Glossary Xpoverse

180 https://academy.youngplatform.com/ terms

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Aave
Aave is a decentralized finance (DeFi) protocol that lets people lend and borrow cryptocurrencies and real-world assets (RWAs) without having to go through a centralized intermediary. When they lend, they earn interest; when they borrow, they pay interest. Aave is a decentralized finance (DeFi) protocol that enables the borrowing and lending of cryptocurrency, including so-called flash loans. Flash loans are considered the first uncollateralized loan option in the DeFi space. Aave is built on the Ethereum protocol and it’s considered one of the biggest DeFi platforms, and one of the top that focus on lending and borrowing cryptocurrency through a pooled liquidity system. Lenders can earn relatively low-risk, passive income from interest paid on loans, without having to engage with third-parties or middlemen. What is Aave and how does it function compared with other crypto platforms? Aave is a DeFi protocol that provides loans using a system that is basically the opposite of going to a bank in almost every way. First, there is no financial institution, no intermediary that oversees or grants loan requests based on creditworthiness. Instead, Aave is a “trustless” network that utilizes smart contracts to execute the loans, thus removing the middlemen.
Ad networks
An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with advertiser's demand. Ad networks aggregate ad inventories from supply sources and match them with demand sources looking for ad slots. The supply sources in a mobile ad network typically constitute apps from publishers and app developers. Demand sources are made up of advertisers looking to place their ad in another app. Many mobile ad networks support a wide spectrum of different formats, from banners to native ads, while others are focused on specific formats, such as video. On the demand-side, some ad networks offer a platform for advertisers to sign-in and manage their campaigns. Others offer a managed service in which account managers provide a consultative approach and use their expertise to ensure that campaign runs at optimal levels.
Ads
noun
Short for advertisement.
Algorithm
In mathematics and computer science, an algorithm is a finite sequence of rigorous instructions, typically used to solve a class of specific problems or to perform a computation. Algorithms are used as specifications for performing calculations and data processing. A well-defined computational procedure that takes variable inputs, including a cryptographic key, and produces an output.
Anti-money laundering
Anti Money Laundering (AML), also known as anti-money laundering, is the execution of transactions to eventually convert illegally obtained money into legal money. AML legislation is becoming increasingly strict for financial service providers. They must be prevented from financing money laundering and / or terrorism. Anti money laundering (AML) refers to the web of laws, regulations, and procedures aimed at uncovering efforts to disguise illicit funds as legitimate income. Money laundering seeks to conceal crimes ranging from small-time tax evasion and drug trafficking to public corruption and the financing of groups designated as terrorist organizations.
Anti-virus
Antivirus software, also known as anti-malware, is a computer program used to prevent, detect, and remove malware. Antivirus software was originally developed to detect and remove computer viruses, hence the name. Software that is created specifically to help detect, prevent and remove malware (malicious software). Antivirus is a kind of software used to prevent, scan, detect and delete viruses from a computer. Once installed, most antivirus software runs automatically in the background to provide real-time protection against virus attacks.
Arbitrum
Arbitrum is a type of technology known as an optimistic rollup. It allows Ethereum smart contracts to scale by passing messages between smart contracts on the Ethereum main chain and those on the Arbitrum second layer chain. Arbitrum is a layer-2 solution project designed to enhance Ethereum smart contracts in terms of speed scalability while adding additional privacy features to boot. The platform is designed to make it easy for developers to execute unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions at layer-2 while still benefiting from Ethereum’s excellent layer-1 security. Arbitrum itself was created to address some of the shortcomings of current Ethereum-based smart contracts. As for the drawbacks, such as long transactions and high execution costs. Arbitrum uses a technique known as transaction rollup to log batches of transactions submitted on the Ethereum main chain and execute them on inexpensive, scalable layer-2 sidechains. This process helps release most of the compute and storage burden that Ethereum is experiencing while enabling a new class of robust layer-2 based aApps.
Arpanet
The Advanced Research Projects Agency Network was the first wide-area packet-switched network with distributed control and one of the first networks to implement the TCP/IP protocol suite. Both technologies became the technical foundation of the Internet. The U.S. Advanced Research Projects Agency Network (ARPANET) was the first public packet-switched computer network. It was first used in 1969 and finally decommissioned in 1989. ARPANET's main use was for academic and research purposes. Many of the protocols used by computer networks today were developed for ARPANET, and it is considered the forerunner of the modern internet.
Artificial intelligence
the theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages. Artificial intelligence is intelligence demonstrated by machines, as opposed to the natural intelligence displayed by animals including humans. is the simulation of human intelligence processes by machines, especially computer systems.
ASIC
An application-specific integrated circuit is an integrated circuit chip customized for a particular use, rather than intended for general-purpose use. For example, a chip designed to run in a digital voice recorder or a high-efficiency video codec is an ASIC. An application-specific integrated circuit (ASIC) is an integrated circuit chip that has been designed for a specific purpose. An ASIC miner refers to a computerized device or hardware that uses ASICs for the sole purpose of "mining" digital currency. Generally, each ASIC miner is constructed to mine a specific digital currency. So, a Bitcoin ASIC miner can mine only bitcoin. One way to think about bitcoin ASICs is as specialized bitcoin mining computers, or “bitcoin generators," that are optimized to solve the mining algorithm.
Automated Market Maker (AMM)
Automated market makers (AMMs) allow digital assets to be traded without permission and automatically by using liquidity pools instead of a traditional market of buyers and sellers. On a traditional exchange platform, buyers and sellers offer up different prices for an asset. You could think of an automated market maker as a robot that’s always willing to quote you a price between two assets. Some use a simple formula like Uniswap, while Curve, Balancer and others use more complicated ones. Not only can you trade trustlessly using an AMM, but you can also become the house by providing liquidity to a liquidity pool. This allows essentially anyone to become a market maker on an exchange and earn fees for providing liquidity. AMMs have really carved out their niche in the DeFi space due to how simple and easy they are to use. Decentralizing market making this way is intrinsic to the vision of crypto. An automated market maker (AMM) is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm.
Avalanche
Avalanche (AVAX) is a cryptocurrency and blockchain platform that rivals Ethereum. AVAX is the native token of the Avalanche blockchain, which—like Ethereum—uses smart contracts to support a variety of blockchain projects. 1 The Avalanche blockchain can provide near-instant transaction finality. AVAX is used to pay transaction processing fees and secure the Avalanche network, and acts as a basic unit of account among blockchains in the Avalanche network. 1 KEY TAKEAWAYS Avalanche is a blockchain platform with the native currency AVAX. Avalanche is a competitor to Ethereum that prioritizes scalability and transaction processing speed. AVAX is used to secure the Avalanche blockchain and pay transaction fees across the network. Transaction fees and the rate of AVAX coin creation are determined using a governance model. The Avalanche blockchain reportedly can process 4,500 transactions per second. 2 Launched in 2020, Avalanche aims to be fast, versatile, secure, affordable, and accessible. 3 Avalanche is an open-source project, meaning that anyone can view and contribute to the platform's code. Avalanche is a blockchain platform that aims to address the blockchain trilemma of scalability, security and decentralization thanks to its unique Proof of Stake (PoS) mechanism. Like Ethereum, Avalanche supports smart contracts to run decentralized applications (dApps) on its network. Since Avalanche’s smart contracts are written in the Solidity language also used by Ethereum, it aims to create greater blockchain interoperably by integrating a number of decentralized finance (DeFi) ecosystems, including well-established projects like Aave and Curve. AVAX, the native token of the Avalanche platform, is used to power transactions in its ecosystem. AVAX serves as the means to distribute system rewards, participate in governance and facilitate transactions on the network by paying fees.
Big Data
The term Big Data refers to a large set of data, structured more or less in terms of volume, speed and variety. The complexity of Big Data is processed through advanced computational methods, searching for patterns, trends and correlations. It is useful for predicting future events, analysing human behaviour or ‘machine learning’
Bitcoin
Noun
Bitcoin is a cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, and thus removing the need for third-party involvement in financial transactions. It is rewarded to blockchain miners for the work done to verify transactions and can be purchased on several exchanges. Bitcoin was introduced to the public in 2009 by an anonymous developer or group of developers using the name Satoshi Nakamoto. It has since become the most well-known cryptocurrency in the world. Its popularity has inspired the development of many other cryptocurrencies. These competitors either attempt to replace it as a payment system or are used as utility or security tokens in other blockchains and emerging financial technologies. Bitcoin is the world’s first successful decentralized cryptocurrency and payment system, launched in 2009 by a mysterious creator known only as Satoshi Nakamoto. The word “cryptocurrency” refers to a group of digital assets where transactions are secured and verified using cryptography – a scientific practice of encoding and decoding data. Those transactions are often stored on computers distributed all over the world via a distributed ledger technology called blockchain Bitcoin can be divided into smaller units known as “satoshis” (up to 8 decimal places) and used for payments, but it’s also considered a store of value like gold. This is because the price of a single bitcoin has increased considerably since its inception – from less than a cent to tens of thousands of dollars. When discussed as a market asset, bitcoin is represented by the ticker symbol BTC.
Bitcoin Block Explorer
A block explorer is an online tool that enables you to search for real-time and historical information about a blockchain, including data related to blocks, transactions, addresses, and more. Bitcoin Block Explorer allows users to explore the Bitcoin blockchain and provides up-to-date coverage of cryptocurrency and blockchain-related news. It is important to remember that you can only explore Bitcoin’s blockchain with this particular block explorer – you will be unable to explore Litecoin or Ethereum’s blockchains. To do this, you will need to use a block explorer specific to these cryptocurrencies. The web tool allows you to explore all previously mined blocks on the blockchain. It also gives a live feed of blocks that are being added to the blockchain, so you are constantly aware of what is happening. Alongside this, Bitcoin Block Explorer allows users to see all their latest transactions and the current hash rate. Not only can you see all current transactions, but users are also able to check the history of any public Bitcoin address and analyse its balance, how many transactions it has received, and much more.
Bitcoin blocks
What Is a Block (Blockchain Block)? Blocks are data structures within the blockchain database, where transaction data in a cryptocurrency blockchain are permanently recorded. A block records some or all of the most recent transactions not yet validated by the network. Once the data are validated, the block is closed Transaction data is permanently recorded in files called blocks. They can be thought of as the individual pages of a city recorder's recordbook (where changes to title to real estate are recorded) or a stock transaction ledger. Blocks are organized into a linear sequence over time (also known as the block chain). New transactions are constantly being processed by miners into new blocks which are added to the end of the chain. As blocks are buried deeper and deeper into the blockchain they become harder and harder to change or remove, this gives rise of bitcoin's Irreversible Transactions.
