Blockchain Terms
You should Know

Glossary of Blockchain Terms

Blockchain Terms

You should Know

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IPFS

InterPlanetary File System

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Merkle Tree

A tree in which every leaf node is labelled with the hash of data block and every non-leaf node is labelled with the cryptographic hash of the labels of its child nodes.

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Mining

The act of validating blockchain transactions. Requires computing power and electricity to solve “puzzles”. Mining rewards coins based on your computing power.

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Mining Pool

A collection of miners who come together to share their processing power over a network & agree to split the rewards of a new block found within the pool.

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Mist

Browser for installing and using DApps.

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MSP (Membership Service Provider)

A hyperledger fabric blockchain network can be governed by one or more MSPs.

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Node

A copy of the ledger operated by a user on the blockchain.

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Nonce

A number only used once in a crypto communication (often includes timestamp).

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Nothing at Stake Problem

This is caused by validator nodes approving all transactions on old & new software after a hard fork occurs.

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NPM (Node Package Manager)

Default package manager runtime environment node.js. NPM manages dependencies for an application.

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Oauth Protocol

Open Authorization is a standard that is used by third party services to keep & distribute users information without exposing their password.

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Ommer (aka Uncle)

A block which has been completely mined but has not yet been added to the blockchain.

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On-Chain governance

A system for managing & implementing changes to a cryptocurrency blockchain.

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Order Network

A computer network that allows nodes to share resources.

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P2P (Peer to Peer)

Denoting or relating to computer networks in which each computer can act as a server for the others, allowing shared access to files & peripherals without the need for a central server.

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PKI (Public Key Infrastructure)

A set of roles, policies, & procedures, needed to create, manage, distribute, use, store, revoke digital certificates & manage public key encryption.

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Pragma(s) or Pragma-Line

Defines which compiler version the smart contract uses.

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Private Blockchain

Blockchain that can control who has access to it. Contrary to a public blockchain, a private blockchain does not use consensus algorithm like POW or POS, instead they use a system known as byzantine fault tolerant (BFT). BFT is not a trustless system which makes a BFT system less secure.

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Proof of Activity

Active stakeholders who maintain a full node are rewarded.

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Proof of Burn

Miners send coins to an inactive address essentially burning them. The burns are then recorded on the blockchain & the user is rewarded.

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Proof of Capacity

Plotting your hard drive (storing solutions on it before mining begins). A hard drive with the fastest solution wins the block.

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Proof of elapsed time

Consensus algorithm in which nodes must wait for a randomly chosen time period & the first node to complete the time period is rewarded.

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Proof of Stake (POS)

A consensus algorithm that chooses the owner of a new block based on the wealth they have or (stake). There is not a block reward so the forgers take the transaction fee.

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Proof of Work (POW)

A consensus algorithm which requires a user to mine or solve a complex mathematical puzzle in order to verify a transaction. “Miners” are rewarded with cryptocurrencies based on computation power.

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Pub/Sub

Publish/ Subscribe

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Public Key Cryptography

Encryption that uses two mathematically related keys. A public & private key. It is impossible to derive the private key based on the public key.

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Rest API (Representational state transfer API)

Defines restraints based on http.

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RPC (Remote Procedure Calls)

A protocol that is used from one program to request a service on another program located on a network.

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SDK

A software development kit provides the necessary tools for a developer to create software on a specific platform.

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Sharding

Dividing a blockchain into several smaller component networks called shards capable of processing transactions in parallel.

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Smart Contracts

Self executing contract with the term of agreement written into the code.

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Token

Representation of a digital asset built on an existing blockchain.

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Turing Complete Language

A language that is able to perform calculations that a computer is capable of.

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Ubuntu

Free open source operating system & linux distribution.

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UTXO (Unspent Transaction Outputs)

Unspent transaction outputs are used to determine whether a transaction is valid.

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Viper

A programming language created to be formal introduction to smart contracts.

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Virtual Machine

Emulation of a computing system

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Wallet

Stores the digital assets you own.

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Zeppelin (or Open Zeppelin)

Community of like minded smart contract developers.

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Distributed Ledger

A database held and updated independently by each participant(or node) in a large network. The distribution is unique: records are not communicated to various nodes by a central authority.

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DAO’s

A decentralised autonomous organisation is an organisation that is run through rules encoded as computer programs called smart contracts.

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Oracles

An agent that finds and verifies real world occurrences and submits this information to a blockchain to be used by smart contracts.

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Solidity

A contract- oriented programming language for writing smart contracts. It is used for implementing smart contracts on various blockchain platforms.

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