100,000 Questions and Answers about Cryptocurrencies 11

What is the block reward in Bitcoin?

The block reward is the amount of Bitcoin awarded to miners for successfully validating a block and adding it to the Bitcoin blockchain. The block reward decreases over time as part of Bitcoin's monetary policy.

What is halving in Bitcoin?

Halving is a key event in Bitcoin's monetary policy where the block reward is reduced by half. This occurs approximately every four years and is designed to control the supply of Bitcoin and maintain its scarcity.

What is the Satoshi?

The Satoshi is the smallest unit of Bitcoin, representing one hundred millionth of a Bitcoin (0.00000001 BTC). It is named after Bitcoin's creator, Satoshi Nakamoto.

What is a mining difficulty adjustment?

Mining difficulty adjustment is a mechanism used by blockchains like Bitcoin to adjust the difficulty of mining new blocks based on the total network hash rate. This helps maintain a steady block production rate and prevents the blockchain from becoming too easy or too difficult to mine.

What is the SegWit upgrade in Bitcoin?

SegWit (Segregated Witness) is a software upgrade implemented in Bitcoin that separates transaction signatures (witnesses) from transaction data, allowing for more efficient block space usage and improved scalability.

What is a blockchain transaction fee?

A blockchain transaction fee is a fee paid by users to include their transaction in a block on the blockchain. The fee is typically determined by the network's demand for block space and the priority of the transaction.

What is a dust transaction?

A dust transaction refers to a transaction with a very small amount of cryptocurrency, often below the minimum amount required for economic viability. Dust transactions can clog up the blockchain and increase transaction fees.

What is a blockchain gas limit?

In Ethereum and other blockchains that use gas, the gas limit is the maximum amount of gas that can be spent per block. It helps prevent the blockchain from being overwhelmed by transactions that consume excessive resources.

What is a blockchain gas price?

The gas price in Ethereum and other blockchains represents the cost per unit of gas. Users set the gas price when making transactions, and miners prioritize transactions with higher gas prices.

What is a double-spend attack?

A double-spend attack occurs when an attacker attempts to spend the same digital currency twice, essentially creating counterfeit currency. Blockchains use consensus mechanisms like Proof-of-Work and Proof-of-Stake to prevent double-spends.

What is a blockchain consensus mechanism?

A blockchain consensus mechanism is a process used by the network to agree on the state of the blockchain and validate new blocks. Different blockchains use different consensus mechanisms, such as Proof-of-Work, Proof-of-Stake, and Delegated Proof-of-Stake.

What is a consensus node?

A consensus node is a participant in a blockchain network that participates in the consensus mechanism to validate new blocks and maintain the integrity of the blockchain. Consensus nodes typically require more resources and may receive block rewards for their participation.

What is a blockchain fork choice rule?

A fork choice rule is a set of criteria used by blockchain nodes to determine which block to build upon when multiple valid blocks are competing to be added to the blockchain. Different blockchains have different fork choice rules.

What is a full node in a blockchain?

A full node is a blockchain node that maintains a complete copy of the blockchain and participates in all network activities, including validating transactions and blocks. Full nodes provide the highest level of security and decentralization.

What is a light node in a blockchain?

A light node, also known as a light client, is a blockchain node that does not maintain a full copy of the blockchain but relies on trusted full nodes to provide data and validate transactions. Light nodes require less resources but offer less security.

What is a SPV (Simplified Payment Verification) client?

A SPV (Simplified Payment Verification) client is a type of light node that allows users to verify payments without downloading the entire blockchain. It retrieves block headers from full nodes and uses cryptographic proofs to validate transactions.

What is a blockchain shard?

A shard in a sharded blockchain refers to one of the smaller, independent chains created by the sharding process. Each shard operates in parallel and handles a subset of the network's transactions, improving scalability.

What is a sharding committee?

A sharding committee is a group of nodes in a sharded blockchain that is responsible for assigning transactions to shards and coordinating cross-shard communication. It helps ensure the security and efficiency of the sharding process.

What is an InterPlanetary File System (IPFS)?

InterPlanetary File System (IPFS) is a distributed file system that uses content addressing to store and retrieve files across a network of computers. It provides a decentralized alternative to traditional file storage and sharing.

What is a Web3 wallet?

A Web3 wallet is a digital wallet that allows users to interact with decentralized applications (dApps) and smart contracts on the Ethereum and other Web3-compatible blockchains. It provides a secure way to store, send, and receive cryptocurrencies and tokens.