Glossary
Account
It represents a user's or entity's presence on a blockchain.
Active Set
The top 50 validators that participate in consensus, receive rewards, and secure the blockchain.
Address
A unique numerical identifier for digital wallets within a blockchain network.
Airdrop
A promotional or gift program where specific cryptocurrencies are distributed for free.
API
(Application Programming Interface) An interface that enables data and transaction communication between software applications.
AreonCLI
The command line interface for interacting with a Areon node.
For more information on AreonCLI, see the Areon guides.
Block
A unit in a blockchain where data is stored; it can contain multiple transactions.
Block Explorer
A web interface used to inspect transactions and blocks on the blockchain.
Blockchain
A continuously growing, distributed digital ledger or record system composed of independent blocks.
Bonded validator
A validator in the active set participating in consensus. Bonded validators earn rewards.
Bonding
When a user delegates or bonds AREA to a validator to receive staking rewards. Validators never have ownership of a delegator's AREA, even when bonded. Delegating, bonding, and staking generally refer to the same process.
Bridge
A tool that facilitates the transfer of assets or data between different blockchains.
Bug / Bug Bounty
Software errors or security vulnerabilities, and a program that rewards those who discover such issues.
Cold Wallet
A secure method of storing cryptocurrencies with no internet connection, typically on a device.
Commission
The percentage of staking rewards a validator keeps before distributing the rest of the rewards to delegators. Commission is a validator’s income. Validators set their own commission rates.
Consensus
Agreement among network participants for validating transactions in a blockchain network.
Contract
Refers to smart contracts, which are self-executing programs on a blockchain.
Crypto Wallet
A digital wallet application used to store, send, and receive cryptocurrencies.
dApp
(Decentralized Application) Decentralized applications built on blockchain technology.
DeFi
(Decentralized finance) A movement away from traditional finance and toward systems that do not require financial intermediaries.
Delegator
A person or entity that grants authority to someone else to perform specific functions on a blockchain network.
DEX
(Decentralized Exchange) A decentralized exchange, a platform for direct cryptocurrency trading.
Digital Asset
Any value represented and stored on technologies like blockchain.
EVM
(Ethereum Virtual Machine) The virtual processor of the Ethereum network where smart contracts execute and transactions take place.
Exchange
An online platform or service used for buying and selling cryptocurrencies.
Faucet
A website or service that often distributes free cryptocurrencies.
Fees
Compute fees added on to all transactions to avoid spamming. Validators set minimum gas prices and reject transactions that have applied gas prices below this threshold.
Full node
A computer connected to the Areon that is able to validate transactions and interact with the Areon blockchain. All active validators run full nodes.
Gas
The fee or resource required to execute a transaction or a smart contract.
Gas Limit
A restriction that sets the maximum amount of gas a transaction can use.
Genesis Block
The first block of a blockchain, marking the beginning of the blockchain's creation.
Governance
Governance is the democratic process that allows users and validators to make changes to the AreonChain. Community members submit, vote, and implement proposals. One staked AREA is equal to one vote.
Governance proposal
A written submission for a change or addition to the AreonChain. Topics of proposals can vary from community pool spending, software changes, or parameter changes.
Gwei
A unit for measuring transaction fees on the Ethereum network.
Hash
A unique string generated through a mathematical process from data.
Hot Wallet
An internet connected wallet type used for quick transactions but with security risks.
Inactive set
Validators that are not in the active set. These validators do not participate in consensus and do not earn rewards.
Jailed
Validators who misbehave are jailed or excluded from the active set for a period of time.
Keys
Pairs that provide access to cryptocurrency assets, typically consisting of private and public keys.
Liquidity
The ease with which an asset can be bought or sold.
Mainnet
The live and real version of a blockchain network where actual transactions occur.
Market Cap
The total value of a cryptocurrency, often calculated by multiplying the circulating token supply.
Mnemonic Phrase
A series of words used to recover or back up your cryptocurrency wallet.
NFT
(Non-Fungible Token) Unique, non-interchangeable digital assets.
Node
A device or software component connected to a blockchain network.
Private Key
A secret key used and stored by the owner of a cryptocurrency wallet.
Redelegate
When a delegator wants to transfer their bonded AREA to a different validator. Redelegating AREA is instant and does not require a 10-day unbonding period.
RPC
(Remote Procedure Call) A communication protocol that facilitates access to blockchain networks through remote access.
Rewards
Revenue generated from fees given to validators and disbursed to delegators.
Self-delegation
The amount of AREA a validator bonds to themselves. Also referred to as self-bonding.
Scalability
The ability of a blockchain network to handle more transactions.
Seedphrase
A series of words used to recover or back up your cryptocurrency wallet (serving the same purpose as a mnemonic phrase).
Slashing
Punishment for validators that misbehave. Validators lose part of their stake when they get slashed.
For more information, see slashing in the description of the AreonChain.
Smart Contract
A self executing program or agreement that automatically performs transactions based on specific conditions.
Stake
The amount of AREA bonded to a validator.
Staking
The process of locking up your cryptocurrencies on a network and earning rewards.
Swap
A transaction in which cryptocurrencies are exchanged for one another.
Testnet
A non-live version of a blockchain network used for testing and development.
Token
A digital unit representing assets on a blockchain network.
Transaction
An action or transfer on a blockchain network.
Unbonding
When a delegator decides to undelegate their AREA from a validator. This process takes 10 days. No rewards accrue during this period. This action cannot be stopped once executed.
Undelegate
When a delegator no longer wants to have their AREA bonded to a validator. This process takes 10 days. No rewards accrue during this period. This action cannot be stopped once executed.
Uptime
The amount of time a validator is active in a given timeframe. Validators with low uptime may be slashed.
Validator
A participant in a blockchain network who verifies transactions.
Wallet
A digital wallet application or service used to store, send, and receive cryptocurrencies.
web3
A term referring to Web 3.0, supporting the development and use of decentralized applications (DApps).