Hash Rate: Network Security Measurement Hash rate measures how much computational power secures a blockchain network. Higher hash rates mean stronger security against attacks and manipulation. Hash rate is the total computational power used by miners to process transactions and secure a proof-of-work blockchain network. It’s measured in hashes per second – calculations attempting to…
Gas Limit: Setting Your Transaction Budget Gas limit is the maximum amount of gas you’re willing to spend on a transaction. Set it too low and your transaction fails. Set it too high and you overpay for simple operations. Gas limit is the maximum amount of computational work (measured in gas units) that a user…
Validator: Proof-of-Stake Network Guardians Validators are the security backbone of proof-of-stake networks. They propose blocks, verify transactions, and earn rewards for honest behavior. A validator is a network participant in proof-of-stake blockchains who validates transactions, proposes new blocks, and maintains network consensus in exchange for staking rewards. Validators replace miners in PoS systems. How Validators…
Node: The Network’s Backbone Nodes are individual computers that maintain copies of the blockchain and enforce network rules. They’re the distributed infrastructure that makes cryptocurrency possible. A node is a computer that participates in a blockchain network by maintaining a copy of the distributed ledger and relaying transactions. Nodes validate transactions, store blockchain history, and…
Sidechain: Independent Chains with Main Chain Connections Sidechains operate independently while maintaining bridges to main blockchains. They’re like having a separate express lane that connects back to the main highway when needed. A sidechain is an independent blockchain that runs parallel to a main blockchain and is connected through a two-way bridge allowing asset transfers….
Sharding: Splitting Networks for Speed Sharding divides blockchain networks into smaller pieces that process transactions in parallel. It’s like adding more checkout lanes at the grocery store – same capacity, faster service. Sharding is a scaling technique that splits a blockchain network into smaller, parallel chains called shards that process transactions independently. Each shard handles…
Layer 2: Scaling Solutions for Expensive Blockchains Layer 2 networks solve Ethereum’s biggest problem – ridiculous gas fees. They process transactions cheaply and quickly while inheriting Ethereum’s security. Layer 2 is a separate blockchain or protocol built on top of a main blockchain (Layer 1) to improve scalability and reduce transaction costs. These solutions handle…
Layer 1: The Foundation Blockchain Layer 1 refers to the base blockchain protocol that processes transactions and maintains consensus. It’s the foundation that everything else builds on top of. Layer 1 (L1) is the main blockchain network that handles transaction processing, consensus, and security independently without relying on other blockchains. These are the foundational networks…
Consensus Mechanism: How Networks Agree Consensus mechanisms solve the fundamental problem of getting thousands of independent computers to agree on a single version of truth without central authority. A consensus mechanism is the process by which a distributed network of nodes agrees on the validity of transactions and the current state of the blockchain. It…
51% Attack: When Consensus Gets Hijacked A 51% attack occurs when a single entity controls the majority of a network’s mining power or stake, allowing them to manipulate transactions and double-spend coins. A 51% attack is when an individual or group controls more than half of a blockchain network’s mining hash rate or staking power,…