Term Glossary

ASIC

Application Specific Integrated Circuit. These are hardware components made for one application use purpose, in this case blockchain mining. Offers significant power savings and speed over GPU mining.

Block Explorer

A website used for exploring blockchain networks. Provides users with an easy way to view all pending and previous network transactions.

Block Reward

A fee payed to the miners for successfully computing a block of data. This process typically mints new coins and in some cases inflate the supply of the asset.

Confirmation

The process of verifying and adding a transaction to the blockchain.

Consensus

Consensus is achieved when all participants of the network agree on the validity of the transactions, ensuring that the ledgers are exact copies of each other.

DAO

Decentralized Autonomous Organizations are governance platforms that run on a decentralized blockchain.

DAPP

A Decentralized Application is a type of application that runs on a decentralized blockchain network and operates autonomously with no external interference.

Distributed Ledger

is a ledger that is simultaneously recorded across a network of decentralized nodes, verifying each others accuracy with consensus algorithms.

Distributed Network

A network where computational power and data is spread over a network of nodes without a centralized structure.

Fork

A fork happens when consensus isn’t reached within the network participants causing the blockchain to split into two separate chains.

Mining

Mining is the process of validating blockchain transactions. The validation of a block results in a block reward and incentivising miners in the form of coins.

Node

A participant of the blockchain network that maintains part of the ledger.

Oracles

Oracles work to bridge real world data into the blockchain. There are many oracles that work together in order to achieve consensus and validation.

Proof of Stake

A consensus algorithm that relies on Stakeholders to verify activity on the network instead of using mining. The stakeholders are rewarded for computing blocks on the network.

Proof of Work

A consensus algorithm that utilizes a distributed network of mining computers to compute transactions into blocks on the network. “Work” done on the network is rewarded the block reward for computing network activity into a block.

Satoshi

A Satoshi is the smallest fraction of a Bitcoin that can currently be sent: 0.00000001 BTC, that is, a hundredth of a millionth BTC. In the future, however, the protocol may be updated to allow further subdivisions, should they be needed.

Smart Contracts

Transaction rules in the form of software code executed and validated by the participants of the network.

Solidity

Programming language for coding smart contracts on the Ethereum network.

Testnet

A test version of a network used by developers

Turing complete

A machine that can perform computations that any other computer is capable.

Wallet

A wallet is a digital asset address used to store, send, or receive transactions on the network. An Address is usually a string of alphanumeric characters. The wallet is typically software that syncs with the blockchain network.