List of Important Keywords in Blockchain Technology

Blockchain: an immutable digital ledger that records data or transactions in chronological order and with computational verification.

Consortium Blockchain: A blockchain with predetermined permissions known as a consortium blockchain gives users more control over the network while retaining the security aspects of a public blockchain. Blockchains used by consortiums are semi-decentralized and run by a selected group of people.

Consensus: a method for getting the majority of peers in a distributed network to agree. Achieving consensus means the participants in a blockchain have assessed its status and come to an agreement on it, most frequently when the blockchain is expanded. How a blockchain obtains consensus is a crucial component. Algorithms are one technique (e.g., pos, pow)

Consumer token: a token that grants access to a particular range of products, services, or content on a blockchain to the holder. It is made for consumption rather than for use as a means of commerce, a form of ownership, or a claim to a source of income.

Address: a blockchain transaction’s address is a special identifier made up of alphanumeric characters that designate a virtual location for receiving and delivering it.

Gas: gas is the cost an individual must pay to conduct a transaction or other action on a blockchain network. The amount of ether needed to perform a transaction, run a smart contract, or run a decentralized application is known as “gas” on the Ethereum network.

Fork: when a blockchain forks, it separates into two branches. For instance, if two miners discover a block at the same moment, the network would normally add new blocks to only one of the blocks while discarding the other block. In addition, if a blockchain’s creators choose to change the network’s regulations, a fork might be introduced.

Interoperability: the capacity of various blockchain-based solutions to identify and communicate with one another. If blockchains cannot communicate with one another, then an intermediary — which is antithetical to the idea of a blockchain — must be used to verify and carry out transactions between the various blockchains.

Mainnet: the functioning copy of a blockchain that serves the blockchain’s intended function is called the mainnet. For instance, the bitcoin mainnet allows users to send money between two public addresses.

Mine: the preferred activity of those (today primarily large organizations) who would rather spend enormous resources on using incredibly sophisticated computers to solve exceedingly difficult math problems. More bitcoin is created through the process of mining, and miners also perform the pow required to authenticate transactions on the blockchain.

Minting: token creation is known as minting. Minting is an incentive mechanism in pos systems or the counterpart of mining in pow systems. In general, a miner is rewarded with new coins according to how many existing coins he or she already owns, whereas a miner is rewarded with new coins by employing processing power to solve new blocks.

Node: any computer or other piece of hardware that joins a blockchain network to keep a copy of the blockchain and, in certain situations, download and verify blocks, is referred to as a node.

Oracle: a connection to a data source outside of a blockchain that offers input data (such as share price data) necessary for a smart contract’s outcome determination.

Off-chain: in an off-chain transaction, the value is transferred outside of a blockchain in exchange for lower transaction fees and faster transaction times.

On-chain: an on-chain transaction takes place on a blockchain’s records.

Permission: allowable user operations (including read, write, and execute) that can be added to a blockchain to increase security are known as permissions.

Reward system: a system for rewarding users of the blockchain network for their participation in the network’s activities (e.g., processing transactions and maintaining the network).

Latency: data latency is the amount of time it takes for data to move between two nodes

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