Bitcoin Cash
Bitcoin cash is a cryptocurrency created in August 2017, from a fork of Bitcoin. 1  Bitcoin Cash increased the size of blocks, allowing more transactions to be processed and improving scalability. The cryptocurrency underwent another fork in November 2018 and split into Bitcoin Cash ABC and Bitcoin Cash SV (Satoshi Vision). 2  Bitcoin Cash is referred to as Bitcoin Cash because it uses the original Bitcoin Cash client. KEY TAKEAWAYS Bitcoin Cash is the result of a Bitcoin hard fork that occurred in August 2017. Bitcoin Cash was created to accommodate a larger block size compared to Bitcoin, allowing more transactions into a single block. Despite their philosophical differences, Bitcoin Cash and Bitcoin share several technical similarities. They use the same consensus mechanism and have capped their supply at 21 million. Bitcoin Cash itself underwent a fork in November 2018 and split into Bitcoin Cash ABC and Bitcoin Cash SV (Satoshi Vision). Bitcoin Cash ABC is referred to as Bitcoin Cash now.
bit (binary digits)
The bit is the most basic unit of information in computing and digital communications. The name is a portmanteau of binary digit. The bit represents a logical state with one of two possible values. A binary digit, or bit, is the smallest unit of information a computer can process and store. It is used for storing information and has a value of true/false, or on/off. An individual bit has a value of either 0 or 1, which is generally used to store data and implement instructions in groups of bytes. A computer is often classified by the number of bits it can process at one time or by the number of bits in a memory address. Many systems use four eight-bit bytes to form a 32-bit word.
Block
The blockchain is a chain of data blocks. Each block can be thought of as a page in a ledger. The individual blocks are composed of several components. Roughly these can be differentiated into the head of the block (block header) and his body (block body). Blocks are data structures within the blockchain database, where transaction data in a cryptocurrency blockchain are permanently recorded. A block records some or all of the most recent transactions not yet validated by the network. Once the data are validated, the block is closed.
Block Explorer
A block explorer is an online tool that enables you to search for real-time and historical information about a blockchain, including data related to blocks, transactions, addresses, and more. A block explorer is a tool that people use to view all cryptocurrency transactions online. Specifically, to view all current and past transactions on the blockchain. It gives the user information on the blockchain’s hash rate. It also tells us the rate of transaction growth and provides other useful information. In other words, a block explorer is an online blockchain browser which reveals the data of individual blocks and transactions. With the tool, we can monitor transaction histories and balances of addresses.
Blockchain
Noun
a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network. A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. One key difference between a typical database and a blockchain is how the data is structured. A blockchain collects information together in groups, known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled. Blockchain technology is a decentralized, distributed ledger that stores the record of ownership of digital assets. Any data stored on blockchain is unable to be modified, making the technology a legitimate disruptor for industries like payments, cybersecurity and healthcare. Blockchain, sometimes referred to as distributed ledger technology (DLT), makes the history of any digital asset unalterable and transparent through the use of decentralization and cryptographic hashing.
Blockchain Bridges
Blockchain bridges work just like the bridges we know in the physical world. Just as a physical bridge connects two physical locations, a blockchain bridge connects two blockchain ecosystems. Bridges facilitate communication between blockchains through the transfer of information and assets. A blockchain bridge is a protocol connecting two blockchains to enable interactions between them. If you own bitcoin but want to participate in DeFi activity on the Ethereum network, a blockchain bridge allows you to do that without selling your bitcoin. Blockchain bridges are fundamental to achieving interoperability within the blockchain space. A blockchain bridge is a protocol connecting two economically and technologically separate blockchains to enable interactions between them. These protocols function like a physical bridge linking one island to another, with the islands being separate blockchain ecosystems.
Bluetooth
Bluetooth is a short-range wireless technology standard that is used for exchanging data between fixed and mobile devices over short distances and building personal area networks. It employs UHF radio waves in the ISM bands, from 2.402 GHz to 2.48 GHz Bluetooth is an open wireless technology standard for transmitting fixed and mobile electronic device data over short distances. Bluetooth was introduced in 1994 as a wireless substitute for RS-232 cables. Bluetooth communicates with a variety of electronic devices and creates personal networks operating within the unlicensed 2.4 GHz band. Operating range is based on device class. A variety of digital devices use Bluetooth, including MP3 players, mobile and peripheral devices and personal computers.
Caesar cipher
In cryptography, a Caesar cipher, also known as Caesar's cipher, the shift cipher, Caesar's code or Caesar shift, is one of the simplest and most widely known encryption techniques. The Caesar Cipher technique is one of the earliest and simplest methods of encryption technique. It’s simply a type of substitution cipher, i.e., each letter of a given text is replaced by a letter with a fixed number of positions down the alphabet. For example with a shift of 1, A would be replaced by B, B would become C, and so on. The method is apparently named after Julius Caesar, who apparently used it to communicate with his officials. Thus to cipher a given text we need an integer value, known as a shift which indicates the number of positions each letter of the text has been moved down. The encryption can be represented using modular arithmetic by first transforming the letters into numbers, according to the scheme, A = 0, B = 1,…, Z = 25. Encryption of a letter by a shift n can be described mathematically as. A Caesar cipher is one of the simplest and most well-known encryption techniques. Named after Julius Caesar, it is one of the oldest types of ciphers and is based on the simplest monoalphabetic cipher. It is considered a weak method of cryptography, as it is easy to decode the message owing to its minimum security techniques. For the same reason, a Caesar cipher is often incorporated only in parts of other complex encryption schemes. Techopedia Explains Caesar Cipher In cryptography, a Caesar cipher is categorized as a substitution cipher in which the alphabet in the plain text is shifted by a fixed number down the alphabet.
Cardano
Cardano is a public blockchain platform. It is open-source and decentralized, with consensus achieved using proof of stake. It can facilitate peer-to-peer transactions with its internal cryptocurrency, ADA. Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson Cardano is one of the biggest cryptocurrencies by market cap. It’s designed to be a flexible, sustainable, and scalable blockchain platform for running smart contracts — which will allow the development of a wide range of decentralized finance apps, new crypto tokens, games, and more. It uses a unique proof-of-stake consensus mechanism called Ouroboros, as opposed to the energy-intensive proof-of-work system currently used by Bitcoin and Ethereum
CBDC
A central bank digital currency is a digital currency issued by a central bank, rather than by a commercial bank.Central bank digital currencies are digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country's fiat currency. Many countries are developing CBDCs, and some have even implemented them. Because so many countries are researching ways to transition to digital currencies, it's important to understand what they are and what they mean for society. KEY TAKEAWAYS A central bank digital currency is the digital form of a country's fiat currency. A CBDC is issued and regulated by a nation's monetary authority or central bank. CBDCs promote financial inclusion and simplify the implementation of monetary and fiscal policy. As a centralized form of currency, they may not anonymize transactions as some cryptocurrencies do. Many countries are exploring how CBDCs will affect their economies, existing financial networks, and stability.
Central processing units (CPUs)
A central processing unit, also called a central processor, main processor or just processor, is the electronic circuitry that executes instructions comprising a computer program. The CPU performs basic arithmetic, logic, controlling, and input/output operations specified by the instructions in the program. central processing unit (CPU), principal part of any digital computer system, generally composed of the main memory, control unit, and arithmetic-logic unit. It constitutes the physical heart of the entire computer system; to it is linked various peripheral equipment, including input/output devices and auxiliary storage units. In modern computers, the CPU is contained on an integrated circuit chip called a microprocessor. The control unit of the central processing unit regulates and integrates the operations of the computer. It selects and retrieves instructions from the main memory in proper sequence and interprets them so as to activate the other functional elements of the system at the appropriate moment to perform their respective operations.
Client Server
A Client Server Network is a Network Topology in which one or more computers offer a service to other computers. A Client / Server network is most commonly found in a business environment in order to take advantage of the ability to centrally manage the network's security and function. These Servers offer a service to the Clients. A server is any computer that hosts data that is made available to other computers as needed. Servers are often located in a secure location and only accessed remotely. This data may be in the form of files (file server) or provide needed information such as how to access the local network and internet (DHCP server) or one of many other possible roles. A single physical server can offer several services and have multiple roles on a network. Without the server these services would not be available on a network. Traditionally a server is a stronger, more robust computer that is not accessed physically by a user. This is not always true, a server in its simplest form can be as simple as a desktop computer that is sharing a local printer to other computers on the network. This desktop computer is now acting as a server to the network as it is providing print services. Without this specific computer other computers on the network would lose the ability to print. Client-server model is a distributed application structure that partitions tasks or workloads between the providers of a resource or service, called servers, and service requesters, called clients. client-server architecture, architecture of a computer network in which many clients (remote processors) request and receive service from a centralized server (host computer)
Cloud computing
Cloud computing is the on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user. Large clouds often have functions distributed over multiple locations, each location being a data center. the practice of using a network of remote servers hosted on the internet to store, manage, and process data, rather than a local server or a personal computer. Cloud computing is the delivery of different services through the Internet. These resources include tools and applications like data storage, servers, databases, networking, and software. Rather than keeping files on a proprietary hard drive or local storage device, cloud-based storage makes it possible to save them to a remote database. As long as an electronic device has access to the web, it has access to the data and the software programs to run it. Cloud services facilitate the flow of user data from front-end clients (e.g., users’ servers, tablets, desktops, laptops—anything on the users’ ends), through the internet, to the provider’s systems, and back. Cloud services promote the building of cloud-native applications and the flexibility of working in the cloud. Users can access cloud services with nothing more than a computer, operating system, and internet connectivity.
Code
A computer program is a sequence or set of instructions in a programming language for a computer to execute. Computer programs are one component of software, which also includes documentation and other intangible components. A computer program in its human-readable form is called source code. Code (short for source code) is a term used to describe text that is written using the protocol of a particular language by a computer programmer. Examples of programming languages include C, C#, C++, Java, Perl, and PHP. Code can also be used in a less formal fashion to refer to text written for markup or styling languages, like HTML and CSS (Cascading Style Sheets). For example, you may see people make reference to code in numerous languages, such as "C code," "PHP code," "HTML code," or "CSS code." Computer coding, also known as computer programming, is a way to tell a computer what to do. Coding is a way to tell the computer how it should behave overall - the exact actions it needs to take and how to take them in an effective and efficient way. Specifically, coding is the process of creating and then giving the computer a detailed set of instructions to be carefully executed in sequential order. The set of instructions are called a program or the code.
Cold Wallet
What Is A Cold Wallet? A cold wallet, otherwise known as a hardware wallet or cold storage, is a physical device that keeps your cryptocurrency completely offline. Many look like USB drives. Taking your holdings offline helps protect from hacking and online attacks, but you can also risk losing your holdings. Cold storage is an offline wallet used for storing bitcoins or other cryptocurrencies. With cold storage, the digital wallet is stored on a platform that is not connected to the internet, thereby protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities that a system connected to the internet is susceptible to. Cold storage methods are useful for individual investors, but cryptocurrency exchanges and companies involved in the crypto space also make use of this type of wallet. Cold storage can also refer more broadly to other modes of operation for storing inactive data, such as data for regulatory compliance, video, photographs, and backup information. 1 KEY TAKEAWAYS Most cryptocurrency wallets are digital, but hackers can sometimes gain access to these storage tools in spite of security measures designed to prevent theft. Cold storage is a way of holding cryptocurrency tokens offline. By using cold storage, cryptocurrency investors aim to prevent hackers from being able to access their holdings via traditional means.
Commodity
A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. A commodity thus usually refers to a raw material used to manufacture finished goods. A product, on the other hand, is the finished good sold to consumers. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade. KEY TAKEAWAYS A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. Investors and traders can buy and sell commodities directly in the spot (cash) market or via derivatives such as futures and options. Hard commodities refer to energy and metals products while soft commodities are often agricultural goods. In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.[1][2][3] The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price.
Communication layers
The Communication layer handles the connectivity, message routing among remote devices, and routing between devices and the cloud. The Communication layer lets you establish how IoT messages are sent and received by devices, and how devices represent and store their physical state in the cloud. In the OSI reference model, the communications between a computing system are split into seven different abstraction layers: Physical, Data Link, Network, Transport, Session, Presentation, and Application.
