Blockchain Note – Concepts dictionary

51% Attack – This term describes the situation where most of the power of the blockchain network is concentrated in one place. A user or group of users that control 51% of the computing power can deliberately manipulate it or inadvertently execute conflicting transactions that could compromise the system.

Address
A cryptocurrency address is used to send or receive transactions over the network, and addresses are usually represented as numeric characters.

Airdrop – The token is distributed by the operator of the cryptocurrency network. These tokens are either distributed free of charge to holders of all cryptocurrencies or restricted by certain activities, such as promoting encryption on social networks.

Altcoin – Any cryptocurrency other than Bitcoin is called a replacement currency. Hundreds of alternative currencies are being traded around the world, including XRP, NEO, Stellar and more.

Bitcoin – the first and largest cryptocurrency (by market capitalization). Bitcoin was launched in 2009 as a decentralized currency based on blockchain technology. It is the first practical application of the blockchain. Bitcoin was created by a person named Satoshi Nakamoto or a group of people.

Blockchain – A decentralized network of contiguous chains of code (blocks). All transactions on the network are stored on the public ledger, and the public ledger exists throughout the network, which means that there is no need for the central server to authorize transactions on the network.

Block Height
The number of blocks connected to the blockchain.

Block Reward
It is an incentive form for miners who successfully calculate hashes in the block during mining. New coins are generated during the transaction verification process on the blockchain, and the miners are rewarded for some of them.

Cold storage – A security measure for storing cryptocurrencies in an offline environment. They can be storage devices (such as USB flash drives) or paper wallets.

Central Ledger (Central Book)
A ledger maintained by a central agency.

Confirmation
Decentralized a transaction and added it to the blockchain for successful confirmation.

Consensus – Since many of the data on a public blockchain network is simultaneously stored in multiple areas of the network, members want to have the same copy of these code segments (such as public ledgers) across the network.

Cryptocurrency – The first major application of the blockchain, the cryptocurrency is a currency with no central ownership, and each token and transaction is uniquely encrypted. Blockchain technology is an infrastructure that allows storage of cryptocurrencies and allows tokens on the network to change hands.

Cryptographic Hash Function
Password hashing produces a fixed size and a unique hash value from a variable size transaction. The SHA-256 calculation algorithm is an example of a cryptographic hash.

Dapp (Decentralized Application) is an open source application that runs automatically, stores its data on a blockchain, motivates it in the form of a cryptographic token, and operates on a protocol that displays valuable proof.

DAO – Abbreviation for autonomous organizations. This term describes an organization that uses blockchain practices (such as smart contracts) to manage itself without the need for central authority.

Distributed Ledger (distributed ledger)
Distributed ledger, where data is stored over a distributed node network. A distributed ledger does not have to have its own currency, it may be licensed and private.

Difficulty (easy level)
This refers to the ease with which data blocks of transaction information are successfully mined.

Digital signature – A common term used to identify a single individual or behavior on the Internet. In a blockchain, it usually refers to a unique identifier given to a user, token, or transaction.

Double Spending
A double payment occurs when a sum of money is spent more than one payment limit.

Ethereum (Ethereum)
Ethereum is a blockchain-based decentralized platform for running smart contracts designed to address issues related to censorship, fraud and third-party interference.

EVM (Ethernet virtual machine)
The Ethereum Virtual Machine (EVM) is a Turing-complete virtual machine that allows anyone to execute any EVM bytecode. Each Ethereum node runs on the EVM to maintain consistency across the blockchain.

Fork – Because the blockchain is decentralized, every change to the network must be accepted by the user in order to complete. If there are enough users to accept the upgrade or code changes, it will expand across the network. Changes that still support older versions of the network are called soft forks, and changes that make them backwards incompatible are called hard forks. Sometimes, if there is a disagreement about hard forks in the community, a new, parallel blockchain network might be created. This is the case with Bitcoin cash and the birth of the Ethereum classic.

Genesis Block
The first block of the blockchain.
Hash – The practice of using an algorithm to give a “digital fingerprint” of data. When storing information on a blockchain, the hash is used to create a uniform form to identify the code block by converting the code block into a series of fixed-size numbers and letters.

Hard Fork (hard branch)
A type of branch that makes a previously invalid transaction valid, and vice versa. This type of branch requires all nodes and users to upgrade to the latest version of the protocol software.

Hash Rate
Performance measurements for mining rigs are expressed in seconds.

Hybrid PoS/PoW (Hybrid PoS / PoW)
POW (Proof of Work) refers to how much money is obtained. Depending on the amount of work you contribute to mining, the better the performance of the mining machine, the more mines will be given to you. POS (Proof of Stake) is a system for interest distribution based on the amount and time of money you hold. In POS mode, your “mining” income is proportional to your currency age, and has nothing to do with the computer’s computing performance. Hybrid PoS / PoW can use the shared distribution algorithm on the network as a proof of sharing and proof of work. In this approach, a balance between miners and voters (holders) can be achieved, with a community-based governance system created by insiders (holders) and outsiders (miners).

