It can be a daunting task to find and understand Blockchain terminology, especially when you are a beginner. The task becomes more difficult as Blockchain technology is developing rapidly, and with it the Blockchain terminology. But, with regular research and deep analysis, the team at 101 Blockchains have curated this alphabetical Blockchain guide to help you enhance your Blockchain knowledge.
You can navigate through this Blockchain glossary and become a Blockchain pro by understanding these basic, as well as advanced Blockchain terms.
List of Blockchain Definitions
Currently, there are 150+ blockchain definitions in this glossary, let’s get started.
An actor in the blockchain industry basically refers to any entity with the capabilities for participating in a specific network or an action.
The address in terms of blockchain generally refers to the public address related to a private key. The addresses work as the identity of an actor or an account. In most cases, the addresses are available in hexadecimal notations.
Airdrop is a method for token distribution that helps in sending tokens or cryptocurrency to wallet addresses. Airdrops are also utilized in the case of marketing purposes for simple tasks such as app downloads and reshares, and referrals.Read more
The digital currency alternatives for Bitcoin are called altcoin, with the majority of altcoins being forks of Bitcoin, with few changes.Read more
Anti-Money Laundering (AML)
Anti-money laundering refers to the collection of international laws implemented for reducing the possibilities of money laundering through cryptocurrencies.
Application-Specific Integrated Circuit (ASIC)
Application-Specific Integrated Circuit or ASIC is basically a certain type of computer processing chip with the capabilities to perform a specific function. ASIC relies on specialization for offering better efficiency and cost-effectiveness in comparison to general computer processors. ASIC boards are suitable additions in the blockchain industry for performing SHA256 hashing that is needed for Proof-of-Work mechanisms.
API or Application Programming Interface refers to the software application which serves as an intermediary between two applications. It works as a messenger that delivers the request of users to the provider and delivers the response back to users.
Avatar refers to the persona or identity of an individual in a virtual world. The avatar of an individual in a virtual environment might look like them, like a cartoon, or like the characters in online games.
Augmented Reality is just a digital overlay that projects on the real world. It is an interactive experience of real-world environments that present relevant digital information in associated contexts of the physical environment.
Aping happens in scenarios where cryptocurrency traders purchase a token shortly after the launch of the token project. The process is basically a reckless investment in a new token project with expectations for short-term profit.
Atomic swap is the process of exchanging cryptocurrencies in different blockchain networks without any intermediaries. It offers an effective way of directly exchanging cryptocurrencies at existing rates without purchasing or selling them.
Bitcoin also referred to as BTC, is a decentralized blockchain tailored particularly for transaction of tokens between accounts. The most important highlight of Bitcoin is that it is the first blockchain-based cryptocurrency. Bitcoin features a Proof-of-Work or PoW consensus algorithm and leverages Unspent Transaction Outputs (UTXOs) for storing data.Read more
Block is the most fundamental component in the structure of a blockchain and serves as the single section comprising discrete data. The blocks generally include a list of actions or transactions that should be performed during data processing in the block.
A canonical block is one that has been incorporated in the primary blockchain. The canonical block is referenced either directly or indirectly by future blocks. Non-canonical blocks which might have validity could be rejected in favor of canonical blocks.
The first block in a blockchain structure is known as the genesis block. The block height for the genesis block is zero. Most important of all, all the other blocks in the blockchain are linked intrinsically to the genesis block. It is possible to configure genesis blocks for creating a fork of a chain of purposes, including specification of different block parameters or pre-loading accounts with tokens for test networks.
Blockchain is an innovative method for data storage in discrete sections in the form of blocks, which are linked to each other. It is basically a consensus digital ledger including digitally recorded data in different sections such as blocks. Every block is related to the next block through a cryptographic signature. Blockchains could provide criteria for the type of data eligible for storage on the block and invalid data, which should be rejected.Read more
The first generation of blockchain technology, known as Blockchain 1.0, emphasized particularly executing simple token transactions. The chains in Blockchain 1.0 are restricted in terms of scope and ability.
The second generation of blockchain technology, i.e., Blockchain 2.0, focused on enabling the functionalities of smart contracts and generalized processing. The chains in Blockchain 2.0 are developed with Turing-complete programming languages with a broad range of capabilities, other than the basic peer-to-peer (P2P) value exchange.
The new generation of blockchain technology presently emphasizes achieving better interoperability and scalability with blockchain applications. Although Blockchain 3.0 does not have any frontrunners now, the chains under development have the potential for improving the use of smart contracts.
