NMKR Glossary

A 51% attack is when an entity controls over 50% of a blockchain's power, allowing transaction manipulation and double-spending.

Cardano ensures accessibility and inclusivity by prioritizing user experience, diversity, and affordability in its blockchain ecosystem and applications.

Cardano's approach to addressing scalability challenges involves layer 1 and layer 2 scaling solutions, sharding techniques, and optimization strategies that increase transaction.

An Account Abstraction Layer (AAL) separates the user accounts from the underlying blockchain protocol, allowing for more flexible and user-friendly account management and interactions.

An airdrop is a distribution of cryptocurrency tokens or coins, usually for free, to a large number of wallet addresses. Airdrops are often used as a marketing strategy to promote new projects and encourage widespread adoption of the token.

An airdrop in crypto is a distribution of free tokens to a large number of wallet addresses, usually as a marketing strategy to promote a new project. Airdrops can also reward loyal users or incentivize participation in a network.

Blockchain is a decentralized digital ledger technology that records transactions across multiple computers in a way that makes them tamper-proof and immutable. Each block contains a list of transactions, and these blocks are linked together in a chronological chain using cryptographic hashes. This technology enables trustless and transparent transactions without the need for intermediaries.

A block explorer is an online tool that allows users to view and search blockchain transactions, blocks, addresses, and other data.

A block reward is the incentive given to miners for successfully validating and adding a new block to a blockchain.

A burn address is a cryptocurrency address where tokens are sent to be permanently removed from circulation.

A blockchain fork occurs when a blockchain splits into two separate chains. Forks can be classified as hard forks.

The Cardano Improvement Proposal (CIP) process is a community-driven mechanism for proposing, discussing, and implementing improvements, upgrades, and changes to the Cardano protocol and ecosystem.

Cardano's role in climate action encompasses its commitment to reducing carbon emissions, promoting renewable energy, and driving sustainable.

Cardano ensures compatibility with legacy systems through interoperability standards and middleware that facilitate seamless integration with traditional IT infrastructure.

Cardano enables fast, secure, cost-effective cross-border payments by leveraging blockchain, bypassing traditional banks, and reducing fees.

Cardano employs a proof-of-stake (PoS) consensus mechanism called Ouroboros, ensuring network security and consensus by selecting participants, known as stakeholders, to validate transactions and produce new blocks based on the amount of ADA they hold and are willing to "stake" as collateral.

Cardano ensures data availability and durability in storage through replication, redundancy, and data distribution techniques that store multiple copies of blockchain data across network nodes, ensuring resilience against data loss.

Cardano's approach to decentralized identity and self-sovereign identity involves cryptographic key pairs, digital signatures, and verifiable credentials that enable individuals to create, own, and control their identity information without relying on centralized authorities or intermediaries, ensuring privacy, autonomy, and security in identity management and verification on the blockchain.

Cardano's approach to disaster relief centers on leveraging blockchain technology to provide transparent, efficient, and accountable support.

Cardano promotes digital democracy by leveraging blockchain technology to enable transparent, decentralized, and participatory governance systems.

Cardano's role in digital inclusion encompasses its commitment to providing access, affordability, and opportunity for individuals, communities, and societies.

Cardano's approach to education and awareness focuses on empowering individuals, communities, and organizations with knowledge, skills, and resources to understand, adopt, and contribute to the Cardano ecosystem.

Cardano's approach to ethical investment centers on promoting transparency, sustainability, and social responsibility in its investment practices and ecosystem development.

Cardano's approach to ethical leadership centers on promoting integrity, transparency, and accountability in its governance, operations, and ecosystem development.

Cardano's approach to environmental conservation centers on sustainability, resilience, and responsible stewardship of natural resources and ecosystems.

Cardano's role in environmental activism encompasses its commitment to raising awareness, supporting action, and driving change on critical environmental issues.

Cardano ensures fair distribution of rewards in staking through delegation mechanisms, reward formulas, and incentive structures that encourage active participation, decentralization, and long-term commitment from stakeholders while preventing centralization, manipulation, and unfair advantage in the staking process.

Cardano ensures fairness and transparency in stake pool operations through disclosure requirements and performance metrics, enabling stakeholders to evaluate and compare pools for accountability and trust.

