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.
Blockchain: A blockchain is a decentralized and transparent digital ledger that records transactions across multiple computers or nodes, providing immutability, security, and trust in a tamper-resistant manner.
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.
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.
Cold Wallet: A cold wallet refers to a cryptocurrency wallet that is offline and not connected to the internet, providing a higher level of security by reducing the risk of cyberattacks or unauthorized access.
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.
Consensus Layer: The Consensus Layer is the backbone of KYVE and is an entirely sovereign Proof of Stake (PoS) blockchain built with CometBFT (previously Tendermint). It’s run by independent nodes, which enable users to support and secure the KYVE blockchain. Consensus validators also keep track of the valid data, aiding users aiming to source KYVE data via REST-API.
Consensus validators: KYVE has two layers to its blockchain, the consensus layer, and the protocol layer. The consensus layer is the backbone of KYVE, relying on validators to secure the chain in Delegated Proof of Stake.
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.
Cosmos SDK: Cosmos SDK is a software development kit that provides a framework for building blockchain applications and facilitates interoperability between different blockchains.
Cross-Chain: Cross-chain technology enables communication and interaction between different blockchain networks, allowing assets and data to move seamlessly across various blockchains.
Cryptocurrency: Cryptocurrency refers to digital or virtual currencies that use cryptographic techniques to secure transactions and control the creation of new units. They operate independently of a central bank and leverage blockchain technology for decentralization.
DApps: DApps, short for decentralized applications, are software applications that run on a decentralized network or blockchain, where data and code are distributed across multiple nodes. DApps aim to eliminate intermediaries, enhance transparency, and enable peer-to-peer interactions in various domains.
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 Pools: KYVE’s data lake is made up of data pools, with each pool pertaining to a certain type of data. For example, Solana blockchain data, or weather data from a certain region. Each data pool has a certain amount of protocol validators 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.
Data Validation: Data validation is the process of clarifying the accuracy, integrity and quality of a set of data before it is used. This can apply to all forms of data, for example, specific text, addresses, dates, and more. Find out more in KYVE’s article on the CoinMarketCap Glossary.
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.
Decentralized Storage: Decentralized storage solutions allow users to store data across a distributed network of nodes, removing the need for a central server. Examples include IPFS (InterPlanetary File System), Arweave, and Filecoin.
Delegators: Delegators are participants who hold tokens in a proof-of-stake (PoS) blockchain network and delegate those tokens to a validator. Delegators play an essential role by supporting validators and actively participating in the consensus mechanism, thereby contributing to the security and stability of the blockchain network. By delegating their tokens, delegators entrust the validator with the responsibility of validating transactions and maintaining the network’s integrity.
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.
Deterministic Data: Deterministic data is generated or produced through a fixed, predictable set of rules or algorithms. This means that given the same initial input or conditions, the output or result will always be the same. This ensures that all participants can agree on the state of the network and the validity of the data. KYVE can only archive & validate data that is deterministic; this way, we can find if it’s 100% true or not.
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.
Funding/Funders: KYVE data pools run off of pool funding, with funded tokens being paid out to the well-behaving network participants. Those that fund them are typically those that rely heavily on the data pool continuing. It’s important to note that funding a pool does not result in any monetary gain. Those who fund pools enable the network to make the requested data trustless.
Gas Fee: In blockchain networks, a gas fee is a transaction fee paid to miners or validators for processing and confirming transactions. It prevents spam and ensures the efficient operation of the network.
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.
Hot Wallet: A hot wallet refers to a cryptocurrency wallet that is connected to the internet and actively used for transactions, making it more susceptible to hacking or unauthorized access.
IBC: IBC stands for Inter-Blockchain Communication and is a protocol that enables communication and transfer of assets between different blockchains within the Cosmos 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.
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.
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.
Interoperability: Interoperability refers to the ability of different systems, networks, or blockchains to communicate, exchange data, and interact seamlessly with each other. It allows for the seamless flow of information and assets across various platforms, promoting collaboration and expanding possibilities in the decentralized ecosystem.