Block depth refers to the position index of a block in the blockchain with respect to the most recently added block. For example, a block that is 2 blocks before the last added block will have a block depth of 2.
Block height is the position index of a block with respect to the genesis block. For example, the second block added to a chain will have a block height of 2.
Block explorer is the software or GUI graphical user interface, which helps users in reading and analyzing data on a blockchain.
Blockchains with native cryptocurrency allow miners to allocate a specific number of tokens for generating spontaneously and sending to desired address. The reward compensates for the miner’s support in building a block and the network alongside incentivizing other miners for joining the network.
Bug Bounty basically refers to a reward paid for completing specific tasks such as identification of code vulnerabilities, design work, social impact, content creation, research, and more.
Banking Secrecy Act (BSA)
Banking Secrecy Act is a US legislation passed in 1970, which implies that financial institutions must support government agencies in detection and prevention of money laundering activities. BSA requirements focus on record-keeping for all customers, decision on the type of monetary instruments eligible for purchase or exchange, and mandatory reporting of specific types of activities.
Byzantine Fault Tolerance
Byzantine Fault Tolerance basically refers to the ability of the network to reach consensus properly at any given time while also assuming that no more than one-third of the network actors are malicious.
Blockchain Transaction Fees
Blockchain transaction fees refer to the fee users are charged when they perform transactions on a blockchain network. The fee is basically the payment for processing a transaction on the network and can help in speeding up blockchain transactions.
Bitcoin ATM refers to a device that allows users to purchase and sell Bitcoin, just like using a regular ATM. In addition, a Bitcoin ATM also generally offers many other variants of cryptocurrencies.
A Buy Wall refers to a situation where someone places a large limit order for purchase when a particular cryptocurrency reaches a specific value. The Buy Wall can prevent the drop of the cryptocurrency price below the concerned specific value.
A Bag is the term allocated to the cryptocurrency stash of an individual with a large number of units of a specific cryptocurrency. The bagholder is generally the individual holding massive quantities of a cryptocurrency that is gradually becoming worthless or reducing in value.
Certificate Authority (CA)
Certificate Authority or CA refers to a centralized authority that helps in correlating identities with a public-private key pair in private key infrastructures.
The closed source software points out proprietary software featuring source code that is not accessible to the public. Users can access the compiled binaries in the form of an executable program. However, the binaries are not human-readable, and users other than the original software developer cannot access them for modifications.
Coinbase is a US-based cryptocurrency brokerage platform, which is the largest exchange in terms of transaction volume and customer base. In comparison to other exchanges, Coinbase features a small count of cryptocurrency offerings. It provides only a specific few dozen tradable cryptocurrencies out of all the available options in the ecosystem.
Coinbase, in the context of mining, is associated directly with a block. The coinbase of a block points out to the address where block rewards are delivered.
Command-Line Interface (CLI)
CLI or Command-Line Interface is a text-based user interface that can offer the core functionalities alongside access to system resources in a better way than GUIs. However, CLI generally lacks the benefits of usability. Therefore, CLI is more suitable for developers in comparison to the average users.
Confirmation in the world of blockchain refers to the process of determining the extent of the immutability of the information in a blockchain. In some cases, confirmations refer to the number of nodes accepted in a transaction, the number of transactions referencing the confirmation, or the number of blocks prior to it. A general transaction in Bitcoin features five confirmations upon producing five blocks after the block containing a specific transaction.
Consensus is an important process in the blockchain industry that is essential for helping different sections of a network in determining a single source of truth. Blockchain networks depend on consensus algorithms for reaching an agreement in terms of the blogs eligible for addition to the chain and the validity of nodes.Read more
Consortium refers to the private blockchain network operated by a company or a group of agencies. Consortium chains generally management information that is not fit for public release albeit needs to be communicated immutably between two concerned parties.Read more
In most specific terms, money in any form, when used in circulation as a medium of exchange is known as currency. Every country has its own currency, like the US dollar is the currency of the USA.
Cryptocurrency refers to currencies that are digitally distributed and traded with establishing proof of ownership through cryptographic methods. For instance, it is not possible to transfer Ether from an account without any control over the private key related to the concerned account.Read more
Cryptography is the technique of combining mathematical and logical problem-solving skills for encryption or decryption of encoded messages. Computer cryptography depends considerably on mathematical proofs alongside the difficulty of computation for certain mathematical problems.
Central Bank Digital Currency (CBDC)
CBDC refers to the proposals that involve digital currency, issued by a central bank. Although the term is not well-defined, it represents a new form of central bank money.Read more
Client in the world of blockchain refers to software with the capabilities for accessing a blockchain through a local computer. A client would generally feature a cryptocurrency software wallet and support in processing transactions.
