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Glossary

This glossary provides concise definitions of key terms used in the context of blockchain and Web3 technologies.

A​

  • ABI (Application Binary Interface): Interface for interacting with smart contracts, defining functions and events.
  • Address: An account identifier derived from the public key, capable of sending or receiving transactions.
  • API (Application Programming Interface): Set of protocols for building software that interacts with blockchain networks.
  • Architecture: Design principles of a blockchain network, outlining its structure and behavior.
  • Asset: Digital or physical resource represented on the blockchain with value.

B​

  • Bitcoin: The first decentralized cryptocurrency, using Proof of Work (PoW) for consensus.
  • Block Explorer: Tool for viewing blockchain transactions, blocks, and addresses.
  • Blockchain: Decentralized ledger for recording transactions across multiple computers.
  • Blocks: Data units in a blockchain that store information about transactions.

C​

  • Compiling: Transforming high-level code into a format executable by the Ethereum Virtual Machine (EVM).
  • Consensus: Mechanism for achieving agreement on the validity of transactions.
  • Consensus Mechanisms: PoW (Proof of Work), PoA (Proof of Authority), PoS (Proof of Stake).

D​

  • DAO (Decentralized Autonomous Organization): Organization controlled by members and encoded rules, without central authority.
  • dApp (Decentralized Application): Application running on a decentralized network.
  • Decentralization: Distribution of power away from a central point, enhancing security and resilience.
  • DeFi (Decentralized Finance): A blockchain-based financial ecosystem that enables lending, borrowing, trading, and more without traditional financial intermediaries.
  • DEX (Decentralized Exchange): A platform for exchanging cryptocurrencies directly between users without a central authority.
  • Deploy: Launching a smart contract or application onto the blockchain.

E​

  • Ethereum: Blockchain platform for smart contracts and dApps.
  • Ether: Native cryptocurrency of the Ethereum network.
  • EVM (Ethereum Virtual Machine): Runtime environment for Ethereum smart contracts.

F​

  • Faucet: Source of free test tokens for development purposes on testnets.
  • Frameworks: Tools and libraries for developing blockchain applications, e.g., Hardhat, Truffle.

G​

  • Gas: Fee for executing transactions and smart contracts on Ethereum.

H​

  • Hardhat: Development environment for Ethereum.
  • Hash: Function converting input into a fixed-size string, unique to each input.
  • IDEs (Integrated Development Environments): Software for development, e.g., Remix, ChainIDE, VScode.

I​

  • Internal Transaction: Transactions initiated by smart contracts within the Ethereum network.
  • Interoperability: The ability of different blockchain systems to work together seamlessly.

M​

  • Mainnet: The primary network where actual blockchain transactions occur.
  • Merkle Patricia Tree (MPT): Data structure used in Ethereum for storage and verification.
  • Mining: Process of validating transactions and creating new blocks.
  • Miner: Participant in the blockchain network validating transactions.
  • Mint: Creation of new tokens or coins on the blockchain.

N​

  • NFTs (Non-Fungible Tokens): Unique digital asset on the blockchain that represents ownership of specific items or content, distinguishing it from interchangeable fungible tokens like ERC-20 or Bitcoin.
  • Nodes: Computers in the blockchain network validating and relaying transactions.
  • Nonce: Number used once in cryptographic communications, indicating transaction count for an address.

O​

  • Oracle: Service providing external data to smart contracts on the blockchain.

P​

  • Peer: Computer participating in the blockchain network.
  • Peer-to-peer Network: Network where participants interact directly without central authority.
  • PoA (Proof of Authority): Consensus mechanism based on identity as stake.
  • PoS (Proof of Stake): Consensus mechanism rewarding validators based on their cryptocurrency holdings.
  • PoW (Proof of Work): Consensus mechanism requiring computational work to validate transactions.
  • Private Chain: Blockchain with restricted access.
  • Public Chain: Open blockchain network like Bitcoin or Ethereum.
  • Public Key: Cryptographic key for encrypting messages or verifying signatures.
  • Private Key: Secret key for decrypting messages or digitally signing information.

R​

  • Remix: Tool for developing and testing Ethereum smart contracts.
  • RPC (Remote Procedure Call): Protocol for requesting services from a program on a network.

S​

  • Smart Contract: Self-executing contract with terms of agreement directly written into code.
  • Stablecoin: Cryptocurrency with stable value pegged to an asset like the US dollar.
  • Staking: Holding cryptocurrency in a wallet to support network operations.
  • Solidity: Programming language for developing smart contracts on Ethereum.

T​

  • TCPR (Token Curated Product Registry): Decentralized registry maintained through token voting.
  • Testnet: Blockchain used for development and testing, not carrying real value.
  • Testnet Swap: Exchange of real tokens for test tokens on a testnet.
  • Token: Digital asset issued on a blockchain.
  • Token Standards: Specifications for creating tokens, e.g., ERC-20 (fungible), ERC-721 (NFT).
  • Tokenomics: Economic models governing token issuance and management.
  • Transaction: Action executed on the blockchain, such as transferring tokens.
  • Trustlessness: Ability to verify and enforce transactions without needing trust in a third party.

V​

  • Validator: Node participating in the consensus process of a blockchain network.
  • Validator Reward: Incentive for validators participating in the blockchain consensus mechanism.

W​

  • Wallet: Digital tool for storing, sending, and receiving cryptocurrencies.
  • Web3: The third generation of the internet, emphasizing decentralized apps and services.
  • Web3 Apps: Applications utilizing decentralized networks for operation.
  • Wireshape: Wireshape is the Open Enterprise Blockchain network and protocols for global product data and supply chain management, enhancing traceability, authenticity, and efficiency.