Beginner’s Blockchain Glossary (1/3)

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                                         Telegram Blockchain Glossary.

List of Blockchain Definitions

This glossary has 46 blockchain definitions, let’s discover them.

A

What is Address?

An address is one of the important terms of the cryptocurrency. It is a unique identifier that can identify the sender, receiver and also applied for storing cryptocurrency.  In the real-world similarity, the home address is the place that sends and receives letters or package. An address is created by a private key that is unique to that address. The digital assets which the address has can also be accessed by the private key. In cryptocurrency, the address is normally alphanumeric strings. Especially, if the address stands for a particular ecosystem, it will have similarities. For instance, all address which starts with 0x is relevant to Ethereum while the address beginning with 3 or 1 is the address of Bitcoin. This is an essential term in order that you can understand clearly blockchain.

What is an Airdrop?

Airdrops are distribution free tokens to people as the prize. It plays an important role in projects of the blockchain, especially ICOs. An incentive attached to airdrop is optional, it might or might not have. Many startup or blockchain project apply Airdrop for various reason such as bug fixes, community growth or incentives a positive action to their idea. Anyone can also take part in airdrops that meet their requisites.

Definition of an Altcoin

Altcoin that is the cryptocurrency or token doesn’t belong to Bitcoin. The word “Altcoin” has a delicate meaning related to it. The word “Altcoin” can be divided into two words “alt” and “coin”. “Alt” means alternative and “coin” means cryptocurrency. Any coin released after Bitcoin is considered as Altcoin. It has some examples such as Ethereum, NEO, EOS, LEND, etc. Features and functionality of Altcoin are better than Bitcoin but it doesn’t offer the storage value as Bitcoin.

B

What is Blockchain?

The blockchain is a distributed ledger technology (DLT) that offers decentralization. It is a brainchild of Satoshi Nakamoto known as the inventor Bitcoin that apply blockchain technology. Block contains nodes that bring a copy of the decentralized ledger. Besides, blockchain applies the consensus method to reach agreement about value across the network. We hope that you can understand the definition of the blockchain.

Definition of a Bounty

Bounty is a simple program that most startups or business use it to motivate positive actions such as bug fixes, marketing aid, article writing, and more. Bounties have the certain popularization in the tech industry. But when ICOs appear, bounty takes a new direction. However, they also have some negative influences such as market manipulation.

What is Bitcoin?

Bitcoin is a cryptocurrency that Satoshi Nakamoto invented in 2009. It is a digital currency that doesn’t need a centralized authority to run. When Bitcoin’s value is $19,000 per bitcoin, it reaches a new milestone in 2017. Although practical use of Bitcoin is not better than other cryptocurrencies out because take much transfer time and fees related to transfer, currently, its storage value is applied. There is a wallet which made to store Bitcoin. Bitcoin applies distributed ledger technology (DLT).

What is a Blockchain Explorer?

Block Explorer is a tool that is applied to view transactions on the blockchain. It allows viewing both current transactions and past transactions. You can also gain more information about the blockchain through Block Explorer. For instance, thanks to Block Explorer, you can learn about the development and the network hash rate. It not only is a tool to explore transactions but also provides a lot of other things that can be known by using it. Unconfirmed transactions will be reported and the mining difficulty with a blockchain is found out by Block Explorer. It repays information by taking wallet addresses or specific transactions IDs. Especially, advanced block explorer can base on the data they can access to create reports. Leaning about Block Explorer is helpful to know more about blockchain definitions.

What is Block Reward?

Block Reward is the reward for a miner that can solve a block efficiently. The miner must add the first transaction on the block to assert the reward. The entire process begins with miners looking for blocks to be verified. After found miners, they will receive the reward if the transaction on the block is right.  a group of miners can receive the reward and share it among them by determining the number of work they have done. In 2018, the one block mined rewards 12.5 BTC in Bitcoin. The difficulty and other factors can make change the value of the reward.

C

What is Consensus?

