We put together a brief dictionary of terms for your consideration...
A blockchain is a ledger of records arranged in sequential data bundles called blocks. Blocks can contain information on transactions, files or any data you like. Each block is linked to the previous one by a cryptographic hash function (see MINING). Each block’s hash is produced using the hash of the block before it. This way every block contains information about the previous block. The main difference from a traditional database is that this ledger is not stored on a central server. It is distributed across the world via a network of private computers that are both storing data and executing computations. Each of these computers represents a node of the blockchain network and has a copy of the ledger file.
This kind of data storage means that files are secure (the whole network contains a copy of the whole ledger with no single point of failure while all transactions are encrypted), transparent (if the blockchain is public all the transaction history is visible to everyone), immutable (data can’t be changed) and decentralized. The blockchain is also a trustless system meaning nobody in the network has to trust anybody in order for the system to work. The trust is built in the network.
A crowdsale is an event when a company tries to raise funds for the development of its product/idea by generating tokens and selling them to a specific investor and/or general public.
DECENTRALIZED APPLICATIONS (DAPPs)
A single definition of a Dapp has not yet been agreed upon. The most common ones agree that the application has to be open-source, with a native token, and no central entity controlling the majority of the tokens. Tokens are generated according to an algorithm that provides an incentive for contributing to the system. All changes to the application are decided by consensus of its users, and its data must be cryptographically stored in a public, decentralized blockchain.
An Ethereum (ETH) address represents an account. It is written in a hexadecimal format and consists of 40 characters - letters and numbers. It is usual practice to make the hexadecimal nature of it explicit by prefixing it with 0x even though the address works without the prefix as well. Although it is quite often that an Ethereum address is equated with an Ethereum public key, that is not the case. The ETH public key is 32 bytes/64 characters long while the ETH address is comprised of only the last 20 bytes/40 characters of this key. Adding the 0x we get a 42-characters long address.
So, a typical ETH address would look like:
Prefix: 0x Address: cd2a3d9f938e13cd947ec05abc7fe734df8dd826
In its broadest sense, Ethereum is a computer platform based on blockchain technology that enables developers to build and deploy decentralized applications. It is a distributed public blockchain network with its own programming language which developers can use to create smart contracts. Smart contracts are then a foundation on which any type of application can be built. Ethereum is not to be confused with ether which is the token, native to the Ethereum platform.
A hash function is simply a function that takes an input value, and from it creates an output value that only correlates to that specific input. A cryptographic hash function is a special class of hash function that has certain properties which make it suitable for use in cryptography.
Let’s say Alice poses a tough math problem to Bob and claims she has solved it. Bob would like to try it himself, but would yet like to be sure that Alice is not bluffing. Therefore, Alice writes down her solution, computes its hash and tells Bob the hash value (while keeping the solution secret). Then, when Bob comes up with the solution himself a few days later, Alice can prove that she had the solution earlier by revealing it and having Bob hash it and check that it matches the hash value given to him before.
Is a book or a computer file that records all the transactions on all the accounts a company or an individual holds with debits and credits in separate columns and a beginning fiscal balance and ending fiscal balance for each account.
Mining in its most basic form means confirming transactions on the blockchain and adding new blocks of information to the previous ones. This is done by solving a mathematical problem, and the solving part is called proof-of-work. The result of applying mathematical formulas to the content of the block is a hash. The new block’s hash contains all the information inside this block, including the hash from the previous block. The previous block’s hash contains all the information from that block, including the hash from the previous block...
This process consumes time and a lot of electrical energy. That’s why miners earn rewards for mining blocks in addition to receiving a fee for the blockchain transaction and how new ethers or bitcoins are minted. The transaction also has to be confirmed a certain amount of times before it’s added to the network. For bitcoin, it takes 6 confirmations or about an hour.
PRIORITY CHECK BLOCK
On the Ethereum blockchain time is measured in blocks that have been already mined. At a certain block number, which serves as a point in time, Cofound.it checks all the CFI holders balance. Based on the balance of CFI in a wallet we calculate contribution limits for each crowdsale.
The term is taken from the venture capital vocabulary, and it refers to the earliest stage of capital financing from venture funds. The amounts raised are relatively modest, from $250,000 to a $1,000,000. These early financings may be directed toward product development, market research, building a management team and developing a business plan. All the subsequent rounds increase in value as they are intended to finance different aspects of business development at different stages. Those are called series A, B and C that lead to an IPO or, in the case of the blockchain space, to a crowdsale.
A smart contract is a simple protocol, a computer programme, that has encoded predefined conditions and actions to be taken if those conditions are met. The smart contract can be linked to a data feed source that provides the input for conditions. For example, a smart contract can be programmed to state if account A receives X amount of funds on January 1st, then it must send Y amount of funds to account B. A blockchain-based smart contract is visible to all users of said blockchain, and its execution can be done directly without intermediaries. That’s why they’re gaining a wide appeal across industries.
A digital token, as a form of digital currency, actually exists only as a concept. In his paper on bitcoin, Satoshi Nakamoto defined an electronic coin "as a chain of digital signatures". This means that tokens exist only as entries in a digital ledger that re-assign their ‘ownership’. Think of it as an intangible resource that is being redistributed and kept track of.
A wallet is a computer program that stores a private cryptographic key that proves ownership of a public key. Proof of ownership is important because a certain amount of cryptocurrency is associated with specific public keys, and private keys confirm the ownership of that amount. The wallet also acts as a ledger for your transactions.
Hardware wallet (HW wallet) is a physical representation of software (online) wallet. Its purpose is to secure your crypto funds by having your all-important private keys maintained in a secure offline location. Storing your private keys on a hardware wallet ensures further security from hackers.
A white paper, in the context of a crowdsale, details the commercial, technological and financial details of a new coin offering and puts it into a form that the reader can more easily understand.
A whitelist is a list or register of entities that provide a particular privilege, service, mobility, access or recognition. Cofound.it uses a whitelist for its Priority Pass™ community to select who can participate in the earlier phases of our hosted crowdsales, our new seed programme and who is entitled to certain goodies, like token bonuses.