditability, Security, and Simplicity.
Virtual Machine refers to an operating system that runs on another operating system. Virtual Machines are important for allocating the processing strength of large servers to the simpler / smaller applications.
W / X
Wallet a collection of keypairs that allows users to manage their funds.
Web3 / Web 3.0 are terms used synonymously with “the decentralized web” and are often used to refer, broadly, to the blockchain and decentralized technology ecosystems.
Wei The smallest denomination of ether. 1018 wei = 1 ether.
Y
Yul an intermediate programming language that you can compile to bytecode for addressing the needs of different backends. It is designed to be a common denominator for both the EVM and ewasm (Ethereum flavored WebAssembly) platforms.
Z
zk-SNARK Zero-Knowledge Succinct Non-interactive ARguments of Knowledge are an incredible technology, and vital to the scaling of blockchain technology and the decentralized web.
Zero-Knowledge Proof a (ZKP) is a cryptographic method that allows a party (the prover) to prove to another party (the verifier) that a given statement is true, without conveying any additional information.
51% Attack If more than half the computer power or mining hash rate on a network is run by a single person or a single group of people, then a 51% attack is in operation. This means that this entity has full control of the network and can negatively affect a cryptocurrency by taking over mining operations, stopping, or changing transactions, and double-spending coins.
X.509 certificates. X.509 is a standard format for public key certificates, digital documents that securely associate cryptographic key pairs with identities such as websites, individuals, or organizations.
References:
https://consensys.net/knowledge-base/a-blockchain-glossary-for-beginners/
https://hyperledger-fabric.readthedocs.io/en/latest/glossary.html
https://101blockchains.com/blockchain-definitions/
https://ethereum.org/en/glossary/
https://docs.google.com/document/d/1gfIz5TT0cNp2kxGMLFXr19x1uoZsruUe_0glHst2fZ8/edit#heading=h.69vh8azbpxu3
AI, Artificial Intelligence: is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans
ASIC Application-Specific Integrated Circuit: A certain type of computer processing chip with the capabilities to perform a specific function. ASIC boards are suitable additions in the blockchain industry for performing SHA256 hashing that is needed for Proof-of-Work mechanisms. This usually refers to an integrated circuit, custom-built for cryptocurrency mining
Account: An object containing an address, balance, nonce, and optional storage and code and is a program-derived account
Account Number: Like an account at a traditional bank, account numbers give you access to, and control over, the tokens held under a specific address. The blockchain itself keeps track of what tokens are held in by each account.
Actor An actor in the blockchain industry basically refers to any entity with the capabilities for participating in a specific network or an action.
Address The address refers to the public address related to a private key. The addresses work as the identity of an actor or an account.
Airdrop is a method for token distribution that helps in sending tokens or cryptocurrency to wallet addresses. Airdrops are also utilized in the case of marketing purposes for simple tasks such as app downloads and reshares, and referrals.
Algorithm a set of well-defined instructions in sequence to solve a problem. Algorithms are used as specifications for performing calculations and data processing
Altcoin The digital currency alternatives for Bitcoin are called altcoin, with most altcoins forks of Bitcoin, or Ethereum.
Anti-Money Laundering (AML) Anti-money laundering refers to the collection of international laws implemented for reducing the possibilities of money laundering through cryptocurrencies. set of international laws enacted to diminish the potential for criminal organizations or individuals to launder money. These rules and laws are applied to cryptocurrencies with varying effects in different jurisdictions.
Application a program (software application, or application, or app for short) is a computer program designed to carry out a specific task other than one relating to the operation of the computer itself, typically to be used by end-users.
API Application Programming Interface refers to the software application which serves as an intermediary between two applications. A set of definitions for how to use a piece of software. An API sits between an application and a web server and facilitates the transfer of data between them.
Architect Blockchain chooses the appropriate blockchain system for a use case, analyzing both business and technical components to consider in designing a blockchain application. Decisions as to the type of blockchain, cost-benefit analysis, and security design consideration are the architect’s responsibility.
Asymmetric Encryption as public-key cryptography, is a method for encrypting and decrypting data.
Atomic Swaps: Additional features in these wallets lets you “swap” one cryptocurrency for another. The application provider acts as the intermediary to secure the transactions from one chain to the other.
Attestation A claim made by an entity that something is true. In context of Ethereum, consensus validators must make a claim as to what they believe the state of the chain to be.
Augmented Reality Augmented Reality is a digital overlay that projects in the real world. It is an interactive experience of real-world environments that present relevant digital information in associated contexts of the physical environment.
Avatar refers to the persona or identity of an individual in a virtual world. The avatar of an individual in a virtual environment might look like them, like a cartoon, NFT or like the characters in online games.
Beacon Chain the Beacon Chain was the blockchain that introduced proof-of-stake and validators to Ethereum. It ran alongside the proof-of-work Ethereum Mainnet from December 2020 until the two chains were merged in September 2022 to form the Ethereum of today.
