Blockchain is a decentralized database that stores information in blocks of information linked together by coding and extending over time. Each information block contains initialization time information and is linked to the previous block, along with a time code and transaction data. Blockchain is designed to prevent data from being changed: once the data has been accepted by the network, there is no way to change it.
Here are the basic terms of Blockchain technology:
51% Attack - this term describes the situation where the hash power of a blockchain network is concentrated in one place. Perhaps a person or a group of users control 51% of computing power, the system may be "intentionally" controlled by the user or accidentally perform conflicting transactions that violate the system.
ASIC - Short for "Application Specific Integrated Circuit". ASIC is a specially designed chip. In the world of Blockchain, ASIC is a chip developed to run the software used on excavators and recognized to be able to outperform conventional CPUs and GPUs.
Bitcoin - the first cryptocurrency and has the largest total market capitalization. Bitcoin was launched in 2009 as a decentralized currency, built on Blockchain technology.
Blockchain - a decentralized database, built on a series of interconnected blocks. All transactions on the network are stored in a public ledger (ledger), exist throughout the network, without the need for an authorized central server for online transactions.
Block - As the name implies, blockchains are made up of blocks. Each block is basically like a page on a traditional paper ledger, which contains a list of recent transactions. When a block is completed, it will be added to the end of the previous block, forming a blockchain (blockchain). Each block also contains solutions to the math problems on that block. Without these solutions, that block cannot be added to the chain. Different cryptocurrencies use blocks of different sizes. For example, Bitcoin uses a block of size 1 MB.
Block Height - Block height is the number of individual blocks in a blockchain. The first block is called Height 0. It is also known as Genesis Block.
Cold Storage - You cannot keep cryptocurrencies in a bank account or your wallet. Instead, you need to keep them in cold storage. Cold storage means keeping digital wallets offline, which means they have no connection to the Internet. Cold storage usually comes in three main forms: QR codes that you can store somewhere safe, a USB drive, or a hardware wallet.
Confirmation - A transaction will receive a confirmation when it has been hashed (the hash, a hash function is a mathematical function mapping from data of any length to data of fixed length) successfully and added to the blockchain. Normally in the cryptocurrency world, miners will confirm transactions in a block after a certain period. The more confirmed a transaction, the more secure it is. For Bitcoin, most companies will require about 6 confirmations before processing a transaction.
Cold Storage - Security measures to store cryptocurrency in an offline environment. This could be a storage device (USB) or a paper wallet.
Consensus - Because the Blockchain network is decentralized, the consensus is a very important factor.
Cryptocurrency - the first application of Blockchain. Cryptocurrencies are designed and stored on a decentralized network with each token and encrypted transactions.
DAO - short for "Decentralized Autonomous Organization". An organization built on Blockchain's set of rules and autonomy has structured the decentralized model of Blockchain, eliminating cumbersome procedures and costly labor costs.
Dapps - short for "Decentralized apps". These are programs that use Blockchain to create applications that run on the decentralized network.
Digital signature - a unique identifier provided to a user, a token, or a transaction in the Blockchain network.
Distributed Ledger - distributed ledger technology is a peer-to-peer P2P network that uses consensus algorithms, to ensure that backups across nodes are performed.
Ethereum - The decentralized platform with its blockchain aims to deploy software based on smart contracts. Currently, the Smart contract of this platform cannot be upgraded and developed, it is the 2nd currency after Bitcoin in terms of market capitalization.
Fork - change of a Blockchain network, each change must be agreed by the user. If enough users accept the upgrade or change the code, Fork will be deployed throughout the system. A change that still supports older versions of the network, is called Soft Fork. A reverse incompatible change, called Hard Fork. Sometimes, a split in the community related to a Hard Fork may result in an entirely new, parallel Blockchain network being created. For example the case of Bitcoin Cash and Ethereum Classic. The type of fork that changes the working principle of the blockchain, whereby old-fashioned transactions are no longer valid. Require all users to update the software. Will usually entail the emergence of new cryptocurrencies.
Full node - capable of downloading a complete copy of a certain Blockchain network and checking which new transactions are based on a consensus principle.
