Glossary

Aggregation

API

Blockchain

Centalized

Cryptocurrency

DECO

Decentalized

DeFi - Decentalized finance

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.

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)

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

ERC677

External adapter

EVM

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

https://blog.chain.link/hybrid-smart-contracts-explained/

Layer 1

Layer 2

Middleware

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.

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.

NFT

Node

Non-fungible assets

Parametric

Parametric insurance

Service level agreements (SLAs)

Smart contracts

Smart contracts are programs deployed on blockchains that store and transfer data/assets only once specific conditions are met (i.e. if x event happens, then execute y action).