Bitcoin- the very first decentralized, peer-to-peer, digital currency. Bitcoin was created in 2009 by Satoshi Nakomoto — a pseudonym for an individual whose real identity is unknown — and the concept of cryptocurrency was outlined in a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Block- a batch of transactions written to the blockchain. Every block contains information about the previous block, thus, chaining them together. A block contains an ordered set of transactions. It is cryptographically linked to the preceding block, and in turn it is linked to be subsequent blocks. The first block in such a chain of blocks is called the genesis block. Blocks are created by the ordering service, and then validated and committed by peers.
Blockchain- a publicly-accessible digital ledger used to store and transfer information without the need for a central authority. Blockchains are the core technology on which cryptocurrency protocols like Bitcoin and Ethereum are built.
Block Explorer- a tool for browsing information on a blockchain, such as transactions, wallet addresses, market caps, and hash rates.
Block Hash A unique value (hash) that identifies the records in a block, contains the hash from the previous block.
Block Height The number of blocks beneath the current block. The first block after the genesis block has height one.
Block Reward The reward given to a miner after it has successfully hashed a transaction block. Block rewards can be a mixture of coins and transaction fees. The composition depends on the policy used by the cryptocurrency in question, and whether all of the coins have already been successfully mined. The current block reward for the Bitcoin network is 12.5 bitcoins per block.
Block Time The time interval between blocks being added to the blockchain.
Bridge- a protocol allowing separate blockchains to interact with one another, enabling the transfer of data, tokens, and other information between systems.
Burning- the process of removing tokens from a cryptocurrency’s circulating supply, usually done by sending them to an inaccessible wallet address. Other digital assets, such as NFTs, can also be burned via the same process.
Byzantine Fault Tolerance Byzantine Fault Tolerance basically refers to the ability of the network to reach consensus properly at any given time while also assuming that no more than one-third of the network actors are malicious.
C
Central Bank Digital Currency (CBDC) refers to the proposals that involve digital currency, issued by a central bank. Although the term is not well-defined, it represents a new form of central bank money.
Certificate Authority (CA)Certificate Authority or CA refers to a centralized authority that helps in correlating identities with a public-private key pair in private key infrastructures.
Chaincode - Smart contracts in Hyperledger Ecosystem. A smart contract defines the executable logic that generates new facts that are added to the ledger. A chaincode is typically used by administrators to group related smart contracts for deployment, but can also be used for low level system programming of Fabric
Consensus is an important process in the blockchain industry that is essential for helping different sections of a network in determining a single source of truth. Blockchain networks depend on consensus algorithms for reaching an agreement in terms of the blogs eligible for addition to the chain and the validity of nodes.
ConsenSys a blockchain software technology company founded by Joseph Lubin and based on developing the Ethereum ecosystem.
Coin in terms of blockchain is basically a representation of digital asset value generated through personal, independent blockchain.
Cold Wallet The cold wallet or cold storage in blockchain points out to an offline wallet that is not connected to the internet ever. The cold wallets are helpful in safeguarding cryptocurrencies from online hacking attacks.
Corda is basically an open-source blockchain project tailored for business functions. It helps in developing interoperable blockchain networks with formidable indications for conducting transactions in complete privacy. Corda features smart contract technology for enabling businesses to complete direct transactions with better value.
Creator Economy The creator economy is a significant concept for facilitating equal and lucrative opportunities for creators without any restrictions. The concept basically focuses on creating an independent market for content by different creators.
Credential A digital assertion containing a set of Claims made by an Entity about itself or another Entity. Credentials are a subset of Identity Data. A Credential is based on a Credential Definition.
Crypto Exchange Crypto exchange basically refers to the platform that can enable trading cryptocurrencies for other assets such as digital or fiat currency. They serve as intermediaries between the buyer and seller while operating on a commission-based model.
Cryptography is the technique of combining mathematical and logical problem-solving skills for encryption or decryption of encoded messages. Computer cryptography depends considerably on mathematical proofs alongside the difficulty of computation for certain mathematical problems.
A Crypto Wallet is a device or application that stores a collection of keys and can be used to send, receive, and track ownership of cryptocurrencies. Wallets can take many forms. A wallet might be a directory or file in your computer's file system, a piece of paper, or a specialized device called a hardware wallet. There are also various smartphone apps and computer programs that provide a user-friendly way to create and manage wallets. A Bitcoin wallet allows you to trade Bitcoin, an Ethereum wallet accommodates Ether. You cannot send Bitcoin to the Ethereum blockchain, each cryptocurrency must transact on its own blockchain.
Consensus Consensus is an important process in the blockchain industry that is essential for helping different sections of a network in determining a single source of truth. Blockchain networks depend on consensus algorithms for reaching an agreement in terms of the blogs eligible for addition to the chain and the validity of nodes.
Types of Consensus Mechanisms are:
Proof of Work
Proof of Stake
Proof of Stake Delegated
Proof of Activity
Proof of Authority
Proof of Burn
Proof of Capacity / Space
Proof of Elapsed Time
Proof of History
Proof of Importance
Proof of Work
Consortium refers to the private blockchain network operated by a company or a group of agencies. Consortium chains generally management information that is not fit for public release albeit needs to be communicated immutably between two concerned parties.