Compound interest
Compound interest (also known as compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Believed to have originated in 17th-century Italy, compound interest can be thought of as “interest on interest. It will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest. Compound interest, also called "compounding interest," is the interest on the initial investment as well as the accrued interest on that investment. Compound interest, which is thought to have started in Italy in the 17th century, can be considered "interest on interest." The compound interest gives a higher return as it incorporates the interest on interest as well.
Compund
What Is Compound? Compound, to savers and investors, means the ability of a sum of money to grow exponentially over time by the repeated addition of earnings to the principal invested. Each round of earnings adds to the principal that yields the next round of earnings. Compounding is the process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods. Compounding, therefore, differs from linear growth, where only the principal earns interest each period. KEY TAKEAWAYS Compounding is the process whereby interest is credited to an existing principal amount as well as to interest already paid. Compounding thus can be construed as interest on interest—the effect of which is to magnify returns to interest over time, the so-called “miracle of compounding.” When banks or financial institutions credit compound interest, they will use a compounding period such as annual, monthly, or daily. Compounding may occur on investment in which savings grow more quickly or on debt where the amount owed may grow even if payments are being made. Compounding naturally occurs in savings accounts; some investments that yield dividends may also benefit from compounding.
Computer scientist
A computer scientist is a person who has acquired the knowledge of computer science, the study of the theoretical foundations of information and computation and their application. A computer scientist is a professional who researches and analyzes how computers store and use information. They study technological concepts, mathematics and physics. They may work with computer engineers to design new computers or specialize in areas such as computer programming. They can work in a variety of roles within the information and technology industry. Common areas of focus include: Theoretical computer science Computer applications Computer systems Software engineering
Computing power
In computing, computer performance is the amount of useful work accomplished by a computer system. Outside of specific contexts, computer performance is estimated in terms of accuracy, efficiency and speed of executing computer program instructions. In simple words, it is the power or speed a computer has to process programs or manipulate data.
Consensus Mechanism
A fundamental problem in distributed computing and multi-agent systems is to achieve overall system reliability in the presence of a number of faulty processes. This often requires coordinating processes to reach consensus, or agree on some data value that is needed during computation. A consensus mechanism is a fault-tolerant mechanism that is used in computer and blockchain systems to achieve the necessary agreement on a single data value or a single state of the network among distributed processes or multi-agent systems, such as with cryptocurrencies. It is useful in record-keeping, among other things. On the Bitcoin blockchain, for instance, the consensus mechanism is known as Proof-of-Work (PoW), which requires the exertion of computational power in order to solve a difficult but arbitrary puzzle in order to keep all nodes in the network honest. KEY TAKEAWAYS A consensus mechanism refers to any number of methodologies used to achieve agreement, trust, and security across a decentralized computer network. In the context of blockchains and cryptocurrencies, proof-of-work (PoW) and proof-of-stake (PoS) are two of the most prevalent consensus mechanisms. Critics of Bitcoin miners have argued that PoW is overly energy-intensive, which has sparked the creation of new and more efficient mechanisms.
Costs
cost, in common usage, the monetary value of goods and services that producers and consumers purchase. In a basic economic sense, cost is the measure of the alternative opportunities foregone in the choice of one good or activity over others. This fundamental cost is usually referred to as opportunity cost. In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost.
Crypto-assets
Crypto assets are purely digital assets that use public ledgers over the internet to prove ownership. They use cryptography, peer-to-peer networks and a distributed ledger technology (DLT) – such as blockchain – to create, verify and secure transactions. A crypto-asset is a virtual digital form of exchange based on cryptography and peer-to-peer networking, for example Bitcoin.
Cryptocurrencies
Noun
In computer science, a cryptocurrency, crypto-currency, or crypto is a digital currency that does not rely on any central authority to uphold or maintain it. Instead, transaction and ownership data is stored in a digital ledger using distributed ledger technology, typically a blockchain. a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority. A cryptocurrency is a digital, encrypted, and decentralized medium of exchange. Unlike the U.S. Dollar or the Euro, there is no central authority that manages and maintains the value of a cryptocurrency. Instead, these tasks are broadly distributed among a cryptocurrency’s users via the internet. You can use crypto to buy regular goods and services, although most people invest in cryptocurrencies as they would in other assets, like stocks or precious metals. While cryptocurrency is a novel and exciting asset class, purchasing it can be risky as you must take on a fair amount of research to understand how each system works fully. Bitcoin was the first cryptocurrency, first outlined in principle by Satoshi Nakamoto in a 2008 paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” Nakamoto described the project as “an electronic payment system based on cryptographic proof instead of trust.” That cryptographic proof comes in the form of transactions that are verified and recorded on a blockchain.
Cryptocurrency Wallet
Crypto wallets store your private keys, keeping your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum. A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a cryptocurrency wallet more often also offers the functionality of encrypting and/or signing information.
Cryptographic keys
A key in cryptography is a piece of information, usually a string of numbers or letters that are stored in a file, which, when processed through a cryptographic algorithm, can encode or decode cryptographic data. A cryptographic key is the core part of cryptographic operations. Many cryptographic systems include pairs of operations, such as encryption and decryption. A key is a part of the variable data that is provided as input to a cryptographic algorithm to execute this sort of operation. In a properly designed cryptographic scheme, the security of the scheme is dependent on the security of the keys used.
Cryptography
Cryptography is associated with the process of converting ordinary plain text into unintelligible text and vice-versa. It is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it. Cryptography not only protects data from theft or alteration, but can also be used for user authentication. Cryptography is the study of secure communications techniques that allow only the sender and intended recipient of a message to view its contents. The term is derived from the Greek word kryptos, which means hidden. It is closely associated to encryption, which is the act of scrambling ordinary text into what's known as ciphertext and then back again upon arrival. In addition, cryptography also covers the obfuscation of information in images using techniques such as microdots or merging. Ancient Egyptians were known to use these methods in complex hieroglyphics, and Roman Emperor Julius Caesar is credited with using one of the first modern ciphers.
CryptoKitties
CryptoKitties is a blockchain game on Ethereum developed by Canadian studio Dapper Labs that allows players to purchase, collect, breed and sell virtual cats. It is one of the earliest attempts to deploy blockchain technology for recreation and leisure. CryptoKitties is a game where you collect, breed, and even sell virtual cats for real money. Every single cat in the game is entirely unique and also impossible to replicate. One single person owns them so that no-one can take them away from him/her, and it is impossible to destroy the virtual kittens. All the kittens in the game are tradable within the platform, and some of them are even selling for real money. The game is a so-called dApp, which is short for Decentralized Application and an essential part of the DeFi field. This means that no single entity or individual owns the application. CryptoKitties is the first decentralized application that has been made for game applications or “spare-time” use-cases. A team out of Vancouver created CryptoKitties, and the company’s name is Axiom Zen. The game is running on Ethereum’s blockchain, which is a well-known cryptocurrency.
Cryptonomics
Noun
In the simplest terms, cryptonomics is the combined use of economics and cryptography to manage the functions of participants using a network. Essentially, you will observe that the features of cryptonomics include aspects of mathematics, game theory, mechanism design, and other areas related to economics. What is cryptoeconomics? Ethereum developer Vlad Zamfir says that cryptoeconomics is: “A formal discipline that studies protocols that govern the production, distribution, and consumption of goods and services in a decentralized digital economy. Cryptoeconomics is a practical science that focuses on the design and characterization of these protocols.” The blockchain technology runs on the principles of cryptoeconomics. Let’s break it down. Cryptoeconomics comes from two words: Cryptography and Economics. People tend to forget the “economics” part of this equation and that is the part that gives the blockchain its unique capabilities. The blockchain wasn’t the first time that a decentralized peer-to-peer system was used, torrent sites have used it for ages to share files. However, in every sense of the word, it has been a failure.
Crypto lending
Crypto lending is the process of depositing cryptocurrency that is lent out to borrowers in return for regular interest payments. Payments are made in the form of the cryptocurrency that is deposited typically and compounded on a daily, weekly, or monthly basis. There are two main types of crypto lending platforms: decentralized crypto lenders and centralized crypto lenders. Both offer access to high interest rates, sometimes up to 20% annual percentage yield (APY), and both typically require borrowers to deposit collateral to access a crypto loan. KEY TAKEAWAYS Cryptocurrency lending pays high interest rates for deposits. Crypto loans offer access to cash or crypto via collateralized loans. Crypto loans are inherently risky because margin calls may happen if asset prices drop. Crypto lending platforms act as an intermediary for lenders and borrowers, and both centralized and decentralized markets are available.
Cypherpunks
a person who uses encryption when accessing a computer network in order to ensure privacy, especially from government authorities. A cypherpunk is any individual advocating widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change. n cypherpunk is an activist who defends the idea of ​​using cryptography powerful and the best of technology to protect the privacy of individuals. The word cypherpunk is one of the most viewed words in the crypto world since the 80's. These activists played a decisive role for the evolution of cryptographic technology, used today everywhere, and the defense of our privacy in what we know today as the Internet.
DAOs
A decentralized autonomous organization, sometimes called a decentralized autonomous corporation, is an organization constructed by rules encoded as a computer program that is often transparent, controlled by the organization's members and not influenced by a central government. A decentralized autonomous organization (DAO) is an emerging form of legal structure. With no central governing body, every member within a DAO typically shares a common goal and attempt to act in the best interest of the entity. Popularized through cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions in a bottoms-up management approach. KEY TAKEAWAYS A decentralized autonomous organization is an entity structure in which tokenholders participate in the management and decision-making of an entity. There is no central authority of a DAO; instead, power is distributed across tokenholders who collectively cast votes. All votes and activity through the DAO are posted on a blockchain, making all actions of users publicly viewable. One of the first DAOs named The DAO was an organization created by developers to automate decisions and facilitate cryptocurrency transactions. A DAO must ensure security is prioritized, as exploits can leave a DAO drained of millions of dollars of its treasury savings.
dApps
A decentralised application is an application that can operate autonomously, typically through the use of smart contracts, that run on a decentralized computing, blockchain or other distributed ledger system. Like traditional applications, DApps provide some function or utility to its users. A decentralized application – or dapp – is like a digital app found on any smartphone or laptop, with the additional feature of employing blockchain technology to keep users’ data out of the hands of the organizations behind it. Just like cryptocurrency is decentralized money, dapps are decentralized apps. The blockchain stores copies of its expanding stack of data on a large number of participating computers, known as “nodes,” all at once. These computers are owned by users, not by the creators of the dapp. A full explanation of how blockchain technology works can be found here. Dapps are as varied as conventional apps: They can provide social networks, games, entertainment, productivity tools and so on. Many are designed as tools to help consumers access decentralized financial services, or DeFi. This latter function is so widespread that the Ethereum network white paper categorized dapps into "financial," "semi-financial" and "other."
DeFi
Decentralized finance offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain. DeFi (or “decentralized finance”) is an umbrella term for financial services on public blockchains, primarily Ethereum. With DeFi, you can do most of the things that banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more — but it’s faster and doesn’t require paperwork or a third party. As with crypto generally, DeFi is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), pseudonymous, and open to all.
