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Writer's pictureSandeep Singh

100 Blockchain Terms and Full Forms by Sandeep Kumar Singh


100 Blockchain Terms and Full Forms by Sandeep Kumar Singh
100 Blockchain Terms and Full Forms by Sandeep Kumar Singh

100 Blockchain Terms and Full Forms by Sandeep Kumar Singh

Term

Full Form

Explanation

1. Blockchain

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A distributed ledger technology that records transactions in a secure, transparent, and decentralized manner across multiple computers.

2. DLT

Distributed Ledger Technology

A decentralized system for recording transactions where the information is stored across a distributed network.

3. Cryptocurrency

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A digital or virtual currency that uses cryptography for security and operates on blockchain technology.

4. Bitcoin (BTC)

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The first and most widely recognized cryptocurrency, created by Satoshi Nakamoto in 2008.

5. Ethereum (ETH)

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A decentralized platform enabling the creation of smart contracts and decentralized applications (DApps).

6. Smart Contract

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Self-executing contracts with the terms of the agreement written in code, automatically enforced on the blockchain.

7. Altcoin

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Any cryptocurrency other than Bitcoin, such as Ethereum, Litecoin, or Ripple.

8. Mining

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The process of validating transactions and adding them to the blockchain by solving complex computational puzzles.

9. PoW

Proof of Work

A consensus mechanism where miners solve complex puzzles to validate transactions and create new blocks.

10. PoS

Proof of Stake

A consensus mechanism where validators are chosen based on the number of coins they hold and are willing to "stake" as collateral.

11. Node

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Any device connected to a blockchain network that helps to validate and relay transactions.

12. Ledger

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A record of all transactions made on a blockchain, maintained by every node in the network.

13. Decentralization

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A system where control and decision-making are distributed across a network, rather than being centralized in one location or entity.

14. Consensus

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Agreement among the majority of participants in a blockchain network on the validity of transactions.

15. Hash

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A cryptographic function that converts input data into a fixed-length string of characters, used to secure blockchain data.

16. Block

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A group of transactions bundled together and added to the blockchain, each block containing a hash of the previous block.

17. Public Key

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A cryptographic key that is publicly available and used to encrypt data or verify signatures.

18. Private Key

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A cryptographic key known only to the owner, used to decrypt data or create digital signatures.

19. Wallet

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A software application or hardware device that stores public and private keys and interacts with blockchain networks to send or receive crypto.

20. ICO

Initial Coin Offering

A fundraising method where new projects sell their underlying cryptocurrency tokens in exchange for capital.

21. Token

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A digital asset that can represent ownership of assets or access to services within a blockchain ecosystem.

22. Stablecoin

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A type of cryptocurrency that is pegged to a stable asset like the U.S. dollar to reduce volatility.

23. Fork

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A change to the protocol of a blockchain, resulting in a split into two separate versions.

24. Hard Fork

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A permanent divergence in the blockchain that results in two separate chains, often creating a new cryptocurrency.

25. Soft Fork

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A backward-compatible update to the blockchain that doesn’t result in a split, but enforces new rules going forward.

26. Atomic Swap

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A smart contract technology enabling the exchange of one cryptocurrency for another without the need for a trusted third party.

27. DAO

Decentralized Autonomous Organization

An organization represented by rules encoded as a computer program, transparent and controlled by organization members rather than a central body.

28. dApp

Decentralized Application

An application that runs on a decentralized network, typically using smart contracts on a blockchain.

29. Gas

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A unit used in Ethereum to measure the amount of computational effort required to perform transactions or execute smart contracts.

30. TPS

Transactions Per Second

A metric that measures how many transactions a blockchain network can process per second.

31. 51% Attack

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An attack on a blockchain where a single entity gains control of more than 50% of the network’s mining power, potentially leading to double-spending.

32. Halving

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A programmed event in Bitcoin where the reward for mining a block is halved, which occurs roughly every four years.