Currency In most specific terms, money in any form, when used in circulation as a medium of exchange is known as currency. Every country has its own currency, like the US dollar is the currency of the USA.
Cryptocurrency refers to currencies that are digitally distributed and traded with establishing proof of ownership through cryptographic methods. For instance, it is not possible to transfer Ether from an account without any control over the private key related to the concerned account.
Popular Cryptocurrencies
Algorand (ALGO)
https://www.algorand.com
Ethereum
https://ethereum.org/en
Qtum (QTUM)
https://www.qtum.org/
ApeCoin (APE)
https://apecoin.com
Ethereum Classic (ETC)
https://ethereumclassic.org
Ravencoin (RVN)
https://ravencoin.org/
Basic Attention Token (BAT)
https://basicattentiontoken.org
Fantom (FTM)
https://fantom.foundation/
Shiba Inu (SHIB)
https://shibatoken.com/
Bitcoin (BTC)
https://bitcoin.org/
Filecoin (FIL)
https://filecoin.io/
Solana (SOL)
https://solana.com/
Bitcoin Cash (BCH)
https://bitcoincash.org/
Golem (GLM)
https://www.golem.network
Somnium Space (CUBE)
https://somniumspace.com/
Bitcoin SV (BSV)
https://bitcoinsv.com
Hedera Hashgraph (HBAR)
https://hedera.com/
Steem (STEEM)
https://steem.com/
Cardano (ADA)
https://cardano.org
IOTA (MIOTA)
https://www.iota.org/
Stellar (XLM)
https://stellar.org/
Chainlink (LINK)
https://chain.link/
Monero (XMR)
https://www.getmonero.org/
Storj (STORJ)
https://www.storj.io/
Civic (CVC)
https://www.civic.com/
NEM (XEM)
https://nemproject.github.io/nem-docs/pages/
Tezos (XTZ)
https://tezos.com/
Crypto.com Coin (CRO)
https://crypto.com/
Neo (NEO & GAS)
https://neo.org/
Theta Network (THETA & TFUEL)
https://www.thetatoken.org/
Dash (DASH)
https://www.dash.org/
Ocean Protocol (OCEAN)
https://oceanprotocol.com/
TRON (TRX)
https://tron.network/
Dogecoin (DOGE)
https://dogecoin.com/
Orchid (OXT)
https://www.orchid.com/
XRP (XRP)
https://ripple.com/xrp/
EOSIO (EOS)
https://eos.io/
Polkadot (DOT)
https://polkadot.network/
Zcash (ZEC)
https://z.cash/
D
DAML Digital Asset Modelling Language, a blockchain open-source smart contract language that focuses on business logic by writing distributed applications in a correct, quick, and concise manner.
DApp Decentralized application. At a minimum, it is a smart contract and a web user interface. More broadly, a DApp is a web application that is built on top of open, decentralized, peer-to-peer infrastructure services. In addition, many DApps include decentralized storage and/or a message protocol and platform.
Decentralization The concept of moving the control and execution of processes away from a central entity.
Decentralized Autonomous Organization (DAO) A decentralized autonomous organization (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity. Popularized through cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions in a bottoms-up management approach. DAO may also refer to a contract named "The DAO" launched on April 30, 2016, which was then hacked in June 2016; this ultimately motivated a hard fork (codenamed DAO) at block 1,192,000, which reversed the hacked DAO contract and caused Ethereum and Ethereum Classic to split into two competing systems.
Decentraland is a community-owned virtual world based on Ethereum which allows users to play, explore and interact with different games and activities. It also allows users to create their own environments, applications, and marketplaces and is one of the early pioneers to include metaverse as their core product.
DeFi Short for "decentralized finance," a broad category of DApps aiming to provide financial services backed by the blockchain, without any intermediaries, so anyone with an internet connection can participate.
Decentralized Exchange (DEX) A type of DApp that lets you swap tokens with peers on the network. You need ether to use one (to pay transactions fees) but they are not subject to geographical restrictions like centralized exchanges – anyone can participate.
Designer Blockchain creates the interfaces that the system needs to interact with participants. UX designers facilitate adoption by users and require a basic understanding of workflows and design elements.
DID Method Decentralized Identifier method is a specification that defines a particular type of DID conforming to the W3C DID specification. A DID Method specifies both the format of the particular type of DID as well as the set of operations for creating, reading, updating, and deleting (revoking) it. Decentralized identifiers.
Denial-of-Service (DoS) A (DoS) attack is when an attacker makes it impossible for a system to serve its users as designed. This can be accomplished by exploiting a flaw in the system, but, more commonly, is accomplished by performing legitimate actions at a rate higher than the target can handle. To be effective, denial-of-service attacks typically focus on a system’s weakest link or bottleneck.
