Glossary

Welcome KYVE’s Glossary, defining the top Web3 terms and jargon, as well as those centered around KYVE Network!

APIs: APIs are a set of protocols, routines, and tools for building software and applications. They define the ways in which different software components can communicate and interact with each other. APIs provide a way for developers to access and interact with a blockchain network or decentralized application, allowing them to submit transactions, retrieve data, and execute smart contract functions.

Bundle: A data bundle refers to a collection of data that is packaged into a single unit. Data bundles can also be used for different industries, such as the distribution of digital content or the sale of data services. The idea behind data bundles is to provide customers with a convenient and cost-effective way to access and use data, while also allowing providers to better manage their network resources and monetize their data offerings. KYVE bundles its data in order to reduce pressure on storage capacity and better organize data in the Web3 space in a cost-effective manner.

Chain nodes: KYVE has two layers to its blockchain, the chain layer, and the protocol layer. The chain layer is the backbone of KYVE, relying on nodes called chain nodes to secure the chain in Proof of Stake.

CEX: A CEX (Centralized Exchange) is a traditional platform for buying, selling, and trading cryptocurrencies, where the exchange operates as a central authority, holding users’ assets and executing trades.

Coin: A coin is a digital asset that is used as a form of currency or medium of exchange within a decentralized system. Coins typically have their own blockchain, and they can be traded, exchanged, or used to purchase goods and services. Some of the most well-known coins include Bitcoin, Ethereum, and Litecoin. Unlike traditional fiat currencies, coins in the blockchain world are decentralized and not issued or backed by any central authority.

Consensus: Consensus means reaching a general agreement. In order to be fully decentralized, a blockchain relies on its network to reach consensus on decisions in order to take any actions. 

Cosmos: Cosmos is a decentralized network of independent, scalable, and interoperable blockchains, built on a technology called Tendermint. It aims to address the scalability and interoperability challenges of current blockchain systems and provide a more unified and accessible blockchain ecosystem. By promoting a more open and interconnected blockchain environment, Cosmos aims to create a more accessible, scalable, and secure digital economy. Learn further about Cosmos and its ecosystem in Finoa’s recent article. 

Data: Data refers to raw and unorganized information that can be processed and analyzed to extract meaningful insights and knowledge. It can come in various forms, such as text, numbers, images, audio, or video. Data is a valuable resource that is used by individuals, businesses, and governments to make informed decisions, gain competitive advantages, and drive innovation and progress.

Data Lake: A data lake is a repository that allows organizations to run their structured and unstructured data through at any scale. The data lake is designed to store data in its raw format, without imposing any structure or schema upfront, allowing for greater flexibility and scalability in data management and analysis. KYVE, for example, is a decentralized data lake.

Data Pipeline: Data Pipeline is KYVE’s no-code solution for providing Web2 and Web3 with trustless data. More specifically, it is an ELT pipeline custom data source supported by Airbyte that allows data analysts and engineers alike to easily import KYVE data into any preferred data backend, such as MongoDB, Google BigQuery, SQL Databases, and more.

Data Warehouse: A data warehouse is used for storing processed and organized data for reporting and analysis. The data in a data warehouse is typically transformed, cleaned, and integrated from various sources before being stored in a well-defined schema. Data warehouses are typically used for traditional business intelligence and decision support systems.

DAO: Decentralized Autonomous Organizations (DAOs) are a type of digital organization that operates on a blockchain network. They are designed to operate independently and autonomously, without the need for a central authority or intermediary.

Decentralization: Decentralization refers to the distribution of decision-making authority and power away from a central authority or entity and towards multiple actors or nodes in a network. In a decentralized system, there is no single point of control or failure, making it more resistant to censorship, fraud, and manipulation. Decentralization can be applied to a variety of systems, such as economies, governments, organizations, and technology, and is often associated with concepts like democracy, transparency, and accountability.

Delegated Proof of Stake: The consensus method called Delegated Proof of Stake (DPoS) is a version of the traditional Proof of Stake (PoS) scheme. With DPoS, which developed from PoS, network users can elect representatives to verify blocks.

DEX: A DEX (Decentralized Exchange) is a blockchain-based platform that enables peer-to-peer trading of cryptocurrencies without the need for intermediaries, ensuring more privacy and security for users.

ELT Pipeline: ELT (extract, load, transform) is a data sourcing approach. It allows data to be extracted from various sources, transformed into a format that is suitable for analysis, and then loaded into a data storage system for further processing and analysis. ELT pipelines are commonly used in big data environments to efficiently process and analyze large volumes of data in real-time. KYVE’s Data Pipeline is an ELT Pipeline, offering a no-code solution for easily importing KYVE data into storage backends. 