Coin in terms of blockchain is basically a representation of digital asset value generated through personal, independent blockchain.
The cold wallet or cold storage in blockchain points out to an offline wallet that is not connected to the internet ever. The cold wallets are helpful in safeguarding cryptocurrencies from online hacking attacks.
Corda is basically an open-source blockchain project tailored for business functions. It helps in developing interoperable blockchain networks with formidable indications for conducting transactions in complete privacy. Corda features smart contract technology for enabling businesses to complete direct transactions with better value.Read more
CeFi or centralized finance refers to a structured service for controlling all orders through one central exchange without any competing parties. CeFi basically aims at ensuring fair trades, improving buying and selling processes alongside boosting additional transactions.Read more
Interpreted as the combination of CeFi and DeFi, CeDeFi is a hybrid centralized decentralized system. It is basically a new approach that aims to use the best of DeFi and CeFi for modernizing conventional financial management. The world’s leading crypto exchange platform, Binance, has started the DeCeFi movement with their Binance Smart Chain.Read more
Custodial in the context of blockchain refers to a variant of digital wallet which stores the private keys of customers. In addition, the custodial wallet also offers security and backup for the assets of users.
Crypto exchange basically refers to the platform that can enable trading cryptocurrencies for other assets such as digital or fiat currency. They serve as intermediaries between the buyer and seller while operating on a commission-based model.
The creator economy is a significant concept for facilitating equal and lucrative opportunities for creators without any restrictions. The concept basically focuses on creating an independent market for content by different creators.
Chain linking refers to the process of transferring one cryptocurrency to another blockchain network. The process focuses on incorporating a specific cryptocurrency transaction in two different blockchains while linking them together to achieve desired objectives.
Circulating supply refers to the total number of coins of a specific cryptocurrency that are available to the public for trading. Cryptocurrency developers can lock, burn or reserve some cryptocurrency tokens, thereby making them unavailable for public trading.
DApp or decentralized apps are similar in terms of operations with regular web applications. On the other hand, they can retrieve information about their state and data from specific or multiple blockchain networks. You wouldn’t need a central web server for the functioning of DApps. In addition, DApps communicate with each other through the messaging protocol used by blockchain networks connected to them.Read more
Decentralized points out the shift of data, actions, and other associated interests from a single actor towards distribution throughout all actors.
Decentralized Autonomous Organization (DAO)
A decentralized Autonomous Organization or DAO points out a company or group of like-minded people operating on the basis of rules established in a smart contract. DAOs are generally helpful for transforming business logic to software logic documented on a blockchain.Read more
Directed Acyclic Graph
Directed Acyclic Graph or DAG is a directed graph structure, such as a flow chart, without any recursive routes. DAGs are applicable in the blockchain industry primarily for creating links between blocks, data storage structures, and transactions.Read more
Double Spend Attack
Double-spend attacks basically refer to malicious attempts for convincing two different parties about the validity of one of two conflicting transactions. In such cases, both transactions can appear valid, although with setbacks when combined together. Blockchain reorganizations such as natural forks imply that verification of the addition of a transaction in a block does not refer to its immutability. Transactions will be immutable only after reaching a certain chain depth where chain reorganization cannot affect them. It is possible to reduce double-spend attacks by waiting to confirm a transaction by the network.
DeFi or Decentralized Finance
Decentralized finance or DeFi is a paradigm shift in the economy powered by decentralization, especially in blockchain networks. DeFi points out the radical transition from centralized and closed financial systems to universally accessible economies. DeFi relies on open protocols with the assurance of programmability, ease of composition, and interoperability.Read more
Digital identity is basically an online identity or identity on a network adopted by an organization, individual, or electronic device.Read more
Digital signature is a code created through public-key encryption followed by being attached to electronically transmitted documents for verifying the contents of the document.
Distributed ledger is the database spread throughout various sites, institutions, and countries with sequential storage of records in a continuous manner. The data in distributed ledger could be permissioned or unpermissioned, depending on the control privileges for viewership of the data.Read more
DeCeFi or decentralized CeFi is basically a new approach that aims to use the best of DeFi and CeFi for modernizing conventional financial management. The world’s leading crypto exchange platform, Binance, has started the DeCeFi movement with their Binance Smart Chain.
A digital twin is a term for the virtual representation of a real-life structure or object. For example, NASA has employed the digital twin technology to simulate space capsules in 2010.