DeFi Prediction Market
A prediction market is a market where people can trade contracts that pay based on the outcomes of unknown future events. The market prices generated from these contracts can be understood as a kind of collective prediction among market participants. These prices are based on the individual expectations and willingness of investors to put their money on the line for those expectations. The Iowa Electronic Markets (operated by faculty at the University of Iowa Henry B. Tippie College of Business) are among the better-known prediction markets in operation. 1 KEY TAKEAWAYS Prediction markets are markets where contracts that are contingent on the occurrence of events in the future can be traded. These contracts are similar to bets on uncertain events, and prediction markets are also known as betting markets. They are used to bet on a variety of instances and circumstances, from the outcome of presidential elections to the results of a sporting event. Prediction markets depend on scale; the more individuals participate in the market, the more data there is, and the more effective they become. The Iowa Electronic Markets and PredictIt are both well-known examples of prediction markets. This new part of the decentralized finance world enables people to buy and sell contracts based on future events. Similarities can be drawn between prediction markets, futures markets, and betting. Whereas futures markets allow traders to predict the future price of an underlying asset, prediction markets enable traders to predict future events that don’t relate to an underlying asset’s price. Prediction market contracts often involve the outcomes of real-world events like election results, a company’s sales volume, and the weather. Because of the similarities between prediction markets and gambling, some states have outlawed using real money in prediction markets.
Delegated proof of stake (dpos)
Proof-of-Stake (PoS) consensus algorithms make blockchain networks more efficient by eliminating the energy-intensive computational mining process inherent in Proof-of-Work protocols. PoS algorithms incentivize users to confirm network data and ensure security through a process of collateral staking. An iteration of the concept known as Delegated Proof of Stake (DPoS) works similarly, but features a voting and delegation mechanism that makes the process more democratic. PoS algorithms power some of the most innovative and popular blockchains today, and may become the dominant consensus mechanism in blockchain moving forward. DPoS is designed as an implementation of technology-based democracy, using voting and election process to protect blockchain from centralization and malicious usage.
DEX
Noun
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders. DEXs fulfill one of crypto’s core possibilities: fostering financial transactions that aren’t officiated by banks, brokers, or any other intermediary. Many popular DEXs, like Uniswap and Sushiwap, run on the Ethereum blockchain. A decentralized exchange (better known as a DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders. DEXs fulfill one of crypto’s core possibilities: fostering financial transactions that aren’t officiated by banks, brokers, payment processors, or any other kind of intermediary. The most popular DEXs — like Uniswap and Sushiswap — utilize the Ethereum blockchain and are part of the growing suite of decentralized finance (DeFi) tools, which make a huge range of financial services available directly from a compatible crypto wallet. DEXs are booming — in the first quarter of 2021, $217 billion in transactions flowed through decentralized exchanges. As of April 2021, there were more than two million DeFi traders, a ten-fold increase from May 2020.
Digital assets
A digital asset is generally anything that is created and stored digitally, is identifiable and discoverable, and has or provides value. Digital assets have become more popular and valuable as technological advances become integrated into our personal and professional lives. Data, images, video, written content, and more have long been considered digital assets with ownership rights. Most digital items, like a company's brand, can be assigned a value, monetary or intangible. Some digital items might only be valuable to the creator or one person, such as a family picture on your phone taken at a gathering. Others could be valuable to a much wider audience. In the past, digital assets such as data or scanned documents were owned and used by organizations to realize value. However, when blockchain and cryptocurrency were introduced in 2009, digital assets were again redefined. Anything in digital form became something that could be used to create value via tokenization on a blockchain. Learn more about digital assets and how they are creating changes in the way we view ownership, value, and the way we interact with each other. KEY TAKEAWAYS A digital asset is anything digital that has value, established ownership, and is discoverable. Digital assets include photos, manuscripts, documents, data, cryptocurrencies, and much more. Digital assets are increasing in importance because they are becoming more a part of our professional and personal lives, while continuing to be essential for businesses and governments.
Directed acyclic graph (DAG)
In mathematics, particularly graph theory, and computer science, a directed acyclic graph is a directed graph with no directed cycles. That is, it consists of vertices and edges, with each edge directed from one vertex to another, such that following those directions will never form a closed loop. A directed acyclic graph (DAG) is a conceptual representation of a series of activities. The order of the activities is depicted by a graph, which is visually presented as a set of circles, each one representing an activity, some of which are connected by lines, which represent the flow from one activity to another. Each circle is known as a “vertex” and each line is known as an “edge.” “Directed” means that each edge has a defined direction, so each edge necessarily represents a single directional flow from one vertex to another. “Acyclic” means that there are no loops (i.e., “cycles”) in the graph, so that for any given vertex, if you follow an edge that connects that vertex to another, there is no path in the graph to get back to that initial vertex.
Discrete logarithm
In mathematics, for given real numbers a and b, the logarithm logb a is a number x such that bx = a. Analogously, in any group G, powers bk can be defined for all integers k, and the discrete logarithm logb a is an integer k such that bk = a. In number theory, the more commonly used term is index: we can write x = indr a (mod m) (read "the index of a to the base r modulo m") for rx ≡ a (mod m) if r is a primitive root of m and gcd(a,m) = 1. Discrete logarithms are quickly computable in a few special cases. However, no efficient method is known for computing them in general. Several important algorithms in public-key cryptography, such as ElGamal base their security on the assumption that the discrete logarithm problem over carefully chosen groups has no efficient solution.
DLTs
Distributed ledger technology (DLT) is a digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places at the same time. Unlike traditional databases, distributed ledgers have no central data store or administration functionality. Distributed Ledger Technology (DLT) refers to the technological infrastructure and protocols that allows simultaneous access, validation, and record updating in an immutable manner across a network that's spread across multiple entities or locations. DLT, more commonly known as the blockchain technology, was introduced by Bitcoin and is now a buzzword in the technology world, given its potential across industries and sectors. In simple words, the DLT is all about the idea of a "decentralized" network against the conventional "centralized" mechanism, and it is deemed to have far-reaching implications on sectors and entities that have long relied upon a trusted third-party.
Double-spending
Double-spending is a potential flaw in a digital cash scheme in which the same single digital token can be spent more than once. Unlike physical cash, a digital token consists of a digital file that can be duplicated or falsified. Double-spending is the risk that a cryptocurrency can be used twice or more. Transaction information within a blockchain can be altered if specific conditions are met. The conditions allow modified blocks to enter the blockchain; if this happens, the person that initiated the alteration can reclaim spent coins. KEY TAKEAWAYS Double-spending occurs when someone alters a blockchain network and inserts a special one that allows them to reacquire a cryptocurrency. Double-spending can happen, but it is more likely that a cryptocurrency is stolen from a wallet that wasn't adequately protected and secured. Many variations of attacks could be used for double-spending—51% is one of the most commonly cited attacks, while the unconfirmed transaction attack is most commonly seen.
Economic independence
being able to make real choices about work and money, and how we live. free from discrimination and where outcomes are not determined by our gender, ethnicity, disability or other aspects of our lives
Edge Computing
Edge computing is a distributed computing paradigm that brings computation and data storage closer to the sources of data. This is expected to improve response times and save bandwidth. It is an architecture rather than a specific technology. It is a topology- and location-sensitive form of distributed computing. Edge computing is an emerging computing paradigm which refers to a range of networks and devices at or near the user. Edge is about processing data closer to where it’s being generated, enabling processing at greater speeds and volumes, leading to greater action-led results in real time.
Encryption
In cryptography, encryption is the process of encoding information. This process converts the original representation of the information, known as plaintext, into an alternative form known as ciphertext. Ideally, only authorized parties can decipher a ciphertext back to plaintext and access the original information. the process of converting information or data into a code, especially to prevent unauthorized access.
Enigma
Enigma is a decentralized, open-source protocol that lets anyone perform computations on encrypted data, bringing privacy to smart contracts and public blockchains. The Enigma machine is a cipher ( an algorithm for performing encryption or decryption)device developed and used in the early- to mid-20th century to protect commercial, diplomatic, and military communication. It was employed extensively by Nazi Germany during World War II, in all branches of the German military. The Enigma machine was considered so secure that it was used to encipher the most top-secret message.
ERC-20
Noun
An ERC20 token is a standard used for creating and issuing smart contracts on the Ethereum blockchain. Smart contracts can then be used to create smart property or tokenized assets that people can invest in. ERC stands for "Ethereum request for comment," and the ERC20 standard was implemented in 2015. ERC-20 is the technical standard for fungible tokens created using the Ethereum blockchain. A fungible token is one that is interchangeable with another token—where the well-known non-fungible tokens (NFTs) are not interchangeable. ERC-20 allows different smart-contract enabled tokens a way to be exchanged. Tokens, in this regard, are a representation of an asset, right, ownership, access, cryptocurrency, or anything else that is not unique in and of itself but can be transferred. The standard allows tokens representing one of these factors—along with smart contracts—to be exchanged for a token that represents another. Smart contracts are conditions written into the coding that execute different aspects of a transaction between parties.
Ethereum
Noun
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, Ether is second only to Bitcoin in market capitalization. Ethereum was conceived in 2013 by programmer Vitalik Buterin. an open source blockchain that its known for its smart contracts functionality, and which serves as the basis for the cryptocurrency ETHER (ETH) At its core, Ethereum is a decentralized global software platform powered by blockchain technology. It is most commonly known for its native cryptocurrency, ether, or ETH. Ethereum can be used by anyone to create any secured digital technology. It has a token designed for use in the blockchain network, but it can also be used by participants as a method to pay for work done on the blockchain. Ethereum is designed to be scalable, programmable, secure, and decentralized. It is the blockchain of choice for developers and enterprises that are creating technology based upon it to change the way many industries operate and how we go about our daily lives. It natively supports smart contracts, the essential tool behind decentralized applications. 1 Many decentralized finance (DeFi) and other applications use smart contracts in conjunction with blockchain technology.
Exchange
A cryptocurrency exchange, or a digital currency exchange, is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. A crypto exchange is a platform on which you can buy and sell cryptocurrency. You can use exchanges to trade one crypto for another — converting Bitcoin to Litecoin, for example — or to buy crypto using regular currency, like the U.S. Dollar. Exchanges reflect current market prices of the cryptocurrencies they offer. You can also convert cryptocurrencies back into the U.S. Dollar or another currency on an exchange, to leave as cash within your account (if you want to trade back into crypto later) or withdraw to your regular bank account.
Expenses
An expense is the cost of operations that a company incurs to generate revenue. As the popular saying goes, “it costs money to make money.” Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation. Businesses are allowed to write off tax-deductible expenses on their income tax returns to lower their taxable income and thus their tax liability. However, the Internal Revenue Service (IRS) has strict rules on which expenses businesses are allowed to claim as a deduction. KEY TAKEAWAYS An expense is the cost of operations that a company incurs to generate revenue. Businesses can write off tax-deductible expenses on their income tax returns, provided that they meet the IRS’ guidelines. Accountants record expenses through one of two accounting methods: cash basis or accrual basis. There are two main categories of business expenses in accounting: operating expenses and non-operating expenses. The IRS treats capital expenses differently than most other business expenses. An expense is the reduction in value of an asset as it is used to generate revenue. If the underlying asset is to be used over a long period of time, the expense takes the form of depreciation, and is charged ratably over the useful life of the asset. If the expense is for an immediately consumed item, such as a salary, then it is usually charged to expense as incurred.
