Glossary: Difference between revisions
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{{:Box-round|title=Glossary|<big>The Crypto and Chainlink ecosystem can at times seem a complex worlds with a quickly evolving vocabulary. The glossary aims to increase technical knowledge and to help the user better understand key concepts found across the Wiki.</big>}} | |||
<h2>Aggregation</h2> | <h2>Aggregation</h2> | ||
<Br> | <Br> | ||
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If something is deterministic, you have all of the data necessary to predict (determine) the outcome with 100% certainty.<ref>https://www.statisticshowto.com/deterministic/#:~:text=What%20is%20Deterministic%3F,without%20the%20involvement%20of%20randomness.</ref> | If something is deterministic, you have all of the data necessary to predict (determine) the outcome with 100% certainty.<ref>https://www.statisticshowto.com/deterministic/#:~:text=What%20is%20Deterministic%3F,without%20the%20involvement%20of%20randomness.</ref> | ||
Put more succinctly "Always producing the same outcome from the same starting point." | <br>Put more succinctly "Always producing the same outcome from the same starting point." | ||
---- | ---- | ||
<h2>Deviation threshold</h2> | <h2>Deviation threshold</h2> | ||
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<br> | <br> | ||
<h2>Mainnet</h2> | <h2>Mainnet</h2> | ||
< | <br> | ||
<H2>Mempool</H2> | |||
A database of unconfirmed transactions - where all the valid transactions wait to be confirmed. | |||
---- | |||
<h2>Middleware</h2> | <h2>Middleware</h2> | ||
<Br> | <Br> | ||
<h2>MEV - Miner Extractable Value</h2> | <h2>MEV - Miner Extractable Value</h2> | ||
MEV involves optimizing the mining process to maximize revenue. This is typically achieved by determining which transactions to include and in what order. Ideally, the most profitable configuration of transactions with the highest level of fees is chosen. <ref>https://www.coindesk.com/layer2/2022/07/06/are-block-builders-the-key-to-solving-ethereums-mev-centralization-woes/</ref> | |||
https://blog.chain.link/what-is-miner-extractable-value-mev/ | https://blog.chain.link/what-is-miner-extractable-value-mev/ | ||
---- | ---- | ||
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<h2>TWAP - Time-Weighted Average Price</h2> | <h2>TWAP - Time-Weighted Average Price</h2> | ||
The measure of an asset's average price over a predetermined period of time. | The measure of an asset's average price over a predetermined period of time. | ||
---- | |||
<h2>Validating Node</h2> | |||
A validating node is a device on a blockchain network, that is, in essence, the foundation of the technology, allowing it to function and survive. Nodes are distributed across a widespread network and carry out a variety of tasks. Nodes maintain either a full or partial copy of the blockchain and employ their computing power to confirm transactions. They confirm transactions through a consensus protocol, which involves nodes relaying information to one another. | |||
<ref>https://medium.com/@teamxres/how-do-i-become-a-validating-node-and-what-do-i-get-out-of-it-8635d8eb11fb</ref> | |||
---- | ---- | ||
<h2>Virtual Machines (VM)</h2> | <h2>Virtual Machines (VM)</h2> | ||
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A technical analysis tool that shows the ratio of an asset's price to its total trade volume. | A technical analysis tool that shows the ratio of an asset's price to its total trade volume. | ||
---- | ---- | ||
<h2>Web2</h2> | |||
<br> | |||
<h2>Web3</h2> | <h2>Web3</h2> | ||
Web3 is referred to as a new version of the Internet that is inspired by blockchain technology, often with the purpose of enabling decentralized processes and decision-making. | |||
<br> | <br> | ||
<h2>Wrapped tokens</h2> | <h2>Wrapped tokens</h2> | ||
Latest revision as of 03:37, 4 August 2022
Glossary
Aggregation
API
Blockchain's
A blockchain is a highly secure and decentralized network that allows people to store data, exchange value, and record transaction activity in a shared ledger that is not controlled by any central authority.[1]
Bridging assets
REVISE To transfer assets from Ethereum to BNB Chain you will need to interact with the Binance Bridge. This is a contract that will take custody of your assets on the Ethereum side and, after a bit of a delay, create a version of that asset on the Binance side.
