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Onchain Economics
Infrastructure

Remote Procedure Call(RPC)

An interface that allows applications to communicate with blockchain nodes to read data and submit transactions.

In-Depth Explanation

RPCs are how wallets and dApps talk to the blockchain. You send a request (check balance, submit transaction), the node processes it and returns a response. Public RPCs (Infura, Alchemy) provide convenient access but create centralization risk. Running your own node gives you a private RPC without rate limits or censorship concerns.

Related Terms

Node

A computer running blockchain software that maintains a copy of the ledger and helps validate/relay transactions.

Decentralized Application

dApp

An application that runs on a blockchain network, using smart contracts for backend logic instead of centralized servers.

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Gas Fees

Transaction fees paid to validators/miners for executing operations on a blockchain.

Gwei

A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.

Layer 2

L2

Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.

Layer 1

L1

The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.

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