Blockchain and cryptocurrency technologies encompass an array of terms. Here are some important concepts you may come across;
Blockchain: A ledger that is decentralized and distributed, recording transactions across computers. It consists of blocks linked together with each block containing a list of transactions.
Cryptocurrency: A form of virtual currency that employs cryptography for security measures. Examples include Bitcoin, Ethereum and Litecoin.
Decentralization: The process of distributing control and data across a network of nodes reducing reliance on an authority.
Consensus Algorithm: A mechanism utilized to achieve agreement, among participants in the network regarding the state of the blockchain. Common consensus algorithms include Proof of Work (PoW) and Proof of Stake (PoS).
Wallet: Either software or hardware used for storing, managing and interacting with cryptocurrencies. It contains private keys, for secure transactions.
Public Key: A key employed to receive cryptocurrencies and verify ownership. It is derived from the key.
Private Key: A key used to sign transactions as evidence of cryptocurrency ownership. It must be kept secure.
Address: A combination of characters derived from the key, which is utilized for receiving cryptocurrency. It is commonly referred to as a wallet address.
Hash Function: A operation that takes an input (or 'message'). Produces a fixed length string of characters in hexadecimal format. Its purpose is to safeguard data and transactions, on the blockchain.
