Blockchain Professional Terms

Here are common professional terms in the blockchain field and their explanations, covering core categories such as technology, applications, and ecosystems:

I. Basic Concepts

1. Blockchain

   • A distributed ledger technology that connects data blocks in chronological order to form an immutable chain structure, enabling decentralized trust.

   • Features: Decentralization, immutability, transparency, traceability.

2. Block

   • The basic unit of a blockchain, containing data records, the hash value of the previous block, timestamps, etc., linked into a chain via cryptography.

3. Node

   • An independent device (e.g., a computer) participating in a blockchain network, responsible for validating transactions, maintaining ledger copies, and propagating information.

II. Cryptography and Security

1. Hash

   • A fixed-length string (hash value) generated by a hash function (e.g., SHA-256) from data of any length, with properties of unidirectionality, uniqueness, and collision resistance.

   • Uses: Verifying data integrity, identifying blocks and transactions.

2. Public Key

   • A public address generated from a private key, used to receive cryptocurrencies (similar to a bank account number).

3. Private Key

   • A string generated from a random number, serving as the sole credential for accessing crypto assets, requiring strict confidentiality (similar to a bank password).

4. Seed Phrase

   • A phrase consisting of 12–24 words, serving as a backup for the private key to restore wallet assets.

III. Consensus Mechanisms

1. Proof of Work (PoW)

   • Nodes compete to solve mathematical puzzles through computing power, and the first to complete wins the right to keep accounts and rewards (e.g., Bitcoin uses this mechanism).

   • Drawback: High energy consumption, low efficiency.

2. Proof of Stake (PoS)

   • Nodes compete for bookkeeping rights based on the quantity and duration of tokens held, requiring no significant computing power (e.g., Ethereum 2.0 uses this mechanism).

   • Advantages: Low energy consumption, high throughput.

3. Practical Byzantine Fault Tolerance (PBFT)

   • Achieves consensus through voting, tolerating a certain number of faulty nodes (commonly used in consortium chains, e.g., Hyperledger Fabric).

IV. Cryptocurrencies and Assets

1. Token

   • Digital assets issued on a blockchain, categorized into:

     • Fungible Token (FT): Interchangeable (e.g., BTC, ETH).

     • Non-Fungible Token (NFT): Unique and non-interchangeable (e.g., digital art, domain names).

2. Smart Contract

   • Self-executing code stored on a blockchain that triggers predefined logic when conditions are met (e.g., DeFi lending, NFT transactions).

3. Decentralized Finance (DeFi)

   • Blockchain-based financial applications such as lending, trading, and insurance, eliminating the need for traditional financial intermediaries (e.g., Uniswap, Aave).

4. Liquidity Mining

   • Users provide liquidity to decentralized exchanges (DEXs) to earn platform tokens as rewards (e.g., providing ETH/USDT liquidity to earn trading fees and tokens).

V. Types of Blockchains

1. Public Blockchain

   • Open to anyone for reading, writing, and validation (e.g., Bitcoin, Ethereum), fully decentralized.

2. Consortium Blockchain

   • Access restricted to specific organizations or institutions (e.g., R3 Corda, AntChain), semi-decentralized, prioritizing privacy and efficiency.

3. Private Blockchain

   • Controlled by a single organization (e.g., internal corporate chains), highly centralized, used for internal management.

VI. Technologies and Applications

1. Cross-Chain

   • Enables the interaction of assets or data between different blockchains (e.g., Polkadot, Cosmos).

2. Lightning Network

   • A Layer 2 scaling solution for Bitcoin, enabling fast micro-transactions through off-chain channels (improving throughput and reducing fees).

3. Sidechain

   • A blockchain parallel to the main chain, enabling asset transfer via a two-way anchoring mechanism (e.g., Bitcoin sidechain Liquid).

4. DAO (Decentralized Autonomous Organization)

   • An organization managed by smart contracts, with decisions made by token holders through voting (e.g., MakerDAO, Uniswap governance).

VII. Risks and Security

1. 51% Attack

   • Occurs when a miner/pool controls over 51% of computing power, allowing tampering with transaction records or blocking confirmations (a major threat to PoW chains).

2. Phishing Attack

   • Fraudulently obtaining users’ private keys or seed phrases via fake wallet or exchange links.

3. Rug Pull

   • Project teams lure investments through false propaganda and then abscond with funds (common in DeFi scams).

VIII. Industry Terms

1. Gas Fee

   • The fee required to execute transactions or smart contracts on the Ethereum network, paid in ETH to incentivize miners to package transactions.

2. DApp (Decentralized Application)

   • An application running on a blockchain, with data storage and logic execution relying on smart contracts (e.g., Axie Infinity, OpenSea).

3. Layer 2

   • Extension solutions built on top of the main chain (Layer 1) to improve transaction speed and reduce costs (e.g., Rollups, state channels).

IX. Emerging Concepts

1. Web3

   • The next generation of the internet based on blockchain, emphasizing decentralization and user control of data (e.g., decentralized identity DID, distributed storage IPFS).

2. Metaverse

   • A merged virtual and real-world ecosystem where blockchain is used to authenticate digital assets (e.g., land, items) and facilitate value circulation (e.g., Decentraland).

3. Zero-Knowledge Proof (ZK-SNARKs)

   • A cryptographic technique allowing proof of a statement’s validity without revealing specific information (used for privacy protection, e.g., Zcash).

For in-depth explanations of specific terms or domains (e.g., DeFi, NFTs, cross-chain technology), feel free to specify your needs!