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Glossary

parsevalbtc edited this page Oct 24, 2022 · 139 revisions

Activation

Starting to Enforce a new Rule.

Adjustment

A change to Difficulty.

Aggregation

The tendency toward reduced participation in Mining or Validation. Implies Pooling or Centralization.

Announcement

The first Communication of a Block to another Person.

Apparent Hash Power

A fraction of Blocks in a Chain Segment. Public estimates of specific Miner Hash Power are based on this.

Attack

Use of Hash Power to enable Double Spending.

Bitcoin

The set of principles that secure a Coin from the State. The term and principles are defined by Satoshi in “Bitcoin: A Peer-to-Peer Electronic Cash System”.

Block

A Valid set of Transactions with Timestamp and Proof.

Block Pool

The set of Weak Blocks. Orphan Pool is a misnomer for this.

Borrow

To Trade time with Units for property of greater Utility to the Lender.

Branch

A Valid sequence of Blocks.

Candidate

A potential Block with undetermined Proof.

Cap

The limit to Supply over all time.

Capitalization

The product of Price and Supply.

Censorship

Subjective Confirmation.

Centralization

The tendency toward few Merchants. Merchants directly control Validation. May also refer to Pooling

Chain

The Branch with the most cumulative Proof.

Claimant

A Person who holds a claim on property under the control of a Custodian. Also a lien-holder, shareholder, lender, or depositor.

Client-Server

An asymmetrical Protocol.

Coercion

Use of aggression to compel Activation.

Coin

A Consensus regarding a mutually-acceptable medium for Trade. BTC is a Coin.

Coinbase

A Transaction that Transfers a Reward.

Communication

Conveyance of data between Machines.

Confirmation

Inclusion of a Transaction in a Block.

Consensus

An agreement among People. Also the set of people who participate in an agreement.

Consensus Rules

The set of constraints that define a Coin.

Contract

A Script that expresses Transfer conditions. Public Key Script is an anachronism for this.

Co-option

Use of aggression to control Hash Power.

Correlation

The ability to Taint using statistical Chain analysis.

Custodian

A Person who controls the property of another by agreement.

Decentralization

The tendency opposing Centralization.

Decouple

A Mine that shares Reward with another to reduce Variance.

Delegation

The tendency toward few Owners. Owners directly control Spending.

Denial of Service

Using Communication to exploit Protocol or Implementation flaws that degrade performance. DoS is an acronym for this.

Depth

One more than the count of Blocks after a Confirmation.

Developer

A Person creating an Implementation.

Difficulty

The level of Proof required for Validity.

Distortion

Market aggression that skews the cost of Mining.

Double-Spend

The Endorsement of the same Output Contract by distinct Spends.

Dust

An insufficient number of Units for Transfer via an Output. BTC Consensus Rules prohibit transfer of less than one unit.

Economic Power

A fraction of all property offered in Exchange.

Economy

The set of all Merchants.

Endorsement

A Script that satisfies a Contract. Signature Script is an anachronism for this.

Enforcement

The act of discarding Invalid data.

Exchange

The Trade of Units for other property.

Fee

An implicit Transfer to a Miner.

Fork

A divergence in Consensus Rules.

Genesis

The first Block of all Branches of a Coin.

Grind

A Tool that performs Hashing.

Grinder

A Person operating a Grind.

Halving

A reduction in the Subsidy rate (by half).

Hard Fork

A Fork that implies a Split. Expansion of the set of potentially-Valid Blocks.

Hash

An atomic computation to Prove Candidate Validity.

Hash Power

A fraction of the Hash Rate of all Mines.

Hash Rate

The rate of Hashing.

Height

The count of preceding Blocks in a Branch.

Hoard

To Own for future use.

Honest

A Miner who builds on the Blocks of others.

Identity

The means to associate Communication with a Person.

Implementation

A specific Tool set.

Inflation

The increase in Supply resulting from Subsidy. A monetary inflation, not to be confused with Price Inflation.

Input

An Output Point and an Endorsement.

Interest

The rate of increase in Utility from Lending.

Latency

The delay inherent in Communication.