Endpoints: Endpoints are specific points within a system that can be accessed and used for communication and interaction. Endpoints refer to the entry points for interacting with a blockchain network or decentralized application. They allow for the submission of transactions, retrieval of data, and execution of smart contract functions. Endpoints are the primary means by which developers can interact with and build on top of a blockchain.

Governance: Governance puts the decisions of key developments of the blockchain and community in the hands of its stakeholders, rather than just one single entity. With KYVE, our stakeholders not only have a say in the direction of KYVE’s growth and development, but they can also go through our governance to request to create their own data pools.

Indexers: Blockchain indexers are components of a blockchain system that are responsible for organizing and indexing the data stored on the blockchain. They provide efficient and fast access to the data, enabling users to search, query, and retrieve specific information from the blockchain in a timely manner. Blockchain indexers are an essential component of many blockchain systems, as they help to improve the performance and scalability of the network, making it easier and more efficient to use.

Incentivization: Incentivization for blockchains refers to the mechanism by which users are motivated to participate in the network and contribute to its growth and stability. This can be achieved through various means, such as rewards, tokens, or tokens. The idea behind incentivization is to create a self-sustaining ecosystem that rewards participants for their contributions and encourages them to continue to support the network.

Immutability: Immutability refers to the property of an object or system that cannot be changed or altered. In computing and blockchain technology, immutability is often used to describe the permanent and unalterable nature of data and information stored on a blockchain network. This property of immutability provides a high level of trust and security, as it ensures that the data cannot be altered or deleted after it has been recorded on the blockchain.

Kaon: Kaon is KYVE’s testnet v2, the official testnet for our mainnet. Once testing was complete on Korellia, the team took its positive learnings from Korellia and started from a clean slate, providing an as close to mainnet replica for more efficient testing once mainnet goes live. Find out more about Kaon here. 

Korellia: Korellia is KYVE’s testnet v1, used for the first rounds of testing of KYVE’s features and functionality. Korellia was also used for KYVE’s Incentivized Testnet, Mission Korellia, were the community was incentivized by $KYVE rewards to put KYVE to the test, as well as increase activity and engagement. Find out more about Mission Korellia here.

KYVE: KYVE, the web3 data lake solution, is a protocol that enables data providers to standardize, validate, and permanently store blockchain data streams. By leveraging permanent data storage solutions like Arweave, KYVE’s Cosmos SDK chain creates permanent backups and ensures the scalability, immutability, and availability of these resources over time. 

KYSOR: KYSOR is KYVE’s Cosmovisor implementation on KYVE, AKA a developer tool for those who run protocol nodes on KYVE. It allows running protocol nodes to be much easier and more standardized by automating binary installations for every pool and providing just one program for running nodes on multiple pools. 

Layer 0 blockchain: This is the underlying physical infrastructure that supports the blockchain network, including the nodes, hardware, and communication networks. Layer 0 blockchains include Cosmos, Polkadot, or Horizen. 

Layer 1 blockchain: A Layer 1 blockchain refers to the underlying infrastructure of a blockchain network that provides the core features and functions for the network. This includes the consensus mechanism, security, and transaction processing. Layer 1 blockchains are typically low-level and provide the foundation for other layers and applications to be built on top. Examples of layer 1 blockchains include Bitcoin, Ethereum, or KYVE!

Layer 2 blockchain: This layer is built on top of Layer 1 and provides additional features and functionalities that enhance the scalability, performance, and user experience of the network. Examples of layer 2 solutions include state channels, plasma, and lightning networks.

Layer 3 blockchain: This layer is the application layer of the blockchain and includes dApps, protocols, and user-facing applications that run on top of the underlying blockchain infrastructure. This layer provides the user interface and enables users to interact with the blockchain and access its features and functions.

Mainnet: Mainnet is the live and operational version of a blockchain network. It is the main network that is used by the public for transactions, and is where the production environment and actual assets are stored and traded. The mainnet is the primary network for a blockchain and is where the real-world value of the blockchain’s digital assets is realized.

Nodes: A node refers to a computer or device that participates in the network. Nodes can perform various functions in a blockchain network depending on the type (full node, supernode, light node, etc.), including validating transactions, maintaining the integrity of the blockchain, and relaying information to other nodes in the network. By having multiple nodes participating in the network, a blockchain is able to achieve decentralized consensus and maintain its security and integrity.

Oracle: An Oracle refers to an entity that provides external data to smart contracts on the blockchain. An oracle acts as a bridge between the blockchain and the outside world, allowing smart contracts to access and interact with data from various sources such as stock prices, weather information, or other APIs. By providing access to off-chain data, oracles play a crucial role in enabling the use of blockchain technology for a wide range of real-world applications. However, in order to provide data quickly, oracles are typically centralized.