Financial report
Financial statements or reports are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand. Financial statements are written records that convey the business activities and the financial performance of a company.
Fixed Expenses
A fixed expense is an expense whose total amount does not change when there is an increase in an activity such as sales or production. The words within a relevant or reasonable range of activity are normally added to the definition because at an extremely high volume or low volume, a change will likely occur. The term fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities. This means fixed costs are generally indirect, in that they don't apply to a company's production of any goods or services. Companies can generally have two types of costs—fixed or variable costs—which together result in their total costs. Shutdown points tend to be applied to reduce fixed costs. Fixed expenses cost the same amount each month. These bills cannot easily be changed and are usually paid on a regular basis, such as weekly, monthly, quarterly or from year to year.1 It's much easier to budget for fixed expenses than it is to budget for a variable expense or discretionary expense. Typical household fixed expenses include: Mortgage or rent payments Car payments Real estate taxes Insurance premiums KEY TAKEAWAYS Fixed costs refer to expenses that a company must pay, independent of any specific business activities. These costs are set over a specified period of time and do not change with production levels. Fixed costs can be direct or indirect and may influence profitability at different points on the income statement. Companies have interest payments as fixed costs which are a factor for net income. Cost structure management is an important part of business analysis that looks at the effects of fixed and variable costs on a business overall.
Flash Loans
Flash loans are a feature designed for developers, due to the technical knowledge required to execute one. Flash Loans allow you to borrow any available amount of assets without putting up any collateral, as long as the liquidity is returned to the protocol within one block transaction. In traditional banking, if you’re looking to take out a loan, there are a number of documents that need to be provided, including a formal ID, proof of income and reserves. None of this is necessary in the case of a flash loan. As the name itself suggests, such loans can be granted instantaneously, allowing users fast access to funds. Flash loans are a relatively new form of uncollateralized loans available to traders on some decentralized finance (DeFi) protocols based on a blockchain network (Ethereum). This type of loan allows traders to borrow unsecured loans from lenders without intermediaries. Flash loans have become popular and advantageous because they give its users the ability to arbitrage and trade in ways that weren't possible before.
Genesis Block
A Genesis Block is the name given to the first block a cryptocurrency, such as Bitcoin, ever mined. A blockchain consists of a series of so-called blocks that are used to store information related to transactions that occur on a blockchain network. Each of the blocks contains a unique header, and each such block is identified by its block header hash individually. The genesis block, also known as Block 0, is basically the very first block in a blockchain. Each block within the blockchain always has a link to a previous block. After reaching the very beginning of a block which has nothing linked behind it, you arrive at the genesis block. Satoshi Nakamoto was the person who mined this very first block, containing 50 bitcoins. It took him 6 days to accomplish this feat back in 2009.
graphics units (GPUs)
A graphics processing unit is a specialized electronic circuit designed to manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. GPUs are used in embedded systems, mobile phones, personal computers, workstations, and game consoles. A graphics processing unit (GPU) is a computer chip that renders graphics and images by performing rapid mathematical calculations
Halving
One of the most pivotal events on Bitcoin's blockchain is the halving, when the supply of new bitcoins is cut in half. Each halving reduces the rate of inflation, thereby creating upwards pressure on the Bitcoin price. As of 2022, Bitcoin miners are awarded 6.25 bitcoins for each block they successfully mine. The next halving will occur in 2024, when the block reward will fall to 3.125. Over time, the impact of each halving will diminish as the block reward approaches zero. KEY TAKEAWAYS A Bitcoin halving event is when the reward for mining Bitcoin transactions is cut in half. This event also cuts in half Bitcoin's inflation rate and the rate at which new bitcoins enter circulation. Previous halvings have correlated with intense boom and bust cycles that have ended with higher prices than prior to the event. Bitcoin last halved on May 11, 2020, around 3 p.m. EST, resulting in a block reward of 6.25 BTC. The final halving will be in 2140 when the number of bitcoins in existence will reach the maximum supply of 21 million. In the cryptocurrency space, the term halving refers to a process that reduces the issuance rate of new coins. More precisely, halving is the periodical reduction of the block subsidy provided to miners. The halving ensures that a crypto asset will follow a steady issuance rate until its maximum supply is eventually reached.
Hard Fork
A hard fork (or hardfork), as it relates to blockchain technology, is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software. Forks may be initiated by developers or members of a crypto community who grow dissatisfied with functionalities offered by existing blockchain implementations. They may also emerge as a way to crowdsource funding for new technology projects or cryptocurrency offerings. A hard fork can be contrasted with a soft fork. KEY TAKEAWAYS A hard fork refers to a radical change to the protocol of a blockchain network that effectively results in two branches, one that follows the previous protocol and one that follows the new version. In a hard fork, holders of tokens in the original blockchain will be granted tokens in the new fork as well, but miners must choose which blockchain to continue verifying. A hard fork can occur in any blockchain, and not only Bitcoin (where hard forks have created Bitcoin Cash and Bitcoin SV, among several others, for example).
Hardware
Computer hardware includes the physical parts of a computer, such as the case, central processing unit, random access memory, monitor, mouse, keyboard, computer data storage, graphics card, sound card, speakers and motherboard. By contrast, software is the set of instructions that can be stored and run by hardware
Hash
A hash function is any function that can be used to map data of arbitrary size to fixed-size values. The values returned by a hash function are called hash values, hash codes, digests, or simply hashes. The values are usually used to index a fixed-size table called a hash table. A hash is a mathematical function that converts an input of arbitrary length into an encrypted output of a fixed length. Thus regardless of the original amount of data or file size involved, its unique hash will always be the same size. Moreover, hashes cannot be used to "reverse-engineer" the input from the hashed output, since hash functions are "one-way" (like a meat grinder; you can't put the ground beef back into a steak). Still, if you use such a function on the same data, its hash will be identical, so you can validate that the data is the same (i.e., unaltered) if you already know its hash. Hashing is also essential to blockchain management in cryptocurrency. KEY TAKEAWAYS A hash is a function that meets the encrypted demands needed to solve for a blockchain computation. Hashes are of a fixed length since it makes it nearly impossible to guess the length of the hash if someone was trying to crack the blockchain. The same data will always produce the same hashed value. A hash, like a nonce or a solution, is the backbone of the blockchain network. A hash is developed based on the information present in the block header.
Hot wallet
A hot wallet can also be called a software wallet. It's a form of digital storage that you can access on your computer or phone, and is connected to the internet. Because of the internet connection, hot wallets are not as secure from hackers as their counterparts — cold wallets. A hot wallet is a cryptocurrency wallet that is always connected to the internet and cryptocurrency network. Hot wallets are used to send and receive cryptocurrency, and they allow you to view how many tokens you have available to use. KEY TAKEAWAYS A hot wallet is a wallet that is always connected to the internet; they allow you to store, send, and receive tokens. Hot wallets are linked with public and private keys that help facilitate transactions and act as security measures. Because hot wallets are connected to the internet, they tend to be somewhat more vulnerable to hacks and theft than cold storage methods.
Impermanent Loss
When a token price rises or falls after you deposit it in a liquidity pool, this is known as crypto liquidity pools' impermanent loss (IL). Yield farming, in which you lend your tokens to gain rewards, is directly related to impermanent loss. Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
Institutional investors
An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. An institutional investor is a company or organization that invests money on behalf of other people. Mutual funds, pensions, and insurance companies are examples. Institutional investors often buy and sell substantial blocks of stocks, bonds, or other securities and, for that reason, are considered to be the whales on Wall Street. The group is also viewed as more sophisticated than the average retail investor and, in some instances, they are subject to less restrictive regulations. KEY TAKEAWAYS An institutional investor is a company or organization that invests money on behalf of clients or members. Hedge funds, mutual funds, and endowments are examples of institutional investors. Institutional investors are considered savvier than the average investor and are often subject to less regulatory oversight. The buying and selling of large positions by institutional investors can create supply and demand imbalances that result in sudden price moves in stocks, bonds, or other assets. Institutional investors are the big fish on Wall Street.
Internet cookies
HTTP cookies are small blocks of data created by a web server while a user is browsing a website and placed on the user's computer or other device by the user's web browser. Cookies are placed on the device used to access a website, and more than one cookie may be placed on a user's device during a session. Cookies are text files with small pieces of data — like a username and password — that are used to identify your computer as you use a computer network. Specific cookies known as HTTP cookies are used to identify specific users and improve your web browsing experience. Data stored in a cookie is created by the server upon your connection. This data is labeled with an ID unique to you and your computer. When the cookie is exchanged between your computer and the network server, the server reads the ID and knows what information to specifically serve to you.
Internet of Things (IoT)
Noun
The term IoT, or Internet of Things, refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between the devices themselves. Thanks to the advent of inexpensive computer chips and high bandwidth telecommunication, we now have billions of devices connected to the internet. This means everyday devices like toothbrushes, vacuums, cars, and machines can use sensors to collect data and respond intelligently to users. The Internet of Things integrates every day “things” with the internet. Computer Engineers have been adding sensors and processors to everyday objects since the 90s. However, progress was initially slow because the chips were big and bulky. Low power computer chips called RFID tags were first used to track expensive equipment. As computing devices shrank in size, these chips also became smaller, faster, and smarter over time. The Internet of things describes physical objects with sensors, processing ability, software, and other technologies that connect and exchange data with other devices and systems over the Internet or other communications networks.
Interoperability
the ability of computer systems or software to exchange and make use of information. Interoperability refers to the basic ability of different computerized products or systems to readily connect and exchange information with one another, in either implementation or access, without restriction.
Investment
the action or process of investing money for profit or material result. An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth. An investment always concerns the outlay of some capital today—time, effort, money, or an asset—in hopes of a greater payoff in the future than what was originally put in. For example, an investor may purchase a monetary asset now with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
Layer 1
Layer 1 refers to a base network, such as Bitcoin, BNB Chain, or Ethereum, and its underlying infrastructure. Layer-1 blockchains can validate and finalize transactions without the need for another network. Making improvements to the scalability of layer-1 networks is difficult, as we’ve seen with Bitcoin. As a solution, developers create layer-2 protocols that rely on the layer-1 network for security and consensus. Bitcoin's Lightning Network is one example of a layer-2 protocol. It allows users to make transactions freely before recording them into the main chain. Layer 1 and layer 2 are terms that help us understand the architecture of different blockchains, projects, and development tools. If you've ever wondered about the relationship between Polygon and Ethereum or Polkadot and its parachains, learning about the different blockchain layers will help. A layer-1 network is another name for a base blockchain. BNB Smart Chain (BNB), Ethereum (ETH), Bitcoin (BTC), and Solana are all layer-1 protocols. We refer to them as layer-1 because these are the main networks within their ecosystem. In contrast to layer-1, we have off-chains and other layer-2 solutions that are built on top of the main chains. In other words, a protocol is layer 1 when it processes and finalizes transactions on its own blockchain. They also have their own native token, used to pay for transaction fees.
Layer 2
Noun
Layer2 is the network layer used to transfer data between adjacent network nodes in a wide area network or between nodes on the same local area network. A frame is a protocol data unit, the smallest unit of bits on a Layer 2 network. Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major cryptocurrency networks. For instance, Bitcoin and Ethereum are still not able to process thousands of transactions per second (TPS), and this is certainly detrimental to their long-term growth. There is a need for higher throughput before these networks can be effectively adopted and used on a wider scale. In this context, the term “layer 2” refers to the multiple solutions being proposed to the blockchain scalability problem. Two major examples of layer 2 solutions are the Bitcoin Lightning Network and the Ethereum Plasma. Despite having their own working mechanisms and particularities, both solutions are striving to provide increased throughput to blockchain systems.
