(adjective): Referring to a network or system where participants communicate and interact directly with each other, without the need for a central authority or intermediary.
Example: Peer-to-peer file sharing allows users to directly share files with each other without relying on a central server.
(noun): A cryptographic key that is openly available and used for encrypting data or verifying digital signatures. It is typically used in asymmetric encryption algorithms.
Example: When sending an encrypted message, the sender uses the recipient’s public key to encrypt the data, ensuring only the recipient can decrypt it.
(noun): A secret cryptographic key that is known only to the owner and is used for decrypting data or creating digital signatures in asymmetric encryption algorithms.
Example: To access their cryptocurrency funds, a user needs to possess the private key associated with their digital wallet.
Proof of stake
(noun): A consensus mechanism in a blockchain network where the creator of the next block is chosen based on the amount of cryptocurrency they hold and “stake” in the network.
Example: In a proof of stake system, individuals who own a larger share of a particular cryptocurrency are more likely to be selected to validate transactions and create new blocks.
Proof of work
(noun): A consensus mechanism in a blockchain network where participants (miners) must solve complex mathematical problems to validate and add new blocks to the chain.
Example: Bitcoin’s mining process involves miners competing to solve mathematical puzzles, and the first one to find the solution is rewarded with new bitcoins.
(noun): A set of rules and guidelines that define how data is transmitted and exchanged between devices or systems.
Example: The Transmission Control Protocol (TCP) is a widely used protocol that ensures reliable and orderly transmission of data over the internet.
(adjective): Referring to a system or network that allows anyone to join, participate, and interact without requiring explicit authorization or approval.
Example: Cryptocurrencies like Bitcoin operate on permissionless networks, allowing anyone to send, receive, or mine coins without needing permission from a central authority.