Terms covering blockchain infrastructure, smart contracts, consensus systems, and technical components supporting stablecoin networks.
| Term | Definition |
|---|---|
| Blockchain | A blockchain is a type of distributed ledger in which transaction records are grouped into ordered data structures, commonly called blocks, and linked through cryptographic references according to the network's consensus rules. |
| Blockchain Bridge | A blockchain bridge is a protocol or service that communicates asset or state information between otherwise separate blockchain networks and enables corresponding value or messages to be represented or acted on across them. |
| Consensus Mechanism | A consensus mechanism is the protocol through which distributed network participants agree on valid transactions, ordering, and the authoritative state of a blockchain or distributed ledger. |
| Decentralized Finance | Decentralized finance, or DeFi, refers to financial services delivered through blockchain-based applications and smart contracts, with substantial parts of transaction execution governed by software. |
| Distributed Ledger Technology | Distributed ledger technology, or DLT, is a set of technologies that allow multiple nodes or participants to share, synchronize, and update a common ledger under agreed rules. |
| Gas Fees | Gas fees are transaction charges paid for computation, data storage, or other use of network resources on blockchains that use a gas-based fee model. |
| Interoperability | Interoperability is the ability of separate blockchain, ledger, or payment systems to exchange information, assets, or transaction state in a coordinated and reliable way. |
| Layer 1 Blockchain | A Layer 1 blockchain is the base blockchain protocol that maintains its own consensus, ledger state, transaction ordering, and native settlement rules. |
| Layer 2 Scaling | Layer 2 scaling refers to protocols built on top of a base blockchain that process or aggregate transactions with less direct Layer 1 work while relying on the base chain for specified security, settlement, data, or dispute functions. |
| Node | A node is a computer or software process that participates in a blockchain or distributed ledger network by performing one or more functions such as receiving, verifying, storing, or relaying transactions and ledger data. |
| Oracle | A blockchain oracle is a mechanism that supplies smart contracts with data or computation originating outside the blockchain's native state. |
| Proof of Stake | Proof of stake is a family of blockchain consensus mechanisms in which participants' eligibility or influence in proposing, validating, or attesting to blocks is tied to cryptocurrency or other value committed as stake. |
| Proof of Work | Proof of work is a family of blockchain consensus mechanisms in which participants expend computational effort to compete for the right to propose blocks and extend the accepted transaction history. |
| Smart Contract | A smart contract is program code deployed to a blockchain or distributed ledger that changes ledger state according to predefined rules when it is invoked and the required conditions are satisfied. |
| Validator | A validator is a network participant with a defined role in verifying and contributing to consensus on transactions, blocks, or ledger state. |