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BLOCKCHAIN GLOSSARY




Gas

A measure of the 'computational steps' required for a transaction on the ETH blockchain. This translates to a fee for network users paid in small units of ETH specified as Gwei. Gas limit

It's like setting a cap on how much you'll pay to get your ETH transaction done. Think of it as a rough guess of the computing power your transaction needs. It's your way of saying, "I'll pay this much to make it happen!"

Gas Price

It's simple: gas price is what you pay in ETH (Gwei) for the computer work in a transaction. It can change based on how busy the network is.

Gwei

A common, lowercase denomination of ETH and the unit in which gas prices are often specified.

Decentralization

The distribution of authority and control across a network, removing a single point of failure or control.

Smart Contract

Self-executing contracts with the terms of the agreement directly written into code. They automatically execute and enforce contract terms when predefined conditions are met.

Wallet

Digital tools or applications that allow users to store, send, and receive cryptocurrencies.

Mining

The process of validating transactions on a blockchain by solving complex mathematical problems, typically associated with Proof of Work (PoW) consensus.

Proof of Stake (PoS)

A consensus algorithm where validators are chosen to create a new block based on the amount of cryptocurrency they hold and are willing to "stake" as collateral.

Private Key

A secret alphanumeric code that allows access to and control over one's cryptocurrency assets.

Public Key

A cryptographic key that can be freely distributed and serves as an address for receiving cryptocurrencies.

Token

A unit of value created and managed on a blockchain, often representing a digital or physical asset.


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