Reference
Blockchain glossary
Plain-English definitions for the terms used in Chain Compare network profiles.
- Layer 0
- A network that helps other blockchains communicate or share security instead of being the main place where ordinary transactions are recorded.
- Layer 1
- A blockchain that records and validates its own transactions.
- Layer 2
- A network that processes transactions separately but relies on another blockchain, usually Ethereum, for final settlement.
- Sidechain
- A blockchain with its own validators and execution that connects to another chain through checkpoints, bridges, or other anchoring mechanisms; it is not a rollup.
- Smart contract
- A program on a blockchain that follows rules when someone sends it a transaction, such as swapping tokens or releasing a payment.
- EVM-compatible
- Able to run software written for Ethereum's execution standard, so familiar Ethereum contracts, wallets, and developer tools can often be adapted.
- Payment network
- A blockchain focused on sending and receiving its native currency or issued assets rather than hosting a broad range of applications.
- Consensus
- The process network participants use to agree on valid transactions and the next shared ledger update.
- Confirmation
- A point at which a wallet, exchange, or app treats a payment as settled. On Bitcoin, each later block makes a reversal progressively harder.
- Network fee
- The amount a wallet quotes to have a transaction processed. The fee can change with network demand and the type of action, such as a payment or token swap.
- Bridge
- A service for moving assets between blockchain networks. A bridge can add a separate fee, waiting period, and security dependency.
- Validator
- A computer that checks transactions and helps agree on the next update to a blockchain's shared record.