GLOSSARY. Blockchain : practices and perspectives. 17 Mayo. Paris

G L O S S A R Y
Matthieu QUINIOU
Christophe DEBONNEUIL
Blockchain

Authors :
Matthieu QUINIOU
Cover graphic concept:
Aurélia MAZOYER, UNESCO
Cover and Interior layout:
John MOTTA
ISBN : 979-10-91636-18-6
Printend, April 2019
© Chaire UNESCO ITEN, 2019
The project CréaTIC / ANR-11-
IDFI-0011 under Investments for
the Future.
Published by :
17, rue de Lancry 75010 Paris (France)

Summary
Presentation................................. 6
51% attack.....................................8
Asymmetric cryptography.............9
Bitcoin..........................................10
Blockchain....................................11
Byzantine fault tolerance............12
Consensus algorithm...................13
Crypto-asset................................14
Cryptography...............................15
Cypherpunk.................................16
Decentralization..........................17
Decentralized Application
(dApp)..........................................18
Decentralized Autonomous
Organisation (DAO).....................19
Digital signature...........................20
Disintermediation........................21
Distributed ledger.......................22
Double spending problem..........23
Ethereum.....................................24
Fork..............................................25
Governance.................................26
Hash.............................................27

Hyperledger.................................28
Immutability................................29
Initial Coin Offering (ICO)............30
Internet of value..........................31
Interoperability............................32
Chronology�� 33
Key................................................34
Mining..........................................35
Node............................................36
Non fungible token......................37
Open source................................38
Oracle...........................................39
Peer-to-peer network.................40
Private blockchain.......................41
Proof of authority (PoA)..............42
Proof of stake (PoS).....................43
Proof of work (PoW)....................44
Pseudonymity..............................45
Public blockchain.........................46
Scalability.....................................47
Self-sovereign identity.................48
Side chain.....................................49
Smartcontract..............................50
Time-stamping.............................51
Token............................................52
Tokenization.................................53
Traceability...................................54
Transaction..................................55
Transparency...............................56
Wallet...........................................57
Zero Knowledge Proof (ZKP).......58

Matthieu QUINIOU
Attorney at law (Paris Bar), Ph.D, holder
of the AMF certification, researcher at
the UNESCO Chair ITEN (UP8/FMSH) and
member of the AFNOR/ISO Committee on
blockchain.
Graduated from HEC, engineer from Ecole
Centrale de Lyon. Graduated from Said
Business School on blockchain, Oxford
University. In charge of trainings at OECD on
blockchain technologies.
John MOTTA
Art director, researcher at the UNESCO Chair
ITEN (UP8/FMSH), working on graphical
representation of concepts and teaching at
the Master CEN/UP8.

Technological innovation formalized in the 2000s, blockchain
has become an essential tool over the years. Glorified
spreadsheet or ultimate form of democracy? The reality
probably lies somewhere in the middle.
Blockchain technologies are still at an early stage but already,
use cases flourish including in education and science.
Moreover, the moment is well chosen : after a long period
of testing, 2019 promises to be the year of production for
many projects.
The Blockchain day organized by UNESCO and the UNESCO
ITEN Chair provides an overview of the situation on
Presentation

blockchain technologies, both on definitions and use cases.
This glossary aims at being a tool to apprehend the event.
The team has selected fifty words shaping the ecosystem
that we hope will allow discussions between the various
stakeholders involved in the blockchain revolution. We
also hope that it can serve as a source of inspiration to the
participants who strive daily to build a better world.
Matthieu QUINIOU

8See: Bitcoin, Mining
The 51% attack refers to the attack of a blockchain (with
miners) led by a set of nodes who control more than half of the
computing power of the network. In this case, this set of nodes
can choose the transactions written in the blockchain and make
a double spending possible. It is an attack that is often feared
because it can invalidate the blockchain.
This term is often used in reference to the Bitcoin blockchain.
51% Attack

