Contents

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

ASIC

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ASIC (application specific integrated circuit) is a specific circuit with the ability to perform hashing calculation with high speed (billions of hashing calculations per second) and is used for extracting blocks in PoW based blockchain networks.

Attestation Ledger

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Attestation ledger is responsible for recording agreements, corrections and required obligations for these agreements or corrections.

API

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API (Application Programming Interface) is an inductor software for communicating with parts of a different system.

Altcoin

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In general, any cryptocurrency which has been introduced after the introduction of Bitcoin is called an altcoin. Many of the altcoins are actually different forks of Bitcoin (for example LiteCoin).

Agreement Ledger

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Agreement ledger is a distributed ledger which is used for negotiating and reaching an agreement between two parties.  

Address

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Address is a combination of numbers and letters which is encrypted in a process and is used for sending and receiving cryptocurrency. This string of letters and numbers are easily shown by a QR code.

Accidental Fork

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Accidental fork refers to a situation when two miners accidentally find the next block at the same time. In this scenario, two different branches will be created in blockchain network. After that, the longer branch wi9ll be recognized as the main branch and the other branch will be disqualified. These blocks are called orphan blocks.

51% Attack

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51% attack is a situation where one or multiple miners in a blockchain network (like Bitcoin) gain more than 50% of the computing power and add their own blocks to the network or send back spent tokens or coins to their own address again.

B

Blockchain

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Blockchain is a distributed ledger which includes a chain of information blocks. These blocks are created based on a special mechanism called mining and are added to the existing chain. Created blocks in the chain are impossible to change and no one can tamper with the information inside them. Each block contains the address of the previous block and the next block. In ordinary blockchains like Bitcoin everyone can see the information inside each block.

Block Height

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Block height is the number of each created block. For example, 10 means that the current block is the 10th block after the first block (genesis block). The genesis block’s block height is usually zero.

Block Reward

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Block reward is the amount paid to a miner if he/she successfully finds and registers the last block in a blockchain. Reward can be a specific amount of the mined coins or it also can be the fees of transactions stored in that block. Needless to say, the number of transactions in each block and their fee and the conditions for each transaction will be determined in that blockchain’s protocol.

C

Central ledger

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Central ledger is the main ledger which is controlled by the main organization.

Client

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The client is the software designed for connecting to blockchain and performing transactions. Usually, the client contains a cryptocurrency wallet.

Coin

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Coin is a digital asset in blockchain network.

Cold Wallet

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Cold wallet is an offline wallet which is not connected to the internet. Therefore the assets on this wallets are safe from hacking and theft.

Confirmation

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Confirmation shows that a transaction in blockchain network has been performed successfully. This action is performed in during extraction process and confirmed transactions cannot be canceled.  More confirmation for a transaction means less chance for refund. For example, in Bitcoin network, it will be almost impossible to cancel the transaction after 6 confirmations.

Consensus Process

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Consensus Process is the agreement between a set of nodes in a blockchain network on confirming a newly mined block and adding it to the main blockchain.

Consensus Point

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Consensus point is the point where based on the situation and the number of records added to the ledger, the participants (network nodes) reach an agreement.

Cryptocurrency

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Cryptocurrency is a virtual and digital currency which is created based on an encryption process and the protocol used in that blockchain and is independent from a central bank.

Cryptography

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Cryptography is a method used for encrypting outgoing information. encryption is based on mathematics. In blockchain technology, encryption is used to create public and private keys and transaction signatures in the network. Public keys are used for receiving assets and private keys are used for sending assets and creating transaction signatures.

D

(The) DAO

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DAO(Decentralized Autonomous Organization) is an independent organization for investing in new businesses. In Ethereum network, DAO code is an open source code. This organization has been used to collect funds for many projects in 2016. Although these funds became the subject of hacking and theft in that year and this led to the creation of a fork in Ethereum.

Decentralization

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Revoking the rights of responsibility and decision making from a person, company or a government and giving them to a group of nodes in a network is called decentralization.

Digital Identity

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Digital identity is a form of identity defined for clients, organizations and devices in cyber space.

Digital Signature

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Digital signature is a unique digital code which is sent with a document and it confirms that no tampering has accured.

Distributed ledger

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Distributed ledger is a data structure distributed between different nodes(sites) or countries. Recording information is done based on a specific sequence on this data structure. Based on his ledger control methods, these ledgers divide into two categories ((with license or without license)).

Difficulty

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Difficulty in mining procedure (proof of work) shows the level of difficulty of the calculation which results in finding a new block and adding it to the network. This parameter, based on the network’s protocol, can be modified (increased or decreased). Difficulty in Bitcoin network is modified after mining 2016 new blocks.

Double Spend

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double spend is a scenario in network where a person sends one transaction to two different destination. After each confirmation made by the network, the possibility of double spend decreases significantly to the point where after 6 confirmation(in Bitcoin network), the possibility of double spend reaches close to zero.