KYC is the abbreviation of Know Your Customer, which means to understand your customers. In the International Anti-Money Laundering Act, organizations are required to have a comprehensive understanding of their clients to predict and discover unreasonable business practices. And potential violations.

Cross-chain technology can be understood as a bridge connecting each blockchain. Its main application is to realize atomic transactions between various blockchains, asset conversion, inter-blockchain internal information intercommunication, or solve Oracle problems.

ICO – the first issue of coins. This term describes a situation in which companies raise money by issuing cryptocurrency tokens that are sold to early investors at a fixed price.

Ledger – A digital log of all transactions that take place on a particular blockchain network. Copies of the books are stored on the network and constantly updated to match each other so that anyone on the network can verify the transaction.

Lightning Network – A “second layer” solution designed to greatly increase the time on the blockchain network for transaction processing speed. Lightning Networks creates a

P2P network to process transactions and then broadcasts these transactions to log in to the underlying blockchain public ledger.

Liquidity – The ease of use of a cryptocurrency into cash. Liquidity depends on many factors, including supply and demand relationships and transaction processing time.

Mining – Use the power of a computer to trade on the web and receive rewards. Each transaction is encrypted by an equation that requires a large amount of computational power. Miners who solve this equation first so that the trade can proceed will receive a small amount of compensation.

Mining pool – A structure created by a group of miners to handle more transactions and charge more. These funds are then distributed among the members of the pool.

Multi-Signature
Multi-signature addresses require more than one key to authorize transactions, adding a layer of security.

Node – A computer on the network that operates a blockchain ledger copy. Nodes are scattered throughout the network, helping to maintain a decentralized form.

Oracles (Prophecy Machine)
Oracle provides a bridge between real-world and blockchains by providing data to smart contracts.

Paper wallet – A cold storage solution that is considered one of the safest ways to store cryptocurrencies. The paper wallet can be printed on any printer, including the user’s unique public and private keys, which are encoded as two-dimensional codes. When users want to access their funds, all they need to do is scan their paper wallets.

Peer-to-peer (P2P) – On a particular network, two parties share information directly without passing data through the server.

Private Key – Every user on the network holds a private key. The private key is known only to the user and can be equivalent to the password.

Proof of Stake – A method of determining which users are eligible to add new blocks to the blockchain to earn mining fees. Among the users involved in the mining process, users with more tokens prefer this method than users with fewer tokens.

Proof of work – A proof of work is a similar concept before proof of interest because it is used to determine which user is eligible to create a block. However, with the proof of working methods, the pass or fail is determined by the calculation power, not by the digital wealth of the miners.

Public Address
The public address is the password hash of the public key. They act as email addresses that can be published anywhere, unlike private keys.

Public Key – If the private key mentioned above can be equated with a password, the public key is some kind of username because everyone can see it on the public ledger.

Scrypt
Is an encryption algorithm used by Litecoin. It’s faster than SHA256 because it doesn’t take up a lot of processing time.

SHA-256
It is an encryption algorithm used by Bitcoin for some columns of digital currency. However, it uses a lot of computing power and processing time, forcing miners to form mining pools to generate revenue.

SegWit – This term refers to a solution that makes the blockchain network faster. Segregated Witness can be implemented as a soft fork on a blockchain network, improving its functionality without the need to create new currencies or make the network backwards incompatible.

Smart Contract – An algorithm that automates a contract using blockchain technology. When the terms of a smart contract are met, it is executed and the participants will be rewarded according to the terms of the contract. Smart contracts are popularized by the

Ethereum network. Token – A single coin associated with a particular blockchain network, representing its currency, giving the transaction value within the network. For example, the token of the Litecoin network is called LTC.

Soft Fork (soft branch)
Soft branches differ from hard branches in that only previously valid transactions can invalidate them. Since the old node recognizes the new block as valid, the soft branch is basically backward compatible. This branch requires most miners to upgrade to execute, while hard branches require all nodes to agree on the new version.

Solidity
Solidity is the programming language that Ethereum uses to develop smart contracts.

Testnet
The test blockchain used by developers is mainly used to prevent changes to assets in the main chain.

Transaction Block
A collection of transactions aggregated into a block that can then be hashed and added to the blockchain.

Transaction Fee – Because the trading of blockchain networks requires a lot of computing power, miners on the network have to compete for the right to trade by assigning their computing power. The miner who will eventually settle it will charge a transaction fee.

Turing Complete (Turing Complete)
Turing completion refers to the ability of a machine to perform any other programmable computer capable of performing calculations. An example is the Ethereum Virtual Machine (EVM).

Wallet – An online program, or a local client program that enables users to store, transfer and view their balances. Different wallets support different cryptocurrencies, and many wallets support different cryptocurrencies on one platform.

Whitepaper – A paper that serves as a report or guide to a complex issue. In the world of cryptocurrencies, white papers are used as a means of delivering blockchain networks or encrypted structures, plans, and/or perspectives.

Reference

  1. https://zhuanlan.zhihu.com/p/51423204
  2. https://zhuanlan.zhihu.com/p/41875261
  3. https://zhuanlan.zhihu.com/p/41658584

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