Cardano's approach to handling forks and chain reorganizations involves consensus mechanisms, fork resolution policies, and network parameters that determine how conflicts and discrepancies between competing chains are resolved, ensuring network stability, continuity, and integrity in the face of network disruptions or protocol upgrades.

Cardano promotes financial literacy by providing educational resources, tools, and platforms that empower individuals to understand, manage, and invest in cryptocurrencies and decentralized finance (DeFi) responsibly.

Cardano ensures fair stake pool operations through transparency, metrics, and governance for accountability and trust.

Cardano promotes gender equality by advocating for diversity, inclusion, and equal opportunities for women and gender minorities.

The genesis block is the first in a blockchain, hardcoded with initial transactions and metadata. In Cardano, it marks the blockchain's start.

Cardano implements governance mechanisms on the blockchain through decentralized decision-making processes, voting protocols, and stakeholder engagement strategies. These mechanisms empower users to propose, discuss, and vote on various aspects of the network, including protocol upgrades, funding proposals, and governance parameters. This approach ensures transparency, accountability, and inclusivity, allowing all stakeholders to actively participate in the governance of the ecosystem and shape its future direction.

Cardano supports green technology initiatives by prioritizing energy efficiency, sustainability, and environmental responsibility in its blockchain infrastructure and operations.

A gas fee is the fee required to conduct a transaction or execute a contract on the Ethereum blockchain. Gas fees compensate miners for the computational power used to validate and process transactions, and they fluctuate based on network demand.

Cardano's approach to handling smart contract upgradability involves versioning mechanisms

Hierarchical Deterministic (HD) wallets in Cardano allow users to generate and manage multiple addresses from a single seed phrase or master key, providing enhanced privacy, security, and usability for managing funds and transactions across different applications and services on the blockchain.

Blockchain's history began in 2008 with Satoshi Nakamoto's Bitcoin whitepaper, evolving into a transformative technology for various applications beyond crypto.

Cardano promotes access to healthcare by leveraging blockchain technology to address barriers to healthcare delivery, affordability, and quality in underserved and remote communities around the world.

Cardano's role in humanitarian aid encompasses its commitment to leveraging blockchain technology to support humanitarian organizations, relief efforts.

Cardano empowers users with secure, verifiable digital identities. Decentralized solutions enable users to control and share credentials without central authorities.

Cardano ensures interoperability with legacy systems, traditional financial infrastructure, and off-chain data sources through its focus on standardization, compatibility, and communication protocols.

Cardano fosters innovation in education by leveraging blockchain technology to address challenges related to access, affordability, and quality in education systems worldwide.

Cardano fosters innovation in healthcare by leveraging blockchain technology to address challenges related to data security, interoperability, patient privacy, and healthcare delivery.

Cardano ensures immutability and integrity of transaction history through cryptographic hashing and consensus mechanisms that create a tamper-resistant and verifiable record of transactions and blocks.

To join a blockchain consortium, research existing consortiums in your industry, understand their requirements and benefits

Cardano's ledger state includes the UTXO set, tracking unspent funds; transaction history; and stake distribution, determining voting power in the consensus process.

Kadena’s Chainweb uses a braided, parallel-chain design for high throughput and scalability with multiple chains and Bitcoin-level security.

Privacy-preserving smart contract system for Cardano using zero-knowledge proofs to ensure confidentiality while maintaining auditability.

The K-parameter in Cardano influences the ideal number of stake pools, optimizing stake distribution and promoting decentralization through rewards.

Cardano promotes access to legal services through blockchain technology, enabling transparent, secure, and affordable mechanisms for individuals to access legal information and representation via decentralized identity solutions, smart contracts, and dispute resolution platforms, empowering users to exercise their rights and access justice.

Cardano implements layer 2 scaling solutions such as state channels, sidechains, and off-chain computation layers that enable off-chain processing, aggregation, and settlement of transactions while maintaining the security and integrity of the main blockchain, improving throughput and scalability without sacrificing decentralization or security.

Cardano's layered architecture divides its protocol into the settlement layer (CSL) for transactions and the computation layer (CCL) for smart contracts, enhancing scalability and interoperability.

Cardano implements layer 1 and layer 2 scaling solutions such as sharding, state channels, and off-chain computation layers that improve transaction throughput.

A light node is a type of blockchain node that stores only a subset of the blockchain data, relying on full nodes for transaction verification.

A Merkle Tree is a data structure used in blockchain to efficiently verify the integrity of large sets of data, where each non-leaf node is a hash of its child nodes.

