Terms which are using in Blockchain:-

 

We have so many terms presented on the internet. At the same, so much confusion was also presented. Especially in Blockchain, lots of people didn't get the thing presented here. According to a study conducted by Money magazine and Morning Consult, only one in four Americans can accurately explain what an NFT is.

This is one of the best examples of how people getting the terms and away from confusions. Let's see the short notes about Blockchain, NFT, Crypto..etc.

1) Blockchain
Blockchain is a thing that keeps or store the information and it makes a permanent record which makes impossible to hack, change the data. It's a digitally decentralized, distributed and transparent that exists in a network.

2) Cryptocurrency 
Cryptocurrency is a form of digital currency which can be used for exchange. This currency is exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.

3) DApps
DApps stand for decentralized applications and are applications that run on the blockchain or peer-to-peer computer instead of a single computer. DApps are any computer applications whose operation is maintained by a distributed network of computer nodes, as opposed to a single server.

4) NFT
Non-fungible simply means something which is unique and cannot be exchanged for another item. NFTs are like real-world items of some value. They are the kind of digital assets that can be bought and sold online, frequently with cryptocurrency. NFTs represent a whole entity and cannot be sub-divided into multiple pieces. 

5) DeFi - Decentralized finance

DeFi is a term for peer-to-peer financial services on public blockchains such as Ethereum, Solana and etc. Decentralized finance offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain.

6) DAO
DAO: Decentralized Autonomous Organization. Similar to an LLC the DAO relies on all its members to make decisions on the future. Members are token holders of the DApp.

7) Miners
Miners: Typically individuals, groups or companies that contribute computing power to run a network on proof of work coins like Bitcoin. They then receive a reward of a percent of a transaction for the use of their computing resources. 

8) Hashes
Hashes:- These one-way cryptographic functions are what makes it possible for nodes to verify the legitimacy of cryptocurrency mining transactions.

9) Consensus algorithm
Consensus algorithm:- This is a protocol within the blockchain that helps different notes within a distributed network come to an agreement to verify data. 

10) Oracles
Oracles:- These are entities that connect blockchains to external systems thereby allowing smart contracts to execute based upon inputs and outputs from the real world.