Developer Blockchain designs and codes the smart contracts that supply the logic behind business decisions. They create and test the software and systems. The two types of developers are Core developers – work on protocols and Software developers work on end user experiences.
Difficulty A network-wide setting in proof-of-work networks that controls how much average computation is required to find a valid nonce. The difficulty is represented by the number of leading zeroes that are required in the resulting block hash for it to be considered valid. This concept is deprecated in Ethereum since the transition to proof-of-stake
Digital Signature A short string of data a user produces for a document using a private key such that anyone with the corresponding public key, the signature, and the document can verify that (1) the document was "signed" by the owner of that particular private key, and (2) the document was not changed after it was signed
Digital Twin A digital twin is a term for the virtual representation of a real-life structure or object. For example, NASA has employed the digital twin technology to simulate space capsules in 2010.
Distributed Ledger Distributed ledger is the database spread throughout various sites, institutions, and countries with sequential storage of records in a continuous manner. The data in distributed ledger could be permissioned or un-permissioned, depending on the control privileges for viewership of the data.
Double Spend Spending the same asset twice.
E
ECDSA Elliptic curve digital signature algorithm is a cryptographic algorithm used by Ethereum to ensure that funds can only be spent by their owners. It's the preferred method for creating public and private keys. Relevant for account address generation and transaction verification.
EWASM refers to the web assembly or WASM version implemented by the Ethereum Virtual Machine for ensuring improved functionalities in blockchains.
Encryption Encryption is the conversion of electronic data into a form unreadable by anyone except the owner of the correct decryption key. Encryption is an essential element enabling blockchain networks to be simultaneously public and secure.
Engineer, Blockchain, determines the infrastructure of the blockchain solution designing and developing a distributed blockchain network. They work with open-source code and determining programming languages, algorithms, nodes, data structures, and cryptography is needed to design peer-to-peer networks.
Ether Ether, also known as ETH, is the base cryptocurrency tailored for the Ethereum blockchain network. The native cryptocurrency used by the Ethereum ecosystem, is used to cover the gas costs when executing transactions.
Ethereum Ethereum is a technology for building apps and organizations, holding assets, transacting, and communicating without being controlled by a central authority. Ethereum has its own cryptocurrency, Ether, which is used to pay for certain activities on the Ethereum network. Ethereum switched to a Proof-of-Stake or PoS algorithm for better scalability in September 2022.
Ethereum Enterprise Alliance or EEA refers to a group of medium to large businesses with a public commitment to support Ethereum development and creating applications tailored for the protocol.
.
Ethereum Improvement Proposals (EIP)
Ethereum Improvement Proposals or EIPs provide a description of standards for the Ethereum platform, such as contract standards, core protocol specifications, and client APIs. A design document providing information to the Ethereum community, describing a proposed new feature or its processes or environment
ERC-20 Token Standard. https://eips.ethereum.org/EIPS/eip-20
ERC-165 Standard Interface Detection. https://eips.ethereum.org/EIPS/eip-165
ERC-173 Owned Standard. https://eips.ethereum.org/EIPS/eip-173
ERC-223 Token Standard. https://github.com/ethereum/EIPs/issues/223
ERC-677 transferAndCall Token Standard. https://github.com/ethereum/EIPs/issues/677
ERC-721 Non-Fungible Token Standard https://eips.ethereum.org/EIPS/eip-721
ERC-827 Token Standard. https://eips.ethereum.org/EIPS/eip-827
ERC-1155 Multi-Token Standard https://eips.ethereum.org/EIPS/eip-1155
ERC20 Token Standard
ERC refers to Ethereum Request for Comment and is associated with an assignment number related to the standard. ERC20 is a technical standard for smart contracts implemented by the majority of Ethereum tokens. The ERC20 standard lists certain rules which specify requirements that a token should fulfill for maintaining compliance and functioning in the Ethereum network.
Eth1 is a term that referred to Mainnet Ethereum, the existing proof-of-work blockchain. This term has since been deprecated in favor of the 'execution layer.
Eth2 is a term that referred to a set of Ethereum protocol upgrades, including Ethereum's transition to proof-of-stake. This term has since been deprecated in favor of the 'consensus layer
Ethereum Virtual Machine (EVM) Ethereum Virtual Machine is a simulated state machine that depends on eWASM bytecode for processing transactions
Events Allows the use of EVM logging facilities. DApps can listen for events and use them to trigger JavaScript callbacks in the user interface.
Exchange An Exchange is one of the vital components of the crypto ecosystem as they are the platforms for exchanging cryptocurrencies with fiat currency and other cryptocurrencies. Crypto exchanges could vary considerably in terms of the types of supported currency conversions and fee structures.
Extended Reality or XR represents a comprehensive term for different overlapping concepts pertaining to AR, and VR. XR would become the appropriate term for encompassing everything related to AR, and VR.
