Blockchain Glossary (#B) Leo Pham
3 days ago · 32 min read
BABE Consensus Mechanism (Polkadot)
The Blind Assignment for Blockchain Extension (BABE) is one of the two central components of the hybrid consensus mechanism that Polkadot utilizes to secure and maintain its network.BABE is a mechanism for producing blocks, while its counterpart, GHOST-based Recursive Ancestor Deriving Prefix Agreement (GRANDPA), is a mechanism for finalizing the state of the blockchain.
Backdoor
A backdoor refers to any method that can circumnavigate regular authentication and authorization procedures to gain root or high-level access to a system, computer, application, or network.Backdoors are commonly installed through remote file inclusion (RFI), which identifies a weak component in an application or a network.This type of channel allows direct control over an infected device to manipulate data, deploy more malware, or create a zombie network of infected computers for criminal activity.
Back-End (Computing Architecture)
The back-end of a computer system or network refers to the portion of the system that is not displayed on the user’s screen, or front-end.Back-end developers normally make use of various programming languages like JavaScript, C, C++, and WebAssembly (WASM) along with other tools to create the back-end, or data access layer (DAL), of a computer system.In contrast, the front-end is the portion of the website or system that the user interacts with on the screen, also commonly known as the screen or graphical user interface (GUI).
Back-End Software Development
Back-end software development is the process of creating computerized systems that are not displayed on the user’s screen, or front-end.Back-end developers use various programming languages — such as JavaScript, C, C++, WebAssembly (WASM), and others — along with other tools to create back-end portions of the computer system, or data access layer (DAL).
In contrast, front-end software development is the process of developing the portion of websites that users directly interact with, like the screen or graphical user interface (GUI), which is often called the front-end.
Backtesting
Backtesting is the simulation of a trading strategy based on historical data.
Traders use backtesting to prove that their trading system works based on historical results.In trading and investing, past performance does not guarantee future results, which means a strategy that performs well in backtesting may not perform as well going forward.
Bag
Bag is a slang term that refers to particular crypto asset holding — typically referring to a higher-than-average quantity of the asset.While there is no specific universal threshold of exactly how many tokens or coins constitutes a bag, the expression generally distinguishes the different types of tokens or coins that are present in an investor’s portfolio.An investor may also refer to a relatively large holding of a cryptocurrency as a ‘heavy bag.’
Baiting
Baiting is a form of social engineering that exploits victims with false promises of financial gain.
Malicious actors, bots, or online ads ‘bait’ victims with quick payouts and riches in exchange, while the process to obtain it involves providing personal information or downloading software infected with malware.
Bakers
On the Tezos network, Bakers are nodes with the responsibility of producing new blocks, and are incentivized for their work with rewards in XTZ.Bakers are Tezos community members who possess a minimum amount of XTZ, and enough hardware and software expertise to run a baking node within the Tezos Proof-of-Stake network.
Through a process of token staked delegation, bakers may also produce blocks and earn rewards on behalf of non-Bakers within the Tezos ecosystem.
Baking
Akin to the process of staking in many Proof-of-Stake models, Baking is the process of adding new blocks to the Tezos blockchain.
The baking process involves adding, signing, and verifying new blocks, and depositing a specified amount of XTZ as collateral to guarantee honest behavior.
Balance Freeze Functionality
On the Ripple network, balance freeze is the function through which Ripple gateways freeze or halt transactions in order to prevent any abuse of the system for illicit activity.Balance freeze functionality is a powerful security feature that can only be applied to currencies issued on the Ripple network, and not on the XRP token itself.
Balancer
Balancer is a non-custodial portfolio manager and automated market maker (AMM) built on Ethereum that pools up to eight different tokens for users to trade.These Balancer pools are self-balancing weighted portfolios with specific parameters.The Balancer protocol allows all Ethereum accounts to add tokens to existing public pools or create their own private pools.
BAL Token
The BAL token is the governance token for the Balancer protocol.BAL tokens are earned by liquidity providers who supply tokens to Balancer pools.
BAL holders can propose and vote on changes to the protocol.
Bancor Network Token (BNT)
The Bancor Network Token (BNT) is the default reserve currency that powers the Bancor protocol.
The Bancor network is a decentralized exchange platform that uses pools of tokens called liquidity pools to facilitate peer-to-peer trading.Bancor liquidity pools must hold BNT, which acts as the intermediary token for every trade.For example: in order to trade DAI for ETH on Bancor, the protocol first exchanges DAI for BNT, then exchanges BNT for ETH.
As liquidity on the Bancor network increases, so does the value of BNT.
BandChain
BandChain is the name of the main network that allows the Band Protocol oracle system to operate.The BandChain allows entities to request data from application programming interfaces (APIs) or other traditional web services, facilitating the transfer of real-world data to a blockchain system’s online environment.BandChain is built to be compatible with most blockchain and smart contract development frameworks.BandChain pulls data from external sources, aggregates their data, and packages them into a format that can be used and verified efficiently across a multitude of blockchain types.
Bandwidth
Bandwidth is the amount of data capacity available for transactional throughput on a network.It is normally measured by the number of megabytes or gigabytes per second.If a network’s bandwidth limit is reached, the flow of data will become inadequate to handle the volume, and connections will slow down.
Bank for International Settlements (BIS)
The Bank for International Settlements (BIS) is an international financial institution based in Basel, Switzerland that is owned by numerous global and central banking stakeholders.Its purpose is to guide international monetary policy and administer financial cooperation, alongside serving as a bank for central banks and other international organizations.