9See: Cryptography, Key
Asymmetric cryptography is the most used cryptography branch
in the blockchain space. It relies on two keys owned by each
participant: a private key kept secret by its owner and a public
key that can be widely distributed.
For example, if A wants to send a message readable only by
B, then A encrypts his message with the public key of B. This
message can only be decrypted via the private key of B, of
which B is the only owner.
Note that a private key can also sign a message.
Asymmetric
cryptography

10See: Consensus algorithm
Bitcoin(withacapitalletter)designatesthefirstblockchainwhose
description was published in 2008 under the name “Bitcoin: A
Peer-to-Peer Electronic Cash System” by an anonymous author.
Bitcoin (with a lowercase) refers to the digital asset transferred
on the Bitcoin blockchain. The total number of bitcoins has been
set arbitrarily by its creator to 21 million. These are currently
issued at a rate of 12.5 bitcoins approximately every 10 minutes
and are used to reward the miner who formed the most recent
block. The consensus algorithm of the Bitcoin network is proof
of work.
Bitcoin

11See: Distributed ledger, Hash, Immutability
A blockchain is a distributed ledger based on a data structure
called a blockchain. Transactions are stored in blocks that
are chained to each other. A block contains, in addition to
transactions, the hash of the previous block. The modification
of a transaction therefore modifies not only the block to which
it belongs but all the blocks that follow it. The blockchain
structure gives the distributed ledger its immutability.
Often, by abuse of language, blockchain refers to any type of
distributed ledger and not only those that are based on a chain
of blocks.
Blockchain

12See: Consensus algorithm, Decentralization
Byzantine fault tolerance is a characteristic of algorithms that
are resolving the Byzantine Generals problem. According to
this problem, due to the lack of trust between participants,
two-thirds of the participants must act (or more exactly have
an interest in acting) in an honest way so that the consensus
is not biased. To avoid failures in a decentralized ecosystem,
blockchain consensus algorithms must be tolerant to Byzantine
faults.
Byzantine fault tolerance

13See: Governance, Proof of work
A consensus algorithm defines the rules that update the
blockchain. Thanks to the consensus algorithm, there is an
“official” state of the ledger at any time, and each node has a
copy of it.
Theconsensusalgorithmisafundamentalelementofblockchain
governance. The most common consensus algorithm is proof of
work. This is the consensus algorithm of the Bitcoin blockchain
for example.
Consensus algorithm

14See: Bitcoin, Ethereum, Token
The term crypto-asset means, in a neutral and generic way,
both crypto-currencies and tokens. Crypto-assets are digital
assets or virtual currencies embedded in a blockchain. Bitcoin
or ether are for example crypto-assets.
Transactions made with crypto-assets can be set with more or
less opacity depending on the characteristics of the blockchain
in which they are done.
Crypto-asset

15See: Asymmetric cryptography
Cryptography allows two persons to exchange messages
without these messages being intercepted by third parties. It
consists of determining an algorithm to encrypt the messages
and another to decrypt them.
Cryptography is a key discipline to understand the development
of blockchains.
Cryptography

16See: Decentralization, Open source, Peer-to-peer network
Cypherpunk refers to a crypto-anarchist school of thought
and to the people affiliated to it. This school of thought has
developed since the 90s with computerization.
The cypherpunk ideology is based on values such as anonymity,
direct disintermediated operations or open source.
The blockchain’s decentralized and peer-to-peer approach
makes it a technological tool that is structurally adapted to the
societal values and objectives of cypherpunks.
Cypherpunk

17See: Governance, Private blockchain
The term decentralization applied to the architecture of
blockchain is in opposition to the architectures working with
a single host or a single administrator. Decentralization is an
important feature of the blockchain to limit unilateral alteration
of the database that justify the use of consensus algorithms.
The actual decentralization of blockchains is discussed,
especially for private blockchains that work with a limited
number of members or because of the widespread use of
administered cloud services.
Decentralization

18See: Decentralization, Smart contract
A Decentralized application (dApp) is a program with several
smartcontracts running on a blockchain and usually a user
interface.
Among the most famous dApps, we can mention La’Zooz - a
decentralized Uber, OpenBazaar – a market place, Lighthouse -
a decentralized funding platform.
Decentralized Application
(dApp)