F
Faucet A faucet is an application, sometimes a very simple website, other times more complex, that dispenses cryptocurrency. While some networks, especially those in early launch stages, offer “real Mainnet” tokens via faucets, it is much more common for a faucet to be present on a test network, or testnet. These faucets are used by developers to test out DApps or smart contracts before deploying them on Ethereum Mainnet, or users who want to practice an action on the blockchain with no risk. Tokens dispensed by a test faucet stay on the test networks and cannot be exchanged for mainnet equivalents.
Fiat Currency Government-issued currency. For example, US Dollars (USD), Euros (EUR), Yuan (CNY), and Yen (JPY).
Final, Finality A transaction is considered “final” once it can no longer be changed. In a sense, this happens once there are sufficient confirmations of the transaction, a transaction is final once the block that contains it is mined or validated. Unlike traditional financial systems where charges can be “reversed”, there is no “undoing” a transaction on the blockchain. Once finality is reached, the transaction is immutable.
Fork A ledger derived from common entries but then diverged. “Forking’ is a term that comes from the world of collaborative software development and refers to the action of copying an existing application or set of code and modifying it to create an alternate version. At the blockchain protocol level, a ‘fork’ creates an alternative version of a blockchain.
Fungibility refers to the property of an item that could be easily exchanged with another identical item. A particular asset class becomes fungible when all units of the asset feature similar market value and validity.
G
.
Gas in the blockchain terminology refers to a measure of the computational difficulty needed for processing a smart contract function.
Gas Limit is the maximum amount of Gas a user is willing to pay to make a transaction on the Ethereum network. The transaction is rejected if the cost of the transaction exceeds the gas limit.
Gas Price refers to the number of tokens charged as fee for every unit of gas consumed by function of smart contract. Gas prices can help a network in responding dynamically to fluctuations in bandwidth demand on the grounds of market forces.
Gwei is the basic and specific denomination for ETH; it is also a unit for gas price.
Genesis Block It is the initial, first block or block zero in any blockchain-based system. It is the prototype of all other blocks in the blockchain.
Golang Commonly referred to as Go, Golang is an open-source programming language developed by Google. A vast portion of the Hyperledger’s chaincode built using Hyperledger Fabric is written in the Golang programming language.
Gossip Protocol refers to the way nodes communicate. A process through which actors in a network can exchange information with other members easily. Upon receiving new information, an actor relays the information to all other actors. The cumulative connection of all actors in a network ensures that all of them receive the information eventually.
Governance Tokens Tokens that represent voting power in decentralized organizations.
Graphical User Interface the Graphical User Interface or GUI is basically an instrument for displaying information to users through personalized design of on-screen elements such as taskbars and windows.
H
Halving Many cryptocurrencies have a finite supply, which makes them a scarce digital commodity. For example, the total amount of Bitcoin that will ever be issued is 21 million. The number of bitcoins generated per block is decreased 50% every four years. This is called “halving.” The final halving will take place in the year 2140.
Hard fork A hard fork occurs when there is a change in the blockchain that is not backward compatible (not compatible with older versions), thus requiring all participants to upgrade to the new version to be able to continue participating on the network.
Hardware Wallet A physical device that can be connected to the web and interact with online exchanges but can also be used as cold storage (not connected to the internet).
Hash is a digital fingerprint of a sequence of bytes. A programmatic function that takes an input, and then outputs an alphanumeric string known as the “hash value”..
Hash Function refers to a cryptographic function that enables mapping of inputs to a particular yet visibly random outputs.
Hashrate The number of hash calculations made per second by computers running mining software.
Holder In a digital identity model, the holder is a role played by an Entity when it is issued a Credential by an Issuer. The Holder may or may not be the Subject of the Credential.
Hot wallet / Hot storage A wallet that is directly always connected to the internet, for example one that is held on a centralized exchange. Hot wallets are considered to have lower security than cold storage systems or hardware wallets.
Hyperledger is an ecosystem of open-system tools, libraries, and products designed to enable and support enterprise-grade blockchain technology. In general, the products focus on creating solutions for permissioned blockchains–that is, non-public blockchains, with alternative consensus mechanisms other than Proof of Work (PoW) or Proof of Stake (PoS).
I
Initial Coin Offering ICO or Initial Coin Offering, also known as Initial Token Offering, is like the public offering of stocks in the financial markets. It offers a way for tokenized businesses to obtain investment from the public. ICOs come under the regulation of the Securities and Exchange Commission or SEC.
Immutability is the property of data for showcasing additional resistance to modifications. It is a key aspect of blockchain networks and ensures that data written on a blockchain ledger cannot be modified.
InterPlanetary File System (IPFS) IPFS basically refers to a system for decentralized file storage and referencing for the Ethereum blockchain. It is an open-source protocol for enabling the storage and sharing of hypermedia in a distributed manner. Most important of all, IPFS does not depend on a single point of failure.
Identifier A text string or other atomic data structure used to provide a base level of Identity for an Entity in a specific context. In Self-Sovereign Identity systems, Decentralized Identifiers (DIDs) are the standard Identifier in modern identity platforms.
Issuer The Entity that issues a Credential to a Holder.