The consensus is a method that makes a single point of data value reach agreement in a network. In distributed systems, many consensus algorithms are applied. There are some common consensus algorithms such as Proof-of-Work(PoW), Proof-of-Stake(PoS) and Delegated Proof of Stake (DPoS). All these consensus work dissimilarly and have different ways to deal with the consensus in a distributed network.

Definition of a Cryptocurrency

Cryptocurrency is a virtual/digital coin with invisible existence. It is distributed via a network and is a trade way for peers. It appears with the idea of decentralization without central authority at work. There are a few common cryptocurrencies such as Bitcoin, Ethereum, NEO, Litecoin, Eos, and more. In addition, you can get cryptocurrencies from bounties, airdrop, mining or staking.

What is Cryptocurrency Fork?

Cryptocurrency Fork is a technical term. It means creating a new version of the blockchain from its available blockchain version. By Cryptocurrency fork, a new branch with added or new features, characteristics or functionality is formed. One of the typical examples of cryptocurrency forks was ETH-ETC fork because the DAO hack happened on Ethereum blockchain. The Forks have two types: hard and soft fork. Bitcoin also had some forks such as Bitcoin Gold, Bitcoin Diamond, and others.

D – Blockchain Definitions

Definition of DAO

DAO is the abbreviate of Decentralized Autonomous Organization. It got a mixed response from the community as soon as it was introduced. It allows any organizations to make a rule-set using the code and control in a decentralized environment. Thanks to Ethereum, DAO was more popular. On the other hand, It also has some negative points that it can be hackable and cannot be restored if its vulnerability is detected. DAO is created by using smart contracts and is funded in its first stage before opening it for users, .

What is a dApp?

dApp stands for a decentralized application. It is advanced on top of blockchain platforms including Ethereum, NEO or EOS. It obeys a specific rule and with the help of smart contracts, it can automate a part or all the functions. Open source is important to dApp, especially, dApp have to run with no controlled party. Organizations can create dApp to automate particular tasks or just to provide a way for their users to have an interface with specific functionality. Besides, tokens are necessary for dApp to work.  For instance, to get the task registered on the blockchain, dApp needs to consume transaction fuel if a dApp does a task.

Blockchain Glossary Bonus, What is the Difference Between a Blockchain and a Database?

One important difference between database and blockchain is decentralization. The blockchain is known as a type of database but it provides decentralization. The traditional database is helpful to store and retrieve data and is centralized in nature. The blockchain also supplies the integrity of data, which means data written cannot be changed or modified. This also means that blockchain don’t provide the data manipulations option . The blockchain also has validations that are more precise than the database thanks to its data integrity.

What is a DLT?

DLT stands for Distributed Ledger Technology. DLT authorizes the blockchain and provides it the ability of decentralization. It can be applied in the network and any geographical barrier cannot obstruct it. In DLT, central authority doesn’t exist, each node normally has a copy of the distributed ledger. In addition, each node joins in the consensus process. It is speedy, reliable and transparent, and also provide 100% data integrity.

What DYOR means?

DYOR stands for “Do Your Own Research.”  Which means that investors or newbies are asked to do the research of their own but not depend on anyone for their financial or investment decisions. It is a slang word which is seriously used in the cryptocurrency community particularly when someone shares their view. Because cryptocurrency is a volatile platform, DYOR is the thing that investors must have to make investment decision accurately. Remember that investment in cryptocurrency is very unsafe so you must DYOR.

Definition of DAICO

Many ICOs project doesn’t meet the condition of existence in the market. Besides, nowadays, investing in ICOs can be like gambling. DIACO is a decentralized fundraising model. Like Ethereum, DIACO is developed on top of the blockchain network. It carries out democratically and ensures that token sale is made for the best benefit of the investor. “Tap” is the mechanism that DIACO uses. This mechanism permits investors to fund control. It allows investors to invest in steps along with certain conditions. In case the conditions don’t match, the investment will finish. In contrast, the second investment will be made if the condition match.

The goal behind of DAICO is making ICOs more responsible when elevating money and backup their progress with milestones. There are some features of DAICO from DAO such as automation, decentralization and refund option.

Related Topics:

Beginner’s Blockchain Glossary (2/3)

Beginner’s Blockchain Glossary (3/3)

 

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