19See: Ethereum, Smart contract
The term DAO designates an autonomous and decentralized
organization system using rules of operation and participation
that are provided by a smartcontract registered in a blockchain.
It should be noted that the Ethereum project, currently
designates by DAO a Democratic Autonomous Organizations.
The term DAO was also used by the project “The DAO” which
had the ambition to allow Ethereum holders to vote for
blockchain projects funding but “The DAO” has been hacked.
Decentralized Autonomous
Organisation (DAO)

20See: Asymmetric cryptography, Hash
The digital signature of a document guarantees both the content
of the document and the authenticity of the author. To achieve
this, the author takes a digital fingerprint of the document (its
hash) and encrypts it with his private key. Thus, it is sufficient
to receive the document to decrypt with the public key of the
sender the digital fingerprint (guarantees the sender) and
compare it to the print of the document whose authenticity is
to be verified (guarantees the content of the document) .
The digital signature is used systematically on a blockchain to
pass a transaction for example.
Digital signature

21See: Open source, Peer-to-peer network
Disintermediation refers to the fact of proposing devices that
make it possible to avoid the use of existing intermediaries and
thus reduce transaction costs. However, disintermediation does
not necessarily mean no mediation, because mediation can be
automated.
The blockchain allows disintermediation processes to be initiated
through the creation of peer-to-peer ecosystems operating on
autonomous, decentralized and open source platforms.
Disintermediation

22See: Node, Transaction
A distributed ledger is a register containing a set of transactions.
This ledger instead of being stored in a single place, the central
server, is duplicated on a set of machines. The fact that the
ledger is copied identically multiple times makes it expensive
to modify: it requires to be changed on every nodes of the
network.
Distributed ledger

23See: 51% attack, Bitcoin, Internet of value
A file can be duplicated when it is transmitted. On the other
hand, when the transferred quantity is a digital asset, it is
important to ensure that the person who transmits the asset
does not keep a copy. This is called the double spending
problem. This problem was solved for the first time by the
Bitcoin blockchain.
This problem must be absolutely solved for any blockchain in
order to allow the correct transfer of value from one node to
another.
Double spending problem

24See: Consensus Algorithm, dApp, Mining, Smart contract
Ethereum is a programmable blockchain described in
December 2013 by its creator Vitalik Buterin. This is the first
fully programmable blockchain (in the Turing sense). It allowed
the emergence of decentralized applications called dApps. The
nodes of the network then form a “global computer” called the
Ethereum Virtual Machine (EVM).
The consensus algorithm currently in use is proof of work, even
though the project of switching to proof of stake, despite its
many postponements, is still relevant.
Ethereum

25See: Consensus algorithm, Crypto-asset
A fork refers to the modification made by consensus of the rules
governing the blockchain which, when the modifications are
important and not retro-compatible, give rise to a hard fork,
that is a the separation of the blockchain in two, as well as the
creation of a new crypto-asset.
The main purpose of a fork is to fix bugs, to limit retroactively
the effects of piracy, improve the blockchain or modify the rules
of operation.
Fork

26See: Consensus algorithm, Decentralization, Node
Governance refers to the method of decision making and
implementation of organizational choices. As a rule in
blockchains, decision-making is, like the architecture of the
network, decentralized. The blockchain’s administration is
distributed among the nodes of the network and the decision-
making rules, although different from one blockchain to
another, rely on incentives to maintain the integrity of the
data and to improve the technical components and encryption
methods. The consensus algorithm is an essential component
of the governance of a blockchain.
Governance

27See: Bitcoin, Blockchain
The hash of a file is a fingerprint of the file. Technically, it is a
fixed-length string of characters computed from the file by the
action ofafunction called “hash function”.Firstly,itis impossible
(at least practically) to recover the file from its hash. Secondly,
two different files have two different hashes. As a result, hashes
are an excellent way to certify the authenticity of a file.
Most of the time, both for memory space and confidentiality,
only the hashes of the data are stored on the blockchain and
not the data themselves.
Hash

