Web3

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.

Public Key Cryptography

An encryption system using mathematically linked key pairs — a public key for encryption and a private key for decryption.

Digital Signature

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

A service that provides external real-world data to blockchain smart contracts that cannot access off-chain information directly.

Self-executing programs stored on a blockchain that automatically enforce the terms of an agreement when conditions are met.

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 blockchain token where each unit is identical and interchangeable with any other unit of the same token.

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

The practice of using already-staked cryptocurrency to simultaneously secure additional protocols or services, extending the economic security of one network to others.

A DeFi strategy where users provide liquidity to protocols in exchange for token rewards and interest.

A digital form of fiat currency issued and regulated by a country's central bank on blockchain infrastructure.