Learn more about common Blockchain Terms.
Here's a list of Common Blockchain & Crypto related terms used in the space that should come in handy while interacting with the Enjin Platform and with Blockchain as a whole.
A blockchain is a decentralized system that records transactions made in Bitcoin or any other cryptocurrency, maintained by several computers linked in a peer-to-peer network, it can be seen as a ledger that facilitates the process of recording transactions and tracking assets.
A Block, or Blocks, is a data structure within the blockchain where transactions are recorded permanently, blocks are used to record all recent transactions that haven't been validated by the network, and once the data is completely validated, the block is closed and a new block is generated.
Ethereum is the main cryptocurrency token of the Ethereum blockchain. ETH is used to pay for all types of transactions and interactions you make on the Ethereum blockchain. Examples include sending tokens, purchasing NFTs, performing exchanges, etc.
Ethereum Virtual Machine (EVM) is an engine that acts as a decentralized computer having multiple executable projects. It acts as the virtual machine which is the core foundation of Ethereum's entire operating structure.
Gas fees are incentives made as payments from blockchain users for the computing energy required to process and validate transactions on the blockchain performed by the blockchain miners.
A Seed Phrase or Recovery Phrase is a series of words generated by blockchain wallets that grant you access to the cryptocurrencies associated with that specific blockchain wallet. It should never be shared with 3rd party actors and should be maintained in a safe place to avoid loss of funds.
As a basic example, smart contracts work like sale scripts that when called with specific parameters can perform specific actions attached to that smart contract if pre-existing conditions are fulfilled. For example, a sales smart contract could mint and assign the ownership of a digital asset if the caller sends ETH to a specific recipient.
A DApp (Decentralized Application) is an application that operates autonomously, through the use of smart contracts on the blockchain, just like conventional apps, a DApp provides utility to users who interact with the applications on the blockchain.
A blockchain account is a digital wallet that allows users to store and manage their cryptocurrencies in a safe way. One must not mistake a blockchain account with a blockchain imported on a blockchain wallet application as these are different and blockchain wallet applications work only as a window to your account which is stored in the blockchain.
A private key is a number used in cryptography standards, similar to a password. private keys are used to create signatures that can be verified without compromising the integrity of the private keys.
A blockchain address is a string of text that holds the location of a particular wallet on the blockchain, with a blockchain address, users can locate their funds and receive funds from other users or platforms across the blockchain.
A blockchain node is an open-source P2P protocol that allows developers to communicate with each other through the network and broadcast information regarding transactions and blocks. A node can be a computer or a server.
A blockchain miner is a blockchain actor who is able to confirm and validate transactions in the blockchain by running a node.
Transactions can only be mined and executed sequentially on the blockchain; multiple transactions cannot be mined with the same nonce, and a nonce cannot be skipped. Since a used nonce cannot be confirmed again, the process prevents the possibility of replay attacks, where the recipient can rebroadcast the same signed transaction repeatedly to drain the sender's wallet.
A hash function turns any text input into a string of bytes with a specific length and structure on the blockchain, the result of that conversion is called a hash value that is used to generate unique and non-repeatable identifiers.
FTs (Fungible tokens) are stackable blockchain tokens that have a quantity and optional decimal places. An example of a fungible token is a twenty-dollar bill - each bill is worth the same amount as another twenty-dollar bill.
NFTs (Non-fungible tokens) are unique digital assets created on the blockchain. They can be everything from gaming items and digital art, to sports collectibles and real-world assets. Today, NFTs are fueling the rise of new economic models and interconnected digital realities.
The ERC-20 introduces a standard for Fungible Tokens, in other words, they have a property that makes each Token be exactly the same (in type and value) as another Token. For example, an ERC-20 Token acts just like the ETH, meaning that 1 Token is and will always be equal to all the other Tokens.
The ERC-721 introduces a standard for NFT, in other words, this type of Token is unique and can have a different value than another Token from the same Smart Contract, maybe due to its age, rarity, or even something else like its visual.
A standard interface for contracts that manage multiple token types. A single deployed contract may include any combination of fungible tokens, non-fungible tokens, or other configurations (e.g. semi-fungible tokens).
PoA stands for Proof of Authority, which is an algorithm used by some blockchains such as Jumpnet to deliver fast transactions through a consensus mechanism based on identity on a distributed network.
PoW stands for Proof of Work, which is a process that allows the blockchain to remain operational by using the process of mining, or recording transactions difficult. The idea behind proof of work blockchains is to prevent manipulation of the network by establishing large energy and hardware control requirements to be able to process transactions.
PoS stands for Proof of Stake, which is a process that allows a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency.
TPS stands for Transactions Per Second, which is literally the number of transactions that a network is capable of processing each second while producing new blocks and confirming transactions.
Staking is the process of participating in transaction validation or lending tokens in order to receive staking rewards from a blockchain protocol or an exchange.