Banking as a Service (BaaS)
Banking as a Service (BaaS) is a type of software platform that provides financial services.BaaS provides infrastructure for legacy banking systems to connect and share data with third party financial service providers to create new products.
BaaS can be thought of as the ‘middleware’ between legacy financial institutions and fintech start-ups.
BarnBridge
BarnBridge is a decentralized finance (DeFi) platform for tokenizing risks.By tokenizing risk exposure, BarnBridge can increase volatility for traders, or decrease it for more conservative investors.BarnBridge seeks to lessen the risk involved with joining the DeFi industry by supplying more predictability, thereby attracting a wider range of participants.
Base Currency
A base currency is the currency against which an exchange rate is Quote: d.
It is the first currency referenced in a currency pair.In the BTC/USD currency pair, which references the price of BTC in terms of USD, the base currency would be BTC, and the Quote: d currency would be USD.
Basic Attention Token (BAT)
The Basic Attention Token (BAT) was created to provide a more effective, fair, and transparent mechanism for connecting and rewarding internet users, advertisers, and publishers.In this digital advertising system, users are rewarded with BATs for their attention, publishers receive BATs based on user attention, and advertisers achieve higher ROI and better targeting.BAT was created by the same team behind the Brave Browser and is integrated into the Brave Browser.
Basket of Currencies
A basket of currencies (as they relate to blockchain) is typically a pool of tokenized real-world assets such as commodities, bonds, securities, and stablecoins that represent fiat currencies.Additionally, in the blockchain space a basket of currencies usually consists of Bitcoin, Ethereum and other large cap cryptocurrencies.In traditional finance a basket of currencies is simply a collection of multiple stocks or securities that are often from the same or similar asset classes.These baskets can be used for derivatives trading and for the function of financial instruments, and they are often managed by institutional investment funds, hedge funds, mutual funds, and exchange-traded funds (ETFs).
Beacon Chain
The Beacon Chain is the first stage of the launch of Ethereum 2.0, an upgrade to the Ethereum network.
The Beacon Chain introduces the Proof-of-Stake consensus mechanism to the network and allows ETH holders to stake their ETH and become validators in Ethereum 2.0.The Beacon Chain was designed to be the primary mechanism for coordinating data, users, and assets across the upgraded Ethereum network.It was launched on December 1, 2020.
Bear Flag (Technical Formation)
A bear flag is a technical charting pattern shaped like a flag that often signals bearish momentum and a decrease in price.Bear flags mimic the structure of a bull flag, only inverted.With a bear flag, the flagpole is formed during a significant drop in price that traders are often not expecting, while the flag itself is formed during a brief period of consolidation that usually signals a downward continuation in price.Bear flags, like all technical formations, can sometimes be negated and fail to produce the results they may have originally indicated.
Bear Market
A bear market occurs when the market experiences price declines, typically when prices fall 20% or more from recent highs.
A bear market is the opposite of a bull market.
Bear Trap
A bear trap is a form of market manipulation that can be carried out by wealthy investors working together to manipulate the price of an asset.By arranging to sell a large amount of an asset, like a cryptocurrency, at roughly the same time, a significant price drop occurs.This is intended to persuade other market participants to sell the same asset, resulting in a further price decline.Shortly afterwards, the initial sellers buy back in at a lower price, boosting the price upwards, only to then potentially sell the asset once again for more profit.
Behavior-Based Detection Method
Behavior-based detection methods are used by advanced malware protection programs to identify suspicious activity.The protection programs analyze and review code for potentially harmful behavior, network attacks, and the installation of rootkits and malware.
Benchmark Index
A benchmark index refers to a preeminent index security used as a measure, or benchmark, against which one can track performance of the wider market.Common benchmark indexes include the S&P 500, Nasdaq Composite, and Russell 3000.
BEP-20 (Binance Smart Chain Tokenization Standard)
BEP-20 is the tokenization standard used to facilitate transfer of ownership for Binance Smart Chain (BSC) assets operating on the Binance Smart Chain.
All BSC addresses are identical to their Ethereum ERC-20 address counterparts, meaning that Binance Smart Chain assets are interoperable with the Ethereum network.This is an important feature that allows for the transfer of tokenized assets and other data between Ethereum, Binance Smart Chain, Binance Chain (BC), and eventually between other blockchain protocols like Cardano and Polkadot, furthering the blockchain industry’s goal of interchain interoperability.
BEP-2 (Binance Chain Tokenization Standard)
BEP-2 is the tokenization standard which is used to facilitate the transfer of ownership for Binance Chain (BC) assets operating on the Binance Chain.
All Binance Chain addresses begin with the first three letters as bnb paying tribute to the token symbol for Binance’s main asset, Binance Coin (BNB).Binance Chain is one of two main blockchain networks built and designed by Binance — the other being Binance Smart Chain (BSC).
Beta Coefficient
In a traditional financial context, beta measures the volatility of an investment and is an indication of its relative risk.In contrast, alpha is a measure of the active return on an investment compared to a market index.Alpha and beta are two key coefficients that make up the capital pricing model that is utilized in modern portfolio theory.
Beta Version (Software Release)
A beta version is a test version of a software product that is still undergoing development.A beta version is typically released to a select number of public users outside the company to undergo beta testing.Feedback from this testing allows developers to see how to fix product issues and improve the product’s user experience (UX).A blockchain network beta version — such as a testnet or devnet — is typically an early version that must go through several stages of development and improvement prior to the public release of the final blockchain protocol.
