When you start exploring blockchain and cryptocurrencies, you’ll quickly come across some new words and short forms. This blog will explain some of these terms to help make your journey into blockchain development smoother and more successful.
Blockchain: Think of a blockchain as a digital chain of blocks, where each block is like a digital notebook filled with details about transactions (like buying or selling). Each block has a unique seal (called a hash) and is connected to the one before it and after it. This connection makes it very hard for anyone to change the information inside the blocks.
Immutable Record Ledger: An immutable record ledger is like a diary that, once you write in it, you can’t erase or change what’s been written. This is used to make sure no one can mess with the data, keeping it safe and secure.
Decentralized Apps (Dapps): These are computer programs that run on multiple computers all over the world at the same time, rather than on one central computer. It’s like having a group project spread out across many people’s computers, where everyone can work on it at the same time, instead of just one person’s computer.
Trustless: In the blockchain world, “trustless” means that you don’t have to trust a single person or organization with all the information. Instead, the information is spread out for many to see, making it harder for any one person or group to control or change it.
Cryptography (PKC) is like a special lock system. It uses two keys: a public one that everyone can see (like the lock on a door), and a private one only you have (like the key to that lock).
This system lets you prove you have the secret key (without showing it) and make sure a transaction is genuine and can’t be tampered with.
Keys: In the world of blockchain, keys are like special passwords. A public key is like a username that everyone can see, and a private key is like a secret password that only you should know. These keys help keep your cryptocurrency transactions secure.
Public Key: A public key is like your mailbox where anyone can see it and put mail (or in this case, cryptocurrency) into it. Even if people know your public key, they cannot access the cryptocurrencies sent to it. Only you, with your private key, can access and use them.
Private Key: A private key is like a special key that only you have. It unlocks your public key mailbox and lets you use the cryptocurrencies sent to it. It’s important to keep this key secret.
Hash: a hash is like a special code created from a message or some data. It’s made using a specific method and it’s always the same length, no matter how long or short the original message is.
Proof of Work is a system that makes sure people aren’t spamming a network. It requires computer time and energy to do a task, proving the request is legitimate.
Proof of Stake, instead of using computer power to prove legitimacy like proof of work, people show they are serious by locking up some of their cryptocurrencies. They then get a chance to add new blocks to the blockchain and are rewarded for it.
Gas: is like postage for sending mail. It’s the fee you pay to submit transactions to the blockchain.
Crypto: Crypto, or cryptocurrency, is digital money. It’s designed to be secure because it uses special coding techniques for transactions and the creation of new units.
Coin: A coin is like digital money that operates on its own system independently. It’s used to store value and buy things, just like physical money.
Token: A token represents assets or rights, managed by a computer program on a blockchain. Just like an email, which can be sent and received online, tokens can represent anything from a concert ticket to voting rights and can be traded or used online by the person who holds the private key for that token’s address.
Coin vs. Token: Coins are like the original currency for their own blockchain. Tokens, on the other hand, are created on existing blockchains and can do more things than coins, like letting you participate in certain activities. It’s like buying tokens in an arcade to play games.
Bitcoin: is a type of digital money that operates on its own without a central authority, like a bank. People can send bitcoins to each other without needing a middleman.
ERC-20: is a set of rules for tokens on the Ethereum blockchain. It’s like a guide that explains how tokens should behave, ensuring they work correctly on the Ethereum network.
Smart Contract: A smart contract is like a self-operating computer program that automatically carries out contracts when certain conditions are met, without needing a middleman.
Blockchains (Ethereum, Harmony, Klaytn, Hyperledger, NULS, Quorum): These are different platforms based on blockchain technology, each with its own unique features. For example, Ethereum lets you create smart contracts.
Solidity: Solidity is a language used to write smart contracts, mainly for the Ethereum blockchain. It’s like using English to write instructions.
IPFS: is a system for storing and sharing files across various computers around the world, making file sharing faster and more efficient.
Ganache: Ganache is a tool for developing Ethereum applications. It lets you test your applications in a safe environment.
Photoblock: is a tool that provides a secure way for websites and apps to confirm your identity without storing your personal keys, using photos as a means of authentication.
MainNet vs. TestNet: MainNet and TestNet are two types of blockchains. MainNet is the main blockchain where actual transactions happen. TestNet is for testing, like a practice field, to make sure everything works smoothly before going live.
Don’t worry if these terms seem a lot right now. The aim is to make blockchain more understandable and help you build decentralized applications easily. You don’t have to know all these terms by heart to start creating your first app. Just visit DappStarter.TryCrypto.com to begin your blockchain journey with just a few clicks. And of course, if you think some other terms should be added to the list, feel free to share!