The universe of cryptocurrencies has given rise to complex technological terms. This is a description of the most important.

“Blockchain” or “Blockchain”

“This is a ledger shared by millions of connected computers where transactions by both parties are recorded and archived in a verifiable, permanent and anonymous manner without the need for intermediaries,” explains the Urgent Spanish Foundation.

According to the proponents of this technology, the blockchain is a completely transparent, invincible and indestructible protocol.

His appearance is the subject of legend in the world of fans of the crypto universe.

The first “blockchain”, bitcoin, was created in 2009 after the great financial crisis.

Its official creator is Satoshi Nakamoto, whose true identity is unknown. Some experts believe that a group of computer engineers hides under this name, while others believe that it is a single person.

When Nakamoto created Bitcoin, he published a document stating that his intention was to “allow two interested parties to transact directly with each other without the need for a trusted third party.”

Every time a transaction takes place on the “blockchain” (for example, the sale of a digital image), this maneuver is recorded on the chain in front of all participants.

For example, on a digital art commerce platform, artists and customers can “see” who created the artwork, the starting price, and all transactions.

After Bitcoin, other “blockchains” such as Ethereum, Solana or Tezos emerged.

NFT (or “free token”)

NFT, short for “Fungible Token” in English, is “a unit of value used in the blockchain space for what was established by the person or organization that designed or developed it”. Establishment of the Spanish Emergency.

This token or token cannot be “changed”, meaning it cannot be changed.

NFT is basically a proof of the authenticity of a digital object, but there are also icons associated with material artifacts – a painting, for example.

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A digital object can be copied or transferred countless times, for example a moving image (gif) from one mobile phone to another.

When the creator of this object wants to prove its authorship, it registers it on the “blockchain” with NFT.

Critics of NFTs are skeptical of numerous frauds (images recorded without permission by other people) and “Cryptopunks” or “Bored Appes”, a series of “cards” or vignettes that existed on paper decades ago and were collected for thousands of dollars.

“Smart Contract”

“Smart contracts” are irreversible computer programs written on the “blockchain” that execute a predefined set of instructions.

In the case of NFTs, these rules may, for example, limit the number of copies for sale of a work or establish a copyright system that allows the author to receive a commission each time the contract is exchanged.

“Proof of work”

Network actors need to prove their legitimacy through a precise protocol to verify their transactions.

One such protocol is “Proof of Work” (“PoW”).

This protocol for Bitcoin consists of asking the verification requester’s computer to solve a complex mathematical problem that requires enormous computational power and therefore a huge energy consumption.

The first to solve the problem is rewarded with bitcoin and other participants can thus verify its legitimacy.

“Proof of Betting”

In order to limit the energy consumption of Ethereum, its creator Vitalik Buterin and the majority of its users want the method of validating transactions to be more modern and less energy-consuming: “proof of participation” or “proof of participation”. Bet” (PoS).

Participation in the network is no longer in the hands of computers with enormous computational capacity, but is based on the voluntary contribution of a part of each of them’s capital.

In other words, the more capital is given as a guarantee fund via computer, the more likely it is to participate in the validation of “blockchain” transactions.