Glossary Term: Cryptocurrency

A standard for NFT tokens that can be created on the ThunderCore blockchain.

Quantity: Only 1NFT can be made

Advantages: NFTs made with this standard are unique, the second does not exist. Thanks to that, the value of NFT can be increased.

A standard for NFT tokens that can be created on the ThunderCore blockchain.

Quantity: 1NFT or more can be created

Advantages: It is possible to create more than 1 NFT with the same work. Therefore, it can be distributed or sold to multiple owners.

The term “full on chain” refers to the scenario where all activities occur directly on the blockchain.

For instance, when creating a Non-Fungible Token (NFT) on Ethereum, many NFTs store image data on a centralized server or IPFS (InterPlanetary File System), with only the location of that image data (typically a URL) stored on Ethereum. This would not be considered “full onchain.”

Conversely, when creating an NFT on Bitcoin (such as through Inscriptions), all information is recorded directly on the Bitcoin blockchain. Therefore, as long as Bitcoin continues to exist, anyone can verify the existence of this NFT at any time. In this case, an NFT on Bitcoin could be described as being “full onchain.”

“Off-chain” refers to transactions that occur outside of a blockchain. These transactions are not recorded on the blockchain itself, which is why they’re considered “off-chain”. Off-chain transactions can be used for a variety of purposes within the broader context of blockchain technology and cryptocurrency.

Here are some key aspects of off-chain transactions:

1. Speed and Scalability: Because off-chain transactions do not require confirmation by the blockchain’s network of miners or validators, they can be much faster than on-chain transactions. They can also be processed in larger volumes, which can help to address some of the scalability issues faced by many blockchains.
2. Privacy: Off-chain transactions can also offer greater privacy than on-chain transactions. Because they don’t appear on the blockchain, they can be more difficult for third parties to trace.
3. Lower Costs: Off-chain transactions can help to avoid the sometimes high fees associated with on-chain transactions. This can be especially important in networks where transaction fees are high due to network congestion, such as has sometimes been the case with Ethereum.

Off-chain solutions can be particularly useful for blockchain networks that need to handle a large number of transactions. Examples include second-layer solutions like Bitcoin’s Lightning Network or Ethereum’s state channels and Plasma framework. These work by creating a secondary network of peer-to-peer transactions that only interact with the main blockchain at specific points, reducing the load on the main network and increasing transaction speed.

While off-chain transactions have advantages, they also have potential downsides. For example, the security of off-chain transactions might not be as robust as the security offered by on-chain transactions, because they don’t have the full security of the blockchain’s consensus mechanism. There may also be greater counterparty risk, as you must trust the other party to fulfill their obligations off-chain.

In the context of blockchain and cryptocurrencies, “on-chain” refers to all transactions and actions that occur directly on the blockchain itself.

A blockchain is a decentralized, distributed ledger that records all transactions of a particular cryptocurrency. Each “block” contains a list of transactions, and when these transactions are completed, they are said to have occurred “on-chain” because they are permanently recorded on the blockchain.

For instance, if you were to send some Bitcoin to another person, that transaction would be processed by the network, verified, and then added to the Bitcoin blockchain. This is an on-chain transaction.

On-chain transactions have a few key characteristics:

1. Immutability: Once a transaction has been added to the blockchain, it cannot be altered or deleted.
2. Transparency: All on-chain transactions are visible to all participants in the network, providing a high level of transparency.
3. Security: Transactions are secured through cryptographic techniques. They are verified by network participants (like miners in a proof-of-work system or validators in a proof-of-stake system) before they are added to the blockchain.
4. Finality: Once confirmed, an on-chain transaction is considered final.

On-chain is often contrasted with “off-chain” transactions, which occur outside the blockchain network and are not subject to the same level of transparency, security, and immutability. Off-chain transactions can be faster and less expensive, but they don’t provide the same level of security and trust as on-chain transactions.

Inscriptions is a technology that links images and files directly engraved on the Bitcoin blockchain with Bitcoin transaction information. Ordinals is the project name for realizing the Inscriptions on Bitcoin. Therefore, Inscriptions and Ordinals are often used interchangeably to mean “Bitcoin NFT”.

Unlike Ethereum’s NFT, Bitcoin NFT (Inscriptions) is full-on-chain (all information is recorded on Bitcoin), so as long as Bitcoin is not lost, anyone can confirm its existence at any time. be able to.

Non-custodial wallets, or self-custodial wallets, are a type of wallet in which the cryptocurrency owner is fully responsible for managing their funds.

Users have full control over their crypto assets, manage their private keys, and handle their own transactions. Non-custodial wallets come in many forms.

Gas is a unit that measures the computational effort required to perform certain operations on the Ethereum network. It represents the fee required for execution, regardless of the success or failure of the transaction.

Gas fees are paid in Ethereum’s native currency, Ether (ETH), expressed in units called gwei. 1 gwei is equal to 0.000000001 ETH, equivalent to 1,000,000,000 wei. Wei is the smallest unit of ETH, named after Wei Dai.

Ether (ETH) is the native cryptocurrency of the Ethereum blockchain and network. This will be used to pay transaction fees and as collateral by network verifiers.

A BRC-20 token is a fungible token standard designed specifically for the Bitcoin blockchain. It is an experimental token standard that enables the minting and transferring of fungible tokens via the Ordinals protocol on the Bitcoin blockchain.

BRC-20 tokens utilize Ordinals inscriptions of JSON (JavaScript Object Notation) data to deploy token contracts, mint, and transfer tokens. Unlike other token standards that rely on intricate smart contracts, BRC-20 tokens sidestep smart contracts, which can sometimes be complex to configure, making it simpler and easier to use. It allows programmers to create and send fungible tokens via the Ordinals protocol.

Currently, the BRC-20 token standard allows creating a BRC-20 token with the deploy function, minting an amount of BRC-20 tokens with the mint function, and transferring an amount of BRC-20 tokens via the transfer function. However, the process of deploying, minting, and transferring BRC-20 tokens isn’t user-friendly, and there are limited tooling and supporting services.

The BRC-20 token standard is new and experimental, and it is prudent to recognize that, like any other technological solution, it also has some inherent limitations. The future of BRC-20 is still uncertain, and BRC-20 tokens have little utility at present.