Simplified Payment Verification
Simplified Payment Verification is a method that allows a user to verify payments without running a full node. By only downloading block headers and using Merkle proofs, the user can confirm that a transaction has been included in the longest chain.
This provides a balance between security and convenience, allowing for widespread adoption of digital assets. In the context of derivatives, it enables users to monitor their collateral and margin status on mobile devices.
It is a key technical enabler for the accessibility of decentralized financial tools.
Glossary
Block Header
Architecture ⎊ Block headers represent the foundational metadata encapsulating a block within a blockchain, serving as a critical component for verifying and propagating transaction data.
Smart Contract
Function ⎊ A smart contract is a self-executing agreement where the terms between parties are directly written into lines of code, stored and run on a blockchain.
Settlement Finality
Finality ⎊ The concept of settlement finality, particularly within cryptocurrency, options, and derivatives, denotes an irreversible conclusion to a transaction or series of transactions.
Lightweight Clients
Architecture ⎊ Lightweight clients, within decentralized systems, represent a streamlined node implementation prioritizing reduced computational burden and storage requirements.
Full Node
Architecture ⎊ A full node maintains a complete, independently verifiable copy of the blockchain’s transaction history and current state, functioning as a direct participant in network consensus.
Merkle Tree
Structure ⎊ A Merkle tree, also known as a hash tree, is a fundamental data structure in cryptography that organizes data into a hierarchical structure.
Transaction Inclusion
Action ⎊ Transaction inclusion represents the definitive confirmation of a digitally signed transaction within a distributed ledger, signifying its irreversible commitment to the blockchain’s history.
Block Headers
Block ⎊ In cryptocurrency and decentralized ledger technology, a block represents a batch of transactions grouped together and cryptographically linked to the preceding block, forming a chain.