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Follow the Satoshi (FTS) Algorithm
The Follow the Satoshi (FTS) Algorithm is a key mechanism used in Proof of Stake (PoS) blockchain systems to fairly and randomly select a validator (or stake pool) for a particular task, such as creating a new block or validating transactions. The algorithm is named after Satoshi Nakamoto, the pseudonymous creator of Bitcoin, and it…
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Liquid vs. Frozen Stake
Liquid stake and frozen stake are terms often used in Proof of Stake (PoS) blockchain systems to describe different states of a staker’s funds (cryptocurrency) in relation to their participation in the network’s consensus and reward mechanisms. 1. Liquid Stake Liquid stake refers to the portion of a staker’s funds that are not currently locked…
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Slashing (Blockchain)
Slashing in blockchain refers to a mechanism used in Proof of Stake (PoS) and other consensus protocols to penalize validators (nodes) for malicious or negligent behavior. It involves confiscating a portion or all of the stake (cryptocurrency) that the validator has locked up as collateral. The purpose of slashing is to discourage misbehavior, enhance network…
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Synchronous & Asynchronous systems
Synchronous and Asynchronous systems refer to two different types of computing or communication environments, particularly in distributed systems, where multiple computers (or nodes) work together to achieve a common task, such as reaching consensus on data. 1. Synchronous Systems In a synchronous system, there is a known upper bound on how long it will take…
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Pseudo-randomness
Pseudo-randomness refers to the generation of numbers or values that appear random but are produced by a deterministic process, typically through algorithms. These algorithms, called pseudo-random number generators (PRNGs), use a seed value to generate sequences of numbers that seem random but are reproducible if the seed is known. While truly random processes rely on…
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Hashing Power
Hashing power (also called hash rate) refers to the computational power used by a network of computers (often referred to as nodes or miners) to solve complex mathematical problems involved in validating and adding transactions to a blockchain. The higher the hashing power, the more computational resources are being used, and the more secure the…
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Proof-based Consensus Algorithms
Proof-based consensus algorithms are mechanisms used in decentralized networks (like blockchain systems) to achieve agreement on the state of the system, ensuring that all participants (nodes) agree on the same version of the data (e.g., transactions) without a central authority. These algorithms are based on requiring participants to provide a “proof” to validate their participation…
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Elliptic Curve Discrete Logarithm Problem (ECDLP)
The Elliptic Curve Discrete Logarithm Problem (ECDLP) is a fundamental mathematical challenge that underpins the security of elliptic curve cryptography (ECC). It is the elliptic curve analog of the discrete logarithm problem used in other cryptographic systems like Diffie-Hellman and DSA. Definition: Given a point P on an elliptic curve and another point Q which…
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Factoring (Mathematics) in Cryptography
In mathematics, factoring (or factorization) refers to the process of breaking down a mathematical object, such as a number or a polynomial, into a product of smaller or simpler objects, called factors, that when multiplied together yield the original object. Factoring of Numbers For integers, factoring refers to expressing a number as the product of…
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Decentralized Identity (DID)
Decentralized Identity (DID) refers to a concept and technology that allows individuals or organizations to have control over their digital identities without relying on a centralized authority. It leverages blockchain and other decentralized technologies to enable secure, self-sovereign identity management, giving users ownership of their personal data and how it is shared with others. Key…
