- Bitcoin: As the first cryptocurrency, it uses proof-of-work and therefore requires a lot of computational power.
- Ethereum: It is one of the most popular cryptocurrencies, uses a proof-of-stake mechanism and has a high market capitalization.
- token: Refers to one type of cryptocurrency. The price of these tokens varies depending on the type of cryptocurrency (Eth, Bitcoin, ADA, etc.) and the market.
- DeFi: Also known as decentralized finance, this type of finance does not require intermediaries and typically uses smart contracts.
- distributed ledger: The ledger holds data about all transactions on the blockchain, and this ledger is open to everyone.
- Smart contract: A digital contract that is executed without intermediaries according to predetermined rules. It is used in blockchains to perform certain types of transactions, staking, etc.
- proof of stake: Stakers have the chance to be selected to create the next block by staking their cryptocurrency as collateral, and this chance increases depending on the amount staked.
- proof of authority: A select few are given the ability to create and verify new blocks.
- proof of work: Miners compete to solve cryptographic hash functions, difficult math puzzles/problems and create new blocks to add to the blockchain.
- Layer 1/Mainnet: The main blockchain network on which transactions and all other applications run.
- layer 2: A chain used to expand the network and move transactions from the mainnet to other chains with the same security and protocol.
- bridge: A protocol that establishes a connection between two blockchains, enabling interaction between them, such as converting cryptocurrency from one type to another or allowing resources for the development of better smart contracts.
- Sharding: Split the main blockchain network into several different shards. Each shard controls some smart contracts, transactions, and other applications, reducing stress on the main blockchain network.
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