Public Key Cryptography

Blockchain

A distributed, immutable digital ledger that records transactions across a network of computers without a central authority.

Distributed Ledger Technology

A digital system for recording, sharing, and synchronising data across multiple sites without a central administrator.

Consensus Mechanism

The method by which a distributed network agrees on the current state of the ledger and validates transactions.

Proof of Work

A consensus mechanism requiring computational effort to validate transactions and create new blocks, used by Bitcoin.

Proof of Stake

A consensus mechanism where validators are selected based on the amount of cryptocurrency they hold and stake.

Delegated Proof of Stake

A consensus mechanism where token holders vote for delegates who validate transactions on their behalf.

Byzantine Fault Tolerance

The ability of a distributed system to reach consensus despite some nodes acting maliciously or failing.

Merkle Tree

A hash-based data structure that efficiently verifies the integrity and consistency of large sets of data.

Hash Function

A mathematical function that converts input data of any size into a fixed-size output, used extensively in blockchain security.

Cryptographic Hash

A one-way function producing a fixed-length output that is computationally infeasible to reverse or find collisions for.

Digital Signature

A cryptographic mechanism that verifies the authenticity and integrity of digital messages or documents.

Decentralised Application

An application that runs on a decentralised peer-to-peer network rather than a single centralised server.

The process of using computational power to validate transactions and add new blocks to a proof-of-work blockchain.

A blockchain node that downloads and validates every block and transaction against the complete set of consensus rules.

A decentralised exchange protocol that uses algorithmic pricing instead of traditional order books.

A blockchain transaction where the end user does not pay network fees directly, with costs covered by a third party or subsidised through meta-transaction relay services.

A peer-to-peer exchange of cryptocurrencies across different blockchain networks using cryptographic hash time-locked contracts, eliminating the need for trusted intermediaries.

A self-sovereign identity framework where individuals control their own digital identity credentials without centralised authorities.

The property of blockchain data that prevents alteration or deletion once recorded on the ledger.

A decentralised decision-making process where protocol changes are proposed, debated, and voted on through blockchain-based mechanisms by token holders or validators.

Encryption

The process of converting plaintext data into ciphertext using an algorithm, making it unreadable without the decryption key.