Glossary

Quick reference for terminology you'll encounter when working with Cardano and Nacho API.

A

ADA

The native cryptocurrency of Cardano. 1 ADA = 1,000,000 lovelace.

Address

A Cardano address is a string that identifies where ADA and tokens can be sent. Mainnet addresses start with addr1, testnet addresses start with addr_test1.

Example: addr1qy2kp7ux2qx7g9h6m8rv4dpuqwfcv2t4a8h5yfjhgpvqc8u5m4c8v3q2z8y7w6v5x4c3b2n1m0k9j8h7g6f5d4s3a2p1q0r

API Key

A unique identifier used to authenticate your requests to Nacho API. Keep it secret like a password.

B

Bech32

The human-readable address format used in Cardano. More user-friendly than raw hex addresses.

Block

A collection of transactions grouped together and added to the blockchain. New blocks are created approximately every 20 seconds.

Block Height

The number of blocks from the genesis block to the current block. Used to identify a specific point in the blockchain's history.

Block Producer

A stake pool selected to create a new block. Selection is based on stake delegation.

C

CBOR

Concise Binary Object Representation. The binary format used to serialize Cardano transactions.

Chain Sync

A protocol for synchronizing with the blockchain in real-time, receiving new blocks as they're produced.

Collateral

ADA locked to guarantee a Plutus script won't fail during execution. Required for smart contract transactions.

Credit

A unit of API usage on Nacho API. Different operations consume different amounts of credits.

D

Datum

Data attached to a UTxO that can be read by Plutus scripts. Used to store state in smart contracts.

Delegation

The process of assigning your staking rights to a stake pool. You keep your ADA but the pool uses your stake to produce blocks.

E

Epoch

A 5-day period (432,000 slots) in Cardano. Staking rewards are calculated and distributed per epoch.

Extended UTxO (EUTxO)

Cardano's enhanced UTxO model that supports smart contracts. UTxOs can include scripts and data, not just values.

F

Fee

The cost paid to process a transaction. Calculated based on transaction size and script execution.

Formula: fee = minFeeA × txSize + minFeeB + scriptExecutionCost

G

Genesis Block

The first block of the blockchain, created at network launch.

GraphQL

A query language for APIs. Nacho API offers GraphQL access to indexed blockchain data via DB-Sync.

J

JSON-RPC

The protocol used by Nacho API (via Ogmios). Requests and responses are JSON objects with specific structure:

{
  "jsonrpc": "2.0",
  "method": "queryNetwork/tip",
  "id": 1
}

L

Lovelace

The smallest unit of ADA. 1 ADA = 1,000,000 lovelace. Named after Ada Lovelace.

Ledger State

The current state of the blockchain, including all UTxOs, stake distribution, and protocol parameters.

M

Mainnet

The production Cardano network where ADA has real value.

Metadata

Arbitrary data attached to transactions. Can be used for timestamps, messages, or application data.

Minting

Creating new tokens on Cardano. Requires a minting policy (script).

N

Native Token

Tokens created on Cardano without smart contracts. They exist alongside ADA in UTxOs.

Network ID

Identifier for the Cardano network: 1 for mainnet, 0 for testnets.

O

Ogmios

A lightweight bridge between Cardano and JSON-RPC. Nacho API is Ogmios-compatible.

Output Reference

A unique identifier for a UTxO, consisting of transaction hash + output index.

Example: { "txHash": "abc123...", "outputIndex": 0 }

P

Plutus

Cardano's smart contract platform. Scripts are written in Plutus (based on Haskell) and compiled to Plutus Core.

Policy ID

A hash identifying a minting policy. Combined with asset name, uniquely identifies a token.

Example: 476039a0949cf0b22f6a800f56780184c44533887ca6e821007840c3

Preprod

Pre-production testnet. The recommended network for testing before mainnet deployment.

Protocol Parameters

Network configuration values that govern fees, sizes, and other blockchain behavior. Updated through governance.

R

Redeemer

Data passed to a Plutus script when spending a UTxO. Contains context for script execution.

Reward Address

A special address that receives staking rewards. Starts with stake1 on mainnet.

Rollback

When the blockchain reorganizes, removing recent blocks. Your code should handle rollbacks gracefully.

S

Script

Executable code on Cardano. Can be a minting policy, spending validator, or staking script.

Slot

The smallest time unit in Cardano (1 second). Blocks are produced in slots.

Stake Pool

An entity that produces blocks on behalf of delegators. Pool operators run the infrastructure.

Staking

The process of participating in consensus by delegating ADA to a pool. Earn rewards without locking funds.

T

Tip

The most recent block on the blockchain. Used to determine "current" state.

Transaction (Tx)

A state transition on the blockchain. Consumes UTxOs and produces new UTxOs.

TTL (Time-To-Live)

The slot after which a transaction is invalid. Prevents old transactions from being submitted.

U

UTxO (Unspent Transaction Output)

An output from a previous transaction that hasn't been spent. Like a digital bill you can spend.

Analogy: If ADA were physical cash, UTxOs would be individual bills in your wallet. To spend, you hand over bills and receive change.

V

Value

The assets contained in a UTxO: ADA amount plus any native tokens.

Example:

{
  "ada": { "lovelace": 5000000 },
  "assets": {
    "policyId123": {
      "tokenName": 100
    }
  }
}

W

Wallet

Software that manages your keys and builds transactions. Can be browser-based (Nami, Eternl) or hardware (Ledger, Trezor).

WebSocket

A protocol for persistent, bidirectional communication. Used for chain sync and real-time updates.

Witness

Proof that a transaction is authorized, typically a signature from the required keys.

Quick Reference Tables

Common Prefixes

Units

Time Constants