Decentraland is a community-owned virtual world based on Ethereum which allows users to play, explore and interact with different games and activities. It also allows users to create their own environments, applications, and marketplaces and is one of the early pioneers to include metaverse as their core product.
A Depth chart refers to the graph that gathers requests to purchase and the requests for selling. The depth chart can showcase the precise crossover point when the market would be more likely to verify and accept a transaction.
Difficulty in terms of the cryptocurrency space refers to the cost of mining a specific cryptocurrency at the concerned moment in time. A higher difficulty often implies a higher transaction fee.
Dumping refers to the process of selling a major share of all of your cryptocurrency. When multiple people dump at once, it can result in a sharp fall in the price of the cryptocurrency.
EOS basically points out the Blockchain 3.0 chain, tailored specifically for emphasizing transaction throughput. It leverages the web assembly or WASM for smart contracts and the delegated proof-of-stake or DPoS consensus mechanism.Read more
Ethereum is one of the prominent examples of the decentralized chain in Blockchain 2.0. As a matter of fact, it will be the first major smart contract platform that enjoys considerable support of Fortune 500 companies through the Ethereum Enterprise Alliance or EEA. Ethereum presently depends on a Proof-of-Work or PoW consensus algorithm. However, future modifications in the protocol can imply the need for updating to a Proof-of-Stake or PoS algorithm for better scalability.Read more
Ether, also known as ETH, is the base cryptocurrency tailored for the Ethereum blockchain network. Ether basically serves as the currency for paying transaction fees to miners. Most important of all, it is stored in terms of individual accounts rather than in the form of Unspent Transaction Outputs or UTXOs.Read more
Ethereum Enterprise Alliance
The Ethereum Enterprise Alliance or EEA refers to a group of medium to large businesses with a public commitment to support Ethereum development and creating applications tailored for the protocol.Read more
Ethereum Virtual Machine
Ethereum Virtual Machine is a simulated state machine that depends on eWASM bytecode for processing transactions. In addition, it can also facilitate opportunities for performing state transitions for the Ethereum blockchain. The state of the EVM will be similar on all nodes in the network, with the impossibility of generating different states by using the same inputs.
EWASM refers to the web assembly or WASM version implemented by the Ethereum Virtual Machine for ensuring improved functionalities in blockchains.
A cryptocurrency exchange is commonly evident in the world of blockchain, especially as a service for trading cryptocurrency tokens for fiat or other tokens. Exchanges are subject to intensive regulations in the US, the European Union, and eastern Asia.
Decentralized exchange basically refers to a cryptocurrency exchange hosted completely through a decentralized app on a specific blockchain. Decentralized exchanges generally don’t allow the conversion of cryptocurrency to fiat. Furthermore, decentralized exchanges also present more difficulties in comparison to standard exchanges for regulations and sanctions.
Ethereum Improvement Proposals (EIP)
Ethereum Improvement Proposals or EIPs provide a description of standards for the Ethereum platform, such as contract standards, core protocol specifications, and client APIs.
ERC20 Token Standard
ERC refers to Ethereum Request for Comment and is associated with an assignment number related to the standard. ERC20 is a technical standard for smart contracts implemented by the majority of Ethereum tokens. The ERC20 standard lists certain rules which specify requirements that a token should fulfill for maintaining compliance and functioning in the Ethereum network.Read more
Extended Reality or XR represents a comprehensive term for different overlapping concepts pertaining to AR, MR, and VR. XR would become the appropriate term for encompassing everything related to AR, VR, and MR.
Escrow refers to the scenario where an intermediary holds the funds in transactions, and the funds are in escrow. Generally, the role of escrow is the same as a third party between the sending and receiving entities.
An Exchange is one of the vital components of the crypto ecosystem as they are the platforms for exchanging cryptocurrencies with fiat currency and other cryptocurrencies. Crypto exchanges could vary considerably in terms of the types of supported currency conversions and fee structures.
Fiat refers to a nationally adopted currency that has the backing of the government. For example, the US Dollar and Euro are examples of fiat currencies. Fiat currencies are generally favorable due to their traditional applications and legal status.
Fork in the world of blockchain refers to the process of creating a unique network by using the same consensus mechanism or protocols as the previously existing network. Forks could contain the state of the original network or instantiate their own state. You can find two categories of forks such as hard fork and soft fork. The hard fork features permanent incompatibility with the existing network. The soft fork features compatibility with the data on the original chain.Read more
Fintech word is a combination of two terms finance and technology. The combined term Fintech refers to a business that involves the use of technology for the automation or enhancement of financial services and processes.