Bid-Ask Spread
A bid-ask spread is the difference between the bid (buy) and ask (sell) price of a particular asset on an exchange.The bid price can be thought of as representing demand, while the ask price represents supply.
A large bid-ask spread is a sign of poor liquidity in a market.
Big Tech
Big Tech is the name given to the five largest companies in the information technology (IT) industry in the United States, and includes Facebook, Amazon, Apple, Google, and Microsoft.The members of Big Tech have become among the most valuable publicly traded companies in the world, with each having a market capitalization between 500 billion and two trillion USD.Because Big Tech has so much power and international influence, concerns have repeatedly been raised that their monopolistic business practices are too centralized and focused on excessive profit, mass surveillance, poor security and privacy, unreasonable advertising, and widespread data theft.
Binance Chain (BC)
Binance Chain (BC) was the first blockchain created by the world’s largest crypto exchange, Binance.Binance Chain supports the BEP-2 tokenization standard, helping to transfer BEP-2 assets between Binance Chain addresses.Binance Chain is one of the two main blockchain network protocols built by Binance, with the other being Binance Smart Chain (BSC).Both protocols are designed to interoperate with each other, ensuring the transfer of assets between chains, as well as facilitating the operation of many Binance products and services.
Binance Coin (BNB)
Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem and a top 10 cryptocurrency by market capitalization.
On the Binance exchange, users can pay for exchange fees like transactions, withdrawals, and listings in BNB and receive a discounted rate.BNB can also be used to participate in token sales on Binance Launchpad, its platform for hosting third-party Initial Exchange Offerings (IEOs).
In September 2020, Binance launched the Binance blockchain, upon which BNB can be staked to verify transactions and receive block rewards.
Binance (Cryptocurrency Exchange)
Founded in 2017, Binance is a cryptocurrency exchange that offers spot trading, staking, lending, borrowing, a non-fungible token (NFT) marketplace, and numerous types of derivative trading solutions, among many other services.Binance also built and operates two distinct blockchains: Binance Smart Chain (BSC) and Binance Chain (BC).
Binance Decentralized Exchange (DEX)
The Binance Decentralized Exchange (DEX) is a DEX built by Binance and designed to give traders and investors control of their private keys and investments without the need for a centralized intermediary.Binance DEX has very limited trading volume and available cryptocurrencies compared to the traditional Binance exchange, and operates using the Binance Chain (BC) blockchain.Binance Coin (BNB) is often required to make use of the Binance DEX because most of the trading pairs on the exchange are paired with BNB.
Binance Labs
Binance Labs is a social impact fund and initiative built to incubate, invest in, and facilitate the widespread adoption of various blockchain and cryptocurrency start-ups, projects, and entrepreneurs.
The mission of Binance Labs is to contribute to social impact causes around the globe and help grow the blockchain space by developing the knowledge base and skill sets of existing experts in the industry.
It also intends to increase the number of developers and technologists involved in the blockchain and crypto industry to further the adoption of blockchain technology.
Binance Launchpad
Binance Launchpad is a token launch platform owned by the Binance crypto exchange.
The platform helps blockchain projects raise funds by selling their tokens to Binance’s users.
Binance Smart Chain (BSC)
Binance Smart Chain (BSC) is a dynamic blockchain network built by Binance.It runs parallel to Binance’s other protocol, Binance Chain (BC), and makes use of the Proof of Staked Authority (PoSA) consensus mechanism similar to NEO’s Delegated Byzantine Fault Tolerance (dBFT) consensus.
The Binance Smart Chain is designed to transfer and exchange value with assets that use the BEP-20 BSC tokenization standard, instead of the BEP-2 tokenization standard that operates on Binance Chain.BSC is interoperable with other major blockchain networks and is characterized as being extremely fast and secure.
Binary Code
Binary code is a representation of text, computer processor instructions, or any other type of data using a two-symbol system, usually “0” and “1” from the binary number system.Binary code is used to assign a pattern of binary digits, or bits, to each character or instructional format, such as a binary string of eight bits which can denote any of the 256 possible values to represent a far-ranging variety of diverse items.Binary codes are typically used for different ways of encoding data from one format to another, such as from character strings to bit strings.
Bitcoin
Bitcoin is a blockchain network with a native cryptocurrency (bitcoin).
It is the first blockchain and cryptocurrency, hence its dominant presence within the broader crypto ecosystem.Bitcoin was established in 2009 and pioneered Proof of Work, a technology for reaching consensus on a decentralized network.
bitcoin (BTC)
Bitcoin (BTC) is a cryptocurrency that can be directly transmitted between users on the Bitcoin network.It is spelled with a lowercase B, as compared to the Bitcoin network, which is denoted with an uppercase B.
Bitcoin Cash (BCH)
Bitcoin Cash is a hard fork of the Bitcoin Network that serves as an electronic cash payment system.Its cryptocurrency, BCH, was designed to be a more practical cryptocurrency for everyday transactions than BTC.
Bitcoin Cash’s increased block size encourages use as a payment system rather than as a store of value.
Bitcoin Core
Bitcoin Core is the main implementation of the software that allows users to interact with the Bitcoin blockchain network.Bitcoin Core was initially created by Satoshi Nakamoto, but is not owned by any single entity, business, or organization.Nevertheless, it is updated, maintained, and reviewed by a global community of software engineers and computer scientists.