You might think about this as a little like using tokens in an arcade. You give the arcade employee (bridge contract) your money (ETH) and in turn, they create tokens (ETH BEP-20, A BEP-20 version of ETH) to use within the arcade (BNB Chain). From there you can use the tokens (ETH BEP-20) while you are in the arcade. If you would like to leave you can give your tokens (ETH BEP-20) back to the employee (bridge contract) and they will destroy or burn the tokens (ETH BEP-20). Then they’ll give you back the money (ETH) for the tokens (ETH BEP-20). [2]
Centralized
Centralized Exchanges- CEX
Consensus Mechanism
Cryptocurrency
DAPPs
DAO
DECO
Decentralized
DeFi - Decentalized finance
Decentralized Exchanges- DEX
Deterministic
Deterministic (from determinism, which means lack of free will) is the opposite of a random event. It tells us that some future event can be calculated exactly, without the involvement of randomness. For example, the conversion between Celsius and Kelvin is deterministic, because the formula is not random, it is an exact formula that will always give you the correct answer (assuming you perform the calculations correctly):
If something is deterministic, you have all of the data necessary to predict (determine) the outcome with 100% certainty.[3]
Put more succinctly "Always producing the same outcome from the same starting point."
Deviation threshold
A new data aggregation round starts when a Chainlink node identifies that an off-chain data value deviates by more than the defined deviation threshold from its on-chain value.
DLT
DONs
Each DON is customizable, empowering users to pick specific node operators and data sources, the level of decentralization, the type of computation performed, the update frequency, the blockchain it’s deployed on, and various other optimizations that align with the user’s own budget, performance requirements, privacy needs, and trust assumptions.
https://blog.chain.link/chainlink-enterprise-blockchain-middleware/
Dynamic NFTs (dNFTs)
A dynamic NFT is an NFT that can change based on external conditions. Change in a dynamic NFT often refers to changes in the NFT’s metadata triggered by a smart contract. [4] DNFTs can also be described as perpetual smart contracts that use oracles to communicate with and react to external data and systems.
https://blog.chain.link/create-dynamic-nfts-using-chainlink-oracles/
ERC20
https://ethereum.org/en/developers/docs/standards/tokens/erc-20/
ERC677
https://wiki.dextrac.com/index.php/The_Link_token#ERC677
EVM
External adapter
Fair Sequencing Service (FSS)
Fungible assets
Heartbeat threshold
A new data aggregation round starts after a specified amount of time from the last update. If the deviation threshold is not reached within the time of the heartbeat, the feed will be updated.
Heterogeneous network
https://blog.chain.link/how-chainlink-supports-any-off-chain-data-resource-and-computation/
Hybrid smart contracts
Hybrid Smart Contracts describe smart contracts which perform computations both on-chain and off-chain, resulting in the creation of decentralized applications that are more advanced than on-chain logic in isolation.[5] https://blog.chain.link/hybrid-smart-contracts-explained/
Layer 0
‘A communication protocol, enabling smart contract execution across multiple chains, with one transaction from any one source chain, enabling cross-chain functionality for dApps and (native) token bridging’. Looking for citation.
Layer 1
Layer 2
Mainnet
Mempool
A database of unconfirmed transactions - where all the valid transactions wait to be confirmed.
Middleware
MEV - Miner Extractable Value
MEV involves optimizing the mining process to maximize revenue. This is typically achieved by determining which transactions to include and in what order. Ideally, the most profitable configuration of transactions with the highest level of fees is chosen. [6] https://blog.chain.link/what-is-miner-extractable-value-mev/
Multisignature wallets/address - Multi-sig
Multisig is a is a method of approving on-chain transactions. They are a type of smart contract that requires two or more parties to sign a message with their private keys for an action to be approved and accepted on-chain.
REVISE is a method of approving an on-chain transaction where a certain number of public keys (i.e. signers) from a total pool of potential signers must cryptographically sign it first, REVISE
NFT
NFTs (Non Fungible Tokens) are unique digital objects that exist on a blockchain. Every NFT can be differentiated from another through a 1-of-1 tokenID and its unique contract address. From there, metadata such as images, video files, or other data can be attached, meaning that it’s possible to own a token that represents a unique digital object.[4] In its most bare-bones form, an NFT is simply a transferable token that has a unique tokenID.
