SCM 300 Chaturvedi Blockchain Terms
Questions and Answers
Cryptocurrencies
internet money
Bitcoin
the most popular and fastest-growing digital currency
Ethereum
A decentralized, open-source blockchain with smart contract functionality.
Supports small contracts
POW
Proof of Work. In PoW, transaction data (block) + a random strings of digits(nonce
of block) are repeatedly applied to a (hashing) mathematical formula byminers,
until a desirable outcome is found (the proof of work). Other miners thenverify
the proof of work by taking the alleged input string and applying it to thesame
formulae to see if the outcome is indeed that what was presented. If theresults
are the same, the transaction is verified and added to the blockchain
POS
Proof of stake. In PoS, miners put up(i.e., "stake") some of the
blockchain'scryptocurrency in order to increase their chances of being selected to
validate ablock. The stake is locked up as a deposit to ensure the miner validates
the blockaccording to the rules. If the miner violates the rules, the deposit will be
"burned"or destroyed.
Smart Contract
An agreement or set of rules that govern a business transaction;it's stored on the
blockchain and is executed automatically as part of a transaction.
P2P
peer-to-peer
Questions and Answers
Cryptocurrencies
internet money
Bitcoin
the most popular and fastest-growing digital currency
Ethereum
A decentralized, open-source blockchain with smart contract functionality.
Supports small contracts
POW
Proof of Work. In PoW, transaction data (block) + a random strings of digits(nonce
of block) are repeatedly applied to a (hashing) mathematical formula byminers,
until a desirable outcome is found (the proof of work). Other miners thenverify
the proof of work by taking the alleged input string and applying it to thesame
formulae to see if the outcome is indeed that what was presented. If theresults
are the same, the transaction is verified and added to the blockchain
POS
Proof of stake. In PoS, miners put up(i.e., "stake") some of the
blockchain'scryptocurrency in order to increase their chances of being selected to
validate ablock. The stake is locked up as a deposit to ensure the miner validates
the blockaccording to the rules. If the miner violates the rules, the deposit will be
"burned"or destroyed.
Smart Contract
An agreement or set of rules that govern a business transaction;it's stored on the
blockchain and is executed automatically as part of a transaction.
P2P
peer-to-peer
