Welcome to our guide to blockchain technology! Whether you're exploring blockchain for the first time or looking to deepen your knowledge, this glossary will introduce you to key terms and concepts. Let’s dive in!
Attack on Majority Control
A scenario where a majority of miners in a blockchain network collaborate to compromise its integrity. This attack enables them to manipulate transactions, such as double-spending or preventing others from confirming legitimate ones.
Address
A unique identifier that allows users to send and receive cryptocurrency. It functions like a digital location for transactions and is secured by a pair of cryptographic keys: a public key (shared with others) and a private key (kept secret).
Altcoin
Any cryptocurrency other than Bitcoin. Altcoins, like Ethereum, Litecoin, and Ripple, offer unique features and use cases beyond what Bitcoin provides.
ASIC (Application-Specific Integrated Circuit)
A specialised computer chip designed for tasks such as cryptocurrency mining. ASICs excel at specific calculations, making them highly efficient for blockchain processes.
Attestation Ledger
A record that verifies individual transactions or the authenticity of assets. It is widely used in industries like supply chain management to ensure integrity and traceability.
Bitcoin
The first and most popular cryptocurrency, introduced by Satoshi Nakamoto in 2008. It operates on a decentralised network and uses cryptographic techniques to secure transactions.
Block
A collection of transactions recorded on the blockchain. Each block includes a timestamp, transaction data, and a cryptographic link to the previous block, forming a secure chain.
Blockchain
A distributed and immutable digital ledger. It records data in blocks linked by cryptographic signatures, ensuring transparency and security while preventing tampering.
Private Blockchain
A blockchain accessible only to authorised participants. It offers organisations greater control over data and transactions within a closed network.
Public Blockchain
An open blockchain that anyone can access and participate in. Public blockchains promote transparency and decentralisation.
Byzantine Fault Tolerance (BFT)
A system's ability to function correctly even if some participants act maliciously or fail. BFT is crucial for maintaining trust in decentralised networks.
Centralised
A system where control resides with a single authority, contrasting with decentralised systems that distribute power among participants.
Chain of Custody
A documented trail of a product’s lifecycle, from raw materials to the end user. It ensures accountability and traceability, often used in legal and supply chain contexts.
Chaincode
Another term for a smart contract. Chaincode automates and enforces agreements using prewritten code executed on the blockchain.
Coin
A digital asset native to a blockchain, used for transactions and as a store of value. For example, Bitcoin serves as the currency of the Bitcoin blockchain.
Consensus Algorithm
A protocol that ensures agreement among participants in a blockchain network regarding the validity of transactions and the state of the ledger.
Proof of Authority (PoA)
A consensus mechanism where validators are chosen based on their identity and reputation instead of staking cryptocurrency. It is efficient and scalable for certain use cases.
Cryptography
The science of securing communication. Blockchain relies on cryptographic techniques like encryption and hashing to ensure transaction integrity and privacy.
Decentralised
A system that distributes control among multiple participants, fostering transparency, security, and resilience.
Distributed Ledger Technology (DLT)
A system where data is recorded simultaneously across multiple locations. DLT ensures transparency and eliminates the need for a central authority.
Fork
A divergence in a blockchain network, creating two separate chains. Forks can be planned (to upgrade software) or accidental (from misaligned miners).
Genesis Block
The first block in a blockchain, serving as the foundation for all subsequent blocks.
Hash
A cryptographic function that transforms data into a fixed-length code. Hashing ensures data integrity by creating a unique digital fingerprint for each block.
Initial Coin Offering (ICO)
A fundraising method where projects sell tokens to raise capital. Investors can use these tokens within the ecosystem or trade them on exchanges.
Node
A computer participating in a blockchain network. Nodes validate transactions, maintain a copy of the blockchain, and enhance network security.
Smart Contract
A self-executing contract with rules encoded in software. It automates agreements by executing actions once conditions are met.
Token
A digital asset representing value or utility within a blockchain ecosystem. Tokens enable transactions, governance, and access to services.
Zero-Knowledge Proof
A cryptographic method where one party proves they know a value without revealing the value itself. It enhances privacy and security in blockchain applications.