Lightning Network
The Lightning Network is a "layer 2" payment protocol layered on top of Bitcoin. It is intended to enable fast transactions among participating nodes and has been proposed as a solution to the bitcoin scalability problem. Initially, Bitcoin was not designed to be scalable. It was intended to be a decentralized payment system where the users could remain anonymous and access it from anywhere. However, its popularity was one of its downfalls—transactions became much slower and more costly than intended. Thus, developers created cryptocurrency layers, where the first layer was the primary blockchain. Each layer beneath that was a secondary layer, tertiary layer, and so forth. Each layer complements the layer above it and adds functionality. The Lightning Network is a second layer for Bitcoin that uses micropayment channels to scale the blockchain’s capability to conduct transactions more efficiently. This layer consists of multiple payment channels between parties or Bitcoin users. A Lightning Network channel is a transaction mechanism between two parties. Using channels, the parties can make or receive payments from each other. Transactions conducted on the Lightning Network are faster, less costly, and more readily confirmed than those conducted directly on the Bitcoin blockchain. The Lightning Network can also be used to conduct other types of off-chain transactions involving exchanges between cryptocurrencies. KEY TAKEAWAYS The Lightning Network is a technological solution intended to solve the problem of transaction speed on the Bitcoin blockchain by introducing off-chain transactions. Like a primary blockchain, the Lightning Network disintermediates central institutions, such as banks, which are responsible for routing most transactions today. The Lightning Network was first formally proposed in a paper by Joseph Poon and Thaddeus Dryja in 2016.
Liquidity Mining
Liquidity mining is a term used in decentralized finance (DeFi) applications where users supply liquidity to decentralized financial applications and receive rewards for doing so. Liquidity mining is a process in which crypto holders lend assets to a decentralized exchange in return for rewards. These rewards commonly stem from trading fees that are accrued from traders swapping tokens. Fees average at 0.3% per swap and the total reward differs based on one’s proportional share in a liquidity pool. The end result is a symbiotic relationship where each party receives something in return. Exchanges receive liquidity, LPs fees, and end-users have the ability to trade in a decentralized fashion.
Liquidity pools
A liquidity pool is a digital pile of cryptocurrency locked in a smart contract. This results in creating liquidity for faster transactions. A major component of a liquidity pool are automated market makers (AMMs). An AMM is a protocol that uses liquidity pools to allow digital assets to be traded in an automated way rather than through a traditional market of buyers and sellers. In other words, users of an AMM platform supply liquidity pools with tokens, and the price of the tokens in the pool is determined by a mathematical formula of the AMM itself. Liquidity pools are also essential for yield farming and blockchain-based online games. Liquidity pools are designed to incentivize users of different crypto platforms, called liquidity providers (LPs). After a certain amount of time, LPs are rewarded with a fraction of fees and incentives, equivalent to the amount of liquidity they supplied, called liquidity provider tokens (LPTs). LP tokens can then be used in different ways on a DeFi network.
Litecoin
Noun
Litecoin is a decentralized peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. Inspired by Bitcoin, Litecoin was among the earliest altcoins, starting in October 2011. Litecoin (LTC) is a cryptocurrency created from a fork in the Bitcoin blockchain in 2011. It was initially designed to address the developer's concerns that Bitcoin was becoming too centrally controlled, and to make it more difficult for largescale mining firms to gain the upper hand in mining. While eventually unsuccessful in preventing enterprise miners from taking over the lion's share of Litecoin mining, the cryptocurrency has reworked itself into a minable coin and a peer-to-peer payment system. Learn more about Litecoin and what makes it different. KEY TAKEAWAYS Litecoin is a cryptocurrency founded in 2011, two years after Bitcoin, by a former Google engineer named Charlie Lee. It shares similar features with Bitcoin but has a different algorithm. The cryptocurrency's goal is to become a medium for daily transactions. Litecoin has a faster transaction processing time compared to Bitcoin.
Loan
The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans may be for a specific, one-time amount, or they may be available as an open-ended line of credit up to a specified limit. Loans come in many different forms including secured, unsecured, commercial, and personal loans. KEY TAKEAWAYS A loan is when money is given to another party in exchange for repayment of the loan principal amount plus interest. Lenders will consider a prospective borrower's income, credit score, and debt levels before deciding to offer them a loan. A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card. Revolving loans or lines can be spent, repaid, and spent again, while term loans are fixed-rate, fixed-payment loans. Lenders may charge higher interest rates to risky borrowers.
LUNA
Noun
Terra is a blockchain network built using Cosmos SDK specializing in stablecoin creation. Rather than use fiat or over-collateralized crypto as reserves, each Terra stablecoin is convertible into the network's native token, LUNA. Terra is an open-source blockchain payment platform for an algorithmic stablecoin, which are cryptocurrencies that automatically track the price of currencies or other assets. The Terra blockchain enables users to instantly spend, save, trade, or exchange Terra stablecoins. The Terra protocol creates stablecoins designed to consistently track the price of a fiat currency (a government-backed currency such as the U.S. dollar or euro). It consists of two cryptocurrency tokens—Terra and Luna.
Machine learning
Machine learning is a field of inquiry devoted to understanding and building methods that 'learn', that is, methods that leverage data to improve performance on some set of tasks. It is seen as a part of artificial intelligence. Machine learning (ML) is a type of artificial intelligence (AI) that allows software applications to become more accurate at predicting outcomes without being explicitly programmed to do so. Machine learning algorithms use historical data as input to predict new output values.
MakerDAO
MakerDAO is a decentralized organization built on Ethereum to allow lending and borrowing of cryptocurrencies without the need for a middle man MakerDAO is made up of a smart contract service that manages borrowing and lending, as well as two currencies: DAI and MKR to regulate the value of loans. MakerDAO is a part of the "DeFi" movement - a catch-all term for financial tools and services that don't rely on centralized parties to coordinate and control access. MakerDAO is an organization developing technology for borrowing, savings, and a stable cryptocurrency on the Ethereum blockchain. It has created a protocol allowing anyone with ETH and a MetaMask wallet to lend themselves money in the form of a stablecoin called DAI. By locking up some ETH in MakerDAO’s smart contracts, users can create a certain amount of DAI–the more ETH locked up, the more DAI can be created. When users are ready to unlock their ETH, which serves as collateral for their DAI loan, they simply pay back the loan along with any fees. MakerDAO has created a core layer of the decentralized financial system on Ethereum–what the kids these days are calling “DeFi”.
Malvertising
Malvertising is the use of online advertising to spread malware. It typically involves injecting malicious or malware-laden advertisements into legitimate online advertising networks and webpages. Malvertising is an attack in which perpetrators inject malicious code into legitimate online advertising networks. The code typically redirects users to malicious websites. The attack allows perpetrators to target users on highly reputable websites, e.g., The New York Times Online, The London Stock Exchange, Spotify and The Atlantic, all of which have been exposed to malvertising. The online advertising ecosystem is a complex network that involves publisher sites, ad exchanges, ad servers, retargeting networks and content delivery networks (CDNs). Multiple redirections between different servers occur after a user clicks on an ad. Attackers exploit this complexity to place malicious content in places that publishers and ad networks would least expect.
Malware
Malware is any software intentionally designed to cause disruption to a computer, server, client, or computer network, leak private information, gain unauthorized access to information or systems, deprive users access to information or which unknowingly interferes with the user's computer security and privacy. Malware, short for “malicious software,” refers to any intrusive software developed by cybercriminals (often called “hackers”) to steal data and damage or destroy computers and computer systems. Examples of common malware include viruses, worms, Trojan viruses, spyware, adware, and ransomware. Recent malware attacks have exfiltrated data in mass amounts.
Market Cap
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by the number of common shares outstanding. Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. The investment community uses this figure to determine a company's size instead of sales or total asset figures. In an acquisition, the market cap is used to determine whether a takeover candidate represents a good value or not to the acquirer. KEY TAKEAWAYS Market capitalization refers to how much a company is worth as determined by the stock market. It is defined as the total market value of all outstanding shares. To calculate a company's market cap, multiply the number of outstanding shares by the current market value of one share. Companies are typically divided according to market capitalization: large-cap ($10 billion or more), mid-cap ($2 billion to $10 billion), and small-cap ($300 million to $2 billion). Market cap is often used to determine a company's size, then evaluate the company's financial performance to other companies of various sizes. In investing, companies with larger market capitalization are often safer investments as they represent more established companies with generally longer history in business.
Market fluctuations
a situation in which share prices go up and down: In a fluctuating market, the average cost per share of a stock or bond fund over a period of time will be lower than the average price per share of a portfolio for the same time period. Share prices generally go up and down because of supply and demand. However, they’re also influenced by these factors: Information: When trading in shares, buyers and sellers check the latest news on a company or an industry. Their perception of the information may differ, which will also influence their decision to buy or sell. For instance, if a company announces plans to expand internationally, the potential surge in profits may spark investors’ interest and the share price may soar. The economy: The performance of a country's or region’s economy, most notably gross domestic product (GDP) and interest rates, can have an impact on share prices. As the GDP rises, production-based industries attract more investment and demand for shares. If interest rates increase, companies have to shell out more money to borrow, causing profit margins to shrink and shares to lose their appeal. The company’s financial health: Listed companies are required to publish their financial statements regularly. The profit and loss they include can help shareholders and investors make trading decisions. If results presentations show positive figures, demand for shares could rise and affect their price. External events: Impressions about a company’s performance can weigh heavily on the demand for its shares. Non-financial events like wars, pandemics and natural disasters give investors uncertainty about risks to the capital invested in the companies and industries they affect.
Mass adoption
Mass adoption of cryptocurrency would mean that use of cryptocurrency would become ordinary course, and no longer a point of discussion, just as mere use or acceptance of fiat would not prompt headlines. Upon mass adoption, so-called “crypto-native” companies potentially may be viewed as “normal” technology companies and would be able to obtain bank accounts and traditional financing. In order for us to say that mass adoption of crypto has begun, in my view, individuals need to be able to access, purchase, hold and use cryptocurrencies without having to understand what a digital asset is, just as nontechnically sophisticated people can use cell phones without understanding how they work. For that, user experience needs to be enhanced, and scaling needs to be addressed. Just as importantly, there must be meaningful opportunities in everyday life to pay for goods and services using cryptocurrency, which means that individuals and businesses must be willing to accept cryptocurrency as payment for such goods and services. For that to occur within the United States and in other nations, and across borders, we need to have clear paths forward legally that enable businesses and individuals to transact using crypto.
Metamask
Noun
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralized applications. MetaMask is a software crypto wallet that comes as a browser extension, MetaMask allows you to store cryptocurrencies and makes interaction with decentralized applications or DApps. Currently, Metamask has more than 21Musers. If you want to transfer Ethereum to your friend, you will need to set up a node and use your private key to sign and approve the transaction. This contains an amount of coding and at some points, difficult to do if you have no knowledge in coding. MetaMask, similar to any crypto wallet, gives you the chance to do that with a simple click of a button.