Financial Crimes Enforcement Network (FinCEN)
FINCEN is the U.S. federal agency that investigates and prosecutes finance-related crimes, like money laundering. The rules and regulations of FinCEN cover many points related to the use of cryptocurrency.
FLOW is the native token of the Flow blockchain network. It is an important requirement for tasks such as governance, staking, and ensuring payments for transaction fees. FLOW is also the major reserve asset on the Flow blockchain network.
Fiat currency refers to the official currency, or legal tender accepted commonly and issued by the national government. Fiat currency has the backing of the national government or the central bank, and some notable examples include the US Dollar or the Euro.
Fungibility refers to the property of an item that could be easily exchanged with another identical item. A particular asset class becomes fungible when all units of the asset feature similar market value and validity.
Flow blockchain is a blockchain platform developed by the team behind CryptoKitties. It follows a new type of architecture focused on achieving desired performance for mainstream applications without affecting decentralization.
Fundamental analysis refers to the basic method of attaching value to a coin just by observing associated economic and financial factors. In addition, the fundamental analysis also focuses on the research of underlying motives by creators and the market opinions.
Gas in the blockchain terminology refers to a measure of the computational difficulty needed for processing a smart contract function. Functions with additional complexity would require additional gas. Users could find gas as hardcoded values for each operational code, such as in the case of Ethereum. On the other hand, gas could also refer to subjective values that depend on miner’s preferences.Read more
Gas price refers to the number of tokens charged as fee for every unit of gas consumed by function of smart contract. Gas prices can help a network in responding dynamically to fluctuations in bandwidth demand on the grounds of market forces.
Gwei is the basic and specific denomination for ETH; it is also a unit for gas price.
It is the initial data block that was computed first in the history of blockchain network.
Gossip protocol refers to a process through which actors in a network can exchange information with other members easily. Upon receiving new information, an actor relays the information to all other actors. The cumulative connection of all actors in a network ensures that all of them receive the information eventually.
Graphical User Interface
The Graphical User Interface or GUI is basically an instrument for displaying information to users through personalized design of on-screen elements such as taskbars and windows.
A Gas limit is the maximum amount of Gas a user is willing to pay to make a transaction on the Ethereum network. The transaction is rejected if the cost of the transaction exceeds the gas limit.
Hash is an important element in the description of blockchain infrastructures. It refers to the output of a cryptographic function for mapping inputs to particular outputs that seem arbitrary. Hashes are primarily useful for efficient data identification.Read more
Hash collision happens in the circumstances when two inputs are mapping to the same output hash. However, it is impossible to offer two sets of meaningful data with colliding hashes. Although users can construct hashes from data, they cannot reconstruct data from hashes.
Hashgraph is a decentralized ledger that depends on a gossip protocol for communicating transactions alongside a tangle-style consensus approach.Read more
Hashrate refers to the rate at which a specific machine is capable of addressing a particular hashing function. The Hashrate is generally similar to common CPU speed. Hashrate is calculated on the basis of number of times that a machine could perform specific functions per second. As a result, ASICs are capable of showcasing higher hashrate in comparison to processors with similar clock speed.
Hash function refers to a cryptographic function that enables mapping of inputs to particular yet visibly random outputs.
Hexadecimal notation is basically the representation of raw data in base of 16 rather than base of two or base of 10.
Hyperledger is one of the top enterprise favorites for leveraging the power of blockchain. Hyperledger features an assortment of tools offered by IBM and helps in creating enterprise-level consortium chains with hosting by The Linux Foundation.Read more
Cryptocurrencies such as Bitcoin run on a finite supply, thereby implying their characterization as a scarce digital commodity. The total amount of Bitcoin issued could never cross 21 million. So, the number of Bitcoins generated for every block is reduced by half every four years in a process known as halving.
Hardware wallet refers to any physical device such as the popular Ledger Wallet, which can be connected to the web with a facility for interaction with online exchanges.
The hot wallet in blockchain points out to wallets that are connected directly to the internet at all times, such as the ones held on centralized exchanges.
Hybrid Consensus Model
The hybrid consensus model focuses on combining the best functionalities from Proof of Stake (PoS) and Proof of Work (PoW) consensus mechanisms. Hybrid consensus model enables validation of blocks by miners as well as voters, thereby leading to balance in network governance.
Cryptocurrency creators can establish a hard cap for the cryptocurrency during an ICO. Hard Cap refers to the maximum amount it was supposed to raise, and subsequently, the cryptocurrency would not offer any more coins after the limit.
