Blockchain Terminology

A quick reference that defines the most common blockchain terms, including TON‑specific components such as masterchain, workchain limits, and sharding.

Core concepts#

Address – a unique identifier on a blockchain used for sending and receiving digital assets.

Block – a data structure that contains transactions and metadata, linked to the previous block by a hash.

Blockchain – a sequential chain of blocks, each referencing the hash of its predecessor; any alteration changes the block’s hash and propagates forward.

Hash – a deterministic function that converts arbitrary data into a fixed‑length string, used to ensure integrity.

Node – software that stores and forwards blockchain data, keeping the network operational.

Smart contract – self‑executing code that enforces the terms of an agreement without intermediaries.

Transaction – the transfer of cryptocurrency or data from one address to another.

Validator – a node that verifies transactions in a Proof‑of‑Stake system and earns rewards.

Consensus algorithm – the protocol that enables network participants to agree on the blockchain state (e.g., PoW, PoS, DPoS).

Genesis block – the first block of a blockchain, establishing the initial state.

Fork – a split of a blockchain into two separate chains; can be soft (backward‑compatible) or hard (incompatible).

Gas – the fee paid to execute operations or smart contracts.

Proof of Work (PoW) – a consensus method where miners solve cryptographic puzzles to create blocks.

Proof of Stake (PoS) – a consensus method where validators lock tokens to obtain block‑creation rights.

Decentralized finance (DeFi) – financial services built on blockchain without traditional intermediaries.

Token – a digital asset representing value, utility, or governance on a blockchain.

Altcoin – any cryptocurrency other than Bitcoin.

NFT (Non‑Fungible Token) – a unique token that represents ownership of a specific digital item.

Airdrop – free distribution of tokens to users who meet predefined criteria.

ATH (All‑Time High) – the highest recorded price of an asset.

Liquidity pool – a smart‑contract‑controlled reserve of assets that enables automated trading.

Staking – locking tokens to support network security and earn rewards.

Slashing – a penalty that reduces a validator’s stake for misbehavior.

Cold wallet – offline storage for crypto assets, typically used for long‑term holding.

Hot wallet – online storage for frequent transactions.

Bridge – a mechanism that moves assets between different blockchain networks.

Burning – permanently removing tokens by sending them to an unspendable address.

Bubble – a market condition where asset prices far exceed intrinsic value.

Bull – a trader who expects prices to rise.

Bear – a trader who expects prices to fall.

Whale – an entity with enough capital to influence market prices.

Liquidity mining – earning rewards by providing assets to a liquidity pool.

Flash loan – a loan that is borrowed and repaid within a single transaction.

Dust – tiny amounts of cryptocurrency too small to be practically spent.

Dusting attack – a privacy‑targeted attack that sends dust to many addresses to trace owners.

Replay attack – re‑submission of a valid transaction on another chain.

Rug pull – a scam where developers withdraw all funds from a project, abandoning it.

TON‑specific architecture#

Masterchain – the primary blockchain that stores configuration data for all workchains and shardchains; new masterchain blocks appear roughly every 5 seconds, followed one second later by corresponding shardchain blocks.

Workchain – a logical grouping of shardchains; the TON network supports up to 2³² workchains, with the first workchain (prefix 0) serving as the main TON workchain.

Shardchain – a component of a workchain that enables horizontal scaling; each workchain can contain up to 2⁶⁰ shards.

Sharding – the process of dividing the blockchain database into smaller, parallel‑operating segments (shards) to increase throughput.

TON Virtual Machine (TVM) – the execution environment for smart contracts on TON.

TON Connect – a standard protocol that allows wallets to interact securely with decentralized applications.

TON DNS – a naming service that maps human‑readable names (e.g., myname.ton) to blockchain addresses.

Jetton – the native token standard on TON, analogous to ERC‑20 on Ethereum.

TON Bridge – a cross‑chain bridge that enables moving assets between TON and other blockchains.

TON Storage – a decentralized file‑storage layer built on top of the TON network.

Trading and market terms#

Liquidity pool – a collection of funds locked in a smart contract to facilitate token swaps.

Spread – the difference between the best bid and ask prices on an exchange.

Volatility – the degree of price fluctuation over time.

Pump – a rapid, short‑term price increase, often orchestrated.

Dump – a rapid price decline, typically caused by large holders selling.

Liquidation – forced closure of a leveraged position when margin requirements are not met.

Margin – collateral posted to open a leveraged trade.

Development and security#

Multisignature (multisig) – a transaction signing method that requires approval from multiple parties.

Obfuscation – techniques used to make smart‑contract code harder to analyze.

Open source – software whose source code is publicly available for review and modification.

DDoS attack – a distributed denial‑of‑service attack that overwhelms a network with traffic.

Sybil attack – creation of many fake identities to gain disproportionate influence over a network.