Glossary
This glossary is a list of terms and definitions that you may come across while using Covalent APIs.
An attack on a blockchain where a single entity controls more than half of the network's mining or staking power.
A concept in Ethereum where the distinction between externally owned accounts (EOAs) and contract accounts is removed, allowing for more flexible and programmable user accounts.
The distribution of cryptocurrency tokens for free to multiple wallet addresses, often for promotional purposes.
The process of grouping multiple transactions into a single transaction to save on gas fees and improve efficiency.
A decentralized digital ledger that records transactions across multiple computers.
The process of permanently removing tokens from circulation to reduce supply.
An offline wallet used for storing cryptocurrencies securely.
The process used by a blockchain network to agree on the validity of transactions and the state of the ledger.
A type of Ethereum account associated with a smart contract, which can execute code and interact with other contracts and EOAs.
Solutions that enable interaction between different blockchain networks.
Digital or virtual currency that uses cryptography for security.
Data availability refers to ensuring that the full data for each block on a blockchain (transactions, state changes, etc.) is available and accessible for verification by all nodes on the network.
For blockchains like Ethereum, existing solutions like Blob storage and subgraphs have limitations in providing long-term historical data availability.
The Covalent Network aims to address this by structuring and storing normalized historical on-chain data from Ethereum and EVM-based chains, as outlined in the Ethereum Wayback Machine whitepaper.
Network Operators (validators) earn rewards for indexing this blockchain data and making it available in a decentralized manner via Covalent's APIs. This provides a robust data availability layer for querying and analyzing complete historical blockchain data.
The ability to reliably store and access full historical data is crucial for use cases like AI/ML models that require large datasets, as well as future scaling solutions like rollups that still rely on a base layer for data availability.
Applications that run on a decentralized network, typically using smart contracts.
An organization represented by rules encoded as a transparent computer program, controlled by organization members rather than a central authority.
A peer-to-peer marketplace for trading cryptocurrencies without intermediaries.
Financial services using blockchain technology to eliminate intermediaries.
Smart contracts whose addresses are predictable and can be derived from specific inputs, often used in account abstraction for more reliable interactions.
A type of Ethereum account controlled by a private key, used by individuals to hold and transfer tokens and initiate transactions.
A standard that enables the creation of both fungible and non-fungible tokens within the same smart contract.
The most popular token standard for creating fungible tokens on the Ethereum blockchain.
A tokenized vault standard for managing yield-generating assets, allowing for easier integration and standardization of yield-bearing assets.
A standard for creating non-fungible tokens (NFTs), ensuring each token is unique and distinguishable.
The Ethereum Wayback Machine (EWM) is a decentralized protocol and set of open-source specifications that aim to provide long-term access to verifiable historical blockchain transaction data on Ethereum and EVM-based chains.
As Ethereum evolves with solutions like rollups and sharding, ensuring sustained availability of complete historical on-chain data becomes crucial for use cases like auditing, AI/ML models, regulatory compliance, and transparency.
The key aspects of the EWM are:
Decentralized Network: The EWM operates as part of the Covalent Network, a decentralized network of validators who earn rewards for indexing and making blockchain data available long-term.
Data Extraction: Novel "Block Specimen Producers" (BSPs) extract on-chain data with cryptographic proofs directly from blockchain clients like Geth. BSPs can run in live or archival mode.
Data Enrichment: "Block Result Producers" (BRPs) re-execute transactions to enrich the raw data from BSPs with additional data like traces, events, and metadata.
Proofs and Verification: Cryptographic proofs are used to verify the correctness and integrity of the historical data made available by the network's validators.
Modularity: The BSP technology can be implemented as client patches, allowing any blockchain to plug into the EWM protocol.
Querying: Developers can access the full historical and enriched blockchain data via the Covalent Network's decentralized APIs and query infrastructure.
The EWM, powered by the Covalent Network and its CQT token, provides a decentralized solution to the long-term data availability problem, ensuring transparent access to verifiable blockchain history as Ethereum embraces a modular roadmap. Read the whitepaper
A change to the blockchain protocol, resulting in a split into two separate chains.
The property of a good or asset whose individual units are interchangeable and indistinguishable.
Transaction fees paid to miners for including transactions in a blockchain.
Transactions that do not require the user to pay gas fees directly, often facilitated through meta-transactions.
The mechanisms, processes, and institutions through which stakeholders influence and control a blockchain network or protocol.
Tokens that give holders voting rights in the management and decision-making processes of a blockchain project or protocol.
A physical device used to securely store private keys and manage cryptocurrencies.
An online wallet connected to the internet, used for everyday transactions.
A fundraising method where new cryptocurrencies sell tokens to early investors.
The ability of different blockchain networks to communicate and interact with each other.
The base layer of a blockchain network, providing the underlying infrastructure.
Secondary frameworks or protocols built on top of layer 1 blockchains to improve scalability and efficiency.
Pools of crypto assets that are lent out to borrowers, generating interest for lenders.
Staking assets while retaining liquidity, often through derivative tokens.
The primary network where real transactions occur, as opposed to testnets used for experimentation.
Transactions where the actual transaction cost is paid by a third party, enabling users to interact with the blockchain without needing to hold ether.
A collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual reality.
A sequence of words used to generate and recover a cryptocurrency wallet.
Wallets that require multiple signatures from different private keys to authorize a transaction, enhancing security.
Unique digital assets representing ownership of a specific item or piece of content.
Services that provide external data to smart contracts on the blockchain.
A consensus mechanism where validators are chosen based on the number of tokens they hold and are willing to "stake" as collateral.
A consensus mechanism where miners solve complex mathematical problems to validate transactions and create new blocks.
Reusing staked assets across multiple protocols to maximize rewards.
The practice of holding and managing one's own private keys and assets, rather than relying on third-party services.
A scaling technique where a blockchain is divided into smaller partitions called shards, each capable of processing transactions independently.
A method of verifying transactions and actions on the blockchain using cryptographic signatures.
Penalties applied to validators or stakers who act maliciously or fail to perform their duties properly.
Self-executing contracts with the terms of the agreement directly written into code.
Wallets that can be recovered using predefined social connections or trusted contacts, improving security and usability.
A type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset.
Staking is the process of locking up cryptocurrency tokens to participate in validating transactions on a proof-of-stake blockchain network like the Covalent Network. Stakers earn rewards for their work in securing the network.
On the Covalent Network, the native CQT token is used for staking by Network Operators and delegators. Network Operators must stake a minimum amount of CQT to become validators, while delegators can earn a portion of staking rewards by staking their CQT with operators.
Staking serves to incentivize honest validator behavior and allows CQT holders to earn yield on their tokens while contributing to the security of Covalent's decentralized data infrastructure.For more details on the Covalent Network and the role of the CQT token, please refer to our documentation.
A type of security threat where one person creates multiple false identities to gain an unfair advantage.
A testing environment for blockchain development, where developers can test new features and applications without risking real assets.
The process of converting physical or digital assets into tokens on a blockchain.
The study and design of the economic systems and models surrounding a cryptocurrency or token.
A participant in a blockchain network who validates transactions and adds them to the blockchain.
The decentralized web, where control and decision-making are distributed among users rather than centralized entities.
A term used to describe an individual or entity holding a large amount of cryptocurrency.
The practice of staking or lending crypto assets to generate high returns or rewards.
A cryptographic method allowing one party to prove to another that a statement is true without revealing any information beyond the statement itself.