E

EVM (Ethereum Virtual Machine)

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EVM is a touring machine in ethereum network which allows users to execute their desired EVM code from anywhere. All nodes in the ethereum network run on EVM. EVM is the spot where all ethereum smart contracts are recorded an executed. Preventing DoS attacks is one of the advantages of this project.

Exchange

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Cryptocurrency exchanges are sites where people can exchange their cryptocurrencies into other cryptocurrencies or into routine currencies. For example, purchasing or selling Bitcoin in exchange for Dollar. Exchanges can be centralized (managed by a corporation or a person) or decentralized (asset management handled by the users themselves).

ERC20 Token Standard

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A technical standard for creating tokens based on a smart contract on Ethereum platform. The mentioned token will be defined based on specific rules. The created tokens can be exchanged.

ERC721 Token Standard

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A technical standard for creating tokens based on a smart contract on Ethereum platform. The mentioned token will be defined based on specific rules. The created tokens cannot be exchanged.

ERC223 Token Standard

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A technical standard for creating tokens based on a smart contract on Ethereum platform. This standard focuses on security above all. These tokens are defined in Ethereum network based on event handling mechanism and Ethereum transactions to reduce the possibility of the loss of tokens. (for improving the standard, ERC20 was created.)

F

Fiat

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Fiat money includes all classic currencies printed and used by governments such as Dollar, Euro and so on.

Fork

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A fork is a situation where a blockchain updates into a new version or splits into two different chains. forks can be unsought or planned.

G

Gas

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Gas is a specific amount of a currency spent on a transaction or a contract as the needed fee.  Fees are defined based on calculation difficulties for different actions.

Genesis Block

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Genesis block is the first block created in every blockchain network.

H

Hash

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Hash is a function created based on mathematics to create an output with fixed length from an input with variable length. One of the advantages of hash function is producing a unique output. This advantage is used to generate digital signature and validation in a blockchain network.

Halving

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Halving is the process of reducing the reward for mining a block to half. This mechanism can be defined in every cryptocurrency’s protocol and with it, the amount of coins injected in network. In the beginning of Bitcoin’s creation, the reward for finding a new block was 50 Bitcoins which has been in cut in half every four years. Right now the reward for finding a new block in Bitcoin is 12.5 Bitcoins. In May 2020 this amount will be reduced to 6.25 Bitcoins.

Hard Fork

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Hard fork is a situation where based on changes made to the rules of block processing, upgraded nodes based on new rules, will presume the older blocks made by the old rules invalid and won’t process them anymore. In this situation, all nodes need to upgrade their software to adjust themselves with the new rules.

Hardware Wallet

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Hardware wallet is a kind of wallet for saving public and private keys in their processor chip and therefore have better security.

Hash rate

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Hash rate is the amount of hash generated in a second by a miner.

Hot Wallet

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A cryptocurrency wallet which is connected to the internet. This wallet has less security than a hardware wallet.

I

Immutable

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Immutable is the inability to change or tamper blocks. All blocks and the information stored on them are forever unchangeable.

Initial Coin Offering (ICO)

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Initial coin offering is the process of collecting funds in the field of cryptocurrency. Usually, start-ups need funds for defining their projects and executing them. These funds are gathered by ICO and selling the tokens of those projects.  

Initial Token Offering (ITO)

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Initial token offering is like ICO with the difference that these projects don’t generate coins. Instead, they run their project on another platform like Ethereum and sell their tokens instead of coins.

Intentional Fork

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Intentional fork is a kind of fork which brings the project to its configurations before the occurrence of a damage (like hacking).

InterPlanetary File System (IPFS)

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A file system for storing information on a decentralized P2P network. With this mechanism, the pace of accessing information in the network and security increases significantly.

L

Ledger

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Ledger is a structure for storing information on a chain system without the possibility of editing or removing the recorded information.

Liquidity

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Liquidity is the ability to exchange assets to cash without effecting the prices in the market.

M

Market Cap

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Market cap is the asset size of a cryptocurrency which equals the amount of coins in circulation multiplied by the current price of each coin.

Mining

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mining is the combination of processing, validating, making transactions and adding cryptocurrency transactions to blockchain.

Multi Signature

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Multi-signature is one of the defined traits in some blockchain protocols (like Bitcoin). It is used when more than a single signature is needed for making a transaction. One of the advantages of multi-signature is the reduced possibility of cryptocurrency theft.

N

Node (Full Node)

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Full node is a computer or node in blockchain network which contains a full copy of that certain blockchain and is able to verify and confirm all transactions and network blocks.

Non-Fungible Token (NFT)

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Non-Fungible token is a unique cryptocurrency which can’t be copied or exchanged by another token of the same kind.

O

Off-Ledger Currency

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A currency created outside a blockchain and used inside that blockchain. For example, using a distributed ledger for managing the currency of a country.

On-Ledger Currency

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A currency created inside a blockchain and used inside that blockchain. For example, Bitcoin, Ethereum and so on.

