The Ethereum Blockchain

A Glossary of Common Terms in the Ethereum and Crypto Space

Words are Hard This is a list of terms you might encounter when using the MyCrypto interface. Account A public and private key pair that "holds" your funds. Your funds are actually stored on the blockchain, not in the wallet or account. Just like your Reddit account has a username (public) and password (private) , so does your Ethereum account. For additional security, you can use a password to encrypt your private key which would result in a username (public) and password (private) and…

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Differences Between Wallet Types (e.g., Private Key vs Keystore)

Cryptocurrency might be home to some of the most confusing naming conventions on Earth. What's the difference between "wallet" and "account"? Isn't MyCrypto a wallet? What's the difference between a seed phrase and a private key? Isn't my seed phrase my private key? Fortunately, you're not the only one who might be confused, as much of the Ethereum ecosystem often uses these terms interchangeably. Defining a Wallet Per Ethereum.org - "Ethereum wallets are applications that let you interact with…

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Intro to NFTs & NFT Token Standards

What does Non-Fungible Token actually mean? Fungibility is defined by Merriam-Webster as: "being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part or quantity in paying a debt or settling an account" For example, Ethereum and Bitcoin are both fungible. There is nothing unique about the ETH that I hold, versus the ETH that you hold - they are the exact same and equally fungible. Outside of crypto if I show you my Holographic…

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What Is Gas?

Ethereum is the network, also known as the blockchain. Ether (ETH) is the fuel for that network. When you send tokens, interact with a contract, send ETH, or do anything else on the blockchain, you must pay for that computation. That payment is calculated in gas, and gas is paid in ETH. You are paying for the computation , regardless of whether your transaction succeeds or fails. Even if it fails, the miners must validate and execute your transaction (compute) and therefore you must pay for…

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Why Is Gas?!

When sending a transaction on the Ethereum network you may be startled by the cost to send said transaction, especially if you are returning from a cryptocurrency hiatus. Why are the gas fees so damn high?! The price of Ether rose from $100 to $1500 in ~6 months and your transaction fee is paid with Ether. A transaction that previously cost $0.42 might cost $7.14 today. The network is increasingly busy and the transaction fee determines who's transaction is mined first. There is stuff to do on…

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What Is Nonce?

In Ethereum, every transaction has a nonce. The nonce is the number of transactions sent from a given address. Each time you send a transaction, the nonce increases by 1 . There are rules about what transactions are valid, and the nonce is used to enforce some of these rules. Specifically: Transactions must be in order: You cannot have a transaction with a nonce of 1 mined before one with a nonce of 0 . No skipping! You cannot have a transaction with a nonce of 2 mined if you have not…

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What Are Internal Transactions?

Internal transactions, despite the name (which isn't part of the yellow paper but is a convention people have settled on), are not actual transactions. They are also not included directly in the blockchain; they are value transfers that were initiated by executing a smart contract (smart contract Ether or token transfer). Certain Ether and token transfers require calling a smart contract to perform the action. These show up as internal transactions and are not indicated in the main ETH…

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What Are the Different Units Used in Ethereum?

When using Ethereum, you may encounter different units, such as Wei and Gwei. In this article, you'll find an explanation of the different units used, and a converter for all the different units. The smallest unit is Wei. One Wei is equal to 0.000000000000000001 (or 10 -18 ) Ether. The EVM (Ethereum Virtual Machine) uses Wei as base unit, since it is unable to deal with decimal numbers. Gwei, another common unit, primarily used for gas, is equal to 1000000000 Wei, or 0.000000001 (or 10 -…

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What Is a Derivation Path?

If you use a Secret Recovery Phrase or hardware wallet, you may come across the term "derivation path." In short, it specifies which private key (and thus which address) is used. A derivation path looks something like this: Note the extra "/0" at the end of the derivation path. This number is called the address index, and is used by MyCrypto to show you all the different addresses in the list. MyCrypto follows the BIP-32 and BIP-44 specification for this. Each coin has its own base…

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What Is WalletConnect?

WalletConnect is an open protocol made to facilitate a secure connection between mobile cryptocurrency wallets and desktop applications, such as dapps. Transactions are made through an encrypted connection by scanning a QR code, and are confirmed on the mobile device. As the private key never leaves the user’s device, their funds are never at risk and the possibility of a hijack is very low. WalletConnect was initially shared with the public by Richard Burton in 2018 , and is in active…

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Ethereum Address Has Uppercase and Lowercase Letters

There are two versions of Ethereum addresses: one that contains uppercase letters and one that does not: 0x7cb57b5a97eabe94205c07890be4c1ad31e486a8 0x7cB57B5A97eAbe94205C07890BE4c1aD31E486A8 The one that is all lowercase is not checksummed , meaning that you could mistype a letter or number, send it off, and it would be lost forever. If you use the checksummed version and mistype it, it will tell you that it's an invalid address. For this reason, we warn you when your address is not checksummed…

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Should I Keep My ETH and Tokens in a Single or Multiple Addresses?

MyCrypto is a front-end interface that enables you to interact directly with the Ethereum blockchain. MyCrypto enables you, through the interface, to send tokens from your address, view your token balance, etc. However, MyCrypto's existence has no bearing on your address's ability to receive tokens: Any Ethereum address can receive and store Ethereum-based tokens ("ERC-20" tokens). Whether you store all your ETH and tokens in the same address is up to you. Some people prefer to have different…

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Is the Blockchain Private?

Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain. — What is Blockchain Technology? A Step-by-Step Guide For Beginners by Blockgeeks The blockchain is a public , distributed ledger. It allows anyone, anywhere to view and verify the transactions executed on it. In fact, the primary value of blockchains is that they remove…

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More Help, Support, and Communities

General Questions and Ethereum General Information: Ethereum.org Questions: /r/ethereum Questions: Stack Exchange Getting Started: Reddit Guide for Noobs: /r/ethereumnoobies for Development: /r/ethdev Clients / Wallets / Interfaces Geth: Website · Discord Server OpenEthereum: GitHub Metamask: Website · Support MyCrypto: Website · FAQ · Support Jaxx: Website · Support Ledger: Website · Support Trezor: Website · Gitter · Support Exchanges Bibox: Website · Support…

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