By running the Bitcoin Core code, a user acts as a node on the network that can independently verify the validity of block creation on the network and transactions sent by the network’s users.
Bitcoin Dominance (BTCD)
Bitcoin dominance (BTCD) is a metric that measures the market cap of bitcoin (BTC) — the world’s largest cryptocurrency — in relation to the total market cap of all other cryptocurrencies combined.BTCD is often perceived to have a correlation to the performance of Ethereum and all other alternative cryptocurrencies, or altcoins.Generally, when BTCD decreases, the value of other cryptocurrencies increases in what is sometimes referred to as an “alt season.” However, when BTCD increases, BTC tends to outpace other cryptocurrencies.
Bitcoiner
A Bitcoiner is holder of bitcoin and an active proponent of the Bitcoin network.Bitcoiners typically believe that bitcoin is the most important and significant digital asset available.
Bitcoin Genesis Block
The first block mined on the Bitcoin blockchain, called the genesis block, was mined on January 3, 2009 by Satoshi Nakomoto, the creator of Bitcoin.Satoshi also encoded a message in the genesis block that read, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This is a reference to the global financial crisis of 2007–2009.
It is hypothesized that Bitcoin was created to avoid the exploitation of the global banking system.
Bitcoin Improvement Proposal (BIP)
A Bitcoin Improvement Proposal (BIP) is a code change introduced to improve the Bitcoin protocol.A BIP can be submitted by anyone to be evaluated and reviewed.
Significant BIPs include BIP 32, BIP 39, and BIP 44.
Bitcoin Improvement Proposal (BIP) 32
Bitcoin Improvement Proposal (BIP) 32 established the standard for hierarchical-deterministic (HD) wallets, a technical improvement over earlier wallets that only had random key pairs.BIP 32 allowed for the creation of a hierarchical tree-like wallet structure with more advanced cryptographic security mechanisms.HD wallets are defined by a master key pair at the top of the hierarchy that “determines” all the private key and key pair access codes below it in the access hierarchy.
Bitcoin Improvement Proposal (BIP) 38
Bitcoin Improvement Proposal (BIP) 38 enabled wallet holders to encrypt Bitcoin private keys with a password to offer an extra layer of protection.An encrypted private key requires that a user hold both the private key and the password in order to access wallet funds.This makes private key management a critically important step, where BIP 38 is commonly used for paper wallets and other analog devices for security purposes.
Bitcoin Improvement Proposal (BIP) 39
Bitcoin Improvement Proposal (BIP) 39 allows for the generation of a human-readable 12–24 word recovery phrase for hierarchical-deterministic (HD) wallets.With the recovery phrase, users can regenerate an HD wallet that has become lost or damaged.
Because they hold such access, BIP 39-enabled recovery phrases should be kept secret and stored securely.
Bitcoin Improvement Proposal (BIP) 44
Bitcoin Improvement Proposal (BIP) 44 improves on BIP 32’s hierarchical-deterministic (HD) wallet structure by creating a specific hierarchy that allows for multiple accounts to be held on the same wallet.
BIP 44 allows two or more separate accounts on the same wallet to hold the same cryptocurrencies in different amounts.These separate accounts can be used for different purposes and coexist in a way similar to checking, business, and savings accounts at legacy banks.
Bitcoin Network
The Bitcoin network is a peer-to-peer, decentralized network that allows users to send units of value to each other without any intermediary or bank.The term “Bitcoin” with a capital B denotes the network, while the term “bitcoin” with a lowercase B denotes the network’s native cryptocurrency.
Bitcoin Next Generation (Bitcoin-NG)
Bitcoin Next Generation (Bitcoin-NG) is a Byzantine Fault Tolerant (BFT) blockchain protocol proposed and built by the founder of Ava Labs, Emin Gün Sirer, and several other leading computer scientists in an attempt to combat the perceived scalability and block size inefficiencies of the original Bitcoin network.Distinct versions of Bitcoin-NG have been implemented into the Waves and Aeternity blockchain protocols, but the Bitcoin-NG network has not released its own cryptocurrency.
Bitcointalk
Bitcointalk is an internet message forum that was launched by pseudonymous Bitcoin creator Satoshi Nakamoto in 2009 to host discussions about Bitcoin, blockchain, and cryptocurrency.It became the meeting point for the embryonic blockchain industry, and was the site of the first bitcoin purchase: 10,000 BTC in exchange for two pizzas.Bitcointalk is still in operation today, fostering discussion and community between 450,000+ developers, investors, miners, programmers, and enthusiasts.
BitLicense
The BitLicense is a business license for virtual currency activity that crypto enterprises must obtain before operating in the state of New York.BitLicenses are issued by the New York Department of Financial Services (NYDFS), and primarily regulate the commercial receipt, storage, and transfer of digital assets.
Only 25 have been granted as of 2020, while recipients include Circle, Coinbase, Robinhood, and Square.Businesses chartered under New York banking law such as Gemini are not required to hold BitLicenses.
Bitstream
A bitstream is a stream of data (bits).
A bitstream may refer to the transmission — or storage — of this data.The term bitstream is commonly used to describe the data loaded on a field-programmable gate array (FPGA).A bitstream for an FPGA miner configures the FPGA to mine the coin or algorithm it was designed to mine.By downloading a different bitstream, it’s possible to reconfigure the coin or algorithm the FPGA miner is optimized for.
BitTorrent Protocol
BitTorrent is a peer-to-peer (P2P) file-sharing protocol that enables users to freely share data and large files over the internet, such as movies, programs, and audio files.