Initial Coin Offering
ICO or Initial Coin Offering, also known as Initial Token Offering, is similar to the public offering of stocks in the financial markets. It offers a way for tokenized businesses to obtain investment from the public. ICOs come under the regulation of the Securities and Exchange Commission or SEC.Read more
Immutability is the property of data for showcasing additional resistance to modifications. It is a key aspect of blockchain networks and ensures that data written on a blockchain ledger cannot be modified.
InterPlanetary File System (IPFS)
IPFS basically refers to a system for decentralized file storage and referencing for the Ethereum blockchain. It is an open-source protocol for enabling the storage and sharing of hypermedia in a distributed manner. Most important of all, IPFS does not depend on a single point of failure.
Java is the most popular programming language tailored for server-side applications.
KYC (Know Your Customer)
KYC is a procedure in which a business verifies the genuineness of the customers by verifying their background and identity.
Liquidity refers to the availability of liquid assets to a market or company. An asset is associated with higher liquidity for easier conversion to cash. Difficulties in converting an asset into cash make the asset illiquid. The liquidity of an asset influences its market price and risk potential.
Liquid Democracy, also known as Delegative Democracy, is a system, generated by government in which votes can be proxied (delegated) to any other individual. This term was founded as a mechanism for Decentralized Autonomous Organizations where every participant can delegate their vote to another individual.
Mainnet is the largest blockchain network run by a specific protocol or the most valuable chain of a community. They exist in places of deriving real value and representation of truest intents of the core developers.Read more
Merkle Proof basically refers to the process of passing through a Merkle tree from leaf to root. Along the way, you have to hash every level with the previous level for producing a unique hash for the tree’s structure.
Merkle Tree is a data tree with leaves at the end of every branch labeled with an identifier or a cryptographic hash. All branches on a Merkle Tree are labeled with all leaves and sub-branches. The redundancy on a Merkle Tree ensures that any individual with the tree could provide reliable proof of completeness of the data.Read more
Merkle Root refers to the cryptographic has of all other hashes in the Merkle Tree. In the case of a blockchain, the Merkle Root refers to a hash of all the transaction hashes in the chain.
Miner in the world of blockchain points out to an actor with the ability to create and submit new blocks to the chain. CPU miners generally use central processors for block production and validation. GPU miners are known for using their graphics processor to address block validation and production. Miners using ASIC for block validation and production are known as ASIC miners.
The process of developing a new block and submitting it to the blockchain is known as mining
The mining pool refers to a group of miners working together for generating the next block on a blockchain before the others in the network.
Market Caplitalization, also known as Market Cap, is the total value of a particular market, industry, company, or asset. For a company that is publicly traded, the market capitalization is the total market value (in dollar) of the outstanding shares of a company.
Multi Signature (MultiSig)
Multi Signature is a crypto-asset wallet for which there is a requirement of multiple keys to access it. More than one (specified) individuals have to sign a transaction for approval, only then they would be able to access the wallet.
Metaverse refers to the concept of a shared virtual world made up of 3D objects and virtual spaces which offer an interactive, collaborative and immersive experience. The examples of metaverse are evident in massive online social games such as Fortnite or user-generated virtual worlds like Minecraft.Read more
The mirrorworld is just a digital parallel of the real world, where you can find virtual avatars of real-life things, people, and places. The examples of mirrorworld are evident in science fiction, such as The Matrix film series and Ready Player One.
Mixed Reality brings the different aspects of VR and AR together, albeit without any clear specification. It represents an ideal blend of digital and physical worlds that can facilitate natural and intuitive 3D interactions among humans, computers, and the concerned environments.
Massively Multiplayer Online Role-playing Games (MMORPG)
MMORPGs are interactive games that have provided the basic foundations for the development of the metaverse. Players interact with each other in shared spaces and play games alongside creating new things and purchasing in-game items from virtual shops. Notable examples of MMORPGs include Minecraft, Roblox, and Fortnite.
Multiverse is a concept that shows that multiple virtual spaces can exist independently with their own ecosystems and distinct traits.
The set of actors interconnected collectively for achieving a single purpose is referred to as a network.
Any participant in the blockchain network connected to peers with the capability of validation and propagation of new blocks is referred to as a node. A full node generally features the complete state of the blockchain. On the other hand, a light node features adequate block data for validation of the chain, albeit without the complete state data related to every block.
