Blockchain Glossary
Blockchain Glossary
Introduction
A glossary containing explanations of fundamental terms related to blockchain technology and the world of cryptocurrencies.
A
Address
Cryptocurrency addresses are private account addresses in investors’ digital wallets. They are used during transfer transactions.
Airdrop
The process by which crypto projects distribute free cryptocurrencies to users under certain conditions or unconditionally.
API (Application Programming Interface)
An interface that allows one software to use the functions of another software.
ASIC (Application-specific Integrated Circuit)
Special integrated circuits designed to solve specific problems.
Smart Contracts
Digital contracts that run on the blockchain and enforce the terms of an agreement between buyer and seller through code sequences.
B
Blockchain
A distributed ledger where data is encrypted and stored in blocks, with each block containing a summary of the previous block.
Block Reward
The reward paid to miners for valid and correct blocks.
C
Wallet
Software that stores, sends, and receives digital assets. They store private keys.
Multi-Signature
Technology that allows multiple users to collectively sign digital documents and cryptocurrency transactions.
Double Spending
An attempt to transfer the same digital asset multiple times simultaneously.
D
Node
Computers on the blockchain that record transactions and ensure the security of the network.
Deterministic Wallet
A wallet system generated based on a specific algorithm and seed.
Digital Signature
Secure transaction signatures encoded electronically.
DDoS Attack (Distributed Denial of Service Attack)
An attack on a service or network with malicious internet traffic.
E
ERC-20
A standard protocol for creating tokens on the Ethereum network.
EVM (Ethereum Virtual Machine)
The virtual machine where applications are executed on Ethereum.
EIP (Ethereum Improvement Proposal)
Proposals containing development suggestions for the Ethereum network.
ERC-721
A standard protocol for creating unique tokens on Ethereum.
F
Fork
A split that occurs in a project due to a disagreement.
Consensus
The operational method used in blockchain networks.
G
Gas
The unit of computational power required to execute a transaction on the Ethereum network.
Genesis Block
The first block processed in a blockchain project.
H
Halving
The process of halving cryptocurrency mining rewards.
Hash
The process of encrypting a text to make it algorithmically unpredictable.
I
ICO (Initial Coin Offering)
The initial public offering of a cryptocurrency project.
M
Decentralization
A distributed structure where data is stored and validated at multiple points.
Mainnet
The network where a project operates on its own blockchain.
N
Non-Fungible Token (NFT)
Unique tokens, each one distinct, often used in artistic activities.
S
Scalability
The ability of a system to handle increasing demand.
Proof of Stake
A transaction validation mechanism used in the blockchain.
Proof of Work
An algorithm used in the blockchain to ensure the security of transactions.
Protocol
The fundamental code layer that defines the operational method of a blockchain.
Private Key
A private key used to sign transactions.
Public Key
A key that can be seen by everyone and is used in transfers.
R
Rinkeby
A test network for Ethereum.
Ropsten
A test network for Ethereum.
S
Solidity
A programming language used to write smart contracts on Ethereum.
T
Token
The cryptocurrency of projects that operate on another blockchain network.
Testnet
A network used by developers to test blockchain projects.
Z
Difficulty
The difficulty of producing blocks in a Proof of Work model.
This glossary contains explanations of fundamental terms frequently used in the blockchain and cryptocurrency world. Each term provides a valuable reference for both beginners and experienced users in the technology.