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.
KSYNC: KSYNC is a data syncing tool that helps nodes retrieve the necessary data from KYVE and directly feed the blocks into every application in order to sync blocks and more easily join the network.
KYC (Know Your Customer): A process used by financial institutions and other organizations to verify the identity of their customers, a practice that is also being adapted in Web3 to enhance security and compliance.
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 validators on KYVE. It allows running protocol validators to be much easier and more standardized by automating binary installations for every pool and providing just one program for running validators 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.
Liquidity: Liquidity describes how quickly and easily an asset or security can be bought or sold without affecting its price. A highly liquid market allows for quick transactions without significant price changes. Conversely, in a less liquid market, selling or buying a large volume of assets can drastically sway the price.
Liquidity Pool: A liquidity pool is a pool of funds or assets provided by multiple participants, which is used to facilitate trading and ensure liquidity in decentralized exchanges or platforms.
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.
Market Makers (AMMs): Market makers are individuals or entities that provide liquidity to financial markets by continuously buying and selling assets, thereby enabling smooth trading and reducing price volatility.
NFT (Non-Fungible Token): A type of token representing a unique digital item or asset, often used for digital art, collectibles, and in-game items. Each NFT contains a digital signature which makes them unique.
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. Mainly acting as a way of fetching data from the blockchain.
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.
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 Layer: The protocol layer sits on top of the consensus layer in KYVE and enables its actual use case, including data retrieval, archiving, and decentralized validation. The Protocol Layer is made up of data pools, each pertaining to a specific set of data, and run by a set of validators.
Protocol validators: KYVE has two layers to its blockchain, the consensus layer, and the protocol layer. The protocol layer is technically KYVE’s data lake. This layer relies on validators called protocol validators. Protocol validators work as both uploaders and validators, and therefore are responsible for fetching data from a data source, validating the data, and storing it.
Private Key: A private key is a cryptographic code used in asymmetric encryption systems that is kept secret and used to decrypt data or generate digital signatures.
Public Key: A public key is a cryptographic code used in asymmetric encryption systems that is shared openly and used to encrypt data or verify digital signatures.
REST-API: REST-API stands for Representational State Transfer Application Programming Interface. The REST-API is a resource model outlining the major details you need to know about a given piece of data. For example, where and how it’s being stored. For KYVE, its data is available through the REST-API exposed by its consensus validators.
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
Smart Contracts: Smart contracts are self-executing contracts with predefined rules and conditions that automatically execute and enforce agreements without the need for intermediaries. They are powered by blockchain technology and ensure transparency, security, and efficiency in various sectors.
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.
Storage-Agnostic: Being storage-agnostic means that an application, protocol, or platform is designed in a way that it can work with various storage solutions without being dependent on any particular one. Being storage-agnostic is important in the Web3 ecosystem because it promotes interoperability and prevents vendor lock-in. It ensures that changes or improvements to storage technology can be incorporated into applications without major disruptions, making the ecosystem more adaptable and future-proof.
Supervysor: The KYVE Team developed Supervysor, a node runner tool that eases the overall node experience on KYVE’s protocol layer, ensuring that the required node on the original chain can keep the same pace as KYVE’s data pools by pruning the unnecessary data. Overall, this helps the node runner avoid high storage costs and optimize overall management.
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: Validators are a type of node that produces blocks and participates in the Proof of Stake process. KYVE has two sets of validators, one for its consensus layer, and one for its protocol layer. Thanks to our network of validators, KYVE is able to bring forward trustless data and perform in a decentralized, transparent way.
Validator Commission: Seeing that KYVE is a Delegated Proof of Stake blockchain, stakeholders have the option of delegating their stake to already active validators rather than running a validator of their own. In doing so, they help secure the network while also getting the opportunity to earn rewards (with the risk of loss). When delegating to a validator, the validator itself chooses its commission rate. The higher the rate, the lower the rewards for a delegator.
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.