Non-Fungible Token (NFT)
NFT is a token that doesn’t have any equal token i.e. considered to be a unique digital asset.Read more
NBA Top Shot
NBA Top Shot is a blockchain-based NFT platform that allows purchasing, selling, and trading of exciting plays and memorable highlights as digital collectibles.
Nifty Gateway is a unique portal for NFT sales and purchases through the Ethereum blockchain. The platform offers a uniquely tailored collection of NFTs from many renowned content creators, artists, and musicians.
Non-custodial in the context of blockchain refers to a specific variant of a decentralized wallet where the customer has ownership of the wallet’s private keys. Users receive a file with private keys and a mnemonic phrase so they can retrieve their assets in non-custodial wallets.
Non-fungible refers to the property of an asset that has unique qualities and cannot be exchanged with another asset in a similar class. Basically, non-fungible tokens are unique and are not interchangeable.
Neal Stephenson is the first person to have mentioned the name of a metaverse in his 1994 sci-fi novel ‘Snow Crash.’ In his novel, Stephenson presented the metaverse as a persistent virtual world where people can move around as their digital avatars.
Opcode is basically a machine-level instruction for processors, and they are generally very basic commands such as bit shifting, addition, and multiplication.
The company Oracle creates enterprise-level software systems. On the other hand, as a service, oracles are services for connecting real-world data and blockchain applications.
OpenSea is a decentralized P2P marketplace tailored for purchasing, selling, and trading in rare digital assets, including gaming items, artwork, and collectibles created over the non-fungible token (NFT) technology.
Oculus and Horizon Workrooms
Oculus has been a leading VR platform for many years and was acquired by Facebook in 2014 for $2.3 billion. It can serve as the driving force behind realizing the vision of the metaverse.
Peer to Peer or P2P refers to a model of interaction between actors involved in a transaction without any external intermediary.Read more
Private key is one of the significant components in the public/private key pair and is suitable for asymmetric encryption and decryption.
Private Key Infrastructure
PKI or Private Key Infrastructure refers to a collection of rules and policies for managing identification through public-key encryption associated with a network.
Proof of Liquidity is a cryptographic assertion method by third-party auditor for verifying that an actor holds a specific number of resources.
PoS refers to a consensus mechanism that ensures that the ability to produce a block must be proportional to the amount of native cryptocurrency held by the actor.
PoW refers to a consensus mechanism that encourages actors to solve computationally difficult problems for developing the ability to produce the next block in a blockchain.Read more
A specific type of cryptographic equation or collection of parameters corresponding to a related private key is known as public key. Public key is helpful for decrypting a message encrypted symmetrically by leveraging the related private key.
Protocol refers to a set of rules defined for the exchange and transmission of data. In blockchain, protocol refers to the rules that define how the actions should be performed across a network.Read more
A public blockchain is a globally open network, such that, anyone can participate in the transactions, in the execution of consensus protocol, and in the maintenance of shared ledger.Read more
A private blockchain is a closed network where authorized participants are controlled by a single entity. It limits the individuals who can participate in the consensus of the blockchain network. There is a verification process for the new participants to authorize them for participation.Read more
A token or currency that is issued by a private firm or individual. Private currency has limitations to use within a network of that firm or individual who issued it.
Ring signature is a private-key focused cryptographic signature with an option for decryption or verification through multiple valid keys.
Relayer refers to a party that hosts an off-chain orderbook. Relayer assists traders to find out counter-parties and then exchange order between them in a cryptographic manner.
It’s the name that was used by the assumed individual/ individuals who developed bitcoin. Nakamoto published the white paper in 2008, describing about the project. He also invented the first blockchain database.Read more
Secure Hash Algorithm
Secure Hash Algorithm or SHA is a cryptographic hashing function tailored by the United States National Security Agency. You can find the specific implementation of the algorithm by its numeric suffix.
Scalability refers to the ability of a blockchain project to handle the network traffic, capacity of application, and future growth.
Smart Contracts Oracles
Smart contracts are self-operating computer programs that can automatically execute when specific conditions are accomplished. Oracles help in retrieval and verification of external data for blockchain and smart contracts with certain methods such as market data feeds and web APIs. Smart contract oracles help in translating non-deterministic, external information into formats that are comprehensible for a blockchain. These enable blockchain to use external information and execute specific conditions in the smart contract. Smart contract oracles are also useful in use cases of multi-signature transactions for reaching consensus on the transactions for signing.
Solidity is a popular smart contract programming language specifically tailored for the Ethereum Virtual Machine.
Smart contract in blockchain refers to the code that you can execute in the environment of a virtual machine.Read more
It is process of converting a data structure into an encoding format that consists of the series/sequence of bytes.
