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Blockchain and Cryptography

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Public Key

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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.

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Mining

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The process of verifying and adding transactions to the blockchain by solving cryptographic puzzles to create new blocks.

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Soft Fork

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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.

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Hash Function

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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.

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Confidential Transactions

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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.

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Proof of Work (PoW)

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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.

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Address

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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.

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Wallet

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A digital application that allows users to store and manage their blockchain-based assets, like cryptocurrencies, including their public and private keys.

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Block Header

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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.

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SHA-256

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A cryptographic hash function used in blockchain that outputs a 256-bit hash value, widely used for its security and speed.

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Proof of Stake (PoS)

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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.

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Symmetric Encryption

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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.

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Merkle Tree

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A data structure built from hash pointers which allows efficient and secure verification of the contents of large data structures like blockchain blocks.

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Decentralization

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The property of blockchain networks to operate without a central authority, using consensus and cryptography to maintain the integrity and security of the data.

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Digital Signature

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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.

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Nonce

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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'.

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Blockchain

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A type of distributed ledger technology where data is organized into blocks chained together through cryptographic principles.

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Merkle Root

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A single hash that represents the entirety of a Merkle Tree and is used to verify transaction data integrity within a blockchain block.

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Smart Contracts

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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.

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Consensus Algorithm

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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.

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Private Key

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A secret key used in asymmetric cryptography that allows the key owner to decrypt messages encrypted with their public key and create digital signatures.

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Transaction

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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.

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Bit Commitment

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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.

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Hash Collision

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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.

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Hard Fork

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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.

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Double Spending

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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.

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Elliptic Curve Cryptography (ECC)

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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.

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Zero-Knowledge Proofs

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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.

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Asymmetric Cryptography

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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.

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Cryptocurrency

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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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