Metaverse
Noun
The metaverse is a digital reality that combines aspects of social media, online gaming, augmented reality (AR), virtual reality (VR), and cryptocurrencies to allow users to interact virtually. Augmented reality overlays visual elements, sound, and other sensory input onto real-world settings to enhance the user experience. In contrast, virtual reality is entirely virtual and enhances fictional realities. In fact, science fiction author Neal Stephenson coined the term metaverse in his 1992 novel Snow Crash. 1 In the book, human avatars and software agents interact in a three-dimensional virtual space. The metaverse is a shared virtual environment that people access via the Internet. Cryptocurrency is an aspect of the metaverse. Technologies like virtual reality (VR) and augmented reality (AR) are combined in the metaverse to create a sense of "virtual presence." Meta (formerly Facebook) CEO Mark Zuckerberg believes augmented reality glasses will eventually be as widespread as smartphones. In October 2021, Meta announced plans to create 10,000 new high-skilled jobs in the European Union (EU) to help shape the metaverse.
Micropayment
Micropayments are small transactions or payments usually of less than a dollar—and, in some cases, only a fraction of a cent—that are mainly made online. Micropayments are seen as a way to leverage the internet to facilitate the immediate distribution of digital rights, royalties, in-game purchases, online tipping, and even to coordinate devices connected via the internet of things (IoT). The definition or size of a micropayment differs across payment processors and businesses: some companies recognize all transactions below a dollar as micropayments, whereas others classify micropayments as amounts below $5.00, $10.00, or sometimes $20.00. KEY TAKEAWAYS A micropayment is a small transaction, often carried out online, that can be as small as a fraction of a cent. Depending on the payments system, a "micropayment" may be defined as any transaction size less than $1.00, $5.00, or more. Micropayments have been touted as a way to better facilitate the immediate online distribution of royalties, gratuities, pay-per-click advertising, small freelance jobs, and cryptocurrency transactions, among others.
Microprocessors
an integrated circuit that contains all the functions of a central processing unit of a computer. A microprocessor is a computer processor where the data processing logic and control is included on a single integrated circuit, or a small number of integrated circuits. The microprocessor contains the arithmetic, logic, and control circuitry required to perform the functions of a computer's central processing unit.
Miniaturisation
Miniaturization is the trend to manufacture ever smaller mechanical, optical and electronic products and devices. Examples include miniaturization of mobile phones, computers and vehicle engine downsizing
Mining
Mining is the process by which networks of specialized computers generate and release new Bitcoin and verify new transactions. Mining is the process that Bitcoin and several other cryptocurrencies use to generate new coins and verify new transactions. It involves vast, decentralized networks of computers around the world that verify and secure blockchains – the virtual ledgers that document cryptocurrency transactions. In return for contributing their processing power, computers on the network are rewarded with new coins. It’s a virtuous circle: the miners maintain and secure the blockchain, the blockchain awards the coins, the coins provide an incentive for the miners to maintain the blockchain. Cryptocurrency mining, or crypto mining, is the method of verifying transactions on a digital ledger for a blockchain using machines with extensive computing power. Cryptocurrency mining is something any individual or organization can do with adequate hardware and software resources, but the expansion of mining and increasing costs make it progressively difficult for newcomers.
Mining Pool
In the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A mining pool is a space that allows miners to work cooperatively in order to mine blocks of cryptocurrencies, . They were created with the purpose of greatly facilitating the mining work and to deal more effectively with the increasing difficulty of mining Bitcoins and other cryptocurrencies.
Minting
Minting crypto is the process of generating new coins by authenticating data, creating new blocks, and recording the information onto the blockchain through a “proof of stake” protocol. Both cryptocurrency and Non-Fungible Tokens (NFTs) can be minted this way. Newly minted crypto is then added to the circulation to be traded. Proof of stake is a minting method of how blocks are formed through staking as opposed to “mining” under the “proof of work” protocol. Users are called validators (rather than miners) who mint crypto. The minting process is decentralized, allowing anyone to create crypto without the need for a central regulatory authority. The crypto ecosystem provides a variety of coins and tokens to users at an ever-growing number. Tokens are typically in the form of non-fungible tokens (NFTs) created on various blockchain networks. Minting is an invaluable element of the crypto ecosystem and traditional finance. Short answer: The creation of new coins on the blockchain. Crypto minting is the creation of new tokens on the blockchain through computational processes to validate information, create new blocks, and record information to the blockchain. Generally, crypto minting uses the Proof-of-Stake (PoS) consensus mechanism. Proof-of-Stake: A consensus mechanism that requires validators to stake a certain amount of crypto to be able to validate transactions on the blockchain. Short answer: Cryptocurrency minting creates new tokens by using the existing-and-owned tokens on the network as collateral, in accordance with the PoS mechanisms. Crypto minting adds (or to be precise, mints) new coins through staking existing tokens under PoS mechanisms. Minting is decentralized and in theory, anyone who stakes enough of an asset on a network can create new tokens without needing authorization in order to do so.
Modularity
In software engineering, modularity refers to the extent to which a software/Web application may be divided into smaller modules. Software modularity indicates that the number of application modules are capable of serving a specified business domain. Modularity is successful because developers use prewritten code, which saves resources. Overall, modularity provides greater software development manageability. Modularity is a measure of the structure of networks or graphs which measures the strength of division of a network into modules. Networks with high modularity have dense connections between the nodes within modules but sparse connections between nodes in different modules
Monetary inflation
Inflation is a rise in prices, which can be translated as the decline of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time. The rise in prices, which is often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods. Inflation can be contrasted with deflation, which occurs when prices decline and purchasing power increases. KEY TAKEAWAYS Inflation is the rate at which prices for goods and services rise. It is sometimes classified into three types: demand-pull inflation, cost-push inflation, and built-in inflation. The most commonly used inflation indexes are the Consumer Price Index and the Wholesale Price Index. Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change. Those with tangible assets, like property or stocked commodities, may like to see some inflation as that raises the value of their assets.
Multi-level marketing (MLM)
Multi-level marketing (MLM), also known as direct marketing or network marketing, is a method of selling products directly to consumers using independent sales representatives. The term marketing (MLM) refers to a strategy used by some direct sales companies to sell products and services. MLM encourages existing members to promote and sell their offerings to other individuals and bring on new recruits into the business. Distributors are paid a percentage of their recruits' sales. New recruits become the distributor's network or downline and are, in turn, encouraged to make sales to earn money. Many MLM schemes are legal, but there are also illegal operations that are run as pyramid schemes. This has cast some negative light on legitimate MLM businesses. KEY TAKEAWAYS Multilevel marketing is a legitimate business strategy used by some direct sales companies to sell products and services. Existing members are encouraged to promote and sell their offerings to other individuals and bring on new recruits into the business. Participants are paid a percentage of their recruits' sales. Members at all levels receive some form of commission, which means the more layers there are, the more money people can earn. The FTC investigates MLM programs to ensure they don't operate as pyramid schemes, which are illegal.
Multichain
Multichain is a bridging platform for cryptocurrencies and NFTs across blockchains. Formerly known as Anyswap, Multichain lets users bridge via pegged tokens or liquidity pools. Multichain's Router will determine the best method for the coin you want to bridge. Multichain blockchain is a blockchain platform that is open-sourced and created to build the blockchain application that can work within the organisations or between the organisations. These blockchains are private and can be used by organisations for running financial transactions. The objective of the multichain blockchain is to keep the visibility strictly between the chosen participants, besides ensuring stability and control over the transactions. It provides convenience in the mining process with the help of proof of work along with control of the costs associated with it. The platform provides a simple API and a command-line interface that are well-suited for Financial transactions. The comprehensive set of features in-built into the multichain blockchain includes permission management, native assets, data stream, and simple per chain configuration. These applications make it pretty suitable for enterprise-wise applications as it provides scalability, confidentiality, and compliance.
Net income
In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. Net income (NI), also called net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is a useful number for investors to assess how much revenue exceeds the expenses of an organization. This number appears on a company's income statement and is also an indicator of a company's profitability. 1 KEY TAKEAWAYS Net income (NI) is calculated as revenues minus expenses, interest, and taxes. Earnings per share are calculated using NI. Investors should review the numbers used to calculate NI because expenses can be hidden in accounting methods, or revenues can be inflated. NI also represents an individual's total earnings or pre-tax earnings after factoring deductions and taxes in gross income.
Networking
Networking is the exchange of information and ideas among people with a common profession or special interest, usually in an informal social setting. Networking often begins with a single point of common ground. Professionals use networking to expand their circles of acquaintances, find out about job opportunities in their fields, and increase their awareness of news and trends in their fields or the greater world. KEY TAKEAWAYS Networking is used by professionals to widen their circles of acquaintances, find out about job opportunities, and increase their awareness of news and trends in their fields. Business owners may network to develop relationships with people and companies they may do business with in the future. Professional networking platforms provide an online location for people to engage with other professionals, join groups, post blogs, and share information. The coronavirus pandemic drove many professionals to network solely online rather than in person. Many colleges and universities provide opportunities for alumni to network with one another.
Non fungible tokens (NFT)
Noun
A non-fungible token is a record on a blockchain which is associated with a particular digital or physical asset. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. A non-fungible token (NFT) is a unique identifier that can cryptographically assign and prove ownership of digital goods. NFT stands for "non-fungible token." At a basic level, an NFT is a digital asset that links ownership to unique physical or digital items, such as works of art, real estate, music, or videos. non-fungible token (NFT), a non-interchangeable digital asset such as a photograph, song, or video whose ownership has been authenticated and stored on a database called a blockchain and which can be collected, sold, and traded on various online platforms. In economics, a fungible good is one that can be substituted interchangeably: a gallon of gasoline at one service station is the equal of a gallon of gasoline at another, and its price can be paid in many forms (cash, check, credit card, debit card) of identical value. A non-fungible good, conversely, is one of a kind: there is only one instance of Vincent van Gogh’s painting The Starry Night (1889), a unique creation and therefore a non-fungible work of art.
Online anonymity
An anonymity network enables users to access the Web while blocking any tracking or tracing of their identity on the Internet. This type of online anonymity moves Internet traffic through a worldwide network of volunteer servers.
Open source
Open-source software is computer software that is released under a license in which the copyright holder grants users the rights to use, study, change, and distribute the software and its source code to anyone and for any purpose. Open-source software may be developed in a collaborative public manner. Open source software is software with source code that anyone can inspect, modify, and enhance. "Source code" is the part of software that most computer users don't ever see; it's the code computer programmers can manipulate to change how a piece of software—a "program" or "application"—works. Programmers who have access to a computer program's source code can improve that program by adding features to it or fixing parts that don't always work correctly.
Optimism
Optimism (OP) is a layer two protocol and smart contract platform that aims to enable low-cost and near-instantaneous Ethereum transactions. The OP cryptocurrency powers the Token House, which will be a division of the Optimism Collective alongside the Citizens' House. The Collective governs network parameters, treasury disbursements, and protocol upgrades. In response to Ethereum’s scalability problem. Optimism is one of the layer 2 scaling solutions. It’s powered by a technology called Optimistic rollups, which bundle large amounts of transaction data into digestible batches. Optimism is much cheaper to use than Ethereum, and it’s increasingly becoming popular along with other layer 2s, such as Arbitrum. Optimism is governed by its eponymous token, or OP for short. A portion of the OP supply was airdropped to early Optimism users in late May 2022 in a turbulent launch. Developers behind Optimism said it would continue to airdrop more tokens. What is Optimism? Optimism is a layer 2 chain, meaning it functions on top of Ethereum mainnet (layer 1). Transactions take place on Optimism, but the data about transactions get posted to mainnet where they are validated. It’s like driving in a less crowded side street while benefiting from the security of a highway.
