Glossary

Here the terminology section.

If you are familiar with the Blockchain Industry you might like to continue directly to Overview

Terminology

• Blockchain: A decentralized, digital ledger that records transactions across a network of computers. Each block in the chain contains a record of multiple transactions and a unique code, called a "hash," that links it to the previous block. This creates a secure, immutable record of all transactions on the blockchain.

• Decentralized: A system that is not controlled by a single central authority or organization. In the context of blockchain, this means that the network is maintained by a network of users rather than a central entity.

• Consensus: The process by which the network of nodes on a blockchain reach agreement on the state of the ledger. There are multiple consensus mechanisms, such as Proof of Work or Proof of Stake.

• dApp (Decentralized Application): A software application that runs on a decentralized network, such as a blockchain, rather than on a single central server.

• Web3: Refers to the next generation of the internet, where users have more control over their data and the ability to interact with decentralized applications (dApps) and services. It is built on top of blockchain technology, which enables the creation of decentralized networks that can be used to facilitate various types of transactions and interactions. Web3 is the concept of building decentralized web applications and services on top of blockchain technology, giving users more control over their data, and enabling new business models.

• Smart Contract: A self-executing contract with the terms of the agreement written directly into lines of code. Smart contracts allow for the automation of certain processes and can be used to facilitate, verify, and enforce the negotiation or performance of a contract.

• Interoperability: The ability for different blockchain networks and platforms to communicate and interact with each other.

• Gas: A fee paid in Ether (ETH) to execute smart contracts and transactions on the Ethereum blockchain. This fee is necessary to incentivize miners to process the transaction and is often used as a measure of the computational effort required for a given action.

• Distributed ledger: A digital ledger that is spread across a network of computers rather than being stored in a central location. This allows for greater security and transparency as the ledger can be verified by multiple parties.

• Cryptocurrency: A digital or virtual currency that uses cryptography for security. Cryptocurrencies are decentralized and are built on blockchain technology.

• Mining: The process of using specialized software and hardware to validate and record transactions on the blockchain. Miners are rewarded with cryptocurrency for their contributions to the network.

• Node: A computer or device that is connected to the blockchain network and participates in the validation and recording of transactions.

• Proof of Stake (PoS): A consensus mechanism for blockchain networks in which users are able to validate transactions and add new blocks to the blockchain by holding and "staking" a certain amount of the network's native cryptocurrency.

• Staking: The process of holding and "staking" a certain amount of a network's native cryptocurrency in order to participate in validating transactions and adding new blocks to the blockchain.

• Validator: A participant in a PoS-based blockchain network who holds and stakes a certain amount of the network's native cryptocurrency in order to validate transactions and add new blocks to the blockchain.

• Staking reward: The incentive given to validators for validating transactions and adding new blocks to the blockchain.

• Public/Private Key: A unique code, made up of a combination of letters and numbers, that serves as a users' digital signature on the blockchain. A public key can be shared with others to receive transactions, while a private key must be kept secret to authorize transactions.

• Non-custodial wallet: is a type of wallet application where the user holds the private keys to their own funds, giving them full control over their assets. With a non-custodial wallet, the user is responsible for the security of their own funds, as there is no third party holding on to their private keys. Examples of non-custodial wallets include software wallets, hardware wallets, and paper wallets.

• Custodial wallet: Wallet application where a third party holds the private keys to the user's funds, giving them control over the user's assets. In this type of wallet, the user does not have direct access to their private keys, and instead, rely on the third party to manage their funds. Examples of custodial wallets include exchanges, online wallets, and some mobile wallets.

• Ethereum: A decentralized platform that enables the creation of smart contracts and decentralized applications (dApps) on its blockchain.

• Bitcoin : The first decentralized cryptocurrency and the most widely used and valuable one.

  This list is not exhaustive, and other terms might be added as the technology and the company evolves, but it serves as a good starting point for understanding the basic concepts related to Blockchain technology.

• Gen3 blockchain: The first generation of blockchain technology is represented by Bitcoin, and the second generation by Ethereum, which introduced smart contracts. Gen3 blockchain is a term to refer to the next evolution of blockchain technology, which is able to handle a much higher number of transactions per second than previous blockchains. Gen3 blockchains are able to seamlessly interact with each other and are more flexible and adaptable to different use cases.

• Near Protocol: It is a blockchain platform that aims to provide a fast, secure, and scalable infrastructure for decentralized applications (dApps). It uses a new consensus mechanism called "Nightshade" which is designed to improve on the performance of existing proof-of-stake (PoS) mechanisms, and it uses sharding to increase the scalability of the network. Additionally, it also provides a number of features and tools to make it easy for developers to build and deploy dApps on the platform. Some of these include a web3-compatible JavaScript API, a contract development framework, and a web-based development environment called the "NEAR Studio". Overall, the Near Protocol is a fast and secure blockchain platform that aims to provide an easy-to-use and developer-friendly environment for building and deploying dApps.

• Bridge: A blockchain bridge is a technology that enables the transfer of assets and data between different blockchain networks. It allows users to interact with multiple blockchains in a seamless and efficient manner, allowing for increased interoperability and flexibility. With the help of bridges, users are able to connect two blockchains and allow sending cryptocurrency from one chain to the other.

• DAO: A decentralized autonomous organization (DAO) is a system developed to distribute decision-making, management, and entity ownership.