Oracle

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Oracle is a tool for data communication between a smart contract in a blockchain and the outside world.

P

P2P

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Point to point is a communicational structure in decentralized networks, meaning that every user in the network is connected to at least one other user. This structure leads to the creation of a stable communication between network nodes. Bitcoin, Torrent and other similar networks use this structure.

Participant

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All users who have access to the ledger and participate in the process of reading and writing data on the network.

Peer

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Any user in a blockchain network who participates in maintenance and keeping the network stable is called a peer.

Permissioned Ledger

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A kind of ledger which only certain nodes and users have access to it and only they can participate in the collective agreement process. These networks, unlike a network like Bitcoin which everyone can have access to and participate in collective agreement, are used for certain projects and goals. In these networks, collective agreement is performed much faster.

PoS/Pow Hybrid-

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A collective agreement created by the combination of ((proof of work)) and ((proof of stake)). In addition to miners, verifying blocks are done by shareholders.

Private Currency

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A currency with a private aspect which is created by a specific person or organization.

Proof-of-Authority

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A collective agreement mechanism in private blockchains where a single private key will have the authority to create all of the blocks.

Private Key

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Private key is a combination of words and numbers which is created by encryption algorithms based on mathematics. The owner of the private key is considered the owner of the cryptocurrency related to that certain key and can sign and perform transactions. Therefore, protecting the private key is the most important thing that all cryptocurrency owners must do.

Proof-of-Stake

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Proof of stake is a Collective agreement mechanism. In this mechanism, each node must deposit an amount of assets (the network’s coin) in the network to be able to participate in this process. Based on the amount of the user’s deposit, a certain amount of coin can be mined.

Proof-of-Work

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Proof of work is a collective agreement mechanism. In this mechanism, each node participates in the process of verifying and mining based on the amount of their processing resources (like Bitcoin). The basis of this cooperation is performing extremely hard calculations for finding a mathematical solution (finding the intended hash) and any node who can solve this problem quicker and find the result, have a chance to add his/her block to the end of the chain and if the block is accepted by the network, receive the reward for mining a block.

Protocol

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Protocol is a collection of defined rules for specific purpose of processing information. For example, Bitcoin protocol defines the way to calculate a block, how to verify blocks and transactions and so on.

Provably Fair

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A tool for confirming the results of a game. This tool prevents any fraud.

Public Blockchain

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A public blockchain is a blockchain network which gives everyone access to all data on the network. Like Bitcoin blockchain

Public Key

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Public key is a combination of words and letters which is created by encryption algorithms based on mathematics. Public key is used for verifying transactions in a blockchain network. For receiving transactions, this key is shared with other users in the network.

R

S

Satoshi

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Satoshi is the smallest amount which a Bitcoin can be divided to. This name comes from the creator of Bitcoin ((Satoshi Nakamoto)). Each Bitcoin equals 100 million satoshis.

Scalability

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Scalability is a blockchain protocol’s property which has the possibility of processing the incoming transactions based on the increasing rate of demands. In Bitcoin’s first version, one of the issues is that the network isn’t scalable. To solve this problem, developers have suggested many solutions such as lightning.

Scrypt

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A proof of work mechanism compared to SHA-256 which is designed for better compatibility with CPU and GPU mining.

SHA 256

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An encryption function for hashing data in the Bitcoin protocol

Smart Contracts

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Smart contract is a software code which exists in some networks like Ethereum. These contracts put their terms on the network as a software code and are executed like an Ethereum transaction.

Soft Fork

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A change in Bitcoin protocol which makes that protocol’s rules stronger, so that all nodes which work with the old rules would still be able to process the network blocks.

Solidity

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Solidity is the programming language for creating smart contracts on Ethereum platform.

Stablecoin

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Stable coin is a blockchain coin with the least price fluctuation and therefore is the most stable cryptocurreny.

T

Testnet

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Testnet is a blockchain network for testing the blockchain protocol created by the developers.

Token

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Token is a characteristic in a blockchain network which is defined as a form of asset of that network and is different from the coin of that blockchain.

Tokenless Ledger

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Ledgers which don’t need their own defined tokens to be operational are called tokenless ledgers.

Transaction Block

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Block is an information structure which contains transactions, digital signatures, smart contracts and other related information in a blockchain network.

Transaction Fee

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The amount of coins in a network spent for creating a transaction is called transaction fee.

Turing Complete

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Any machine that can calculate on a level equal to a programmable computer is Turing Complete or computationally universal.

U

Unpermissioned ledgers

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Unpermissioned ledgers are ledgers operating without the control of an organization or a person. Everyone can connect to this network and take part in the process of mining blocks and verifying transactions (like Bitcoin network).

W

Whitepaper

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Whitepaper is the document created by the developers of the project for introducing the project and explaining its advantages for all users.

Wallet

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In general, wallet is the combination of public and private keys which determines the ownership of the owner of that particular wallet and is used for sending and receiving cryptocurrencies. There are different wallets such as hardware, software, paper and they can operate online or offline.