Reference

Glossary

Key terms explained simply.

Block Core

A container holding a batch of validated transactions, a timestamp, the previous block's hash, and a nonce used in mining.

Hash Cryptography

A fixed-length fingerprint of data produced by a one-way function. The same input always produces the same hash; any change produces a completely different one.

Node Core

A computer that participates in the blockchain network by storing a copy of the chain and validating transactions according to the consensus rules.

Mining Core

Expending computational work to find a nonce that makes a block's hash meet the difficulty target. The winner adds the block and earns a reward.

Nonce Cryptography

A "number used once" — miners increment this until the block hash starts with enough leading zeros to satisfy the difficulty target.

Smart Contract Core

Self-executing code stored on a blockchain. Runs automatically when conditions are met — no middlemen, no downtime, no censorship.

Wallet Core

Software managing your private and public keys. It doesn't store coins — it stores the keys that prove you control them.

Private Key Cryptography

A secret 256-bit number that proves ownership of blockchain assets. Anyone with your private key controls your funds.

Gas DeFi

The fee paid to Ethereum validators for processing transactions and smart contract computations. Denominated in Gwei (billionths of ETH).

DeFi DeFi

Decentralised Finance — lending, trading, and savings built on smart contracts without banks or intermediaries.

NFT DeFi

Non-Fungible Token — a unique blockchain token proving ownership of a specific digital asset. Unlike Bitcoin, each NFT is distinct.

Merkle Tree Cryptography

A data structure inside blocks where transactions are hashed in pairs up to a single root, allowing efficient verification without downloading the full block.

Fork Core

A change to blockchain rules. A soft fork is backward-compatible; a hard fork creates a permanent chain split (e.g. Bitcoin Cash in 2017).

Layer 2 DeFi

A protocol on top of a base chain to increase speed and reduce fees. Transactions batch off-chain and settle to the base chain. Examples: Lightning Network, Optimism, Arbitrum.