Blockchain Flashcards
Blockchain
DLT
A decentralised digitised ledger that records transactions in chronological order
Proof of work consensus algorithm
Makes it expensive to cheat and profitable to act honestly and it’s almost impossible to cheat
Hashing
Passing a block through a hashing function giving it a fingerprint
Nodes
Machines connected to the blockchain that share information and store copies of the blockchain
Ethereum 2.0
Moved from POW to POS. To help with scalability
Proof of stake consensus algorithm
Same goal of reaching consensus in the blockchain as POW
Random election process to select a node to be a validator of the next block based on factors such as staking age, randomisation and the nodes wealth
Blocks are forged rather than mined
Nodes get selected to forge the next block it will check the block transactions are valid and sign the block and add it to the blockchain and receives a reward.
The stake works as a financial motivator for the forger not to validate or create fraudulent transactions.
Make more being honest
More users / nodes more security / more decentralised more energy efficient
What are smart contracts
Computer code stored and executed inside the blockchain. Agreed terms must be met before the contract is executed.
What are oracles
bridge between smart contracts and external sources. Simplifies communications. Vital for global blockchain adoption
Chain link
Band protocol
What are wrapped tokens
Calle wrapped because it has been out in a wrapper . Kind of digital vault that allows the wrapped version to be created on another blockchain
Pegged to the value of the other cryptocurrency
What is web3.0
The future decentralised internet in progress thanks to blockchain
Web2.0 started with Amazon and social media etc
Layer 1
Blockchain like Ethereum
Layer 2
Scalability
Side chains
