Blockchains_and_Cryptocurrencies

Blockchain

A decentralized digital ledger that records transactions across multiple computers in such a way that the registered data cannot be altered retroactively.

Cryptocurrency

Digital or virtual currency that uses cryptography for security and operates on a technology called blockchain.

Proof-of-Work (PoW)

A consensus mechanism in blockchain that requires participants to solve complex mathematical problems to validate transactions and create new blocks.

Proof-of-Stake (PoS)

A consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to 'stake' as collateral.

Smart Contract

Self-executing contracts with the terms of the agreement directly written into code on the blockchain.

Decentralized Finance (DeFi)

Financial services that operate on a blockchain, allowing for peer-to-peer transactions without the need for intermediaries such as banks.

Gas Fees

Transaction fees paid to miners or validators to compensate for the computational energy required to process and validate transactions on a blockchain network.

Tethering (Stablecoins)

The practice of pegging the value of a cryptocurrency to a stable asset, such as a fiat currency or commodity, to reduce price volatility.

Non-Fungible Token (NFT)

A unique digital asset verified using blockchain technology, which represents ownership of a specific item or piece of content.

51% Attack

A situation where a group of miners controls over 50% of the network's computing power, allowing them to manipulate the blockchain by preventing other transactions.