BitTorrent Token (BTT)
BitTorrent Token (BTT) is a TRC-10 token that is used to incentivize file seeding in the BitTorrent Speed client of the BitTorrent protocol, a peer-to-peer (P2P) file-sharing protocol that enables users to freely share data and large files over the internet.
Black Swan Event
A black swan event is a large-scale global event that cannot be predicted, occurs suddenly, and typically has a drastic negative impact on the global economy.Examples of black swan events include the attack on the World Trade Center on September 11th, 2001, as well as the COVID-19 pandemic.When markets are affected by black swan events, it can take a significant amount of time for them to recover.
Block
On a blockchain, a block is the data record of all transaction information made during a specific timeframe on its network.
Blocks are added sequentially to a network’s chain of data, which in turn make up the public ledger known as blockchain.For example: A Bitcoin block contains information about the date, time, and number of transactions, as well as signature information regarding the origin and destination of the transfer.Blocks must be confirmed by the network via a process of consensus before a chain can continue transacting and creating new blocks.
Blockchain
A blockchain is a public ledger of transactions that is maintained and verified by a decentralized, peer-to-peer network of computers that adhere to a consensus mechanism to confirm data.Each computer in a blockchain network maintains its own copy of the shared record, making it nearly impossible for a single computer to alter any past transactions or for malicious actors to overwhelm the network.Sufficiently decentralized blockchains do not rely on centralized authorities or intermediaries to transact globally, securely, verifiably, and quickly, making technology like cryptocurrency possible.
Blockchain Transmission Protocol (BTP)
The Blockchain Transmission Protocol (BTP) is ICON network’s proprietary interoperability framework.It allows independent blockchain networks to connect and exchange data.
BTP facilitates the transfer of information and tokenized assets between ICON and external blockchain systems.
Blockchain Trilemma
The Blockchain Trilemma refers to the challenge in achieving a balance between scalability, decentralization, and security in a blockchain network.While scalability refers to the speed and volume of transactions, decentralization refers to the distribution of network nodes, and security refers to the integrity of the system from compromise.
The Blockchain Trilemma states that an equal prioritization of all three factors at once is impossible — so a trade-off must be made with one.It remains an ambition of blockchain technologists and entrepreneurs to solve the trilemma with greater effectiveness in the design of any network, update, or application.
Block Difficulty
Block difficulty refers to the complexity of computation required to mine new blocks in a Proof-of-Work (PoW) blockchain environment.Block difficulty is a configurable aspect of a blockchain protocol, and can be used as a mechanism to stabilize block production times in accommodating challenges like transaction speeds and network capacity.
Block Explorer
A block explorer is a software interface that enables users to access real-time blockchain information like transactions, blocks, addresses, nodes, and balances on a particular network.Operating as web browsers for blockchains, the many free-to-use and open source block explorers are essential in providing for global transparency and democratized access to blockchain networks.
Block Header
A block header is a mechanism that is used to identify individual blocks that have been created within a blockchain network, with each block having its own individualized header to help keep track of changes in the protocol.
Blocks are layered in sequential order beginning with the genesis block and each block header contains three sets of block metadata and other individualized components.
Block Height
Block height is a measurement of the number of blocks that came before a particular block in a blockchain network.Every block possesses a unique block height value — essentially a number that marks its chronological order in the blockchain.The genesis block (the very first block ever created on a blockchain network) has a block height of zero, meaning that no blocks were created before it.Block height is a critical measurement of the rate that new blocks are added to a blockchain and also acts as an identifier for each individual block in the network.
Block Lattice
Block lattice is the Directed Acyclic Graph (DAG)-based data structure and consensus mechanism that the Nano protocol makes use of.
Nano’s block lattice structure allows individual accounts on the Nano protocol to control their own blockchain and for blocks to be added very quickly to help enable extremely fast, feeless network confirmations.
Block Producer
On most Proof-of-Stake (PoS) blockchains, a block producer is an individual or group whose hardware is chosen to validate a block’s transactions and initiate the next block.The term originated within blockchain ecosystems that utilize Delegated Proof of Stake (DPoS), where users elect block producers to validate and add blocks.Other names for block producers are ‘delegates’ or ‘witnesses.’
Block Reward
A block reward is the payment awarded to a blockchain network miner upon successfully validating a new block.Typically paid out in the native asset of its network at a fixed, but regressive rate, block rewards are often the only source of new currency creation on a network.
They provide a key element of the incentive structure that keeps blockchain networks operating in a decentralized fashion.In Proof-of-Work blockchains like Bitcoin, block validation and block rewards are the remit of miners.In newer models like Ethereum’s upcoming Proof of Stake, the block reward is paid to the collateral staking validator nodes.
Block Size
Blockchain network protocols are made up of blocks of data that are processed in a perpetually updating chain-like structure — hence the term “blockchain.” Each block stores transactions sent on the network of a specific size or specific time-period as set by the governance of the particular blockchain.
Block Time
Block time refers to the amount of time it takes for a new block to be added to a blockchain.In theory, each blockchain network defines its own expected block time, which can vary from several seconds to minutes.
Bitcoin, for example, aims to have a block time of 10 minutes.
In reality, block times can vary from their predetermined goals.If a network is producing blocks faster or slower than its expected block rate, the block difficulty can be adjusted in an effort to recalibrate the system.
Block Trade
A block trade is a large purchase or sale of securities executed outside of an open marketplace.Because the size of the transactions are quite large, block trading is typically done by institutions and hedge funds.The private nature of block trading makes them similar to over-the-counter (OTC) trading.
