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Blockchain and Cryptography
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Public Key
The publicly available part of a key pair used in asymmetric cryptography that lets anyone encrypt messages for the key pair's owner who has the corresponding private key.
Mining
The process of verifying and adding transactions to the blockchain by solving cryptographic puzzles to create new blocks.
Soft Fork
A backwards-compatible change to the blockchain protocol where only previously valid blocks and transactions are made invalid, often requiring only a majority of miners to upgrade.
Hash Function
A cryptographic function that converts an input of arbitrary length into a fixed-size string of characters, which is typically a digest that uniquely represents the input.
Confidential Transactions
A type of transaction that conceals the transferred amount, using cryptographic techniques, while still allowing the transfer to be verified as valid by the blockchain's consensus protocol.
Proof of Work (PoW)
A consensus algorithm in blockchain that requires miners to solve complex cryptographic puzzles in order to create a new block, which prevents spam and attacks on the network.
Address
A location on the blockchain where a user can receive, hold, and send tokens, often derived from the user's public key and presented as a string of alphanumeric characters.
Wallet
A digital application that allows users to store and manage their blockchain-based assets, like cryptocurrencies, including their public and private keys.
Block Header
Part of a blockchain block that includes metadata like the previous block hash, timestamp, nonce, and the Merkle root of the transactions in the block.
SHA-256
A cryptographic hash function used in blockchain that outputs a 256-bit hash value, widely used for its security and speed.
Proof of Stake (PoS)
A type of consensus mechanism in blockchain where the creator of a new block is chosen in a deterministic way, depending on the user's wealth, also known as stake.
Symmetric Encryption
A type of encryption where the same key is used for both encryption and decryption, typical for securing data at rest rather than in blockchain transactions.
Merkle Tree
A data structure built from hash pointers which allows efficient and secure verification of the contents of large data structures like blockchain blocks.
Decentralization
The property of blockchain networks to operate without a central authority, using consensus and cryptography to maintain the integrity and security of the data.
Digital Signature
A cryptographic technique that proves the authenticity and integrity of a message or document by using the signer's private key to create a unique signature.
Nonce
A number that blockchain miners are trying to find in order to create a valid block hash that meets the network difficulty level; nonce stands for 'number only used once'.
Blockchain
A type of distributed ledger technology where data is organized into blocks chained together through cryptographic principles.
Merkle Root
A single hash that represents the entirety of a Merkle Tree and is used to verify transaction data integrity within a blockchain block.
Smart Contracts
Self-executing contracts with the terms of the agreement directly written into code and stored on the blockchain, which automatically execute when conditions are met.
Consensus Algorithm
A protocol used in blockchain to achieve necessary agreement on a single data value or a single state of the network among distributed processes or multi-agent systems.
Private Key
A secret key used in asymmetric cryptography that allows the key owner to decrypt messages encrypted with their public key and create digital signatures.
Transaction
An action carried out on a blockchain that may involve cryptocurrency, smart contracts, or other data, which becomes immutable once verified and added to the ledger.
Bit Commitment
A cryptographic protocol that allows one party to commit to a chosen value while keeping it hidden to others, with the ability to reveal the committed value later.
Hash Collision
An unlikely situation in which two different inputs to a hash function produce the same output, this is mitigated in blockchain by using strong hash functions.
Hard Fork
A radical change to a blockchain's protocol that makes previously invalid blocks and transactions valid, or vice versa, requiring all nodes to upgrade to the latest version of the protocol software.
Double Spending
A potential problem in digital currency whereby the same single digital token can be spent more than once, blockchain technology is designed to prevent this through cryptography and consensus mechanisms.
Elliptic Curve Cryptography (ECC)
A type of public-key cryptography based on the algebraic structure of elliptic curves over finite fields that provides high security with smaller key sizes.
Zero-Knowledge Proofs
Cryptographic methods by which one party can prove to another party that they know a value x, without conveying any information apart from the fact that they know the value x.
Asymmetric Cryptography
A type of cryptography using a pair of keys (public and private) for encryption and decryption, which allows secure communication in open networks as seen in blockchain technology.
Cryptocurrency
A digital or virtual currency that uses cryptography for security and operates independently of a central bank, relying on blockchain for its transactions and ledger.
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