Hash - an algorithm that generates hash values corresponding to each data block. When storing information on Blockchain, hash value acts as a key for identifying blocks by converting them into a sequence of numbers and letters.
Hashrate - The total computing power of computers in the network to maintain the performance of the blockchain.
Genesis block - The first block on the Blockchain network
Ledger - digital diary of all transactions taking place on the Blockchain network. Copies of the ledger are stored online and updated constantly to match each other, so transactions can be verified by anyone connected to the network.
Lightning Network - a solution designed to speed up transaction processing on the Blockchain network. The Lightning Network creates a P2P network to process transactions, before being recorded on the Blockchain public ledger.
Mining - the act of using computer power to validate a block on a network and be rewarded with a token. Each transaction is encrypted by an equation that requires great processing power. Miner eliminates the first equation that allows the transaction to take place and is awarded a small fee.
Mining pool - a software system that gathers miners to confirm blocks and process transactions more. Profits will be distributed to team members.
Mainnet - official network - the official Blockchain version after the developer test on the testnet successfully. When the mainnet is released, it means that the coin has an independent Blockchain network, has its wallet platform, ... However, the mainnet may be changed when new updates from the project team appear.
Masternodes - servers that perform various functions on the system. Masternodes are Blockchain wallets, running online at a fixed static IP address.
Node - a device on the Blockchain network. A node can be any device (computer, laptop, smartphone, etc.), connected to the Internet and has an IP address (IP address). Nodes are distributed in the network to perform many different tasks.
Paper wallet - one of the security measures to store cryptocurrency in a cold storage environment. Paper wallets can be printed on any printer, including the public key and the user's unique private key, encrypted as a QR code. Users who want to transact need to scan a paper wallet.
Peer-to-peer (P2P) - the act of sharing information directly between two parties on a given network without needing an intermediary server to transfer data.
Private Key - A private security key is a form of cryptocurrency encryption. Every user on the network has a private security key, similar to a password to access the account.
Proof of Work (PoW) - an algorithm of fair demonstration that determines which users are eligible to validate blocks into the Blockchain, to earn a mining fee similar to PoS. However, with PoW, eligibility is determined by computational power, not the number of miners' assets.
Public Key - is a piece of code (or address) that allows receiving cryptocurrency from senders.
Permissioned Ledger - Most blockchains, including Bitcoin, allow anyone to participate in the market. This brings certain risks. Blockchain maybe 51% more vulnerable. Permissioned ledger means those who are verified to be able to participate in the blockchain system.
Root node: the highest node in the Blockchain network
Parent node: the node contains extended nodes (child nodes)
Child node: a node that extends from another node - the parent node
Leaf node: The node has no child nodes
Sibling node: a node connected to the same large node - parent node
Smart Contracts - This is a new concept that embeds executable code like software programs, it is embedded in transactions to depending on the situation that the transaction can execute under the conditions. different. In addition to digital currencies, some blockchains also support smart contracts. The most prominent smart contract network is Ethereum.
Smart contracts allow non-monetary assets to be exchanged seamlessly on the blockchain without any intermediaries. Assets can include membership records, insurance, or even real estate.
Segwit - short for "Segregated Witness", is a proposed update to the Bitcoin software, Segwit was born to fix serious problems and improve some functions. SegWit can be considered as a Soft Fork case.
Token - the representative currency of a Blockchain network, bringing value through transactions on the network.
Transaction Fee - transaction fee. Because transactions on a Blockchain network require considerable computing power, miners on the network compete for the right to process transactions. The first miner to process will receive a transaction fee.
The whitepaper - a report describing the details of the initial coin offering (ICO) project that a company or a group of developers will implement, giving investors an overview of the project, thereby giving make investment decisions.
Testnet: test network - Blockchain version for developers (developers) to test new features without affecting the current protocol. Usually, any coin has its testnet for testing new features.
Wallet - the wallet is an online program that allows users to store, transfer, and view balances in their accounts. Different wallets will support different cryptocurrencies. Some wallets support multiple cryptocurreny types on a single platform.
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