Blockweave
Created by the team behind Arweave, the blockweave is a blockchain-like data structure.Each block in a blockchain is linked to the block that preceded it.
In a blockweave, each block is linked to both the block that preceded it and a recall block — a block from the earlier history of the blockweave.
Bloomberg
Bloomberg L.P., which is headquartered in New York City, is one of the largest financial services enterprises in the United States.Bloomberg offers numerous products and services to its customers in a variety of industries including financial markets, politics, radio, news, television, tax, law, data and analytics, and more.Bloomberg was founded in 1981 by businessman and former New York City mayor Michael Bloomberg and three of his associates.The company has offices in more than 160 countries worldwide and has about 19,000 employees globally.
Bloomberg Tradebook
Bloomberg Tradebook, which is a division of the globally known U.S.-based financial firm Bloomberg L.P., is a trading and investment platform that makes use of analytics, an order management system, and quantitative data to optimize trading execution and trading fees.
The system is directly affiliated with U.S.banking giant Goldman Sachs and their related trading products and services, and is typically used only by large institutional investment firms with large amounts of capital.
Bollinger Bands
Bollinger Bands are a technical analysis device created by trader John Bollinger in 1983 that have become one of the most popular tools used by traders today.
Bollinger Bands use moving averages and standard deviation to create a range of price movements.On a trading chart, Bollinger Bands are visually represented by a centerline based on a moving average, with a band below and above the centerline based on standard deviation.Bollinger Bands can help indicate if prices have moved outside of the range of historical deviation, and can be used to identify a number of market scenarios in real time.
Bonding
Bonding is a process nearly identical to staking on a Proof-of-Stake (PoS) network where a user locks a predefined amount of the network’s underlying token into a node to help the network maintain consensus.By bonding, users signify to the network that they are trusted participants that accepts the rules and regulations of the network.
Some consider the only difference between bonding and staking to be that ”staked” tokens are susceptible to penalization from the network should they act in a malicious manner, while others consider the processes to be exactly identical.
Bonding Curve
Bonding curve smart contracts represent a method for nurturing balanced supply and demand for a token.A bonding curve is a mathematical concept used to explain the relationship between the price and supply of an asset.Bonding-curve smart contracts allow tokens to be sold to investors by calculating the token price in an asset (such as BTC) and issuing the asset after payment, while also allowing investors to retain the ability to buy the asset back and pay with bitcoin.In both cases, the smart contract determines the average price and bases the rate off the data.Through a bonding curve contract, when a user purchases an asset that is limited in quantity (for example, BTC), each subsequent buyer must pay slightly more for the asset.
As time passes, the total available asset units decrease, thus increasing the price of each individual asset.
Boneh–Lynn–Shacham (BLS) Signature
A Boneh–Lynn–Shacham or BLS signature is a cryptographic signature mechanism that allows a user to verify that a signer is in fact legitimate.BLS makes use of a bilinear pairing for verification, and its elliptic curve group properties help defend against specific attack types such as index calculus attacks, thus allowing for shorter signatures than Full Domain Hash (FDH) signatures with a comparable level of security.Elrond makes use of BLS technology to allow the system’s Secure Proof of Stake (SPoS) consensus mechanism to randomly select nodes within shards to achieve validator selection finalization within 0.1 seconds.
Bootstrapping
Bootstrapping generally refers to how some startups build their business from the ground up, often with a small amount of capital supplied by the company’s founder.
Most startups face challenges related to funding, manpower, and resources — any and all of which can make it extremely hard to be profitable early on.In a blockchain context, bootstrapping often entails the process of building the blockchain protocol, creating the ecosystem’s tokenomic and governance structure, as well as planning the token sale and future funding to ensure ongoing growth.The term bootstrapping comes from an early 19th-century expression “pulling up by one’s own bootstraps,” implying an impossible feat.It later became a metaphor for achieving success without outside assistance.
Borderless
The term borderless in a blockchain context refers to the industry and its underlying blockchain protocols being designed to provide services to an international global user base.This means that no matter an individual’s location, the services provided by blockchain networks are always available.Borderless blockchain technology provides users the freedom, accessibility, security, and privacy to transact from any geographical location.
Bor Nodes
Bor Nodes are used to facilitate block production on side chains while simultaneously maintaining connection to the Ethereum Virtual Machine (EVM).
They have the capability to eventually increase transactional throughput to 65,000 transactions per second (TPS).Bor Nodes are also periodically shuffled via committee selection using Heimdall Nodes (a large group of Ethereum validator nodes) in segments known as spans.
Spans are specifically defined sets of blocks that have been chosen as a validator out of many potential validators.Each validator in a specific span contains voting power.The strength of that power determines block producer selection, with the more powerful spans having a higher probability of being chosen.
Botnet
A botnet is a collection of internet-connected devices that have been infected by malware, enabling malicious actors to control the devices.Infected devices are oftentimes controlled remotely and without the legitimate device owner’s knowledge.
Botnets are often composed of a variety of device types and used by cybercriminals to carry out a broad range of orchestrated online attacks such as credentials leaks, data theft, and DDoS attacks.
Bounty
A bounty is a reward or series of rewards advertised by a blockchain project to incentivize community participation to promote the project.Bounties are marketing strategies that give community participants tokens in exchange for fulfilling specific predetermined tasks, like sharing the project on social media.Most commonly carried out during a start-up’s Initial Coin Offering (ICO), bounties can occur at any time of a project’s development.Crypto bounties are used to reward social media promotion campaigns, content creation campaigns, translation campaigns, as well as bug auditing, among other tasks.