J
Java The most popular programming language tailored for server-side applications.
JavaScript is the ideal programming language tailored for browsers and web pages on the grounds of its flexibility. It follows the ECMAScript and is also an interpreted language for developing back-end and front-end solutions.
K
KYC (Know Your Customer) is a procedure in which a business verifies the genuineness of the customers by verifying their background and identity.
Keypair A public key and corresponding private key for accessing an account.
Key Recovery The process of recovering access to and control of a set of Private Keys—or an entire Wallet—after loss or compromise. Key Recovery is a major focus of the emerging standard for cryptographic key management.
Keystore File A keystore file is a special, encrypted version of a private key in JSON format.
L
Layer 2 are improvement to the base layer of a system. These improvements are related to transaction speeds, cheaper transaction fees, and transaction privacy.
Ledger A list of entries containing transactions signed by clients.
Liquidity The availability of liquid assets to a company or market. An asset is considered more liquid if it can easily be converted into cash. The harder the ability to turn an asset into cash the more illiquid the asset. The liquidity of an asset affects its risk potential and market price.
M
Mainnet The primary network where actual transactions take place on a specific distributed ledger. For example, The Ethereum mainnet is the public blockchain where network validation and transactions take place.
Market Cap Short for Market Capitalization, this term refers to the total value held in a particular industry, market, company, or asset. For a publicly traded company, the market cap is the total dollar market value of a company’s outstanding shares. For Bitcoin or Ethereum, the total market cap reflects the current existing supply times the market price.
Merge The Merge refers to the original Ethereum Mainnet merging with a separate proof-of-stake blockchain called the Beacon Chain, now existing as one chain. Upgrade from the original proof-of-work mechanism to proof-of-stake, The Merge reduced Ethereum's energy consumption by ~99.95%.
Merkle Patricia Trie is a data structure in which a single hash code function (a type of cryptographic code) splits into smaller branches. In a similar way to a family tree, where a parent branch splits into child branches, which are then extrapolated into grandchild branches, a Merkle Patricia trie keeps a record of the filiation and history of each element. This type of data structure enables for faster verification on a blockchain network.
Merkle Root refers to the cryptographic hash of all other hashes in the Merkle Tree. In the case of a blockchain, the Merkle Root refers to a hash of all the transaction hashes in the chain.
Mesh ConsenSys Mesh is a network of loosely coupled, tightly aligned teams, products, and investments advancing the Ethereum ecosystem and the arrival of Web 3.0.
MetaMask, either in its mobile app form on iOS and Android, or in its browser extension form, is a tool to access and interact with blockchains and the decentralized web. Its functions include that of a wallet, a DApp permissions manager, and token swap platform.
Metaverse refers to the concept of a shared virtual world made up of 3D objects and virtual spaces which offer an interactive, collaborative, and immersive experience. The examples of metaverse are evident in massive online social games such as Fortnite or user-generated virtual worlds like Minecraft.
Mining The process by which blocks, or transactions are verified and added to a blockchain using a Proof of Work (PoW) consensus mechanism. To verify a block a miner must use a computer to solve a cryptographic problem. Once the computer has solved the problem, the block is considered “mined” or verified. In the blockchain, the first computer to mine or verify the block receives bitcoin or ether as a reward.
Multi-currency Wallets allow you to hold multiple cryptocurrencies in the same application. In these wallets, each cryptocurrency will have its own balance. To initiate a transaction, the application will create a cryptographically secure address (specific for the blockchain). This address acts as your account number and lets you send and receive the cryptocurrency.
Multi Signature (MultiSig) A crypto-asset wallet that requires multiple keys to access. Typically, a specified number of individuals are required to approve or “sign” a transaction before they can access the wallet. This is different from most wallets which only require one signature to approve a transaction
Minting is the process of creating new tokens and bringing them into circulation so that they can be used. It's a decentralized mechanism to create a new token without the involvement of the central authority.
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N
Network The set of actors interconnected collectively for achieving a single purpose is referred to as a network.
Nifty Gateway is a unique portal for NFT sales and purchases through the Ethereum blockchain. The platform offers a uniquely tailored collection of NFTs from many renowned content creators, artists, and musicians.
Non-custodial in the context of blockchain refers to a specific variant of a decentralized wallet where the customer has ownership of the wallet’s private keys. Users receive a file with private keys and a mnemonic phrase so they can retrieve their assets in non-custodial wallets.
Non-Fungible refers to the property of an asset that has unique qualities and cannot be exchanged with another asset in a similar class. Basically, non-fungible tokens are unique and are not interchangeable.
NFT A non-fungible token is a type of token that is a unique digital asset and has no equal token. This is in contrast to cryptocurrencies like ether that are fungible in nature. The ERC-721 introduces a standard for NFT, in other words, this type of Token is unique and can have different value than another Token from the same Smart Contract.
Node Any computer connected to the blockchain network is referred to as a node. A full node is a computer that can fully validate transactions and download the entire data of a specific blockchain. In contrast, a “lightweight” or “light” node does not download all pieces of a blockchain’s data and uses a different validation process.