Cardano supports mobile wallets through applications that allow users to securely store and manage ADA and other digital assets, offering features like address generation, transaction history, and QR code scanning for easy transactions on the go, with options from both native and third-party wallets.

Cardano's metadata feature enables users to attach additional data or information to transactions, tokens, or smart contracts on the Cardano blockchain.

Cardano implements metadata storage on the blockchain using transaction metadata fields. These fields allow users to attach additional data to transactions, such as timestamps, signatures, or arbitrary strings. This capability enables a wide range of applications, including identity verification, document certification, and asset management.

Cardano supports multi-asset tokens, enabling users to create and transact custom digital assets, fostering innovation and interoperability within its blockchain ecosystem.

Cardano's native tokens let users create and trade custom assets, including cryptocurrencies, securities, utility tokens, and NFTs, securely on its blockchain.

Cardano's approach to handling network congestion and spam attacks involves fee market mechanisms, transaction prioritization policies, and rate limiting controls.

Cardano ensures network resilience and fault tolerance through redundancy, failover mechanisms, and adaptive protocols that mitigate the impact of node failures.

Cardano ensures sustainability through energy-efficient Proof of Stake, reducing carbon footprint, and a treasury system for funding initiatives promoting long-term network viability.

Cardano ensures transaction history integrity through cryptographic hashing and consensus mechanisms that create a tamper-proof, verifiable record of transactions.

Cardano implements off-chain state channels for scalability through peer-to-peer communication, cryptographic commitments, and dispute resolution mechanisms that enable parties to conduct off-chain transactions.

Ouroboros is Cardano's Proof of Stake consensus algorithm, ensuring decentralization, scalability, and security through randomly chosen slot leaders.

On-chain refers to transactions or processes that occur directly on the blockchain network.

Off-chain refers to transactions or processes that occur outside of the main blockchain network.

On-chain scaling involves making changes to the base layer of a blockchain to increase its capacity and performance.

A public blockchain is a decentralized network open to anyone for transactions and validation, offering transparency, security, and permissionless innovation like Cardano.

Cardano ensures privacy using cryptographic techniques like zero-knowledge proofs and zk-SNARKs, enabling confidential transactions while maintaining network integrity.

A private blockchain is a permissioned network with restricted access for authorized entities, prioritizing privacy and control over decentralization, often used in enterprises.

Performance metrics for Cardano's blockchain include parameters such as throughput, latency, transaction confirmation times, and network scalability, which measure the efficiency, reliability, and responsiveness of the blockchain network under various conditions and workloads.

Cardano's role in promoting diversity encompasses its commitment to fostering a culture of inclusion, belonging, and equity within its ecosystem, operations, and initiatives.

Cardano's Quantum Resistance strategy researches post-quantum cryptography to ensure long-term blockchain security against quantum computing threats.

Cardano's reward system incentivizes stakeholder participation with ADA rewards for delegating to or operating stake pools, promoting decentralization and long-term engagement.

Oracles in Cardano's smart contracts serve as trusted sources of off-chain data, information, and events that are used to trigger contract execution, validate conditions, and update contract state based on real-world inputs, enabling smart contracts to interact with external systems, APIs, and data feeds securely and reliably.

Cardano supports renewable energy initiatives by prioritizing energy efficiency, sustainability, and environmental responsibility in its blockchain infrastructure and operations.

Metadata in Cardano's transaction structure adds context, information, and functionality to transactions. Users can attach metadata tags, annotations, or payloads to their transactions, enabling various applications such as identity verification, document certification, and data storage on the blockchain. This functionality enhances the utility of transactions, allowing for more complex interactions and facilitating compliance and record-keeping requirements.

Validators in Cardano's proof-of-stake consensus play a critical role in block production, transaction validation, and network security by participating in the slot leader election process, proposing and validating new blocks, and ensuring the integrity and validity of transactions and ledger state changes on the blockchain.

A soft fork is a backward-compatible blockchain change that imposes new rules without requiring all nodes to upgrade, allowing continued participation and validation.

Stake pools in Cardano are essential to the proof-of-stake consensus mechanism, enabling ADA holders to delegate their stake to a pool operator. This operator participates in block production and validation on behalf of the delegators, earning rewards for both themselves and their delegators based on their combined stake and performance. This system encourages decentralization and enhances network security by distributing the responsibilities of validation across multiple participants.