Brain Wallet
A brain wallet refers to a crypto private key or seed phrase that has been memorized by its owner.Although memorized accounts are immune to online hacks and physical theft, they are susceptible to being forgotten, or lost upon the holder’s death.Brain wallets are not recommended as a secure crypto wallet option.
Brave Browser
The Brave browser is an open-source, privacy-focused web browser developed by the same team that created the Basic Attention Token (BAT).
It is the first web browser to implement the BAT system.The Brave browser, in combination with BAT, rewards users for viewing advertisements in a transparent relationship between advertiser, publisher, and user.
BRD
BRD is a cryptocurrency wallet and financial services platform that aims to accelerate mainstream adoption of cryptocurrencies by simplifying the processes of purchase, conversion, and storage.On BRD’s mobile app, users can purchase leading cryptocurrencies, along with BRD tokens (BRD), a native asset that receives rewards and discounts that improve according to a user’s BRD holdings.
Bread Rewards
The Bread Rewards program provides incentives to Bread platform users for engaging in network-beneficial activity like maintaining a wallet balance above a certain threshold, or posting on social media.
Bread Rewards was one of the first customer loyalty programs in the cryptocurrency wallet space.
Breakdown
A breakdown is a trading pattern that follows a downward move in an asset’s price, often through an identifiable level of support and further below.A breakdown is characterized by heavy volume, a rapid decline, and severe magnitude.Breakdowns can be identified by technical indicators like charting patterns, trendlines, and moving averages.
Breakout
In technical analysis (TA), a breakout is a technical pattern that forms on a chart when an asset moves above a resistance level or below a support level.The price of an asset will often continue trending in the direction of the breakout.When a breakout is accompanied by high trading volume, it signifies a higher chance the asset will continue trending in the same direction, as opposed to a breakout with low trading volume.A price breakout sometimes occurs as a result of a channel, range, or pattern such as a flag, wedge, triangle, or head and shoulders.
Bridge
A bridge allows independent blockchains to communicate with each other.On the Polkadot network, a bridge is used to attach parachains and the main Relay Chain to other external blockchain networks such as Bitcoin and Ethereum.
Polkadot data transmits from its main Relay Chain to parachains, attached to which collator nodes assemble all the transactions.Collator nodes communicate via a bridge to connect to external blockchain networks.
Broadcaster
On the Livepeer network, Broadcasters are nodes that send video streams to the network for transcoding.
Brokerage Account
A brokerage account is a financial service created and managed by a licensed brokerage firm on behalf of an investor to interact with assets and markets.Account holders can either make trades themselves, or the firm can make them on behalf of account holders.In all cases, the assets purchased through the brokerage account belong to the account holder.
Brute Force Attack
In a brute force attack, an attacker attempts to gain access to an account by systematically trying all possible combinations of passwords and passphrases that may apply to the account, with the goal of eventually guessing the correct credentials.While brute force attacks can be computationally intensive, time-consuming, and difficult to pull off, they can correctly guess a weak password within a few seconds.A strong password can deter most brute force attacks.
Bubble
A bubble occurs when an asset rises to extremely inflated prices and then comes crashing down, settling at a level that’s far less than its original price — typically a drop of 75% or more.It is usually possible to identify a bubble only after it has burst, and the price recedes.
A speculative bubble is characterized by both the rise and fall occurring within a very short period.
Bug Bounty
A bug bounty, sometimes called a vulnerability rewards program (VRP), is an initiative that blockchain or software development enterprises may offer to external developers to incentivize the proper reporting of potential problems in the computer code that makes up their network protocol or platform.Bug bounties typically offer financial rewards to successful auditors of computer code.In the blockchain field, these rewards often come in the form of the network’s underlying cryptocurrency asset or token.
BUIDL (Build)
BUIDL is a slang term for ‘build,’ that was derived similarly to the slang word for ‘hold,’ HODL.BUIDL is a call to arms to members of the blockchain and crypto community to help improve widespread adoption of the technology by contributing to the long-term construction of blockchain infrastructure.BUIDLing can be in the form of protocol or application development, writing blockchain related content, sharing blockchain info on social media, using smart contracts, trading on exchanges, making use of wallets, playing blockchain games, or any activity that contributes to the expansion of blockchain over the long term.
Bull Flag (Technical Formation)
A bull flag is a technical charting pattern shaped like a flag that often signals further bullish momentum and an increase in price.With a bull flag, the flagpole is formed during a significant rise in price where buyers significantly outperform sellers, while the flag itself is formed during a consolidation period that usually signals a continued price increase.Bull flags, like all technical formations, can sometimes be negated and fail to produce the results they may have originally indicated.
Bullish
The term “bullish” can be used to describe how positive or optimistic a person feels about a particular asset.
Someone who is bullish on bitcoin believes the price of bitcoin will increase.A person who is bullish on bitcoin may also be referred to as a bitcoin “bull.”
Bull Market
A bull market refers to an upward trend in prices for an extended period of time.As of 2020, bitcoin has undergone three bull markets.The opposite of a bull market is a bear market.
Bull Run
A bull run is a specific time period in a financial market cycle during which asset prices can experience a significant upward trend.A bull run is similar to a bull market, while the opposite of a bull market is a bear market, during which assets can experience a substantial drop in price.