Nonce The word ‘nonce’, originally formed from a contraction of a phrase meaning “not more than once”, on the Ethereum mainnet, “nonce” refers to a unique transaction identification number that increases in value with each successive transaction to ensure various safety features (such as preventing a double-spend).
O
Open Governance A governance model in which the Governance Authority is open to public participation, operates with full transparency, and does not favor any particular contributor or constituency. The Sovrin Foundation operates under an Open Governance model.
OpenSea a decentralized P2P marketplace tailored for purchasing, selling, and trading in rare digital assets, including gaming items, artwork, and collectibles created over the non-fungible token (NFT) technology.
Oracles are services for connecting real-world data and blockchain applications.
P/Q
P2P (Peer-to-peer) refers to interactions that happen between two parties, usually two separate individuals. A P2P network can be any number of individuals. In a blockchain network, individuals can transact or interact with each other without relying on an intermediary or single point of failure.
Permissioned Ledger refers to a ledger where users need to be granted permission to execute the consensus protocol to help determine which blocks get added to the chain and maintain the shared ledger.
Private Blockchain A blockchain or distributed ledger that has a closed network where participants are controlled by a single entity. A private blockchain requires a verification process for new participants. A private blockchain may also limit which individuals are able to participate in consensus of the blockchain network
Private Key The private key of a keypair. In MetaMask, corresponds to a single specific account in a wallet. Private keys can be thought of as a password that enables an individual to access their crypto account.
Proof of Authority (PoA) A consensus mechanism used in private blockchains, granting a single private key the authority to generate all of the blocks or validate transactions.
Proof of History (PoH) A stack of proofs, each of which proves that some data existed before the proof was created and that a precise duration of time passed before the previous proof.
Proof-of-Liquidity is a cryptographic assertion method by third-party auditor for verifying that an actor holds a specific number of resources.
Proof of Stake (PoS) A consensus mechanism in which an individual or “validator” validates transactions or blocks. Validators “stake” their cryptocurrency, such as ether, on whichever transactions they choose to validate. If the individual validates a block (group of transactions) correctly then the individual receives a reward. If a validator verifies an incorrect transaction, then they lose the cryptocurrency that they staked. PoS requires a negligible amount of computing power.
Proof of Work (PoW) A consensus mechanism in which each block is ‘mined’ by a group of individuals or nodes on the network. Hashing a block, which is in itself an easy computational process, under PoW requires each miner to solve for a set, difficult variable. In effect, the process of hashing each block becomes a competition. PoW is significantly more energy-intensive than other consensus mechanisms.
Protocol A set of rules that dictate how data is exchanged and transmitted. This pertains to cryptocurrency in blockchain when referring to the formal rules that outline how these actions are performed across a specific network.
Public Blockchain A globally open network where anyone can participate in transactions, execute the consensus protocol to help determine which blocks get added to the chain, and maintain the shared ledger.
Public Key The public key of a keypair. You can derive a public key from a private key but cannot derive a private key from a public key. By pairing a public key with a private key, transactions not dependent on trusting involved parties or intermediaries.
R
Reward an amount of cryptocurrency included in each new block as a reward by the network to the miner who found the proof-of-work solution.
Ring signature is a private-key focused cryptographic signature with an option for decryption or verification through multiple valid keys.
Rollups are one element in the set of tools and infrastructure being built as Layer 2, the scaling solutions for the Ethereum network. They consist, in general, of solutions in which the transaction data is kept on Layer 1, the original Ethereum network, while transaction computation occurs on a side network, freeing up computational power on Layer.
Rust a low-level statically typed programming language that is fast and memory efficient, making it very scalable. One of the fastest blockchains, Solana, is built with Rust as its core.
S
Sandbox is a new 3D virtual environment in which users can interact with each other and play games as well as create assets and attend concerts.
Satoshi Nakamoto It’s the name that was used by the assumed individual/ individuals who developed bitcoin. Nakamoto published the white paper in 2008, describing about the project. He also invented the first blockchain database.
Scalability refers to the ability of a blockchain project to handle the network traffic, capacity of application, and future growth.
Second Life is an online virtual world that started in 2003 and presented one of the first examples of social experiences for the metaverse. It continues to be an open-world social network featuring different avatars for users.
Secure Hash Algorithm or SHA is a cryptographic hashing function tailored by the United States National Security Agency.
Seed Phrase or Secret Recovery Phrase, a crucial part of public blockchain technology, originally created for Bitcoin, and goes by many names. However, they all refer to a set of ordered words which correspond to determined values. These values never change, and therefore the same string of words in the same order will always produce the same number–this is the underlying functionality that allows seed phrases to back up wallets.
Self-Sovereign Identity an identity system architecture based on the core principle that Identity Owners have the right to permanently control one or more Identifiers together with the usage of the associated Identity Data.
Solidity is a popular smart contract programming language specifically tailored for the Ethereum Virtual Machine.
