Blockchain is a worldwide technology that saves transactions on thousands of computers. It has resulted in many new jobs and start-ups that have ranged from taking mobile payments to healthcare.
It is useful to follow or use a blockchain developer roadmap when you are involved in this area of computing.
We shall consider here some of the terminologies that are important for a blockchain developer to know.
Blockchain is a system that records transactions made in cryptocurrencies such as bitcoin. These transactions are then maintained across several computers and linked to a peer-to-peer network.
Apart from bitcoin, 10,000 other cryptocurrency systems are running on blockchain and recording monetary transactions. Blockchain is a reliable method for storing data and other transactions. Three generations of blockchain technology exist.
Block height is defined as the position index of a genesis block.
Block explorer is the GUI graphical user interface.
Block reward is what compensates for miner support, in respect of building a block. It is an incentive for miners to join the network. Blockchains, because of their native currency, will allow miners to allocate a particular number of tokens for spontaneous generation and allow them to be sent to the desired address.
Blockchain transaction fees are what users will be charged when they perform transactions on a blockchain network. The fee is a processing fee for the transaction and can assist in speeding up blockchain transactions.
Cryptocurrency is about enabling secure online payments, without the need for third-party intermediaries. “Crypto” is the term that refers to the many encryption algorithms and cryptographic techniques that will safeguard the entries. For instance, we have elliptical curve encryption, hashing functions, and public-private key pairs.
Bitcoin, as a form of cryptocurrency, is a decentralized blockchain that is about creating a transaction system, where tokens are transacted between accounts. It is the first of blockchain-based cryptocurrencies. An Altcoin is an alternative to Bitcoin. Most Altcoins are forks of Bitcoin, just with a few changes.
Ethereum is a platform that is powered by blockchain technology. It is known for its native cryptocurrency. Its native crypto is Ether.
Miners and Mining
Mining is the process that develops new blocks and submits them to a blockchain. A miner, within a blockchain, points it out to an actor that can generate and submit new blocks to a chain. CPU miners will usually use central processing units (CPUs) for the production and validation of blocks. GPU miners will use their graphics processors in addressing block production and validation. Those using ASIC for this are referred to as ASIC miners.
A node is any participant within a blockchain network that is connected to peers, with the capability of propagation and validation of new blocks, which are called a node.
Peer-to-Peer (P2P) refers to the interaction model between actors involved in transitions that do not have an external intermediary.
“Wallet” is software that will contain private keys. It interacts with the Private Key Infrastructure (PKI).
It is called a cold wallet or cold storage when there is an offline wallet that is not connected to the internet. These cold wallets are helpful in terms of safeguarding cryptocurrencies, in respect of hacking attempts. Conversely, a hot wallet with blockchain is a wallet that is connected directly to the internet all the time. These are held on centralized exchanges.
The above represents just some terminology surrounding blockchains, which will prove useful for a blockchain developer to know.