Bull Trap
A bull trap is a market signal that signifies an initial recovery in the price of a declining asset, followed by a further decline.Bull traps are sometimes carried out by investors with substantial amounts of capital who open a short position prior to selling a large amount of the asset so it drops in price on purpose, thus giving the investors a substantial profit as a result.
This scenario could be an example of a type of market manipulation.
Burn/Burning
The process of “burning” tokens is employed by many blockchain networks to incentivize network users to buy and invest in protocol-specific tokens.Usually intended as a counter-inflationary mechanism, burning tokens decreases the overall total token supply, theoretically increasing the value of the underlying asset.
BUSD Stablecoin
Binance U.S.dollar (BUSD) is the main digital stablecoin developed and employed by the world’s largest exchange platform, Binance.BUSD is pegged at a 1:1 ratio to the U.S.dollar and was initially deployed on the Binance Smart Chain (BSC) and Binance Chain (BC) blockchain protocols.However, BUSD is also interoperable with other blockchains such as Ethereum, and can be used for various decentralized finance (DeFi) applications and to transfer value between blockchains.As of May 2021, BUSD is the 3rd largest USD-pegged stablecoin in the world with a market cap of approximately $7 billion USD.
Business as a Service (BaaS)
Business-as-a-Service (BaaS) is defined as the third-party creation and management of cloud-based network infrastructure for enterprises that want to create and run customized cloud-based business applications.Business-as-a-Service in the blockchain space is sometimes called Blockchain-as-a-Service (BaaS), meaning that the customized software and computing structure of the business is specifically designed for enterprises building numerous types of blockchain applications.
Blockchain-as-a-Service functions similar to a web host running the back-end operations for a blockchain-based application or platform.For example, VeChain’s ToolChain platform could be classified as either of the solutions discussed above.
Business Logic Layer (BLL)
Within a programming context, the business logic layer (BLL) determines how data a software program interacts with can be created, altered, and stored.The business logic layer coordinates data between the program’s user interface (UI) and data access layer (DAL), although in some programs the UI interacts directly with the DAL.
Business-to-Business (B2B)
Business-to-business (B2B) is a business model which is employed by enterprises that do business between one another, often in the form of value or information exchange.The B2B model can be leveraged in a traditional brick and mortar context, but is often used on the internet for the purposes of e-commerce or e-business.
B2B, whether carried out online or traditionally, is one of four main business models alongside business-to-consumer (B2C), consumer-to-business (C2B), and consumer-to-consumer (C2C).
Business-to-Consumer (B2C)
Business-to-consumer (B2C) is a business model utilized by enterprises to provide products and services directly to their customers.The B2C model can be leveraged in a traditional brick and mortar context, but is often used on the internet for the purposes of e-commerce or e-business.B2C, whether carried out online or traditionally, is one of four main business models alongside business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C).
Buy Side/Sell Side
Buy side and sell side refers to the buyers and sellers in a market who are connected by an order management system (OMS).The buy side is typically fund managers whose job is to pick high-alpha securities for their portfolios.The sell side is typically trading floors at investment banks.Rapid and concurrent trades between the buy side and sell side are facilitated by advanced OMS technology protocols.
Buy the Dip
‘Buy the dip’ or ‘buying the dip’ is an expression that is used in the cryptocurrency space to signify that a price dip is occurring or about to occur, and that it represents a buying opportunity.
In this sense, a dip is seen as a short-lived flash sale or discounted price that should be taken advantage of.Buying the dip is often regarded as a strong strategy for investors who are holding an asset over the long term with the hopes of reducing their average entry price through a dollar cost averaging (DCA) investment strategy.
Buy Wall
A buy wall occurs when a large limit order is placed at a specific price level to buy a large amount of an asset.When a buy wall is placed, the result is often a strongly maintained price equilibrium that doesn’t drop below the targeted price.Buy walls, like sell walls, can be used to manipulate the price of markets.
Buy walls can be implemented to prop up the price of an asset to make it appear more healthier it actually is, with the purpose often focused on manipulating the behavior of retail investors.
Byzantine Fault Tolerance (BFT)
Byzantine Fault Tolerance refers to a blockchain network’s ability to reach consensus and continue operating even if some of the nodes in the network fail to respond or respond with incorrect information.A network that is Byzantine Fault Tolerant solves the Byzantine Generals Problem, a situation in which all parties must agree but one or more parties are unreliable.Most actively used consensus mechanisms are Byzantine Fault Tolerant.
Byzantine Fault Tolerance Delegated Proof of Stake (BFT-DPoS)
Byzantine Fault Tolerance Delegated Proof of Stake (BFT-DPoS) is the primary consensus mechanism that runs the EOS and ICON blockchain ecosystems.BFT-DPoS is a highly-performant consensus mechanism that makes use of data passing between parties without an intermediary.It is composed of the two main layers that work together: Asynchronous Byzantine Fault Tolerance (aBFT) to propagate and validate block production, and Delegated Proof of Stake (DPoS) for block producer voting and scheduling.
Byzantine Generals’ Problem
The Byzantine Generals’ Problem is a term used in computing to describe a situation in which all parties or components within a system must agree on a single consensus-based strategy in order to avoid complete network failure.Failure can be caused when one of the nodes or other architectural components within the network are unreliable.A network that is able to solve the Byzantine General’s Problem is considered Byzantine Fault Tolerant (BFT).
Most actively used blockchain consensus mechanisms are Byzantine Fault Tolerant..
