With new technologies and phrases appearing on a daily basis, it might appear as if no one understands what they’re talking about, and it can even feel overwhelming to regularly have to learn new terms. With the rising interest in blockchain and the decentralized web, blockchain terminology is becoming commonplace.
We’ve put up a glossary of blockchain concepts here at FarmKoin. With this guide, you will have access to knowledge and understanding of the keywords associated with blockchain technology.
1. Agritech
Agricultural technology, abbreviated as agritech, attempts to make the food production process as efficient as possible, but it does not end with food production.
Simply stated, agricultural technology, or agritech, is the use of technology to produce more with less, to improve the efficiency of the farming process, from field monitoring to the food supply chain itself.
2. Blockchain
A conventional database, or where a computer keeps information, is similar to a filing system in that data is generally saved in rows, files, and columns; however, using Blockchain technology, data is stored in blocks that are chained together and shared among all computers on the network.
Because each new block is encrypted or encoded in special code and saved one after the other on numerous different computers that are regularly updated with each new transaction, blockchain data is immutable and hard to hack. Consider cryptocurrency, which makes use of blockchain technology. When you purchase or sell Bitcoin, you are contributing to the blockchain. Every transaction you make is recorded and updated in a block, ensuring that everyone’s computer has an automated history of ownership.
3. Center pivot irrigation systems
These irrigation systems typically apply a very uniform quantity of water to a field.
4. Cold Wallet
This is the reverse of a hot wallet in that it may be accessed from a physical place, such as an offline computer or a storage drive. Cold wallets are protected by passwords that prevent non-owners from accessing their data. Cold wallet assets and coins must be moved to hot wallets before they may be utilized.
5. Cryptocurrency
In the real world, we have fiat currencies such as the US dollar and the Nigerian naira. In contrast, cryptocurrencies are digital/virtual currencies. Cryptocurrencies are decentralized and run on Blockchain technology. Unlike fiat currencies, which are issued and distributed by a central bank, cryptocurrencies are not controlled by a single entity and instead use a distributed ledger system.
6. DeFi
This is a financial technology solution system that uses blockchain to eliminate the requirement for a third-party and third-party transaction costs.
Transactions in the traditional financial system are handled by third parties such as banks, stockbrokers, and exchanges. These third parties serve as trust agents, making transactions more secure. This trust is transmitted to computer software via DeFi. DeFi transactions leverage Blockchain-based technologies such as smart contracts, online wallets, and distributed ledgers to keep track of and control over distributed transactions.
DeFi is still a developing technology, and it will function not just as a stock exchange for cryptocurrencies, but also as a comprehensive financial system for virtual businesses.
7. Distributed Ledger:
Ledgers are frequently used for storing corporate records. They are used to keep financial documents organized. A distributed ledger is essentially a shared database. A distributed ledger, on which cryptocurrencies function, is a shared database accessible by everyone on the network, similar to how Blockchain technology stores data in blocks. With distributed ledgers, any network participant who accesses this data serves as a witness. Every transaction is logged and updated synchronously across all users of the database. Cryptocurrencies are decentralized with distributed ledgers, which means that every time you sell or buy crypto, your transactions are recorded in the blockchain and shared among everyone who has access to the cryptocurrencies, creating a history of ownership without the need for a third party like a bank.
8. Farming-as-a-service
This is known as FaaS, and it occurs when farmers use technology and data on a subscription or pay-per-use basis. It’s great for small to medium-sized farms looking to make data-driven decisions to increase productivity and efficiency, such as farm management solutions, production support, and market access.
9. Geographic data
Information concerning the geographical location and the object under observation, whether yield, seed population, or anything else.
10. Hot Wallet
This is an online crypto wallet that is powered by software. It’s similar to having online storage for your virtual money. The primary distinction between a hot wallet and a cold wallet is that hot wallets are maintained online and immediately accessible, allowing you to transfer and receive crypto online. This trait renders them vulnerable to hacking.
11. IoT
The Internet of Things (IoT) consists of billions of gadgets that are linked to the internet via sensors or Wi-Fi. Each gadget captures data, which is then transferred and analyzed collectively as big data.
12. NFT
A Non-fungible Token, or NFT, functions as a digital receipt. It’s a one-of-a-kind token that acts as proof of ownership. NFTs can be artwork, photographs, or sounds, but each one is unique, so even if you digitally photograph a piece of NFT art, the primary record of ownership remains with the NFT holder.
You should be aware that virtual worlds are being developed for NFT. Metaverses are presumably something you’ve heard about. So, these virtual worlds will exist (some already do) and will have their own purposes, and things like NFTs and crypto are meant to feed records and ownership in these virtual areas.
13. Metaverse
This is a virtual-reality environment in which users may interact. It combines virtual and augmented reality, the internet, and social media, as well as cryptocurrency.
Metaverses already exist in the gaming world, but developers are working to create more interactive and multidimensional spaces where users can fully interact. With augmented reality, which places visuals, sounds, and other sensory inputs in real-world settings rather than just virtual spaces, the metaverse will become more immersed in the real world, and things like NFTs and Bitcoin will help enhance and regulate these spaces.
14. Peer-to-Peer:
This term refers to the sharing and exchange of information, data, and assets among a network of persons or groups that is not centralized. This is a decentralized application system in which all participants remain privileged and equal network contributors, and information is disseminated among all computers in the system. In cryptocurrency trading, a peer-to-peer network mechanism is employed.
15. Smart contract
Smart contracts, like most things on the Blockchain, are virtual replicas of actual contracts. Physical contracts are signed on paper by the buyer and seller, while smart contracts are typed into lines of computer code and disseminated on the Blockchain network so that no one party can modify transactions and the contract executes automatically when all parties complete their commitments. Because smart contracts are traceable and decentralized, they do not require the involvement of attorneys, law enforcement, or any other third party.