📚 DAY 6 - Learn all Crypto terms in 30 days
1. Decentralization
A system where control is not in the hands of an individual or organization, but distributed among multiple participants.
Example: Bitcoin is not operated by any company or government - thousands of computers (nodes) around the world collectively confirm transactions.
2. On-chain Transaction
A transaction that is recorded directly on a public blockchain, unchangeable after being validated.
Example:
You send 1 ETH to a friend via the Ethereum network ➔ That transaction will be permanently displayed on the Ethereum blockchain.
Anyone can check the transaction by accessing Etherscan.
3. Gas Fee
The fee you have to pay to execute a transaction or run a smart contract on a blockchain.
Gas fees often fluctuate depending on network congestion.
Example:
When you transfer 1 ETH from one wallet to another on the Ethereum network, you have to pay a small fee (~0.001 ETH or higher if the network is congested).
If interacting with complex smart contracts like minting an NFT or swapping DeFi, gas fees will be higher.
4. Node
A node is a computer that participates in the blockchain system, helping to store a copy of the blockchain and validate transactions.
Example:
A person can install Bitcoin Node software on their computer to participate in confirming Bitcoin transactions.
Nodes help the decentralized network operate without a central server.
