Glossary

Glossary

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.

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.

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).

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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.
Put more succinctly "Always producing the same outcome from the same starting point."

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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.

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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/

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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. 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/

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ERC20

https://ethereum.org/en/developers/docs/standards/tokens/erc-20/

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ERC677

https://wiki.dextrac.com/index.php/The_Link_token#ERC677

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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.

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Heterogeneous network

https://blog.chain.link/how-chainlink-supports-any-off-chain-data-resource-and-computation/

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

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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.

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Mempool

A database of unconfirmed transactions - where all the valid transactions wait to be confirmed.

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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. https://blog.chain.link/what-is-miner-extractable-value-mev/

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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

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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. In its most bare-bones form, an NFT is simply a transferable token that has a unique tokenID.

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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.

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Off-chain computation

Off-chain computation is simply computation that takes place outside a blockchain.

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On-Chain

On-chain refers to transactions that occur on or within any given blockchain.

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Oracle

For more information on Oracles

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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.

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Oracle node

The off-chain component of an Oracle.

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Randomness

The quality or state of being or seeming random (as in lacking or seeming to lack a definite plan, purpose, or pattern).

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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.

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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.

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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.

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TWAP - Time-Weighted Average Price

The measure of an asset's average price over a predetermined period of time.

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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.

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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.

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VWAP - Volume-Weighted Average Price

A technical analysis tool that shows the ratio of an asset's price to its total trade volume.

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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.

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.

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