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📗 Glossary

ASM Contract​

Smart contracts executing within Activeledger using the native Activeledger language.

Activeledger​

The underlying technology enabling Nitr0gen services.

Block​

Blocks are data structures within the blockchain database, where transaction data in a cryptocurrency blockchain are permanently recorded. A complete block consists of the magic number, block size, block header, transaction counter, and transaction data.

Blockchain​

The technology underpinning cryptocurrency. A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchain is a technology that can safely store transaction records on a peer-to-peer network instead of storing them in a single location. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.

Centralised system​

Centralised system refers to the use of a middle man or third party to help conduct transactions. Buyers and sellers alike trust this middle man to handle their assets. This is common in a bank setup, where a customer trusts the bank to hold his or her money.

CEX​

Centralised exchanges (CEX) are online trading platforms that match buyers and sellers via an orderbook. They function essentially the same way as online brokerage accounts, which is why they are so popular among investors. In the case of cryptocurrencies, which are often stored in digital wallets, an individual can lose hundreds or thousands of dollars in digital currency holdings simply by forgetting the key to a wallet. A centralised exchange will not allow this to happen, as it safeguards the holdings in place of the individual investor.

CEX can be used to conduct trades from fiat to cryptocurrency (or vice versa). They can also be used to conduct trades between two different cryptocurrencies.

DApps​

Decentralised Application is an App that operates without a centrally trusted party. An application that enables direct interaction/agreements/communication between end users and/or resources without a middleman. It uses the blockchain as a distributed database and evaluation machine for performing services using smart contract, providing a web interface to interaction.

Decentralised system​

A decentralised system is an interconnected information system where no single entity is the sole authority. In the context of computing and information technology, decentralised systems usually take the form of networked computers.

DeFi​

Decentralised finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies.

DEX​

Decentralised exchanges (DEX) cut out the middle man, generating what is often thought of as a "trustless" environment. It is a peer-to-peer marketplace where transactions occur directly between crypto traders. DEXs fulfil one of crypto’s core possibilities: fostering financial transactions that aren’t officiated by banks, brokers, payment processors, or any other kind of intermediary. Assets are never held by an escrow service, and transactions are done entirely based on smart contracts and atomic swaps.

Gas fee​

Gas fees are the payments individuals make to complete a transaction on a blockchain. These fees are used to compensate blockchain miners for the computing power they have to use to verify blockchain transactions. They are typically paid in the blockchain’s native cryptocurrency. While the act of paying for gas is a given, the price of gas itself is highly volatile and dependent on a multitude of factors.

KYC​

”Know Your Customer” (KYC) refers to the process that cryptocurrency exchanges must go through to confirm their end users' and customers' personal information. Acquire a better understanding of the activities of their potential customers and verify their legality.

L1-blockchain​

The layer 1 blockchain is responsible for the basic functionality of the blockchain, including consensus mechanisms, transaction validation, and block creation. Ethereum, Bitcoin, and other major blockchain platforms are examples of Layer 1 blockchains. Layer 1 is often contrasted with Layer 2 solutions, which are built on top of existing blockchains to enhance scalability and transaction speed.

L2-blockchain​

Layer 2 solutions are built on top of existing blockchain networks (Layer 1) and aim to address scalability and transaction speed issues. Instead of processing every transaction on the main blockchain, Layer 2 solutions enable off-chain or sidechain transactions, reducing the load on the main blockchain and improving overall efficiency.

Examples of Layer 2 solutions include state channels, sidechains, and plasma chains. These solutions aim to enhance the throughput and scalability of blockchain networks while still relying on the security of the underlying Layer 1 blockchain for settlement and finality. The use of Layer 2 solutions is one approach to overcome the limitations of scalability that some popular blockchain networks face, enabling faster and more cost-effective transactions.

Native coin​

A blockchain’s inherent digital currency.

Nitr0gen​

The product that maintains:

  • Key security
  • Account recovery
  • Internal accounting.
  • Calls to the distributed network Exist on the end users' devices and gives them full contorl over their cryptocurrency.

Non-custodial wallet​

With a custodial wallet, another party controls your private keys. Most custodial wallets these days are web-based exchange wallets. It’s very likely that the first time you purchase crypto, it will end up in a custodial exchange crypto wallet. In this case, the exchange is your custodian, which holds your keys and is tasked with securely storing your funds.

With a non-custodial wallet, you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours. While some people store large amounts of crypto on exchange accounts, many feel more comfortable with a non-custodial wallet, which eliminates a third-party between you and your crypto. Non-custodial wallets can be browser-based, they can come in the form of software installed on mobile devices or on desktops, or they can be hardware devices, among other options.

OTK​

One Time Key (OTK) that is submitted to Akashic Pay alongside a desired operation on a wallet. The OTK triggers collection of private key pieces from the different nodes of the distributed network - the assembled private key is then used to sign and authorise all transactions.

Private key​

With asymmetric encryption, both the public and private keys are generated randomly. Anyone can have access to a public key to encrypt data. A public key can be freely shared. The private key however belongs to only one person and only the individual who has the matching private key can decrypt the data. A private key is a secret number that is used in cryptography, similar to a password. In cryptocurrency, private keys are also used to sign transactions and prove ownership of a blockchain address.

Sign transaction​

Signing a transaction is done using a private key, which authorises a money transfer out of a cryptocurrency wallet. This signature is verified by the nodes of the blockchain, checking that the withdraw wallet fulfils the minimum balance condition.

This way, only a sender who has access to the private key can initiate a transaction.

Smart contract​

Smart contracts are the programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.

Web 3.0​

Web 3.0 (Web 3) is the third generation of internet services for websites and applications that will focus on using a machine-based understanding of data to provide a data-driven and Semantic Web. It is an idea for a new iteration of the World Wide Web based on blockchain technology, which incorporates concepts such as decentralisation and token-based economics.The ultimate goal of Web 3.0 is to create more intelligent, connected and open websites.

Wrapped token​

Wrapped tokens are a way to use cryptocurrencies on blockchains other than the blockchain they were originally built on. Wrapped tokens are backed 1:1 by their underlying asset, which is stored in a digital vault. It is a solution to the problem of blockchain interoperability. In decentralised finance, where an efficient, smooth, and fast movement of funds is crucial, wrapped crypto tokens find a valid application.