28See: Private blockchain
Hyperledger is an open source platform for blockchain
development. This project was initiated in December 2015
by the Linux Foundation. It offers several development
frameworks. The best known, to which IBM contributed, is
Hyperledger Fabric which allows the establishment of private
blockchains for companies.
Hyperledger

29See: Blockchain
The immutability of the information stored on a blockchain is
one of the main advantages of the blockchain: the information
once stored can no longer be modified. The immutability is
guaranteed, first by the distributed aspect of the blockchain: to
modify the ledger, it would be necessary to modify the ledger
on every nodes. Then, for blockchains, the structure in “chain
of blocks” further enhances immutability by invalidating the
blockchain as soon as a simple transaction is changed.
Even if the immutability of the information is guaranteed with a
blockchain, its truthfulness must be verified with oracles.
Immutability

30See: Crypto-asset, Smart contract
Initial Coin Offering (ICO) refers to crypto-assets issuance to
the general public or authorized investors in exchange of other
cryptocurrencies. Smart contracts make it possible to automate
the realization of ICOs by carrying out this operation on a pre-
existing blockchain.
The regulatory framework for Initial Coin Offering largely
depends on the characteristics of the tokens issued and their
qualification as securities. ICOs dealing with securities are often
referred to as Security Token Offering (STO).
Initial Coin
Offering (ICO)

31See: Blockchain, Double spending problem
The expression “Internet of value” is often used by opposition
to an Internet of information (the Internet). The Internet
of information makes it possible to transmit information by
copying it: the person sending the information is keeping a
copy. Blockchain allows the emergence of a new Internet : the
Internet of value, in the sense that a digital asset transmitted to
a recipient is no longer in the possession of the sender thanks
to the resolution of the double spend problem. The Internet
of value, enabled by the blockchain, innovates by giving the
possibility to trace the possession of a digital asset or even
under certain conditions, a physical asset.
Internet of value

32See: Blockchain
Interblockchain interoperability refers to the ability to
operate together two or more blockchains. Interoperability
is an important issue of standardization and some blockchain
projects focus on the possibility of creating interoperability.
Cross-chain and atomic swap terms are also used to designate
this interoperability in this field.
Interoperability

34See: Asymmetric cryptography, Bitcoin, Cryptography
A key is a term used in cryptography. It is a string that allows
to sign, encrypt or decrypt a message. In cryptography, a
distinction is classically made between private keys that must
be kept secret, and public keys that can be distributed to
everybody. Technically, the public key derives from the private
key by an irreversible calculation. For example, a user’s private
key allows him to transfer an asset that belongs to him.
Until now, when bitcoins were stolen from their owners, this
was due to a private key theft and not a failure of the Bitcoin
blockchain.
Key

35See: Bitcoin, Blockchain
Mining refers to the use of computing power to solve a
cryptographic problem, simple in principle but requiring a
significant computing power.
A minor is an individual or a company that connects to the
network one or more machines equipped to perform mining.
The first miner who solves this cryptographic problem is
rewarded with tokens to set the latest block.
The term mining is used for blockchain functionning under
proof of work, for example Bitcoin.
Mining

36See: Consensus algorithm, Distributed ledger
A blockchain is deployed on a set of computers. Each computer
is a node of the network.
A distinction is usually made between “full nodes” which
contain a complete copy of the blockchain and the “light nodes”
which host a minimal version of the blockchain allowing them
to participate in the exchanges on the network.
Node

37See: Crypto-asset, dApp, Token
A non-fungible token is defined by its non-interchangeable
nature, its unique character. Unlike crypto-currencies, which
by nature are fungible, non-fungible tokens are unique and
specifically identifiable.
The non-fungible tokens were popularized by the Crypto Kitties
dApp with tokens corresponding to unique virtual figurines of
cats.
Non-fungible token

