Terminology for Cryptoassets
draft-nakajima-crypto-asset-terminology-01

Network Working Group                                        H. Nakajima
Internet-Draft                                               Mercari R4D
Intended status: Informational                               M. Kusunoki
Expires: July 4, 2019                                                JDD
                                                                 K. Hida
                                                                     JBA
                                                                 Y. Suga
                                              Advanced Security Div, IIJ
                                                              T. Hayashi
                                                                 Lepidum
                                                       December 31, 2018

                      Terminology for Cryptoassets
               draft-nakajima-crypto-asset-terminology-01

Abstract

   This document provides terminology used in cryptoassets.

Status of This Memo

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   This Internet-Draft will expire on July 4, 2019.

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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 . . . . . . . . . . . . . . . .   6
   5.  Security Considerations . . . . . . . . . . . . . . . . . . .   6
   6.  IANA Considerations . . . . . . . . . . . . . . . . . . . . .   6
   7.  References  . . . . . . . . . . . . . . . . . . . . . . . . .   6
     7.1.  Normative References  . . . . . . . . . . . . . . . . . .   7
     7.2.  Informative References  . . . . . . . . . . . . . . . . .   7
   Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . .   7
   Authors' Addresses  . . . . . . . . . . . . . . . . . . . . . . .   7

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
      of the system with authority to change system setting.  From the
      viewpoint of mutual checking, there are administrators with
      different authorities depending on the subjects to be managed.

   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

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      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 previous
      block.

   blockchain:  A digital ledger about transactions for cryptoassets.

   confirmation:  (For transactions,) checking correctness of a
      transaction in the mainchain.

   consensus:  Coincidence the way of thinking.

   cryptoassets:  Cryptographically guaranteed value.

   deterministic wallet:  See: wallet

   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 money:  Currency which has been established by government or
      other authorities.

   fork:  A fork is a branch of a ledger.  Ledger branching may occur
      accidentally or by specification changes.

   accidental fork:  An accidental fork is 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 soft fork may influence the implementation of a miner
      in branches caused by specification change of block chain, but
      does not affect wallet implementation.

   hard fork:  A hard fork is a branch caused by a specification change
      without forward compatibility of the block chain, which may affect
      the wallet implementation in addition to the miner.  There is a
      case where a plurality of chains continue to coexist permanently

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      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 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
      validating a transaction with agreed consensus rules such as
      proof-of-work and proof-of-stake.  Miner is a network node which
      contributes its resources to mining.

   miner:  See: mining

   multisignature:  Defined in [MasteringBitcoinOnline] as "requiring
      more than one key to authorize a bitcoin transaction".  In this
      scope, transaction is not limited to bitcoin transaction.

   node:  A device that connects to blockchain network.

   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.

   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 public blockchain that only specified members
      can join the blockchain network.

   permissionless-chain:  See: permissioned-chain

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   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 permissioned 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
      data that requires significant computation to find."

   reorganization:  Invalidation process of branched blockchains.

   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:  An unforgeable data object.

   transaction:  Defined in [MasteringBitcoinOnline] as "More precisely,
      a transaction is a signed data structure expressing a transfer of
      value."

   validation:  Checking correctness and consistency of given data.

   validated:  See: validation

   validator:  See: validation

   wallet:  A wallet is an implementation that handles a key pair of a
      public key and a secret key used for transmitting a virtual

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      currency and such a key pair.  In this document, the latter is
      distinguished and called wallet implementation.

   hot wallet:  It is a wallet that is online connected to the network,
      the key is activated, and you can coin out the virtual currency by
      automatic processing.

   cold wallet:  Normally it is disconnected from the network and the
      key is inactivated and it is a wallet that can not be coined out
      unless there is an explicit operation by the operator.  Frequency
      of outgoing coins is limited.

      Between Hot Wallet and Cold Wallet, there are various intermediate
      forms such as wallet that is online, but requires manual operation
      at the time of signing a transaction, wallet that is offline but
      operation is automated, and warm wallet There are also sometimes
      called.

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

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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

   [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

   [1] https://vcgtf.github.io/

Acknowledgments

   Thanks to members of the Cryptoassets Governance Task Force [1] for
   help and feedback.

Authors' Addresses

   Hirotaka Nakajima
   Mercari, Inc. R4D
   Roppongi Hills Mori Tower 25F
   6-10-1 Roppongi
   Minato, Tokyo  106-6125
   JAPAN

   Email: nunnun@mercari.com

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   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,
   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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