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Glossary
Block - Data structures within the network database, where transaction data in the network is permanently recorded. A block records some or all of the most recent transactions not yet validated by the network. Once the data are validated, the block is closed.
Block Mining Time - Interval of time required for a new block to be created and sealed by a validator.
Block Size - Size of a block sealed and stored in the network's ledger. It determines the maximum amount of computing power the network will dispend or use on a determined time interval, thus indirectly capping the maximum number of transactions that the network can process on that same given interval.
Centralised Exchange - Centrally controlled exchange, that can be used for trading, and most of the times for fiat onboarding and offboarding. Commonly referred to as CEXs, these exchanges usually charge high fees and require KYC from users.
Custodial Wallet - wallet services offered by a centralized business such as a cryptocurrency exchange. Custodial wallets have certain benefits, such as less user responsibility regarding private key management.
DAG - Stands for Directed Acyclic Graph, which, in simple terms, is an alternative more efficient way to order the blocks on a network. It differs from the standard concept of a blockchain because the blocks are not necessarily ordered linearly.
dApp - Stands for Decentralised Application, and are generically used to describe decentralised platforms and protocols deployed on a public network.
DDoS Attack - A denial-of-service attack is a cyber-attack in which the perpetrator seeks to make a machine or network resource unavailable to its intended users by temporarily or indefinitely disrupting services of a host connected to a network.
Decentralized Exchange - An exchange that operates on a decentralized manner. Normally uses AMM (Automated Market Making) mechanisms, and are known for its relatively lower fees compared to Centralized Exchanges, and all its transactions take place on chain.
Decentralized Autonomous Economy (DAE) - An Economy That operates In a decentralized manner. A Smart contract Governed Economy Secured Using Cryptography.
Ethereum Virtual Machine (EVM) Aka "Smart Chain" - The Ethereum Virtual Machine is the software platform that developers can use to create decentralized applications (dApps) on PHI Network, Ethereum, and other compatible networks. This virtual machine integrates & is 100% compatible with PHI Smart Chain.
Faucet - Script or platform that distributes free tokens to users. It's most commonly used by new users joining or bridging assets from another network to pay for initial transaction fees.
Finality - State in which a particular transaction is considered final and irreversible by the blockchain.
Gas - Usage fee paid by users to interact with the network.
Hashpower - Amount of computing power available to the network to process new blocks.
Liquidity Pools- Liquidity pools enable users to buy and sell crypto on decentralized exchanges and other DeFi platforms without the need for centralized market makers.
Miner - Validator node with mining enabled.
Mining - The act of applying computing power to solve a mathematical problem, in order to seal a and add a new block to the ledger.
Mnemonic Phrase - A mnemonic sentence (“mnemonic code”, “seed phrase”, “seed words”) is a way of representing a large randomly-generated number as a sequence of words, making it easier for humans to store. These words are then used to create a seed, which can be used for generating extended keys in a hierarchical deterministic wallet.
Network Difficulty - Indirectly determines how much computing power is needed for a validator to successfully seal a new block.
Node - Node is either or both a redistribution point or a communication endpoint for PHI Network.
Non-Custodial Wallet - you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours. With a custodial wallet, another party controls your private keys. Most custodial wallets these days are web-based exchange wallets.
Non-Fungible Token (NFT) - A non-fungible token is a financial security consisting of digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded.
PHI20 - Is a programming standard for fungible blockchain based assets, usually called tokens.
PHI721 - Is a programming standard for non-fungible blockchain based assets, commonly called NFTs. There are currently alternatives to the ERC721, such as the ERC11155.
PHI1155 - Is a modern and very efficient multi-token programing standard, compatible with both fungible and non-fungible tokens. It can cut gas usage by 90% in comparison to ERC721 tokens, and its main drawback - in comparison - is that token ownership is harder to track.
PoA - Stands for Proof of Authority, which is a consensus mechanism that users identity verification as a disincentive to misbehave or tamper the network.
PoS - Stands for Proof of Stake, which is a consensus mechanism used by many networks today, and leverages on financial disincentive to avoid misbehaving or tampering of the network by its validators.
PoW - Stands for Proof of Work, which implies on applying using hardware and computing power to seal new blocks on a network.
Private Key - Is a key used to resolve a public key, and can be used to sign transactions. For simplicity, they are usually represented as strings of alphanumeric characters. A cryptocurrency wallet consists of a set of public addresses and private keys.
Private Ledger - A ledger, or database, that is centrally controlled and maintained.
Private Network - A DAG or blockchain network that is centrally controlled and maintained. Usually used for enterprise-level and software development applications.
Public Key - Commonly referred to as the 'wallet address' it can be publicly shared and other participants can use it to send funds to a particular wallet or individual.
Public Ledger - A ledger, or database, that is publicly accessible.
Progressive Web Application (PWA) - is a website that looks and behaves as if it is a mobile app. PWAs are built to take advantage of native mobile device features, without requiring the end user to visit an app store, make a purchase and download software locally.
RPC - Stands for Remote Procedure Call, and in this document RPCs are referred to as the network's connection endpoint, used by participants to interact with a public or private ledger.
Smart Contracts - Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary's involvement or time loss.
Solidity - Is the programming language used to write smart contracts on PHI Network.
Throughput - Normally measured in TPS (transactions-per-second), it refers to the speed in which a network can process incoming transactions.
TPS - Stands for transactions per second, and it's usually a subjective measure of how fast a network can process transactions.
Transaction Fee - Also referred to as Usage Fee or Gas Fee, is the fee users pay when submitting a transaction to the network.
Validator - Individual, group of individuals, or entity responsible for setting up and maintaining a Execution Layer Validator Node. Validators have to consign funds with PHI Network to be granted the right to mine, and play a key role on keeping the network fully operational.
Validator Key - Hash key that allows validators to connect to a Bridging Layer node to syncronise, and mine new blocks.
Wallet - In the context of this document, wallet is the equivalent of a users' account on the network, that is used to store and manage digital assets. An address can hold a balance of digital assets, and a wallet can control a set of different addresses.