Layer 2

Definition

A secondary framework or protocol that is built on top of an existing blockchain. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major cryptocurrency networks.  
Letter

51% Attack

A situation where more than half of the computing power on a network is operated by a single individual or concentrated group, which gives them complete and total control over a network.

 

ASIC Resistant

A term for a cryptocurrency’s resistance to Application Specific Integrated Circuit (ASIC) mining.

 

Atomic Swap

A technology that makes it possible to exchange cryptocurrencies directly and without intermediaries.

 

Block Reward

The reward given to a miner after they have successfully hashed a transaction block.

 

Chain Split

A chain split happens when a blockchain branches into two versions of transaction history. This can happen as a result of a ‘hard fork’ or a ‘soft fork’.

 

Circulating Supply

The best approximation of the number of coins that are circulating in the market and in the general public’s hands.

 

Confirmation

The act of hashing a transaction and adding it to the blockchain.

 

Consensus Mechanism

The process through which all the peers of the blockchain network reach a common agreement about the present state of the distributed ledger.

 

Cryptanalysis

The study of analyzing information systems in order to study the hidden aspects of the systems.