Layering

Trade using a sequence of Unconfirmed Transactions that can be Settled by either party.

Lend

To Trade time without Units for property of greater Utility. Invest is an alias for this.

Locktime

An expression of earliest Transaction Validity.

Loss

Failure of Investment to earn Interest.

Machine

An instruction follower.

Majority Hash Power

A subset of Miners with sufficient Hash Power to execute a sustained Attack. 51% is a common approximation of sufficient power.

Market

The Trade in certain property.

Maturity

The Depth at which a Coinbase Output becomes Transferable.

Median Time Past

An average of preceding Block Timestamps.

Merchant

A Person accepting Units in Trade. User is a common alias for this.

Mine

A Tool that performs Work.

Miner

A Person operating a Mine.

Node

A Tool that performs Validation.

Operation

An atomic declaration of intent.

Optimization

A Tool change that reduces the cost of Mining.

Organization

An Announcement adding a Block to the Chain.

Output

An explicit Transfer and a Contract.

Owner

A Person controlling certain Units. Holder is a common alias for this.

Partition

An inability of certain Nodes to Communicate.

Partitioning

The tendency toward persistent Partitions.

Peer-to-Peer

A symmetrical Protocol.

Period

The average time between Organizations.

Person

A decision maker.

Point

A reference to an Output or Input.

Political

Pertaining to the actions of States.

Pooling

The tendency toward few Miners, including consolidation by Relays.

Power

The relative level of control of a Person over the Chain or Coin.

Previous Output

The Output to which an Input refers.

Price

An average or instantaneous Exchange rate.

Price Inflation

The increase in Price over time.

Profit

A return on Investment above the Market rate of Interest.

Proof

Valid evidence.

Proof-of-Memory

Probabilistic Proof of an amount of usable computing memory (PoM).

Proof-of-Stake

Cryptographic Proof of an amount of Ownership (PoS).

Proof-of-Work

Probabilistic Proof of an amount of Work performed (PoW).

Protocol

A set of Communication conventions.

Relay

A Tool that disseminates new Blocks.

Relayer

A Person operating a Relay.

Reorganization

An Announcement promoting a Weak Branch to the Chain. Reorg is an abbreviation for this.

Reward

The sum of Subsidy and Fees for a Block.

Rule

A subset of Consensus Rules.

Script

A set of Operations that authorizes Transfer.

Segment

A contiguous subset of a Branch.

Selfish

A Miner who is not always Honest.

Settlement

Confirmation of Layered Transactions.

Signal

A Miner indication via Block data of intent to Enforce a new Rule.

Soft Fork

A Fork that implies a Split unless Enforced by Majority Hash Power. Contraction of the set of potentially-Valid Blocks.

Speculate

To Own in expectation of Price increase. Also to Borrow in expectation of price decrease.

Spend

The initial publication of a Transaction.

Split

A Coin bifurcation.

Stall

The lack of Height increase over time.

State

A set of People that uses aggression in place of Trade. Typically operates with impunity within geographic limits.

Strong

A Branch with more cumulative Proof than another.

Subsidy

The issuance of new Units to a Miner.

Supply

The set of all issued Units.

Taint

Determination of Ownership.

Timestamp

A declaration of the time of Block production.

Tool

A set of Machine instructions.

Trade

A voluntary swap of property between two People.

Transaction

A Valid record of Transfer.

Transaction Pool

The set of UnconfirmedTransactions. Memory Pool is a misnomer for this.

Transfer

The change of control over certain Units.

Unconfirmed

A Transaction that does not exist in a Block.

Unit

A minimum Transferable amount of property represented by a Coin. The satoshi is the Bitcoin unit.

Utility

The usefulness of certain property to a Person.

Validation

The process of determining Validity.

Validity

Conformance to Consensus Rules.

Value

The preference of a Person for certain property over other.

Variance

The varying frequency of achieving a Reward.

Variation

Differences in the resource cost of Mining.

Volatility

Deviation in Price over time.

Wallet

A Tool that creates Transactions.

Weak

A Branch with less cumulative Proof than another. Orphan is a misnomer for this.

Withholding

The purposeful delay of Announcement.

Work

The process of Block production.

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