Talk the Blockchain Talk
Do you struggle just to read an Article about bitcoin? Here we do our best do define basic terms and concepts that you can use as building blocks.
The original digital currency used to transfer value digitally without the risk of double spending. Created by anonymous person or group going by the name of Satoshi Nakamoto.
A database where all the information is stored across multiple access points instead of one central location. Each access point is a computer connected to the system. Since each access point contains all the data, the blockchain stands as a tamper-proof record of all transactions on the network, accessible to all participants. Cryptocurrencies are used to incentivize users to validate transactions across the blockchain.
Digital value based on the underlying blockchain technology that can be transferred securely. There is not a physical or digital representation.
The concept of no central location, but rather a collection of information distributed across various access points. Centralized vs Decentralized explained here: http://geoffmcdonald.com/examples-of-centralized-and-decentralized-organizations/
A cryptocurrency with the capability of being able to build custom apps through smart contracts. Some claim it is "the next Bitcoin," since it has the characteristics of a platform and cryptocurrency. The founder is Vitalik Buterin and was launched July 2015.
A place to exchange fiat currencies for digital currencies, and to trade across digital currencies. When you hear of Bitcoin being hacked, it's not the technology that's hacked, rather the exchanges. Examples of hacked exchanges include Bitfinex and Mt. Gox.
A long string of random numbers created upon encrypting a collection of data. The random number acts as an identifier to the data without a way to decipher the information. The same input will always create the same hash identifier. Bitcoin uses SHA-256 which is a 32 digit identification code.
An accounting term for a log of transactions, including debits and credits. Examples of ledgers include a check book or the list of transactions found on your online bank account.
The process of creating a digital currency. The process includes: 1. verifying transactions within the blockchain 2. bundle transactions in a block 3. link one block of data to the next block by way of a hash 4. solve the Proof of Work problem 5. add the block to the local blockchain. Once verified, 25 bitcoins is then added to the miners account.
A Process to verify a transaction is valid, which is critical to mining. A valid transaction is one in which the value has not been previously spent.
A set of conventions agreed upon for parties to communicate with each other to exchange data. IMAP is the protocol that enables emails to be sent and received. The rules involved in blockchain protocols center around transactions and blocks. Each cryptocurrency has a unique protocol.
Applications with a state stored in the blockchain. They can facilitate, verify, or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary. Smart contracts have been made possible on the ethereum platform. This has made Ethereum a competitor to BItcoin. This technology is what financial institutions are currently evaluating that could bring cryptocurrencies into the Enterprise.
A place to store you digital currency. Similar to a bank account. It is highly recommended to store your digital currency in your wallet instead of an exchange.