33. Merkle Tree

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A data structure used in blockchain that allows for efficient and secure verification of transactions.

34. Lightning Network

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A second-layer technology for Bitcoin that enables faster and cheaper transactions by creating off-chain transaction channels.

35. Shard

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A horizontal partition of a database or blockchain that helps scale the network by splitting data across multiple chains.

36. Validator

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A participant in a proof-of-stake blockchain responsible for verifying transactions and securing the network.

37. ERC-20

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A technical standard used for smart contracts on the Ethereum blockchain for implementing tokens.

38. ERC-721

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A technical standard for non-fungible tokens (NFTs) on Ethereum, representing unique assets.

39. NFT

Non-Fungible Token

A type of digital asset that represents ownership or proof of authenticity of a unique item, often used in art and collectibles.

40. Fiat Currency

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Traditional currency that is issued by a government and is not backed by a physical commodity like gold.

41. DEX

Decentralized Exchange

A peer-to-peer marketplace where transactions occur directly between crypto traders without intermediaries.

42. KYC

Know Your Customer

A process by which exchanges and other platforms verify the identity of their users to prevent fraud and ensure compliance with regulations.

43. AML

Anti-Money Laundering

A set of laws, regulations, and procedures aimed at preventing criminals from disguising illegally obtained funds as legitimate income.

44. Cold Wallet

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A type of cryptocurrency wallet that is kept offline to provide enhanced security against hacking.

45. Hot Wallet

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A cryptocurrency wallet that is connected to the internet, providing quick access but with more vulnerability to hacking.

46. AirDrop

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A marketing tactic used by blockchain projects to distribute free tokens or coins to community members.

47. Oracles

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Third-party services that provide smart contracts with external data, enabling the contracts to respond to real-world events.

48. Whale

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A term used to describe an individual or organization that holds a large amount of cryptocurrency, which can influence market prices.

49. HODL

Hold On for Dear Life

A slang term for holding onto cryptocurrency rather than selling, typically during times of market volatility.

50. Fiat-to-Crypto

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The process of exchanging traditional fiat currency for cryptocurrency.

51. Crypto-to-Crypto

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The process of exchanging one cryptocurrency for another.

52. Liquidity

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The ability to buy or sell an asset quickly without affecting its price, important in trading.

53. Stablecoin

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Cryptocurrencies that are pegged to the value of traditional assets like fiat currencies to reduce volatility.

54. Block Height

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The number of blocks in the blockchain preceding a specific block.

55. Public Ledger

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A record of all transactions on a blockchain, accessible to all participants in the network.

56. Genesis Block

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The first block in a blockchain.

57. Block Reward

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The reward given to a miner for successfully mining a block, typically consisting of cryptocurrency.

58. Burning

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The process of permanently removing a cryptocurrency token from circulation, usually to reduce supply.

60. Satoshi

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The smallest unit of Bitcoin, equal to 0.00000001 BTC, named after Bitcoin’s creator, Satoshi Nakamoto.

61. SHA-256

Secure Hash Algorithm 256-bit

A cryptographic hash function used in Bitcoin mining to secure transactions.

62. Difficulty

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A measure of how hard it is to mine a new block on a blockchain, adjusting based on the network's computational power.

63. TPS

Transactions Per Second

A metric indicating how many transactions a blockchain can process in one second.

64. Gas Limit

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The maximum amount of gas that a user is willing to spend on a transaction or contract execution on Ethereum.

65. Gas Price

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The price per unit of gas a user is willing to pay to execute a transaction on Ethereum.

66. Gwei

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A denomination of Ethereum, equivalent to one billionth of an Ether (ETH).

67. Wrapped Bitcoin (WBTC)

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A tokenized version of Bitcoin that exists on the Ethereum blockchain, allowing Bitcoin to be used within Ethereum's DeFi ecosystem.