Smart Contract in blockchain refers to the code that you can execute in the environment of a virtual machine.
SNARK Short for "succinct non-interactive argument of knowledge", a SNARK is a type of zero-knowledge proof.
Stablecoin is a cryptocurrency variant that has its value pegged against another asset class such as gold or fiat currency in order to achieve stability in its price. Stablecoins help in addressing price volatility by associating cryptocurrency value with stable assets
Sharding is the process of splitting the complete network into many small portions, shards. Each shard has an independent state i.e. unique smart contract and account
Staking depositing a quantity of cryptocurrency (your stake) to become a validator and secure the network. A validator checks transactions and proposes blocks under a proof-of-stake consensus model. Staking gives you an economic incentive to act in the best interests of the network.
STARK Short for "scalable transparent argument of knowledge", a STARK is a type of zero-knowledge proof.
SuperRare is an NFT marketplace that offers the functionalities necessary for collection and trading of unique and single-edition artworks. All artworks on SuperRare are created by artists in the network and are available and tokenized digital collectibles for purchasing and trading.
Syncing The process of downloading the entire latest version of a blockchain to a node.
T/U
Testnet short for "test network," a network used to simulate the behavior of the main network.
Token A tradable virtual good defined in smart contracts on the Ethereum blockchain.
Token Standard Introduced by ERC-20 proposal, this provides a standardized smart contract structure for fungible tokens, ECR721 for non-fungible tokens.
Transaction Data committed to the Blockchain signed by an originating account, targeting a specific address. The transaction contains metadata such as the gas limit for that transaction.
Transaction Fee A fee you need to pay whenever you use the network. Examples include sending funds from your wallet or a DApp interaction, like swapping tokens or buying a collectable. You can think of this like a service charge. This fee will change based on how busy the network is. This is because validators, the people responsible for processing your transaction, are likely to prioritize transactions with higher fees – so congestion forces the price up.
Transmission Control Protocol/Internet Protocol, INTERNET PROTOCOL SUITE (TCP/IP) The TCP/IP protocol provides identifiers for machines, but not for the people and organizations operating the machines. A framework for organizing the set of communication protocols used in the internet.
Trustlessness the ability of a network to mediate transactions without any of the involved parties needing to trust a third party.
Trust Triangle Three parties that make up the Decentralized Identity model: Issuer, Holder, Verifier.
Turing Complete A concept named after English mathematician and computer scientist Alan Turing - a system of data-manipulation rules (such as a computer's instruction set, a programming language, or a cellular automaton) is said to be "Turing complete" or "computationally universal" if it can be used to simulate any Turing machine.
V
Validator A full participant in a Solana network cluster that produces new blocks. A validator validates the transactions added to the ledger.
Verifiable Credential a credential is a set of one or more claims made by an issuer. A Verifiable Credential is a tamper-evident Credential that has authorship that can be W3C Verifiable Claims Working Group cryptographically verified.
Verifier an Entity who requests a Credential or Proof from a Holder and verifies
Viper a programming language heavily influenced by Python programming language. The three design principles Viper uses to build a solid foundation are Auditability, Security, and Simplicity.
Virtual Machine refers to an operating system that runs on another operating system. Virtual Machines are important for allocating the processing strength of large servers to the simpler / smaller applications.
W / X
Wallet a collection of keypairs that allows users to manage their funds.
Web3 / Web 3.0 are terms used synonymously with “the decentralized web” and are often used to refer, broadly, to the blockchain and decentralized technology ecosystems.
Wei The smallest denomination of ether. 1018 wei = 1 ether.
Y
Yul an intermediate programming language that you can compile to bytecode for addressing the needs of different backends. It is designed to be a common denominator for both the EVM and ewasm (Ethereum flavored WebAssembly) platforms.
Z
zk-SNARK Zero-Knowledge Succinct Non-interactive ARguments of Knowledge are an incredible technology, and vital to the scaling of blockchain technology and the decentralized web.
Zero-Knowledge Proof a (ZKP) is a cryptographic method that allows a party (the prover) to prove to another party (the verifier) that a given statement is true, without conveying any additional information.
51% Attack If more than half the computer power or mining hash rate on a network is run by a single person or a single group of people, then a 51% attack is in operation. This means that this entity has full control of the network and can negatively affect a cryptocurrency by taking over mining operations, stopping, or changing transactions, and double-spending coins.
X.509 certificates. X.509 is a standard format for public key certificates, digital documents that securely associate cryptographic key pairs with identities such as websites, individuals, or organizations.
References:
https://consensys.net/knowledge-base/a-blockchain-glossary-for-beginners/
https://hyperledger-fabric.readthedocs.io/en/latest/glossary.html
https://101blockchains.com/blockchain-definitions/
https://ethereum.org/en/glossary/
https://docs.google.com/document/d/1gfIz5TT0cNp2kxGMLFXr19x1uoZsruUe_0glHst2fZ8/edit#heading=h.69vh8azbpxu3