Blockchain Terms

Blockchain Terms

Common Terms in Blockchain you should know and their meaning

Victory Chiamaka Wekwa
·Jul 9, 2022·

3 min read

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Table of contents

  • Common terms Used in Blockchain

Hello everyone, Welcome to the day two of my Crazy blogger challenge.

In this post, I will be writing about some common terms and words used in blockchain you should be familiar with.

If you missed my day one post, where I explained about blockchain, you can check it here.

Common terms Used in Blockchain

  • Contract Address : This is the address owned by the project and in which the project is created from.

  • Wallet Address : This is commonly referred as Address. It is a public Address that is owned by individual that is used to receive, send and carry out transactions. You should understand that for each wallet you have, you should have a different address. No two wallet has the same address. Example of address, 3ikgF93WM7oiCk3APBiyG8Xfmi7xzcLb486r2GEMiNjF, 0xAA86e2c2e39DB11ecbbE0f00eF97F1bF9dfcc65d.

  • Wallet : This is seen as the custodial of your coins or tokens. Just like you have your pockets and physical wallets, that is how this wallet works. It keeps all your tokens safe. They are different wallets and they can be gotten and installed from your App store or Playstore. You can still use this wallets in your browsers as extensions. Example, Trustwallet, Sollet, Metamask.

  • Private Key : This is often referred to as your passphrase or mnemonic phrase. It is very sacred, lol yes, and should not be shared. You are often given this in the process of getting a wallet. Usually 12 to 24 words or randomly generated letters and numbers.

  • Public Address : Same as your Wallet address, this can shared.

  • Gas fee : This is the payment made for transactions to happen in the blockchain. It is often referred to as Network fee.

  • Altcoin : This is usually a term used to describe other coins that is not Bitcoin ( The King of the all).

       Bitcoin price most times 
      controls the price of other 
     coins. So a term that 
     generally describe a coin that 
      is not Bitcoin is called 
       Altcoin.
    
  • Bitcoin: This term should be a popular one already. It is the first cryptocurrency coin that was ever created in 2009. The founder is Satoshi Nakamoto ( It is generally believed that this is not his real name, and the real name is unknown). Bitcoin is based on Proof of Work (PoW).

  • Cryptocurrency : This is often called Crypto , and they are digital currencies example, Ethereum, bitcoin, Sol, Near.

  • Exchange : This is a term used for a place where cryptocurrencies can be traded. Activities include general trading which involves buying or selling. Some examples are Binance, Kucoin, Okex. It is important to know that we have both the centralized and Descentralized exchanges.

  • NFT : A common term for Non - Fungible tokens. This are usually artworks like paintings, sculptures, or pictures that has value and can be exchanged digitally.

  • DAPP : Descentralized Application

  • Token : This is gotten from a coin. It is the smallest unit of a coin that can not be divided. Some examples of tokens are Blackpool, GTC, Muse Ethereum is a Coin and GTC is a token.

  • Coin : If you look at it you might think a token and a coin means the same thing. They could be described as same but technically they are not. So for the tech, we should try to describe them differently.

     A Coin has it's own blockchain 
       while a token is a sub of a 
         Coin.  Example , The Sol is a 
           Coin of the Solana 
           blockchain while Samo, 
       WOOF, Meanfi are tokens.
    

There are so many other terms and explaining all of them will make this Post very long.

Thank you for reading. Hope you have been able to get a hold of some of the terms often used in blockchain.

Feel free to ask me any questions, if you have.

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