38See: Decentralization
The term open source originally refers to a source code shared
with the public because of the will of its author(s). open source
is a definitive waiver of intellectual property rights that normally
can be claimed on a work. Many source codes mix open source
and proprietary code.
If several source codes are open source in blockchain
technology, including the fundamentals of Bitcoin blockchain
technology, some source codes, especially in private blockchains
are proprietary and many patents have been filed to protect
technical applications related to this technology.
Open source

39See: Smart contract
An oracle is a source of information that can be trusted. An
oracle is crucial because even if what is written in the blockchain
is unerasable, the quality of the information is not guaranteed.
Only an oracle ensures that the information entered in the
blockchain is accurate, in order for an “ incorruptible ledger” to
become “a source of reliable information”.
The term oracle designates the devices capable of integrating
certified external data into a blockchain. Oracles often work
with connected objects with sensors.
Oracle

40See: Blockchain, Internet of value
A peer-to-peer network is a network of computers that
communicate directly from one computer to another. The peer-
to-peer model is opposed to the client-server model where one
computer is the client and the other is the server.
Internet allows computers to communicate peer-to-
peer information (i.e without intermediaries). Blockchain
technologies allow two computers to exchange scarcity (or
value) from peer to peer (without having to rely on a trusted
third party).
Peer-to-peer network

41See: Blockchain, Public blockchain
A private blockchain is a blockchain that requires a cooptation
for a new actor wishing to participate in the creation of a node,
the block validation and the consensus system. The potential
for decentralization of private blockchains is inherently inferior
to public blockchains.
HyperledgerFabricisanexampleofadevelopmentenvironment
which allows the establishment of private blockchain. Many
retail or banking groups have already created their private
blockchain.
Private blockchain

42See: Consensus algorithm, Private blockchain, Proof of work
The proof of authority is a consensus algorithm used most of the
time for private blockchains. It makes it possible to designate
nodes of the network as validators, these nodes having the role
of determining the state of the ledger for the entire network.
Proof of authority is primarily used as an alternative to proof
of work or proof of stake. It significantly increases the speed of
transaction validations, even if centralization is increased.
Proof of authority (PoA)

43See: Consensus algorithm, Crypto-asset, Proof of work
The proof of stake is an alternative consensus algorithm to the
proof of work which provides the right to create the next block
to an active validator on the network that has deposited units
of the cryptocurrency of this blockchain. The proof of stake is
inspired by the game theory.
The proof of stake is less energy intensive than proof of work.
Proof of stake (PoS)

44See: Consensus algorithm, Crypto-asset, Proof of stake
Proof of work, in a blockchain, is a system of block validation
by consensus working with high levels of computing power,
random and iterative. This system is attributing cryptoactives
depending on the computing power available.
Proof of work is, in particular, the consensus algorithm of the
Bitcoin blockchain. This mode of consensus has been criticized
for its energy consumption. Other modes of consensus as proof
of stake have appeared and seek to provide a more effective
model by refering to the game theory.
Proof of work (PoW)

45See: Distributed ledger, Token
Most blockchains are pseudonymous in the sense that
transactions are made from one blockchain address to another
and that the addresses keep the identity of their owner
confidential. However, in many cases, when buying tokens on
a given blockchain, the buyer is asked to disclose his identity
(KYC procedures).
Some blockchains (ZCash, Monero, Dash for example) are
anonymous: the distributed ledger does not indicate the
address of the sender nor the recipient.
Pseudonymity

46See: Blockchain, Private blockchain
A public blockchain is a blockchain that any user can join without
authorization. In particular, on a blockchain with minors, any
user can become a minor. Bitcoin and Ethereum are public
blockchains.
Public blockchain

47See: Consensus algorithm, Proof of work
Scalability, in the field of the blockchain, refers to the possibility
ofoperatinganetworkwithacriticalmassofusers.Thedifficulty
of scalability in the blockchain is largely due to the energy and
computing power needed to securely validate a large number
of transactions and to quickly run a reliable consensus system,
such as proof of work.
Scalability

48See: Cryptography, Decentralization
The concept of self-sovereign identity refers to identity
management methods by the individual himself, relying on
encryption, decentralization and modularity of data sharing.
Self-sovereign identity systems are particularly useful for
managing access to sensitive data.
Self-sovereign identity

