Blockchain terms and definitions

A blockchain is a public, decentralized ledger that is run by independent nodes. Anyone can participate in running the blockchain, without permission required by any central authority. The basic component of a blockchain is a block, where any kind of data can be stored. Each block is signed and encrypted by the validators who participate in the system and once published, it can no longer be altered by anyone. Data stored on the blockchain is definite and immutable. This makes it ideal for storing financial transactions without the need of an intermediary bank or a central authority certifying the validity of such transactions.

A bridge is a platform designed to move a token across different blockchains. For example, with Polygon Bridge, it is possible to move MATIC tokens from the Polygon blockchain to the Ethereum blockchain. A bridge can be useful if you see that your token is not supported on SwissBorg with the protocol you currently have.

Coin usually refers to the native cryptocurrency of a given blockchain. For example, Ether is the native currency of the Ethereum blockchain, so it can be called ‘coin’.

A cryptocurrency is a digital asset that is produced and transacted using a blockchain. The first and best known cryptocurrency is Bitcoin, which runs on the Bitcoin blockchain. Thanks to the blockchain technology, a cryptocurrency doesn’t need any third party to settle a transaction between two parties and the funds cannot be seized or blocked by any authority.

A hard wallet is a pen drive running a crypto wallet software on it. With a hard wallet, you always need this pen drive to move your funds from your wallet. This makes hard wallets safe from cyberattacks, because hackers will never be able to use your funds without the device. An example of hard wallet is Ledger Nano.

A hot wallet is an omnibus crypto account where transactions from/to different wallets converge. Hot wallets are used by exchanges to process deposits or withdrawals on behalf of their customers. You may notice this kind of wallet on Etherscan and other explorers as they bear the name of the exchange or entity they belong to, like Binance for example. We ask you to be extra careful when sending your funds to hot wallets, as this may result in permanent loss if done outside the procedures of the exchange in question.

The private key is the digital signature that allows a wallet to move the funds to another wallet. When you use a non-custodian wallet (your private wallet), you are in possession of the private key and you are the sole responsible for its integrity. Who gets in possession of your private key, will be able to use your funds.
When instead you use a custodian wallet (like an exchange), the private key is stored by the entity managing your funds.

Protocol (or network) is the blockchain infrastructure that is used to transfer tokens and coins. Due to technical needs, a blockchain might support several networks. For example, Ethereum relies on ERC-20 to transfer tokens, while it uses the ERC-721 protocol to move NFTs between its users.
A cryptocurrency can be available on different protocols so to make it available on different blockchains. An example is Ether being available on Ethereum as an ERC-20 token and on the Binance Chain as a BEP-20 token.
Normally on SwissBorg each cryptocurrency is available on one protocol so it’s important to use the network displayed in the app. Using alternative protocols can cause a loss of funds.

Some protocols like XRP or Binance Chain (BEP-2) require adding also a tag or a memo beside the destination address. It can be regarded as a “payment reference” in a traditional bank transfer. Omitting a tag or memo can result in permanent loss of funds.

Token is a cryptocurrency which is built on top of another blockchain. For example, BORG is a token, as its ecosystem is built on top of Ethereum rather than relying on its native blockchain. We can think of the blockchain as a computer, a coin as an operating system, and a token as an app running on top of the other two.

A wallet is an app where your crypto assets are stored, just like you store cash in a physical wallet that you keep in your pocket.
There are several wallets available on the market, according to the cryptocurrencies supported, the featured offered, and the user interface displayed. A wallet is identified by an address, which is usually an alphanumeric code. Its format varies from chain to chain. For example, BTC addresses are between 27 to 34 alphanumeric characters, while ETH addresses 42 alphanumeric characters, always starting by “0x”.