68. DeFi

Decentralized Finance

A movement that uses blockchain technology to recreate traditional financial systems without intermediaries, such as lending, borrowing, and trading.

69. Yield Farming

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A DeFi practice where users lend or stake their crypto assets to earn returns in the form of additional cryptocurrency.

70. Liquidity Pool

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A pool of tokens locked in a smart contract to provide liquidity for decentralized exchanges (DEXs) and DeFi protocols.

71. Staking

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The process of participating in a proof-of-stake (PoS) blockchain by locking up tokens to help secure the network and earn rewards.

72. Cross-Chain

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A technology that enables the transfer of assets and information between different blockchain networks.

73. Metamask

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A popular cryptocurrency wallet and gateway to blockchain applications, particularly for Ethereum and DeFi.

74. Privacy Coin

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A type of cryptocurrency that focuses on privacy and anonymity for users, such as Monero (XMR) and Zcash (ZEC).

75. Sharding

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A method of splitting a blockchain into smaller pieces called shards to improve scalability by processing transactions in parallel.

76. Sidechain

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A separate blockchain that runs in parallel to the main chain, allowing for more flexibility and experimentation without disrupting the main network.

77. Immutable

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A characteristic of blockchain where data, once recorded, cannot be altered or deleted.

78. DAG

Directed Acyclic Graph

An alternative to blockchain that structures data as a graph, improving scalability for certain applications like IOTA.

79. Atomic Swap

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A technology that allows the direct exchange of cryptocurrencies between two parties without the need for intermediaries.

80. Cold Storage

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A method of storing cryptocurrency offline to protect it from hacking or unauthorized access.

81. Mainnet

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The main blockchain network where actual transactions are processed, as opposed to a testnet.

82. Testnet

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A version of the blockchain used by developers to test new features without affecting the mainnet.

83. Merkle Root

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The root of a Merkle Tree, a structure that summarizes all transactions in a block, ensuring data integrity.

84. Consensus Algorithm

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The method used by blockchain networks to agree on the validity of transactions, such as PoW or PoS.

85. Hashrate

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A measure of the computational power being used to mine and secure a blockchain network.

86. Node

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A participant in a blockchain network that stores and validates a copy of the distributed ledger.

87. Public Blockchain

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A blockchain that anyone can join, read, and participate in, like Bitcoin and Ethereum.

88. Private Blockchain

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A blockchain with restricted access, typically used by enterprises for specific use cases where permission is required to participate.

89. Hybrid Blockchain

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A combination of public and private blockchain features, allowing some data to be public and other parts to be private.

90. Off-Chain

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Transactions that occur outside of the blockchain network, often used to reduce congestion and fees on the main chain.

91. On-Chain

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Transactions that are recorded directly on the blockchain, visible and immutable.

92. Cryptographic Hash

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A function that takes an input and returns a fixed-size string of characters, which appears random. It ensures the integrity of data on a blockchain.

93. Sybil Attack

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A type of attack where a single entity creates multiple identities to gain influence over the network.

94. Turing Complete

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A system that can run any computation, given enough resources, a feature of Ethereum smart contracts.

95. Dusting Attack

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A type of attack where attackers send tiny amounts of cryptocurrency to wallets to break the user's anonymity.

96. Multi-Sig Wallet

Multi-Signature Wallet

A wallet that requires multiple private keys to authorize a transaction, increasing security.

97. Fungibility

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The property of an asset where individual units are interchangeable, like Bitcoin, unlike NFTs which are non-fungible.

98. Double Spend

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A scenario where the same cryptocurrency token is spent more than once, prevented by blockchain's consensus mechanisms.

99. Rollups

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A Layer 2 scaling solution that batches multiple transactions into a single transaction, reducing the load on the main blockchain.

100. Hyperledger

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An open-source blockchain project by the Linux Foundation, primarily for developing private and permissioned blockchain networks.

100 Blockchain Terms and Full Forms by Sandeep Kumar Singh

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