TestNet: Defined in CryptoCurrency

TestNet: Defined in CryptoCurrency

TestNet also known as “testnet” is software that is identical to the software used by a cryptocurrency. 

 

Because testnets are built to experiment with new ideas without disturbing or breaking the main cryptocurrency software, its digital currency is worthless. 

Bitcoin’s testnet has been reset several times to stop people who began trading its coins as digital money.

TestNet: Defined in CryptoCurrency

TestNet: Defined in CryptoCurrency

TestNet also known as “testnet” is software that is identical to the software used by a cryptocurrency. Because testnets are built to experiment with new ideas without disturbing or breaking the main cryptocurrency software, its digital currency is worthless. Bitcoin’s testnet has been reset several times to stop people who began trading its coins as digital money.

Hash Rate: Defined in CryptoCurrency

Hash Rate: Defined in CryptoCurrency

Hash rate is defined as the speed that a computer can take any set of information and turn it into letters and numbers of a certain length. Hash rate is also the combined hash speed of every computer in the network. Hash rate is calculated at hashes per second (h/s).

Hash rate is important for computers that mine. Mining is the process of recording and verifying information on the digital record known as the blockchain. The blockchain is made up of a sequence of single recordings known as a block.

To keep the blockchain network running smoothly, only one block can be created at a time. To control when blocks are created, users are required to make their computers solve a math problem involving hashing. The first computer to solve this problem can create a new block and record information on the blockchain.

Miners often purchase very expensive specially designed computers that have higher hash rates to increase their chances of solving the math problem first. These mining computers use tons of electricity to power their computers. This expensive process earns miners a reward in brand crypto plus fees paid by each user for their transactions.

Similar to memory size, hash rate is counted like this:

• 1 kilo hash per second is one thousand (1,000) hashes per second
• 1 mega hash per second is one million (1,000,000) hashes per second.
• 1 giga hash per second is one billion (1,000,000,000) hashes per second.
• 1 tera hash per second is one trillion (1,000,000,000,000) hashes per second.
• 1 peta hash per second is one quadrillion (1,000,000,000,000,000) hashes per second.
• 1 exa hash per second is one quintillion (1,000,000,000,000,000,000) hashes per second.

Tangle: Defined in CryptoCurrency

Tangle: Defined in CryptoCurrency

The tangle is a technology created by Iota, a cryptocurrency to record its transactions instead of the blockchain. The tangle is created using directed acyclic graphs or DAG which is a structure built out in one single direction and in such a way that it never repeats.

Here a “graph” is simply a structure of units. “Directed” describes the connection between each unit in the structure, and that they all flow the same way. And “acyclic” means describing something that is not circular or repeating.

A good example of a directed acyclic graph is a checklist. In order to do step 10, you must have done step 9, and before you can do step 8, you must have done step 7 and so on. If you were to list out these steps on a graph, you would see the flow from 1-10 and that it never repeats itself going back to 1. If it did repeat, it would not be a directed acyclic graph.

Another example of a DAG is a family tree. Your grandparents had your mom and her brother. Your mom met your dad and had you. Your mom’s brother met his wife and had their kids. In no way does your grandpa or grandma ever show up again beneath you.

Within the tangle, in order for a transaction to be eligible for recording, the person must first verify two previous transactions. Then his transaction is eligible for recording by others. This system was designed to be quick and allow for much quicker recording time than bitcoin which takes around 10 minutes.

Taint: Defined in CryptoCurrency

Taint: Defined in CryptoCurrency

Taint is the percentage of cryptocurrency in one account that can be traced back to another account. Taint was often used to measure how many coins in a user’s wallet have been related to stolen or fake coins or other negative and illegal activities.

State Channel: Defined in CryptoCurrency

State Channel: Defined in CryptoCurrency

A state channel is defined as a more affordable, private, and efficient place for interactions to occur and later be recorded onto the blockchain.

Traditional cryptocurrency transactions are recorded onto the blockchain, a digital record book kept by its network of thousands of users. The blockchain allows users to do business directly with each other and avoid hiring a trusted third party.

Because the blockchain is maintained by a network, each new recording in the blockchain needs to first be recorded and then shared and verified to the entire network. With tens of thousands of transactions happening every day, it can take 10-30 minutes for a single bitcoin transaction to be recorded and shared onto the blockchain.

A “state” is defined as the condition or situation of something at a specific time. A “channel” is a place for communication to occur. So a state channel is a safe place where authorized interactions can occur, be recorded, and later published onto the blockchain.

A state channel lets users interact directly, removing the need for all data to be sent to the blockchain. Out of potentially hundreds or thousands of messages, only the final results are sent to the blockchain.

For example, imagine James and Jessica are a couple who want to buy stuff from the local bitcoin mall:

1. With the blockchain, for every purchase they make, they must wait 10+ minutes after buying so the store can see that the blockchain recorded the sale. That means, if they shopped at 6 stores, they’d waste 10 minutes at each, or a full hour waiting for the blockchain to catch up.
2. With state channels, James and Jessica can shop at each store as they normally do. There would be no waiting at each store because every transaction is instant. As they leave the mall, they can close their state channel. 10 minutes later, the blockchain would display the results of their shopping trip.

Features of state channels include:

• The data is private. Only people initially invited into the state channel have access.
• The interactions are instant. No waiting for the blockchain to catch up.
• The interactions are nearly free. Instead of paying each time to have your data recorded onto the blockchain, only the results are recorded.
• The data is trustworthy. Each message is digitally signed by the user to prove they authorized it. If any user tries to cheat or leaves early, the other user(s) can publish the state channel finalizing the latest authorized results.
• The data is smaller. Only the final results are recorded, not every single message reducing data added to and shared on the blockchain.
• State channels end. Unlike the blockchain, an end time or end conditions (such as number of transactions) are set at the beginning. Users can end their state channel early.

Stale Block: Defined in CryptoCurrency

Stale Block: Defined in CryptoCurrency

A stale block is a digital recording that is complete with information and no longer needs to be recorded or worked on. 

Because a blockchain is a digital recording and each block is like a page in that recording, new pages are added any time more information needs recorded. 

If everyone were to record new info at the same time, the blockchain wouldn’t work. So the system lets one person record info at a time. 

A stale block is a block that has already had info recorded onto it. There is no need for people maintaining the blockchain to try to record more information on i