1. Introduction to Blockchain - Common Terms#
Wallet#
1. What is a blockchain wallet?#
A blockchain wallet is a string of numbers and letters, similar to a bank card number in real life. It can also be referred to as a wallet address or address. The receiving address filled in during a transfer is this.
2. What is a mnemonic phrase?#
A mnemonic phrase is a format for saving a wallet, consisting of 12 or 24 words. It can be understood as a series of random words obtained through algorithms, and then these words can be used to obtain the corresponding wallet address through some algorithms. The address obtained using the same mnemonic phrase and algorithm is unique.
3. What is a private key?#
A private key is the second format for saving a wallet. The mnemonic phrase can be used to obtain the private key through algorithmic calculations. The private key can also directly generate the corresponding address.
4. What is a JSON file?#
A JSON file is the third format for saving a wallet.
5. Mnemonic Phrase vs Private Key vs JSON File#
- These three are different formats for saving a wallet. They can be understood as fingerprint password locks in real life, which support three ways of unlocking: fingerprint password, card, and key.
- All three can be used to recover a wallet address. The specific format to use depends on the wallet software being used. Mnemonic phrases and private keys are more common, while JSON files may be less common compared to the other two formats.
- All three are very important, and if any one of them is stolen, it will result in the loss of assets. They must be carefully guarded!!!
Transactions#
1. What is a transaction?#
A transaction is a general term for on-chain interactions, which can be a transfer or an operation on a contract.
2. What is a signature?#
In blockchain, a transaction generally involves three steps:
- Constructing the transaction: Taking a transfer as an example, this step handles information such as what currency to transfer, who to transfer to, and how much to transfer.
- Signing the transaction: It can be understood as entering a password when using an ATM for a transfer. Here, it confirms that the initiator of the transaction is you. When signing, be sure to pay attention to the information of the transaction you are signing!!!
- Broadcasting the transaction: Send the signed transaction out, wait for miners to process it, and then a transaction is completed. This process is similar to waiting for the bank to process a transfer after using an ATM.
Public Chains#
1. What is a public chain?#
I believe you have heard of Bitcoin and Ethereum. These two are not only the names of currencies but also the two public chains with the most addresses on the chain.
Each public chain has its own ecosystem, and each ecosystem has its own unique features. Different ecosystems may also have similarities.
The birth of each public chain is to solve some technical problems, but it may also bring some problems. There is no good or bad distinction for public chains.
2. What is a blockchain explorer?#
On-chain data is public. In a blockchain explorer, you can view all the transaction information that has occurred, such as sending address, receiving address, transaction details, transaction fees, and so on.
3. What are coins (TOKEN)?#
- Public chain coins: When making transactions, you need to pay fees, and the fees are generally paid with the governance tokens of the public chain, such as ETH in the Ethereum chain.
- Tokens: All coins other than public chain coins, such as ERC20 (e.g., UNI), ERC721, and ERC1155 in the Ethereum public chain.
Summary#
This article introduces some common terms when first encountering blockchain, and introduces some common terms in wallets, transactions, and public chains. Feel free to leave a comment for discussion.
The next article will explain how to use the Firefox plugin to create the first Ethereum wallet and initiate the first transaction.