Internet DRAFT - draft-nakajima-crypto-asset-terminology
draft-nakajima-crypto-asset-terminology
Network Working Group H. Nakajima
Internet-Draft Mercari R4D
Intended status: Informational M. Kusunoki
Expires: 9 July 2022 JDD
K. Hida
JBA
Y. Suga
Advanced Security Div, IIJ
T. Hayashi
Lepidum
5 January 2022
Terminology for Cryptoassets
draft-nakajima-crypto-asset-terminology-07
Abstract
This document provides terminology used in cryptoassets.
Status of This Memo
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Copyright Notice
Copyright (c) 2022 IETF Trust and the persons identified as the
document authors. All rights reserved.
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Table of Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . 2
2. Conventions and Definitions . . . . . . . . . . . . . . . . . 2
3. Terms and Definitions . . . . . . . . . . . . . . . . . . . . 2
4. Symbols and abbreviated terms . . . . . . . . . . . . . . . . 7
5. Security Considerations . . . . . . . . . . . . . . . . . . . 7
6. IANA Considerations . . . . . . . . . . . . . . . . . . . . . 7
7. References . . . . . . . . . . . . . . . . . . . . . . . . . 7
7.1. Normative References . . . . . . . . . . . . . . . . . . 7
7.2. Informative References . . . . . . . . . . . . . . . . . 7
7.3. URIs . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . 8
Authors' Addresses . . . . . . . . . . . . . . . . . . . . . . . 8
1. Introduction
Our goal with this document is to improve our understanding on a set
of terms which frequently used in documents which related to
cryptoassets. Mutual understanding about terminology may help to
reach a consensus on issues we're trying to solve.
2. Conventions and Definitions
The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT",
"SHOULD", "SHOULD NOT", "RECOMMENDED", "NOT RECOMMENDED", "MAY", and
"OPTIONAL" in this document are to be interpreted as described in BCP
14 [RFC2119] [RFC8174] when, and only when, they appear in all
capitals, as shown here.
3. Terms and Definitions
address: An identifier to represent a public key in a blockchain
network.
administrator: It is a person who conducts operational maintenance
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of the system with the authority to change the system settings.
From the viewpoint of mutual checking, there are administrators
with different authorities depending on the subjects to be
managed. See also: operator.
asymmetric cryptography: Defined in [RFC4949] as "A modern branch of
cryptography (popularly known as "public-key cryptography") in
which the algorithms use a pair of keys (a public key and a
private key) and use a different component of the pair for each of
two counterpart cryptographic operations (e.g., encryption and
decryption, or signature creation and signature verification). "
block: A basic unit of the blockchain. A set of transactions on a
blockchain which contains a cryptographic hash value of the
previous block.
blockchain: An ordered series of data chains constructed that
attackers cannot alter by cryptographic algorithms. A type of
distributed ledger.
confirmation: Approval works defined by the consensus algorithm. A
status that blocks and transactions in a certain block are
approved by miners and users of the blockchain network.
consensus: Agreements among nodes in the blockchain network.
cryptoasset: A digital representation of values that can be
exchanged or transferred digitally, realized by a distributed
ledger such as blockchain utilizing cryptography or similar
technology.
cryptoassets custody service: Business to manage the kind of
cryptoassets.
cryptoassets custodian: The business entities that operate the
cryptoasset custody business.
cryptoassets custody system: The information system that responsible
for the cryptoasset custody business.
cryptoassets exchange: A function for exchanging fiat currencies and
cryptoassets, and also exchanging cryptoassets with each other.
cryptoassets exchange service provider: A business entity that
operates a cryptoasset exchange.
deterministic wallet: See: wallet
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digital signature: Defined in [RFC4949] as "A value computed with a
cryptographic algorithm and associated with a data object in such
a way that any recipient of the data can use the signature to
verify the data's origin and integrity."
distributed ledger: A distributed database about cryptoassets with
agreed processed.
double spending: Defined in [MasteringBitcoinOnline] as "result of
successfully spending some money more than once." fiat currency:
Currency which has been established by the government or other
authorities.
fork: A branch of a ledger. Ledger branching may occur accidentally
or by specification changes.
accidental fork: A case where a block is accidentally mined at about
the same time, and a plurality of chains coexist temporarily. It
occurs on a daily basis and converges to the longest chain by re-
org.
soft fork: A branch caused by specification change of blockchain.
It does not affect wallet implementation.
hard fork: A branch caused by a specification change without the
forward compatibility of the blockchain, which may affect the
wallet implementation in addition to the miner. There is a case
where a plurality of chains continue to coexist permanently
because there is no consensus between developers regarding the
case where the majority of nodes stay in the specification change
by following the hard fork, we call it split. Examples of typical
splits include the division of Ethereum and Ethereum Classic in
The DAO case of 2016, the division of Bitcoin and Bitcoin Cash in
2017, and so on. The new coin born by division is called a fork
coin.
genesis block: An initial block on a blockchain. Genesis block may
differ to distinguish chains.
hash value: Defined in [RFC4949] as "The output of a hash function."
hash rate: Amount of a hash value which node is able to generate per
unit of time (generally per second)
hierarchy deterministic wallet: See: wallet
mining: A process to append a received transaction to a block by
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validating a transaction with agreed consensus rules such as
proof-of-work and proof-of-stake.
miner: A network node which contributes its resources to mining.
multisignature: Defined in [MasteringBitcoinOnline] as "requiring
more than one key to authorize a bitcoin transaction". In this
scope, the transaction is not limited to a bitcoin transaction.