Stablecoin is the cryptocurrency that minimizes the volatility of the stablecoin price, with respect to an asset or assets. Stablecoin is measured with respect to a known amount of an asset, so it remains stable.Read more
A small portion of the entire network is known as Shard, whereas Sharding is the process of splitting the complete network into many small portions, shards. Each shard has an independent state i.e. unique smart contract and account balance.Read more
State machine basically points out to a model of computation, and at any specific instance, a state machine could feature one out of a finite set of states.
A condition that results in the smashing of the validator’s deposit on trigger.
Stablecoin is a cryptocurrency variant that has its value pegged against another asset class such as gold or fiat currency in order to achieve stability in its price. Stablecoins help in addressing price volatility by associating cryptocurrency value with stable assets.
SuperRare is an NFT marketplace that offers the functionalities necessary for collection and trading of unique and single-edition artworks. All artworks on SuperRare are created by artists in the network and are available and tokenized digital collectibles for purchasing and trading.
Second Life is an online virtual world that started in 2003 and presented one of the first examples of social experiences for the metaverse. It continues to be an open-world social network featuring different avatars for users.
The Sandbox is a new 3D virtual environment in which users can interact with each other and play games as well as create assets and attend concerts.
Skeuomorphic design is the method used for ensuring accurate similarities between virtual objects and real-world objects. It is essential to ensure realism in the metaverse by associating virtual objects with physics and designs in the real world.
A token is the digital representation of an asset built over existing blockchain. They are designed for uniqueness, instant transferability, liquidity, digital scarcity, and security.
Tokenization is a process that allows the translation of business goods, strategies, or services into discrete units that are tradable and can be recorded on a blockchain.Read more
An input/ addition into a blockchain that can make some changes in the existing blockchain data is known as a transaction.Read more
Transaction block refers to a collection of transactions on the blockchain that can be hashed and submitted to the blockchain.
The minimal fee imposed on certain transactions delivered through a blockchain network is known as the transaction fee.
Transaction pool is a pool or list of transactions, propagating through a common network, but haven’t added in a block.
An alternative to blockchain developer who tests the applications in a somewhat real (near-live) environment.
It refers to an Ethereum Testnet that supports geth clients and uses Proof of Authority consensus.
It refers to an Ethereum Testnet that supports parity clients and uses Proof of Authority consensus.
It refers to an Ethereum Testnet that supports both the geth and parity clients and uses Proof of Authority consensus.It is mostly similar to mainnet.
A machine that can perform any task or algorithm, that can be performed by a computer.
It refers to the capability of a programming language to simulate a Turing machine.
It is a functional, less universal programming language that lacks non-deterministic functions, but have more characteristics.
Unspent Transaction Output
UTXOs enabled blockchains to have each transaction referencing the output of previous transactions and consuming all the tokens of the output. UTXO is important for reinforcing the immutability of blockchain.
The validator in a blockchain ecosystem basically refers to a participant in Proof of Stake consensus algorithm. Validators have to submit security deposits for inclusion in the validator set.
Virtual Machine refers to an operating system that runs on another operating system. Virtual Machines are important for allocating the processing strength of large servers to the simpler / smaller applications.
Vyper is a programming language, that is used for building smart contracts. It can also be complied for Ethereum.
Wallet is a software, containing private keys, that interact with the PKI (Private Key Infrastructure).
Wallet (Multi signature)
A multi signature wallet needs more than one private key signature for generating a valid transaction. Multi signature wallet can be shared by multiple actors while it’s not necessary that they all will participate in every transaction.
Web Assembly (WASM)
White label in the world of blockchain refers to a white-label crypto exchange, which is basically a protocol that helps crypto software development companies in developing their custom exchange platforms.
Virtual Reality or VR is basically an immersive experience in a virtual world that you can access through glasses and headsets. VR headsets offer the users a completely immersing experience in a 360-degree virtual world where they can move around with ease.
Zero-Knowledge Proof is a cryptographic mechanism meant for helping users in representing assertions where output value can be determined easily without any input information.Read more
zk-SNARK (zero-knowledge succinct non-interactive argument of knowledge) is a cryptographic proof system that is used to verify a transaction without disclosing the transaction data, and without connecting with the user who initiated that transaction.
Also known as Open Zeppelin, it refers to as a community of smart contract developers.
51% Attack refers to a situation where a majority of blockchain miners make an attack on the rest of nodes, by changing/ stopping transactions, taking over mining operations, or double spending coins.