notes up to midterm Flashcards
unit of account
a monetary unit of measure of value (as a coin)
medium of exchange
any item that is widely accepted in exchange for goods and services
store of value
an asset, commodity, or currency that can be saved, retrieved, and exchanged in the future without deteriorating in value
how many satoshis = 1 bitcoin
100 million satoshis
how does a distributed ledger work?
- People announce transactions
- Any user may collect information about those transactions
- Users record transactions on a ledger
- Broadcast my ledger to everyone else
- Confirm the transaction
nodes
people interested in collecting transaction data
what happens after two people agree on a transaction on the bitcoin blockchain
the transaction is announced to nodes
what is the max data that can be on a ledger?
1 MB
what happens when a node collects transaction data?
it has to solve a computational puzzle to verify/add the transaction to the ledger
nonce
the puzzle solution(Set of digits/letters that result in the output below starting with a set number of zeros)
what happens after the node solves the puzzle and puts your transaction on the block?
the nodes broadcast the block and nonce to all other nodes
what is the node rewarded with?
free bitcoin
in 2009, how many bitcoins were given out per transaction?
50 bitcoins
how do you know your odds of solving the puzzle?
odds = your CPU power / total network CPU power
what code did litecoin use?
the general bitcoin code
how long does it take to mine in litecoin?
2.5 minutes
how many litecoin will be produced?
84 million
forking
people come together and agree to change the rules
soft fork
not a fundamental change and all nodes have to agree
hard fork
large/fundamental change and not all nodes have to agree
when and what was bitcoins first hard fork?
2014, changed the block size to 8MB, 1,000 nodes agreed
what was the 2016 bitcoin hard fork?
created bitcoin classic, 2mb block size, 2,000 nodes agreed
what was the 2017 bitcoin hard fork?
created bitcoin cash and 8Mb block size
51% attack
if more than 50% of people/nodes agree the motion/proposal passes
Replaced-by-fee
you can change an unconfirmed transaction by offering a higher fee
what is the basic code of Ethereum?
Open software platform built on blockchain to deploy decentralized applications(dApps)
dApps
decentralized applications
how much Ether will be produced?
no limit yet
what is the INITIAL Ethereum mining time?
15 seconds
Byzantium hard fork
reduced reward to 3 ETH
what was the INITIAL reward for Ethereum?
5 ETH
Constantinople hard fork
reduced the reward to 2 ETH
What is the current Ethereum mining time?
13 seconds
proof-of-stake
“volunteer” your computer to verify block→ system randomly selects CPUs to verify the block
how does proof-of-stake make sure you don’t verify bad blocks?
you put up collateral that you can lose
how many validators does proof-of-stake select?
128 random validators, 1 makes the block, and 2/3 of the rest must validate
what is the smallest denomination of Ether?
WEI
what is the value of 1 WEI?
1 ether = 10^18 WEI
what is gas?
the cost necessary to perform a transaction on the network
what is the value of 1 gas?
1 ether = 10^9 gas = GWEI
what is the gas limit?
the max amount of gas a user is willing to pay
smart-contract
a digital agreement that executes “automatically”, like an if-then statement
oracles
provide outside info that is used in smart contracts
token(interchangeable)
currency used on the native apps
usage token
required to use the service
work token
used for proof-of-stake
security token(“tokenized” securities)
assigning a digital title to data(follows SEC rules)
non-fundible tokes(NFTs)
has a unique identifier, applies ownership to any assigned data