49See: Scalability
A side chain is a system of extending and unblocking a main
blockchain that can potentially increase the number of
transactions and facilitate scalability.
For example, the Lightning Network is a solution developed by
the Bitcoin network to speed up the flow of transactions.
Side chain

50See: Cypherpunk, DAO, dApp, Ethereum, ICO, Token
A smart contract is a set of functions defined by a sequence
of instructions written in a blockchain. The concept of smart
contract is attributed to Nick Szabo and is rooted in the
cypherpunk school of thought. This concept is designed
to synthesize information technology and contract law, in
particular with the use of cryptographic devices.
Functional Smart Contracts have been popularized by the
Ethereum ecosystem with the emergence of the Ethereum
Virtual Machine (EVM) and the use of Solidity computer
language. Smart contracts make it possible to create tokens, to
launch ICO, to create DAO or dApps.
Smart contract

51See: Transaction
Blockchain is used to time-stamp the data that are written on it.
The presence of a time-stamp for a transaction makes it possible
to certify the precedence of one information over another and
thus to order transactions in a decentralized environment.
Time-stamping

52See: Crypto-asset, Ethereum
A token designates a crypto-asset that is integrated within a
pre-existing blockchain to which the token’s contract is backed
on. A token is not the native virtual currency of the blockchain
from which it is derived. For example, ether is Ethereum’s
native virtual currency and many projects have created tokens
through smart contracts on Ethereum.
There are several categories of tokens, the main distinction
being generally made between utility tokens and security
tokens.
Token

53See: Token
Tokenization refers to the creation of a new category of
tokens in a blockchain to deploy an economy specific to an
ecosystem. Tokenization is often designed to create incentives
for contributors and users of the ecosystem. The tokenization
phenomenon is partly a reaction to the phenomenon of loss of
confidence in official currencies.
Tokenization

54See: Time-stamping, Transparency
Traceability refers to the ability to follow an itinerary either
continuously remotely through a geolocation system connected
or a posterio from timestamped information integrated during
the itinerary. Blockchain technology limits the risk of unilateral
data corruption and ensures a high degree of transparency.
Traceability

55See: Blockchain, Crypto-asset, Ethereum, Smart contract
The ledger of a blockchain is populated with transactions. The
simplest transaction is the exchange of digital assets from one
node to another (A sends X tokens to B). A transaction can
also be made from a node to a smart contract as part of the
execution of a smart contract on a programmable blockchain
like Ethereum.
Transaction

56See: Bitcoin, Private blockchain, Pseudonymity
Transparency is a fundamental property of some blockchains
(especially public blockchains). The transparency of a blockchain
ensures that all transactions are visible to the entire network.
For the Bitcoin blockchain, for example, transparency ensures
that anybody in the network has access to all the transactions
that have taken place on the network since its creation.
In the case of private blockchains, transparency may be
voluntarily limited in order to preserve confidentiality.
Transparency

57See: Crypto-asset
A blockchain wallet is a system for managing blockchain-related
keys, sending and receiving crypto-assets. Several blockchain
wallets also function as a means of accessing a blockchain
ecosystem and represent a blockchain-compatible interface.
Blockchain wallets take various forms: paper with a QR code,
browser extension or hardware.
Wallet

58See: Consensus algorithm, Node
Zero Knowledge Proof (ZKP) for a blockchain consists of a
node proving it has a piece of information without disclosing
its content. For example, proving that a person is of legal age
without giving his age is a Zero Knowledge Proof. ZKP is widely
used because it is often enough to know that the information is
valid, without the need to disclose the information.
Zero Knowledge Proof (ZKP)

GLOSSARY. Blockchain : practices and perspectives. 17 Mayo. Paris

More Related Content

What's hot (20)

Similar to GLOSSARY. Blockchain : practices and perspectives. 17 Mayo. Paris (20)

More from eraser Juan José Calderón (20)

Recently uploaded (20)

GLOSSARY. Blockchain : practices and perspectives. 17 Mayo. Paris