node: A device that connects to the blockchain network.Note that the
node has a different meaning in the context of expression about
the Merkle tree.
off-chain transaction: The movement of value outside of the
blockchain
on-chain transaction: The movement of value on the blockchain
operator: It is a person who performs routine tasks based on
authority as a normal task. See also: administrator.
orphan block: Defined in [MasteringBitcoinOnline] as "Blocks whose
parent block has not been processed by the local node, so they
can't be fully validated yet."
permissioned-chain: A blockchain that only specified members can
join the blockchain network.
permissionless-chain: See: permissioned-chain
public-chain: An open blockchain that anyone can retrieve all of
blocks and transactions without special privileges.
public key: Defined in [RFC4949] as "The publicly disclosable
component of a pair of cryptographic keys used for asymmetric
cryptography."
private-chain: In contrast with "public-chain", A closed blockchain
that only qualified users can access blocks and make transactions.
private key: Defined in [RFC4949] as "The secret component of a pair
of cryptographic keys used for asymmetric cryptography."
proof-of-stake: Defined in [MasteringBitcoinOnline] as "method by
which a cryptocurrency blockchain network aims to achieve
distributed consensus."
proof-of-work: Defined in [MasteringBitcoinOnline] as "A piece of
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data that requires significant computation to find."
reorganization: The convergence into one chain based on a certain
consensus from multiple chains that are temporarily branched.
reward: Value by the blockchain network which assigned to a miner
who successfully validates a transaction. Rules may differ among
blockchains and consensus rules.
side-chain: See off-chain
smart contract: A guaranteed digital procedure that automatically
enforced on a blockchain network.
soft fork: See: fork
token: 1) Data that represents the amount of cryptoassets like ERC20
specification, 2) Data used in the API as one of the factors with
the authentication process.
transaction: Defined in [MasteringBitcoinOnline] as "More precisely,
a transaction is a signed data structure expressing a transfer of
value."
incoming transaction: Transfer of cryptoassets from other addresses
to one's own address.
outgoing transaction: Transfer of cryptoassets from one's own
address to other addresses.
validation: Checking the accuracy and consistency of given
transactions and blocks. Specifically, it is general to verify
the integrity of data to be digital-signed and also the integrity
of other transactions and blocks. By verifying a transaction
repeatedly, it is possible to verify blocks in the transaction.
validated: See: validation
validator: See: validation
wallet: A mechanism that handles a key pair of a public key and a
secret key used for transmitting cryptoassets and such a key pair.
hot wallet: A wallet that is online connected to the network, the
key is activated, and operators can coin out the cryptoassets by
automatic processing.
cold wallet: A wallet that is disconnected from the network and the
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key is inactivated. It can not be coined out unless there is an
explicit operation by the operator. The frequency of outgoing
coins is limited. Between hot wallet and cold wallet, there are
various intermediate forms such as a wallet that is online, but
requires manual operation at the time of signing a transaction,
the wallet that is offline but the operation is automated, and
warm wallet.
4. Symbols and abbreviated terms
AML Anti-Money Laundering
API: Application Programming Interface
CFT: Counter Financing of Terrorism
DAO: Distributed Autonomous Organization
DLT: Distributed Ledger Technologies
HD: Hierarchy Deterministic (wallet)
PKI: Public Key Infrastructure
5. Security Considerations
This document defines terminology for cryptoassets. Therefore, there
is no security considerations.
6. IANA Considerations
None.
7. References
7.1. Normative References
[RFC2119] Bradner, S., "Key words for use in RFCs to Indicate
Requirement Levels", BCP 14, RFC 2119,
DOI 10.17487/RFC2119, March 1997,
<https://www.rfc-editor.org/info/rfc2119>.
[RFC8174] Leiba, B., "Ambiguity of Uppercase vs Lowercase in RFC
2119 Key Words", BCP 14, RFC 8174, DOI 10.17487/RFC8174,
May 2017, <https://www.rfc-editor.org/info/rfc8174>.
7.2. Informative References
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[MasteringBitcoinOnline]
Antonopoulos, A., "Mastering Bitcoin", March 2018,
<https://github.com/bitcoinbook/bitcoinbook>.
[RFC4949] Shirey, R., "Internet Security Glossary, Version 2",
FYI 36, RFC 4949, DOI 10.17487/RFC4949, August 2007,
<https://www.rfc-editor.org/info/rfc4949>.
7.3. URIs
[ref-1] "", <https://cgtf.github.io/>.
Acknowledgments
Thanks to members of the Cryptoassets Governance Task Force [ref-1]
for help and feedback.
Authors' Addresses
Hirotaka Nakajima
Mercari, Inc. R4D
Roppongi Hills Mori Tower 21F
6-10-1 Roppongi
Minato, Tokyo 106-6125
JAPAN
Email: nunnun@mercari.com
Masanori Kusunoki
Japan Digital Design, Inc.
Nihonbashi Talk Building
3-3-5, Nihonbashi-Hongokucho
103-0021
JAPAN
Email: masanori.kusunoki@japan-d2.com
Keiichi Hida
Japan Blockchain Association
Email: hida@jba-web.jp
Yuji Suga
Advanced Security Division, Internet Initiative Japan Inc.
Iidabashi Grand Bloom,
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2-10-2 Fujimi
Chiyoda, Tokyo 102-0071
JAPAN
Email: suga@iij.ad.jp
Tatsuya Hayashi
Lepidum Co. Ltd.
Email: hayashi@lepidum.co.jp
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