Pools: KYVE’s data lake is made up of data storage pools, with each pool pertaining to a certain field of data. For example, Solana blockchain data, or weather data from a certain country. Each pool has a certain amount of protocol nodes within it working together to fetch, store, and validate the data requested. Using such a structure allows data sets to be properly organized and easily sourced. 

Proof of Stake: Proof of Stake (PoS) is a consensus mechanism used in blockchain technology to validate transactions and achieve network consensus. Instead of using computational power to validate transactions, PoS uses the stakeholder’s economic investment in the network, and validators are chosen proportionally to their stake. This reduces the energy consumption compared to Proof of Work (PoW) and incentivizes long-term holding of the network’s cryptocurrency.

Proof of Work: Proof of Work (PoW) is a consensus mechanism used in blockchain technology to validate transactions and produce new blocks. In PoW, nodes solve a cryptographic puzzle to add new blocks to the chain and receive rewards for their work. This process consumes significant computational power, which is intended to prevent malicious actors from controlling the network and provides security to the system.

Protocol nodes: KYVE has two layers to its blockchain, the chain layer, and the protocol layer. The protocol layer  is technically KYVE’s data lake. This layer relies on nodes called protocol nodes. Protocol nodes work as both uploaders and validators, and therefore are responsible for fetching data from a data source, validating the data, and storing it.

Smart contract: A smart contract in blockchain is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. These contracts are stored and replicated on the blockchain network, making them transparent, secure, and tamper-proof. Smart contracts automate the process of contract execution and reduce the need for intermediaries, enabling more efficient and trustless transactions.

Standard Development Kit: An SDK (Software Development Kit) for blockchain technology is a set of tools and libraries designed to help developers build decentralized applications on a specific blockchain platform. An SDK usually includes APIs, documentation, and code examples to simplify the development process and allow developers to easily interact with the blockchain’s underlying technology. This helps developers quickly create and deploy applications without needing to have a deep understanding of the underlying blockchain technology.

Runtime: The runtime is the environment in which a decentralized application, smart contract, or other blockchain-based system executes and runs. The runtime provides the necessary resources and infrastructure for the execution of the application, including memory, processing power, and storage. The runtime is a critical component of a blockchain-based system, as it provides the necessary resources and infrastructure for the execution and running of decentralized applications.

Testnet: A testnet is a sandbox environment used for testing and development purposes in blockchain technology. It is a separate, isolated network that is used to develop and test decentralized applications, smart contracts, and other blockchain-based systems before they are deployed to a live network. The purpose of a testnet is to provide developers with a safe and controlled environment for testing and debugging their code, without risking the security or stability of the live network.

Token: A token is a digital asset that is used to represent a specific value or utility within a blockchain-based system. Tokens can be used for a variety of purposes, such as representing a financial asset, a utility within a decentralized application, or a representation of ownership or stake in a particular blockchain network.

Tokenomics: Tokenomics is an important factor in the success of blockchain and decentralized systems, as it can determine the incentives and motivations of participants, the demand and supply dynamics, and the overall health and stability of the network. It encompasses the rules and incentives that govern the creation, distribution, and usage of tokens, as well as their value proposition and underlying economics.

Trustless: “Trustless” refers to a system or a technology that operates without relying on trust in any single entity or centralized authority. It is a characteristic of decentralized systems, where transactions and interactions are verified and validated through a consensus mechanism, eliminating the need for intermediaries or central authorities to establish trust. Trustless systems are designed to minimize the risk of fraud, hacking, or manipulation, as all participants have a shared and transparent view of the state of the system, making it more secure and reliable.

Trustless Data: Trustless data refers to data processed and verified by a network of actors incentivized to behave accordingly. This eliminates the need for a central authority or intermediary to verify and validate the data, avoiding single-point of failure and inconsistencies. Trustless data is crucial for developers, node runners, data engineers, and more that need truly accurate data in order for their solutions to run properly. 

Uploader: An uploader is a protocol node that is randomly selected in a pool to fetch and upload the requested data. Each pool has one uploader at a time. After a piece of data has been validated and stored, the uploader role is switched to another protocol node in the pool in order to eliminate any influence over the data. 

Validator: A blockchain validator is someone who is responsible for verifying transactions on a blockchain. For KYVE, validators are in charge of voting and reaching consensus on fetched data to declare if its truly valid or not. 

Web2: Web 2.0 refers to the second generation of the World Wide Web, characterized by increased user interactivity and collaboration, greater social networking capabilities, and the development of new technologies and platforms, such as blogs, wikis, and social media websites. 

Web3: Web3 refers to the next evolution of the World Wide Web, where the focus is on creating a decentralized, trustless, and more secure web, where users have greater control over their data and online identity. It aims to create a more open, transparent, and equitable web, where users are not just passive consumers of information, but active participants who own and control their data. Web3 leverages new technologies like blockchain, decentralized systems, and peer-to-peer networks to achieve these goals.