Cardano promotes social equity by fostering inclusive growth, empowerment, and opportunity for individuals, communities, and societies around the world through its blockchain ecosystem and initiatives.

Cardano mitigates Sybil attacks through its Proof of Stake model, requiring ADA staking for block production, promoting decentralization and network integrity.

Cardano promotes sustainability through its treasury system, funding ecosystem growth while incentivizing stakeholder governance for long-term viability and innovation.

Tokenomics refers to the economic principles governing token creation, distribution, and use in blockchain ecosystems, ensuring sustainability and growth in networks like Cardano.

Tokenization converts assets into blockchain tokens, enabling secure transactions, custom asset creation, and new DeFi opportunities on Cardano.

Cardano's treasury system plays a critical role in funding development, research, and community projects through a decentralized funding pool.

Cardano achieves transaction finality through its consensus mechanism, Ouroboros, which utilizes the longest-chain rule to determine the valid chain of blocks. Once a transaction is included in a block and added to the blockchain, it is considered final and irreversible, ensuring the integrity and permanence of the transaction.

Transaction mempools in Cardano's blockchain serve as temporary storage pools for pending transactions awaiting validation and inclusion in blocks by network validators, enabling efficient propagation, validation, and prioritization of transactions based on fee rates, gas limits, and other parameters.

Cardano's Extended Unspent Transaction Output (EUTXO) model comprises three key components: the ledger state, which represents the current distribution of funds among addresses; transactions, which transfer funds between addresses by consuming and producing UTXOs; and scripts, which specify the conditions under which transactions can be executed, providing flexibility and security.

A utility token is a type of cryptocurrency that provides access to a product or service within a blockchain ecosystem.

To use a smart contract, write the contract code using a programming language like Solidity, deploy it on a blockchain like Ethereum, and interact with it using a compatible wallet or application interface.

Cardano ensures accessibility and inclusivity by prioritizing user experience, diversity, and affordability in its blockchain ecosystem and applications.

Use a cold wallet: generate and store private keys offline, transfer crypto from a hot wallet for long-term storage, and connect only for transactions.

Cardano ensures accessibility in voting systems by leveraging blockchain technology to provide secure, verifiable, and inclusive mechanisms.

Cardano enables on-chain voting through decentralized governance, allowing stakeholders to propose and vote on upgrades and funding, ensuring transparency and inclusivity in decisions.

Cardano ensures stake pool verifiability through transparency, reporting, and data analytics that allow stakeholders to assess performance and integrity based on objective metrics.

Cardano addresses validator collusion through stake redistribution, penalties, and decentralized governance to promote fairness and integrity in consensus.

A validator node is a participant in a blockchain network responsible for verifying transactions and maintaining the integrity of the ledger.

A blockchain wallet is a digital tool for securely storing and managing cryptocurrencies, with hot wallets online and cold wallets offline, offering various security levels.

A whitepaper is an authoritative report or guide that informs readers about the details of a project, especially in the context of cryptocurrency and blockchain. It typically outlines the problem, the proposed solution, technical details, and the roadmap for the project's development.

A wrapped token is a cryptocurrency token that represents another underlying asset.

A watchtower is a service in the Lightning Network that monitors the blockchain for fraudulent transactions and helps protect users' funds by penalizing malicious actors.

Web3: Next-gen internet decentralizing data control and user ownership through blockchain. Encompasses decentralized applications (dApps).

Cardano promotes youth empowerment by providing educational opportunities, resources, and platforms for young people to learn about blockchain.

Yield farming in DeFi involves lending or staking crypto assets to earn transaction fees, interest, or additional cryptocurrency rewards.

Yoroi is a light Cardano wallet by Emurgo, offering fast ADA management and staking via browser extension and mobile app.

A zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) is a cryptographic proof that allows one party to prove to another that they know a value without revealing the value itself.

A zero-knowledge proof is a cryptographic method by which one party can prove to another that a statement is true without revealing any information beyond the validity of the statement itself.

zk-STARK: Cryptographic proof for privacy and scalability, proving knowledge without revealing the value.

Zero-knowledge proof: Cryptographic method proving a statement true without revealing info. Enhances privacy and security in blockchain.

A zk-Rollup is a Layer 2 solution that bundles transfers using zero-knowledge proofs for scalability and privacy by validating transaction batches.