Dictionary

A

ADA

Name of the denomination used in the cardano blockchain. The name comes from the name of the English mathematical writer Ada Lovelace.

 

1 ada = 1,000,000 lovelace  

Address

An address is a specific bank account number. It contains information about the ada owner, transaction exit, network type and current delegation preferences.

Asset

A set of binary data containing self-describing, uniquely identifiable with value.

B

Basho

The fourth phase of cardano development. This phase introduces performance improvements. Named after Matsuo Basho, the most famous poet of the edo period in Japan.

Bft

 

The Byzantine Generals problem describes the property of a network that resists the misuse or malicious operation of certain network elements without harming its overall health.

Block

The block is a container for records related to recent transactions. Each block contains not only a transaction record but also information about the previous block. Each new block is verified by the network and added to the end of the chain.

Byron

The first phase of the cardano network. Named after the British poet and politician Lord Byron.

C

Consensus

The process by which network nodes come to an agreement about the state and history of the network. Controlled stake is the total amount of cryptocurrency that is delegated to the Stake pool. It includes the pool owner’s own contribution and the value of the cryptocurrency delegated by delegates.

Cost per epoch

Ada-denominated fixed fee charged by the Stake Pool. The fee is deducted from the block reward for the previous age.

D

Dapp

A decentralized application (program) also known as a smart contract. The dapp application was popularized through the cryptocurrency ethereum but can now be used in many other blockchain platforms.

Daedalus

Daedalus is the official cardano wallet that allows you to send, receive, store and delegate ada. The daedalus wallet manages a full copy of the cardano Blockchain. Daedalus is a very convenient tool for novice users due to its friendly interface.

Delegation

 

Delegation is the operation of assigning a stake currently associated with the value stored in the ada portfolio to the Stake pool in order to obtain rewards for participation in the protocol.

E

Epoch

An epoch is a time period defined as the number of slots. In the cardano blockchain, the epoch consists of 432,000 slots and lasts about 5 days.

F

Fee

Each transaction has a commission for its execution. Commissions are used to prevent attacks against the network by introducing a large volume of transactions that would “clog” the network.

Fungible token

The term fungible token means a digital capital that is designed in such a way that part or all of it has the same value as another token. For example: 1 ada stored in user’s wallet “a” has the same value as 1 ada stored in user’s wallet “b”.

G

Goguen

Goguen is the third phase of cardano blockchain development. It introduces smart contracts. The name was chosen to honor the American computer scientist and professor Joseph Goguen.

H

Hard fork

A splitting of the chain that is so important that it isn’t backwards compatible with the previous way the blockchain works. An example of chain splitting is the transition from byron to shelley in the cardano blockchain.

I

Incentive

A way to encourage people to participate in the system by rewarding them with a profit proportional to their investment.

Interoperability

The ability to access and share information between different Blockchain networks without intermediaries.

L

Ledger

A distributed database that operates in a decentralized manner in the form of nodes located in numerous locations.

Lovelace

 

The smallest unit used in the cardano blockchain named after an English mathematician and writer Ada lovelace.

 

 

1 lovelace = 0.000001 ada

M

Marlowe

 

Marlowe is a programming language specific to building smart contracts on the cardano network.

N

Non-fungible token

Unique digital assets with ownership rights managed via blockchain that can represent assets such as trading cards, digital art, tickets to cultural events or physical assets. This token cannot be divided into smaller pieces.

O

Obft

 

Ouroboros protocol for the problem of Byzantine generals. 

Ouroboros

 

Ouroboros is a scientifically proven consensus protocol of the proof of the rate. Cardano blockchain uses ouroboros to ensure operation of the delegation, pool of stakes and prizes.

P

Plutus

 

A complete development platform designed for writing smart contracts using functional programming. Plutus is based on the Haskell language.

Produced blocks

 

The number of blocks the pool has forged during the current era.

Profit margin

 

Also known as “pool tax”. The profit margin is the percentage of the total award that the operator charges after the fixed fee has been deducted but before the awards are distributed to delegates.

Proof of stake

Proof of stake is a type of consensus mechanism that involves setting the rules by which blocks are added to the chain. Proof of stake is based on the amount of cryptocurrency that protocol participants have.

Protocol

Methods implemented on the blockchain network which are used to achieve consensus and verify transactions. Cardano uses the ouroboros protocol and its variants on its blockchain network.

R

Reward

The amount of ada contained in each new block that is paid to the pool and delegates as a reward for active participation on the Web.

S

Saturation

 

The point where the pot has more than the perfect stake share amount (> 1%). Causes rewards received from a forged block to disappear.

Securitization

Creating liquid securities backed by pool assets.

Security token

Digital assets that get value from external assets which can be traded. It often represents stocks, bonds or other income assets. Security tokens are subject to federal regulations and must be spent accordingly.

Shelley

The second phase of cardano development. In this phase Cardano becomes a decentralized network. The phase is named after Percy bysshe shelley, who is widely credited as one the greatest philosophical poets of the English language.

Slot

 

Period of time in an epoch. There are 432,000 slots in the epoch.

Slot leader

The slot leader is the pool that has been selected to create a block in that slot. The slot leader is chosen at the start of each epoch.

Soft fork

 

Soft Chain Break is a backwards compatible update that performs changes in the way cryptocurrencies work. This change does not conflict with existing blockchain rules.

Stake pool

Block-producing network node. Supports the joint stake of the different holders as if it belonged to one owner.

Stake Pool Performance

A measure of the performance of a stake pool expressed as a percentage of used opportunities (slots) to forge blocks assigned to the pool. For example, if the protocol has allocated a given pool Four (4) slots but only forged two (2) blocks, “performance” of this pool is fifty percent (50%).

T

Token

Convertible or non-convertible assets, which can also be used as a unit of payment, award or record of information.

Tokenization

Representation of assets as digital tokens.

Tps

 

Number of transactions that Blockchain can process in a second (Transactions per second).

Treasury

Some rewards from all eras are frozen and stored in the vault. The treasury reserves will be used to finance the future development of the network and its ecosystems. The current treasure takes twenty percent (20%) of the epoch.

U

Utility token

Token issued to finance project development which can later be used to purchase his goods or services.

Utxo

An amount of Cryptocurrency left in the wallet after execution of transaction.

V

Voltaire

The fifth phase of cardano development. In this phase Cardano introduces the concept of vault and decentralized network management. The name comes from a famous French writer and philosopher, Voltaire.

Y

Yoroi

A lightweight wallet based on a web browser in the form of chrome and firefox extensions. Supports hardware wallets.