A transactional database where the changes in state are made by updating the difference from A to B. The transactions are bundled into blocks and cryptographically hashed to produce a unique signature. Blocks are arranged forward in time with the hash of the previous block included in the next block, this prevents tampering. Merkle tree data structures are used to efficiently store transactions and compute the current state from the root of the blockchain. Typically what is computed is the balance of an account.
A network designed to update a blockchain database. Distributed and decentralized are not prerequisites. Allows for the creation and tokenization of digital scarcity through consensus, game theory or mechanism design. Allows for the individual ownership, exchange and administration of cryptographically secured assets.
Network participants chosen by centralized entity, consortium or federation.
Open source and transparent, but permission to verify still needs to be granted by a central authority or governing body. Common in Delegated Proof of Stake (masternode) architectures. Includes consensus, game theory, mechanism design to produce digital scarcity facilitating a cryptocurrency or cryptoasset.
Public and permission-less blockchain networks are open source and transparent (e.g. Bitcoin) and produce a cryptoasset (e.g. bitcoin).
An emergent effect of game theory and mechanism design whereby the majority of the network achieves agreement on what the future state of the database should be. Often this is agreement on whether a block of transactions should be accepted and finalized.
A field of mathematics and economics studying the emergent effects of behavior in competitive situations. The choice of action for one participant depends critically on the actions of other participants.
The
A subset of economics specializing in market auctioning, price optimization. Related to mechanism design.
A field of game theory studying the design of the mechanisms that form a game theoretical situation. Most often one starts with the desired outcome and then works backwards to design the mechanisms to achieve this outcome.
The code and database of a blockchain network are available on a majority of devices responsible for verification of updaes to the database.
Decentralization favors individual sovereignty and ownership of capital assets, over rule by a small group of actors. Varying levels of decentralization are achieved through implementation.
Related to hardware or systems that form a network. How many systems can be removed while preventing a small group of actors from completely controlling a majority of the network.
How many individuals or organizations control the systems of the network. Are there enough sovereign individuals with differing political thought about the future of the network to prevent collusion and complete control.
What type of database is the network building? If the network were to split apart, could each piece continue to produce updates?
A field of study specializing in the protection of data using symmetric or asymmetric techniques.
A unique signature for provided data. A one way hash function (asymmetric) means data cannot be recovered given the signature.
A distributed database that may or may not be a blockchain.
A cryptographic practice for signing, encrypting and decrypting messages using public and private keys.
The receiving key of a PGP keypair. One can encrypt a message using a public key that may only be decrypted using the matching private key. A Public key may be the address on a blockchain network.
The sending or signing key of a PGP keypair. One can encrypt a message, signing, using a private key wherein the message can be identified as uniquely coming from the keypair using only the public key, without revealing the private key. Required to transfer cryptoassets on a blockchain network from the account connected to this keypair.
The receiving address on a public blockchain / cryptocurrency network
The product of a blockchain network designed to store a ledger, where account ownership is secured through cryptography.
(new) A catch-all encapsulation of cryptocurrencies, crypto-collectibles, crypto-securities, etc... Any digital or real world asset with individual ownernership secured by cryptography.
Assets are non-distinct. The ledger or maintaining data structure is a table of accounts and balances (e.g. cryptocurrency).
Assets are distinct. Crypto-collectibles (e.g. Crypto Kitties) are examples of non-fungible assets.
Cryptocurrency designed to facilitate payments and settlement within a blockchain network.
Cryptoasset designed to represent a unit of account to be exchanged for services on the blockchain network.
Cryptoasset representing a financial security. Commonly an
How cryptography secures the past transactions, transfer of assets, in the blockchain network. How auction theory, game theory and mechanism design secure and incentivize the future state of the blockchain. Should reward good behavior and punish bad behavior. Revenue generation is incorporated within the cryptoeconomic model.
The net value worth of a cryptoasset or token in a blockchain network. Emerging research points to net present value and discounted cashflow analysis when examining new assets. Total market capitalization points often to the quantity theory of money equation MV = PQ.
Let it be. Belief of value is dependent on the centralized issuer. Government, central, state issued currencies.
The exchange of a cryptoasset in exchange for another cryptoasset or FIAT currency.
The minting of a newly created cryptoasset.
The distribution of a newly created cryptoasset.
A safe note for future tokens or equity. A convertible note, legal contract specifying the price, time and amount of tokens to be received at the TGE or TDE. If the tokens are not delivered, a proportional share of equity in the company is awarded to the investor.
A list of approved investors, typically identity documents obtained following Know Your Customer (KYC) and Anti Money Laundering (AML) practices. Combined with obtaining an approved blockchain network address to contribute and/or receive cryptoassets.
A direct sale of a soon to be created cryptoasset for a fixed price. Typically discounted and only offered to accredited investors using a SAFTE in exchange for FIAT.
A public, early sale of a soon to be created or currently created cryptoasset. Typically discounted and restricted to whitelist participants only.
Open public sale or whitelist only sale of the cryptoasset at full price.