51% Attack |
A situation in which a single entity or group of entities controls the majority of the hash rate, or computing power, in a blockchain network, allowing them to control the network and potentially engage in fraudulent activities such as double-spending or denying transactions. |
Blockchain |
A decentralized, digital ledger that records transactions on multiple computers without a central authority, making it resistant to modification or tampering. |
Cryptography |
The practice of using mathematical algorithms to secure communication and information, including encryption, decryption, and digital signatures. |
Hash Rate |
The computational power required to process transactions on a blockchain network, typically measured in hashes per second. |
Mining |
The process of adding new transactions to a blockchain network by solving complex mathematical equations and validating them through a consensus mechanism. |
Consensus |
A mechanism used by blockchain networks to validate transactions and maintain the integrity of the ledger through the agreement of participating nodes. |
Nodes |
A computer or device connected to a blockchain network that helps to validate transactions and maintain the integrity of the network. |
Ledger |
A digital record book of economic transactions that cannot be altered without the consensus of the network, giving it high level of immutability. |
Double-spend |
A fraudulent activity in which an entity spends the same cryptocurrency more than once by exploiting a blockchain network's consensus mechanisms. |
Tampering |
The act of altering or modifying information in a way that is unauthorized or malicious, often done with the intention of deception or personal gain. |
Decentralized |
A system or organization that is not controlled by a single central authority or entity, but rather by multiple participants who reach a consensus through a shared agreement and network protocols. |
Trustless |
A concept in blockchain that allows parties to interact and exchange value with each other without the need for a trusted intermediary or third party, reducing transaction fees and the risk of fraud. |
Immutability |
The property of data that makes it impossible to change once it has been recorded, ensuring that the integrity of the data remains intact and unalterable without the consensus of the network. |
Validation |
The act of verifying the integrity and accuracy of data, often done in a blockchain network through a consensus mechanism that involves multiple participating nodes. |
Digital Signature |
A mathematical technique that is used to validate the authenticity and integrity of a digital message, document or software. |
Cryptocurrency |
A digital or virtual currency that uses cryptography for security and operates independently of a central bank. |
Proof-of-Work |
A consensus mechanism used by blockchain networks, in which participants must solve complex mathematical equations in order to validate transactions and add new blocks to the chain. |
Fork |
A split in a blockchain network that occurs when a group of nodes begin to validate transactions using different protocols, resulting in the formation of two or more separate chains with distinct transaction histories. |
Permissionless |
A type of blockchain network that allows anyone to participate in the validation and verification of transactions without any restrictions or requirements, enabling greater decentralization and accessibility. |
Smart Contract |
A computer program that executes automatically when certain predefined conditions are met, typically used to enforce the terms of an agreement between two or more parties on a blockchain network. |