Key vocabulary

Address: a Worthless Coin wallet address is similar to bank account details (sort code and account number) or an e-mail address. It is the only information you need to provide in order for someone to pay you with Worthless Coins. An important difference with respect to e-mail addresses (or bank details) however, is that to protect privacy and anonymity, each address should only be used for a single transaction.

Blockchain: the blockchain is a public record of Worthless Coin transactions in chronological order. The blockchain is public and accessible by anyone. It is used to verify the permanence of Worthless Coin transactions and to prevent double spending.

Block: a block is a record in the block chain that contains and confirms many waiting transactions.

Block-time: roughly every x minutes, on average, a new block including transactions is appended to the block chain through mining – this is called block time. For Bitcoin, current block time is 10 mins, while for Worthless Coin this is 60 secs.

Block-reward:  refers to the number of coins you get if you successfully mine a block of the specific crypto-currency. For Bitcoin, this is 6.25 BTC, while for Worthless Coin this is 500 WRTC.

Confirmation: Confirmation means that a transaction has been processed by the network and is highly unlikely to be reversed. Transactions receive a confirmation when they are included in a block and for each subsequent block. In a nutshell, a confirmation means that there is a consensus on the network that the Worthless Coins you received haven’t been sent to anyone else and can be considered as your property. Usually, the higher the transaction value (amount of coins) the higher the amount of confirmations required (6 confirmations) for a block to be validated. 

Cryptography is a branch of mathematics which deals with constructing and analysing protocols that prevent third parties or the public from reading private communication/messages.

Double spending: if a user tries to spend their Worthless Coins to two different recipients at the same time, this is categorised as double spending. Worthless Coin mining and the blockchain are in place with the objective to create a community consensus on the network about which of the two transactions will be confirmed and be considered valid.

Node: a computer with a full copy of the blockchain which supports the network by validating transactions and blocks.

Hash Rate: the hash rate is the measuring unit of the processing power of the Worthless Coin network. To validate and secure blocks, the Worthless Coin network enforces the solution of intensive mathematical operations. When the network reaches a hash rate of 20 Th/s, it means it could make 20 trillion calculations per second. The higher the hash-rate the more expensive, computationally speaking, it is to secure/validate a block.

Paper wallet: is a printed piece of paper that contains QR codes and keys used to engage in cryptocurrency transactions. Because these are not stored neither on hardware nor on in the internet, at one point paper wallets were considered to be more secure than other forms of cryptocurrency storage (because of zero risk of cyber attacks).

Peer-to-peer (P-2-P): refers to systems that works like an organized network by allowing each individual to interact directly with other members of the network. The Worthless Coin network is built in such a way that each user is broadcasting the transactions of other users on a public ledger (blockchain). By definition, no bank/institution is required (as third party) since its the network that validates all the transactions.

Private Key: A private key is a secret piece of data that proves your right to spend Worthless Coins from a specific wallet through a cryptographic signature. Your private key(s) are stored in your computer if you use a desktop/software wallet otherwise they are stored on some remote servers if you use a web wallet. Private keys must never be revealed as they allow you to spend Worthless Coins for their respective Worthless Coin wallet.

Proof-of-stake (P-o-S): with proof-of-stake (P-o-S), cryptocurrency miners can mine or validate block transactions based on the amount of coins a miner holds.

Proof-of-work (P-o-W): is a decentralized consensus mechanism that requires members of a network to expend effort solving a complex mathematical problem  in order for miners to mine or validate block transactions. 

Wallet synchronisation:  is the process of downloading and verifying all previous Worthless Coin transactions on the network. For some users, to calculate the spendable balance of your wallet and make new transactions, it needs to be aware of all previous transactions. This step can be resource intensive and requires sufficient bandwidth and storage to accommodate the full size of the block chain.

Signature: a cryptographic signature is a mathematical mechanism that allows someone to prove ownership. In the case of Worthless Coin, a Worthless Coin and its private keys are linked by some mathematical magic. When your Worthless Coin software signs a transaction with the appropriate private key, the whole network can see that the signature matches the Worthless Coin being spent. However, there is no way for the network to guess your private key and steal your Worthless Coins.

Target Hash: a target hash is a numeric value that a block hash must be less than or equal to, in order for a new block to be added to the blockchain.

Transactions fees: transaction fees are used as a protection against users sending transactions to overload the network and as a way to pay miners for their work helping to secure the network. Technically, the higher the fee the higher the transaction speed validation (transaction speed execution) by the network.

Wallet: a Worthless Coin wallet is loosely the equivalent of a physical wallet on the Worthless Coin network. The wallet actually contains your private keys which allow you to spend the Worthless Coins allocated to it in the block chain. Each Worthless Coin wallet can show you the total balance of all Worthless Coins it stores and lets you pay a specific amount to a specific person, just like a physical wallet.