Stablecoin Infrastructure Glossary

Blockchain

A blockchain is a distributed digital ledger that records transactions across a network of computers in a secure and tamper-resistant manner.

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Blockchain Bridge

A blockchain bridge is a protocol that enables digital assets to move between separate blockchain networks.

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Consensus Mechanism

A consensus mechanism is the process through which blockchain networks agree on the validity of transactions.

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Decentralized Finance

Decentralized finance (DeFi) refers to financial services built on blockchain networks without traditional intermediaries.

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Distributed Ledger Technology

Distributed ledger technology (DLT) is a system in which transaction records are shared and synchronized across multiple network participants.

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Gas Fees

Gas fees are charges paid to execute transactions or smart contracts on certain blockchain networks.

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Interoperability

Interoperability refers to the ability of different blockchain networks to exchange data or assets.

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Layer 1 Blockchain

A Layer 1 blockchain is the base network responsible for validating and recording transactions.

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Layer 2 Scaling

Layer 2 scaling refers to technologies built on top of base blockchains to increase transaction throughput.

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Node

A node is a computer that participates in a blockchain network by maintaining a copy of the ledger.

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Oracle

An oracle is a service that provides external data to blockchain networks.

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Proof of Stake

Proof of stake is a blockchain consensus mechanism in which validators secure the network by staking digital assets.

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Proof of Work

Proof of work is a consensus mechanism where participants solve computational puzzles to validate transactions.

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Smart Contract

A smart contract is a self-executing program that automatically performs actions when predefined conditions are met.

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Validator

A validator is a participant responsible for verifying transactions and securing a blockchain network.

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