"Transaction" TAG

Layer 2 Scalability
  • glossary
One approach to increasing a blockchain network’s transaction scalability is to utilize linked Layer 2 networks to reduce burden on the main chain. They do so by allowing users to conduct a number of transactions on this separate channel, while only recording the final state (net changes) of both accounts to the main blockchain. This...
Transaction Finality (Probabilistic/Deterministic)
  • glossary
Generally, transaction finality refers to the moment when parties involved in a transaction can consider the transaction to be completed. More specifically, this is the moment when it becomes impossible to revert or alter a transaction that has been added to the blockchain. Transaction finality can be either deterministic or probabilistic. Probabilistic finality occurs when...
Atomic Swap
  • glossary
An atomic swap is a method of securely exchanging tokens across distinct blockchains, without an intermediary. The code for an atomic swap requires that either transactions on both chains take place, or neither do; the transactions are executed simultaneously. Decred and Litecoin completed the first mainnet atomic swap in 2017. Komodo uses atomic swaps in...
Hashed TimeLock Contract (HTLC)
  • glossary
A Hashed TimeLock Contract (HTLC) is a conditional payment method that requires the receiver to either acknowledge receipt prior to a deadline or forfeit the ability to claim the payment in the future, thereby returning it to the payer. After an HTLC is initiated, the transacted funds are held in a primitive smart contract allowing...
Payment Channel
  • glossary
A payment channel is an off-chain network running parallel to a blockchain that allows two parties to send off-chain transactions between one another and settle on the base blockchain when necessary. Payment channels are established and funded through an on-chain transaction, after which the two channel parties may send portions of the locked tokens between...
Nonce
  • glossary
A nonce is an arbitrary number usable just once in a cryptographic communication. Nonces are used in proof-of-work systems to vary cryptographic hash functions’ input. In certain PoW systems, miners compete to find a nonce that produces a hash with a value lower than or equal to that set by the network difficulty. Authentication protocols...
Confidential Transactions
  • glossary
Confidential Transactions are a method of enhancing privacy guarantees in cryptocurrencies. Confidential Transactions operate via Pedersen Commitments, which enable verification of transaction validity without revealing underlying information about the sender, receiver, or amounts transacted. They were originally proposed by Blockstream developer Greg Maxwell for the Bitcoin network, and have since found use in a variety...
Dandelion Routing
  • glossary
Dandelion Routing, originally proposed as a Bitcoin Improvement Proposal (BIP), is a traffic routing algorithm designed to obscure the path of information between IP addresses. This approach increases the difficulty of a DDoS attack against a node. Grin uses Dandelion Routing to help obscure the off-chain communication between parties required to prepare transactions.
Decentralized Exchange (DEX)
  • glossary
Conventional cryptoasset exchanges usually involve a centralized operating entity that enables liquidity by bringing together reliable market makers and takers. Customers generally benefit from this market matchmaking when their orders are quickly filled, a convenience for which users pay a significant fee. This centralized approach also comes with risks posed by information asymmetries—the exchange operator...
Lightning Network
  • glossary
The Lightning Network is a system of bi-directional payment channels that enables users to securely send fast, low-cost cryptocurrency payments. Lightning gained initial traction with Bitcoin as a layer 2 scaling solution by enabling efficient micropayments and instant transactions, which allows Bitcoin to function more effectively as a medium of exchange. The network’s design builds...
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