blockchain

How blockchains actually work: blocks, nodes, consensus, forks and the networks behind the coins you can buy in Iraq. Written for readers who want the mechanics explained plainly, without hype.

Crypto Glossary 100 terms

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Algorithm

Coded instructions or rules that are executed by a computer to solve problems. Full definition

Confirmation

Validation of a transaction or series of transactions. On the Bitcoin blockchain, each individual transaction must be validated by multiple independent nodes to be considered a true act. Full definition

Halving

The procedure of reducing the mining rewards on a blockchain by half. For the Bitcoin network, this occurs once every four years, or approximately the time it takes to mine 210,000 blocks. Full definition

Hash Rate

The unit of measurement of a network’s processing power. Full definition

Miner

The node/node operator which chooses to participate in the gamified/incentivized process of extracting bitcoin and securing its network. Full definition

Mining Pool

A group of miners that have unified their computing resources in order to distribute the mining rewards more consistently between its participants. Full definition

Satoshi

The smallest divisible unit of bitcoin, equal to one hundred millionth of a single bitcoin (0.00000001 BTC). Full definition

Transaction Fee

A small amount paid by a user to have their transaction processed and included in a block on the blockchain network. Full definition

Dapps (Decentralized Applications)

Applications that run on a decentralized blockchain or peer-to-peer network of computers instead of a single centralized server. Full definition