Glossary of Blockchain-banner-imageDictionary

Glossary of Blockchain


Address: Cryptocurrency address is like an investor’s private account address. Investors can share their general addresses and perform cryptocurrency transfers among themselves.

Airdrop: This term, which is used in the military in the sense of “delivery of aid from an aircraft”, is the name given to the free cryptocurrency distribution process that is carried out under certain conditions or unconditionally by project owners or companies that issue cryptocurrency.

API (AP-Application Programs): An interface created for a software to use its functions defined in another software.

ASIC (Application-specific integrated circuit): Chips that are designed to solve specific problems.


Blockchain: A structure in which every data to be processed is encrypted and stored in a structure called a block at certain intervals, in each new block there is a summary of the previous block, and all this data is stored in more than one data storage point.

Block Rewards: A kind of service fee paid to miners for each correct and valid block they approve.


Consensus: Each blockchain has a method of working, and these methods are called consensus. The most used consensus mechanisms are Proof of Work and Proof of Stake.


DDoS Attack (Distributed Denial of Service Attack): A malicious attempt to disrupt the infrastructure of a server, service or network with a stream of internet traffic.

Decentralization: A distributed structure resulting from storing data in multiple points and working with multiple validators.

Deterministic Wallet: A system of generating keys from a single starting point known as a seed. A user who has lost his main wallet can access it from the previously backed up deterministic wallet system that is built on a specific algorithm and seed.

Difficulty: The level of difficulty in which the network determines the required computing power for block generation in mining structures working with the Proof-of-Work model.

Digital Signature: In a sense, an electronic fingerprint. Digital signature, as a virtual encoded message, securely associates a signer to a document in a recorded transaction. It is a mathematical technique used to verify authenticity and integrity.

Double Spending: The attempt to transfer the same asset or token more than once at the same time. Even though it is rare, double-spending is a potential hazard on blockchain networks.


EIP (Ethereum Improvement Proposal): EIPs, or Ethereum Improvement Proposals, are proposals, which include proposals to be realized on the Ethereum network, put forward by developers.

ERC-20: This protocol standard, which stands for Ethereum Request for Comments, contains the rules and standards for creating tokens on the Ethereum network.

ERC-721: A free and open standard that explains how to create non-fungible or unique tokens on the Ethereum blockchain. While most tokens are fungible, all ERC-721 tokens are unique. While ERC-20 tokens are divisible, even the smallest unit of ERC-721 token is indivisible.

EVM: A virtual machine that is used to run applications developed on Ethereum.


Fork: Splits that occur as a result of conflicts, such as a disagreement on a project. These splits could be Soft or Hard.


Gas: The unit of fuel which is required to use the computation power on the Ethereum network. On the Ethereum network, gas is a must for any transaction to be processed.

Gas Fee: Each gas unit is called GWEI. GWEI is the easier to understand form of WEI. And WEI is the smallest Ethereum unit.

Gas Limit: The maximum limit a user is willing to pay for the computation power he wishes to use. According to the statement in one of the Ethereum prospectuses, each transaction must be worth at least 21,000 Gas.

Genesis Block: The first block processed on the network of a project.

Goerli TestNet: Launched in September 2018, it is the first cross-client Proof-of-Authority testnet that synchronizes Parity Ethereum, Geth, Nethermind, Hyperledger Besu (previously known as Pantheon) and EthereumJS. It is a completely open source, community-based project.


Halving: The process of halving the mining rewards in certain intervals in cryptocurrency projects operating with the Proof-of-Work protocol.

Hash: The process of encrypting a text, making it algorithmically unpredictable.


ICO (Initial Coin Offering): The term “initial” in Initial Coin Offering means the first issue of a coin to the public. In order to create resources, projects can offer tokens or cryptocurrencies that they have issued.


Mainnet: It means that a cryptocurrency project that does not have its own blockchain and runs on another network creates its own network.

Multi-Signature: Multi-Signature technology is used to collectively sign digital documents and cryptocurrency transactions by two or more users.


Node: Internet-connected computers that keep records of transactions on a blockchain, disseminate information to a network, and ensure the security and decentralization of a network. Non-Fungible Token (NFT): NFTs, which are unique tokens, can be created a certain number of times based on ERC-721. Therefore, they are unique and available in limited numbers. They are widely preferred for artistic activities on blockchain.


Private Key: All data records can be viewed in Public Blockchains. When performing a transaction on a blockchain, Public Keys can be shared with anyone and are visible as a sender or receiver in transfers. For this reason, the system signs the desired transaction with the help of a Private Key so that individuals can gain control over the data. In short, Private Keys are authorization keys that enable these transactions to take place.

Proof of Stake: A system created as an alternative to Proof-of-Work (POW), the original consensus algorithm in the blockchain technology that is used to confirm transactions and add new blocks to the chain.

Proof of Work: An algorithm-based mechanism that is used on a network by Bitcoin miners to confirm and authenticate transactions by adding a new block to a blockchain. This algorithm, which is run on a blockchain network, has been developed to confirm transactions, to generate new blocks to add to a chain and to prevent threats such as attacks and spam messages that may come from outside.

Protocol: Basically, it is a basic level of code that tells something how to work. The way each blockchain works is determined by a protocol.

Public Key: Cryptocurrencies are stored in accounts on blockchains. The concept of Wallets is actually connecting to a blockchain network and viewing data records, and all data records can be viewed on Public Blockchains. In this context, Public Keys are a type of key that can be shared with anyone and appear as a sender or recipient address in transfers.


Rinkeby: An Ethereum testnet.

Ropsten: An Ethereum testnet.


Scalability: The ability of a system to grow to meet increasing demand.

Smart Contracts: Contracts that present the terms of the agreement agreed by the seller and the buyer, in code strings, based on computer protocols. They are also defined as digital contracts running on blockchain.

Solidity: The programming language to write and implement Smart Contracts running on the Ethereum blockchain.


Testnet: Blockchains created by blockchain developers for testing purposes as an alternative before switching to MainNet.

Token: Cryptocurrency units of projects that do not have their own blockchains but operate on another blockchain network. For example, there are many projects and their tokens running on the Ethereum blockchain.


Wallet: Digital software that stores Private Keys that prove any digital asset is owned by an individual and sends and receives currency.