Chain reorganisation is a process that occurs in blockchain networks when two versions of the transaction history temporarily exist and the network must decide which one to continue building upon. This usually happens when miners find blocks at nearly the same time, creating competing chains. The network resolves this by choosing the longest valid chain,…
A cross-chain bridge is a technology that allows digital assets or data to move between different blockchain networks. It acts as a link, enabling users to transfer tokens or information from one blockchain to another without needing a central authority. This helps blockchains interact and work together, making it easier for users to access a…
A hot wallet is a digital wallet that is connected to the internet, allowing quick and easy access to cryptocurrencies or digital assets. It is convenient for frequent transactions, but it is more vulnerable to hacking because it stays online. A cold wallet, in contrast, keeps digital assets offline, usually using hardware devices or paper,…
A wallet seed phrase is a set of words, typically 12 or 24, used to create and recover a cryptocurrency wallet. This phrase acts as the master key that can restore access to all the funds and accounts within the wallet, even if the device is lost or damaged. Keeping the seed phrase safe and…
Gas fees are payments made by users to cover the computing power required to process and validate transactions on a blockchain network. These fees help prevent spam and ensure the network runs smoothly by rewarding those who support the system with their resources. The amount of gas fee can vary depending on network activity and…
Layer 2 scaling refers to technologies built on top of existing blockchains, such as Ethereum, to make them faster and cheaper to use. These solutions handle transactions off the main blockchain, then report back with a summary, reducing congestion and costs. This approach helps blockchains support more users and activity without changing the core system.
A Layer 1 protocol is the fundamental set of rules and technologies that make a blockchain network work. It handles how transactions are processed, how data is stored, and how computers in the network agree on what is true. Examples include Bitcoin, Ethereum, and Solana, which each have their own Layer 1 protocols. These protocols…
A consensus mechanism is a method used by computer networks to agree on a single source of truth, even when many participants are involved. It ensures that all records or transactions are accurate and trustworthy, preventing fraud or errors. This process is vital for systems like blockchains, where no central authority exists to oversee decisions.
Proof of Stake (PoS) is a method used by some blockchains to confirm transactions and add new blocks. Instead of relying on powerful computers to solve complex problems, PoS selects validators based on how many coins they own and are willing to lock up as a guarantee. This system is designed to use less energy…
Proof of Work (PoW) is a method used to confirm transactions and add new data to a digital record, like a blockchain. It requires computers to solve complex mathematical puzzles, making it difficult for anyone to tamper with the system. This process ensures that only those who put in computational effort can update the record,…