Node
Non-fungible assets
Off-Chain
Off-chain refers to transactions that happen outside of a blockchain. Off-chain transactions are characterized by zero to low costs and are gaining significant popularity among blockchain developers.
Off-chain computation
Off-chain computation is simply computation that takes place outside a blockchain.[7]
On-Chain
On-chain refers to transactions that occur on or within any given blockchain.
Open source
Oracle
For more information on Oracles
Oracle contract
The on-chain component of an Oracle. The Oracle Contract is the interface through which Consuming Contracts pass and receive data with off-chain resources.
Oracle node
The off-chain component of an Oracle.
Parachain
Parametric
Parametric insurance
Proof of stake (PoS)
Proof of work (PoW)
Randomness
The quality or state of being or seeming random (as in lacking or seeming to lack a definite plan, purpose, or pattern).[8]
RPC endpoints
Service level agreements (SLAs)
Sharding
Smart contracts
Smart contracts are tamper-proof programs on blockchains that facilitate automatic transactions by using conditional software logic such as, “if x is true, then execute y.[1]
Solidity
Stablecoin
Sybil-resistant
Testnet
Town Crier
TPS - Transactions per second
Transactions per second (TPS) simply refers to the number of transactions that a given network is capable of processing each second.
Trust-minimization
Trust-minimization, is the notion that, as society's scale and expand and come into increasing contact with one another, that individuals need mechanisms that minimize the need for trust in strangers, so that you can be confident in conducting business, for example, that you won’t be subject to abuse. [9]
TVL (Total value locked)
TVS (Total value secured)
TWAP - Time-Weighted Average Price
The measure of an asset's average price over a predetermined period of time.
Validating Node
A validating node is a device on a blockchain network, that is, in essence, the foundation of the technology, allowing it to function and survive. Nodes are distributed across a widespread network and carry out a variety of tasks. Nodes maintain either a full or partial copy of the blockchain and employ their computing power to confirm transactions. They confirm transactions through a consensus protocol, which involves nodes relaying information to one another. [10]
Virtual Machines (VM)
Virtual machines approximate the computing power of physical machines using virtual architecture. Through a VM, one can use the resources of network participants, regardless of location or geography to build, process, and execute what they want. [11]
VWAP - Volume-Weighted Average Price
A technical analysis tool that shows the ratio of an asset's price to its total trade volume.
Web2
Web3
Web3 is referred to as a new version of the Internet that is inspired by blockchain technology, often with the purpose of enabling decentralized processes and decision-making.
Wrapped tokens
Zero knowledge proofs
A zero-knowledge proof is a cryptographic method that allows one party to prove that a given statement is true without revealing the underlying information. For in depth information, read the following article HERE.
- ↑ 1.0 1.1 https://chain.link/education/web3
- ↑ https://blog.chain.link/how-to-create-a-bep-20-token/
- ↑ https://www.statisticshowto.com/deterministic/#:~:text=What%20is%20Deterministic%3F,without%20the%20involvement%20of%20randomness.
- ↑ 4.0 4.1 https://blog.chain.link/what-is-a-dynamic-nft/
- ↑ https://www.smartcontractresearch.org/t/research-summary-chainlink-2-0-next-steps-in-the-evolution-of-decentralized-oracle-networks/300
- ↑ https://www.coindesk.com/layer2/2022/07/06/are-block-builders-the-key-to-solving-ethereums-mev-centralization-woes/
- ↑ https://blog.chain.link/off-chain-data-and-computation/
- ↑ https://www.merriam-webster.com/dictionary/randomness
- ↑ https://medium.com/zulurepublic/towards-a-trust-minimized-world-an-interview-with-nick-szabo-90b900947683
- ↑ https://medium.com/@teamxres/how-do-i-become-a-validating-node-and-what-do-i-get-out-of-it-8635d8eb11fb
- ↑ https://moralis.io/evm-explained-what-is-ethereum-virtual-machine/