OSI model
The Open Systems Interconnection model is a conceptual model that 'provide[s] a common basis for the coordination of [ISO] standard development from the purpose of system interconnection. The open systems interconnection (OSI) model is a conceptual model created by the International Organization for Standardization which enables diverse communication systems to communicate using standard protocols. In plain English, the OSI provides a standard for different computer systems to be able to communicate with each other. The OSI Model can be seen as a universal language for computer networking. It’s based on the concept of splitting up a communication system into seven abstract layers, each one stacked upon the last. Created at a time when network computing was in its infancy, the OSI was published in 1984 by the International Organization for Standardization (ISO). Though it does not always map directly to specific systems, the OSI Model is still used today as a means to describe Network Architecture.
P2P(Peer-to-peer)
Noun
Peer-to-peer computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the network. They are said to form a peer-to-peer network of nodes. A peer-to-peer (P2P) service is a decentralized platform whereby two individuals interact directly with each other, without intermediation by a third party. Instead, the buyer and the seller transact directly with each other via the P2P service. The P2P platform may provide services such as search, screening, rating, payment processing, or escrow. KEY TAKEAWAYS A peer-to-peer service is a platform that directly connects parties to a transaction without the third-party intermediary. Peer-to-peer services leverage technology to overcome the transaction costs of trust, enforcement, and information asymmetries that have traditionally addressed by using trust third parties. Peer-to-peer platforms offer services such as payment processing, information about buyers and sellers, and quality assurance to their users.
Phishing
Phishing is a type of social engineering where an attacker sends a fraudulent message designed to trick a person into revealing sensitive information to the attacker or to deploy malicious software on the victim's infrastructure like ransomware. A technique for attempting to acquire sensitive data, such as bank account numbers, through a fraudulent solicitation in email or on a web site, in which the perpetrator masquerades as a legitimate business or reputable person.
POAP
Whether used as digital artwork, avatar or an in-game asset, the applications of non-fungible tokens (NFTs) have grown exponentially over the past few years. However, one of the more pragmatic use cases that were introduced during ETHDenver in 2019 is called a Proof of Attendance Protocol – or “POAP” for short. A Proof of Attendance Protocol (pronounced poh-ap) is a unique NFT given to people to commemorate and prove they attended an event (virtual or physical). Often referred to as "an ecosystem for the preservation of memories," over time people can accrue a collection of POAPs to document their physical life experiences and activity through cyberspace.
Polkadot
Polkadot is a protocol that connects blockchains — allowing value and data to be sent across previously incompatible networks (Bitcoin and Ethereum, for example). It's also designed to be fast and scalable. The DOT token is used for staking and governance; it can be bought or sold on Coinbase and other exchanges. Polkadot is an open source blockchain platform and cryptocurrency. It provides interconnectivity and interoperability between blockchains, by enabling independent chains to securely exchange messages and perform transactions with each other without a trusted third-party.
Polygon
Polygon is a “layer two” or “sidechain” scaling solution that runs alongside the Ethereum blockchain — allowing for speedy transactions and low fees. MATIC is the network’s native cryptocurrency, which is used for fees, staking, and more. You can buy or sell MATIC via exchanges like Coinbase. The Ethereum blockchain is home to a vast range of economic activity — from NFT markets and games to the growing DeFi ecosystem. Ethereum is well suited to this activity because it’s compatible with smart contracts, which can be used to build a vast range of applications. However, the growing popularity of these applications adds many transactions to the Ethereum blockchain — and as a result, transaction fees (also known as “gas”) can sometimes rise to the point where making small or frequent investments can be economically unviable. Enter Polygon, which is a “Layer 2” scaling solution (or “sidechain”) that’s emerged to provide faster transactions and lower costs for users. It acts as a speedy parallel blockchain running alongside the main Ethereum blockchain. To use it, you can “bridge” some of your crypto over to Polygon, and then interact with a wide range of popular crypto apps that were once exclusive to the main Ethereum blockchain.
Ponzi Schemes
Noun
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. Both Ponzi schemes and pyramid schemes eventually bottom out when the flood of new investors dries up and there isn't enough money to go around. At that point, the schemes unravel.
Price fluctuation
The term price fluctuation refers to movement or changes in prices of a commodity or group of commodities a given marketplace or market area. Given a commodity and market, the changes in price over time essentially mean price fluctuations.
Private browsing
Private browsing is a privacy feature in some web browsers. When operating in such a mode, the browser creates a temporary session that is isolated from the browser's main session and user data. Private browsing is a mode where all the privacy features of the Web browser are activated without having to manually set them individually, such as setting cookies to off and clearing the browsing history. When using private browsing mode none of this data is stored. It became widely available in May 2005, when it was included in the Safari Browser which came with Mac OS X Tiger. Private browsing essentially removes any tracking of user's Web activities from the local machine, and by extension, the website that the user is visiting. The best example is the use, or rather disuse of cookies, that are used by websites to track user activities and store data. For example, this is used by websites such as Amazon to know a user's previously browsed products and keep a user logged in to the site even after the browser has been closed and the computer turned off. This can be problematic since cookies are often used for user convenience, such as not having to log in again every time the browser is closed or not having to search again for products viewed in an online store. In most cases the main reason for using private browsing is if one is using a public computer. This saves the user the trouble of having to logout or having to clear the browsing history manually.
Private key
A private key is a secret number that is used in cryptography, similar to a password. In cryptocurrency, private keys are also used to sign transactions and prove ownership of a blockchain address. A private key is an integral aspect of bitcoin and altcoins, and its security makeup helps to protect a user from theft and unauthorized access to funds. KEY TAKEAWAYS A private key is a secret number that is used in cryptography and cryptocurrency. A private key is a large, randomly-generated number with hundreds of digits. For simplicity, they are usually represented as strings of alphanumeric characters. A cryptocurrency wallet consists of a set of public addresses and private keys. Anyone can deposit cryptocurrency in a public address, but funds cannot be removed from an address without the corresponding private key. Private keys represent final control and ownership of cryptocurrency. It is vitally important to prevent one's private keys from being lost or compromised. A private key, also known as a secret key, is a mathematical key (kept secret by the holder) used to create digital signatures and, depending on the algorithm, to decrypt messages or files encrypted (for confidentiality) with the corresponding public key.
Profit&Loss (P&L)
Profit&Loss (P&L) is a financial instrument summarising revenues, costs and all expenses incurred during a specific period of time. The result can be either a profit or a loss
Proof of history (POH)
Instead of trusting the timestamp on the transaction, you could prove that the transaction occurred sometime before and after an event. The Proof of History is a high frequency Verifiable Delay Function. A Verifiable Delay Function requires a specific number of sequential steps to evaluate, yet produces a unique output that can be efficiently and publicly verified. Proof of History is a sequence of computation that can provide a way to cryptographically verify passage of time between two events. It uses a cryptographically secure function written so that output cannot be predicted from the input, and must be completely executed to generate the output. The function is run in a sequence on a single core, its previous output as the current input, periodically recording the current output, and how many times its been called. The output can then be re-computed and verified by external computers in parallel by checking each sequence segment on a separate core. Data can be timestamped into this sequence by appending the data (or a hash of some data) into the state of the function. The recording of the state, index and data as it was appended into the sequences provides a timestamp that can guarantee that the data was created sometime before the next hash was generated in the sequence. This design also supports horizontal scaling as multiple generators can synchronize amongst each other by mixing their state into each others sequences. Through the use of a high frequency recursive verifiable delay function (VDF), PoH imprints to the Solana blockchain a unique hash and count for each transaction and event. Once you know this for a given event, you can figure out what had to occur before and after it. This VDF function enables validators to reconstruct the order of events and serves as a cryptographic timestamp while ultimately enabling unparalleled speed and throughput. Essentially, VDFs and PoH enable more events to happen quicker.
Proof of stake (POS)
Noun
Proof-of-stake protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof-of-work schemes. Since cryptocurrencies are decentralized and not under the control of financial institutions, they need a way to verify transactions. One method many cryptos use is proof of stake (PoS). Proof of stake is a type of consensus mechanism used to validate cryptocurrency transactions. With this system, owners of the cryptocurrency can stake their coins, which gives them the right to check new blocks of transactions and add them to the blockchain. This method is an alternative to proof of work, the first consensus mechanism developed for cryptocurrencies. Since proof of stake is much more energy-efficient, it has gotten more popular as attention has turned to how crypto mining affects the planet.
Public Key
a cryptographic key that can be obtained and used by anyone to encrypt messages intended for a particular recipient, such that the encrypted messages can be deciphered only by using a second key that is known only to the recipient (the private key ). Public and private keys are paired to enable secure communication. In such a system, any person can encrypt a message using the intended receiver's public key, but that encrypted message can only be decrypted with the receiver's private key
Pump&Dump
Pump and dump is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Pump-and-dump is a manipulative scheme that attempts to boost the price of a stock or security through fake recommendations. These recommendations are based on false, misleading, or greatly exaggerated statements. The perpetrators of a pump-and-dump scheme already have an established position in the company's stock and will sell their positions after the hype has led to a higher share price. This practice is illegal based on securities law and can lead to heavy fines. The burgeoning popularity of cryptocurrencies has resulted in the proliferation of pump-and-dump schemes within the industry. 1 KEY TAKEAWAYS Pump-and-dump is an illegal scheme to boost a stock's or security's price based on false, misleading, or greatly exaggerated statements. Pump-and-dump schemes usually target micro- and small-cap stocks. People found guilty of running pump-and-dump schemes are subject to heavy fines. Pump-and-dump schemes are increasingly found in the cryptocurrency industry.
Ransomware
Ransomware is a type of malware from cryptovirology that threatens to publish the victim's personal data or permanently block access to it unless a ransom is paid. While some simple ransomware may lock the system without damaging any files, more advanced malware uses a technique called cryptoviral extortion. Ransomware is a type of malicious software (malware) that threatens to publish or blocks access to data or a computer system, usually by encrypting it, until the victim pays a ransom fee to the attacker. In many cases, the ransom demand comes with a deadline. If the victim doesn’t pay in time, the data is gone forever or the ransom increases. Ransomware attacks are all too common these days. Major companies in North America and Europe alike have fallen victim to it. Cybercriminals will attack any consumer or any business and victims come from all industries.
Reprogramming
to program anew especially : to revise or write a new program for reprogram a computer.
Return on Investment (ROI)
Return on investment or return on costs is a ratio between net income and investment. A high ROI means the investment's gains compare favourably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. Return on investment (ROI) is the key measure of the profit derived from any investment. It is a ratio that compares the gain or loss from an investment relative to its cost. It is useful in evaluating the current or potential return on an investment, whether you are evaluating your stock portfolio's performance, considering a business investment, or deciding whether to undertake a new project. In business analysis, ROI and other cash flow measures—such as internal rate of return (IRR) and net present value (NPV)—are key metrics that are used to evaluate and rank the attractiveness of a number of different investment alternatives. Although ROI is a ratio, it is typically expressed as a percentage rather than as a ratio. KEY TAKEAWAYS Return on investment (ROI) is an approximate measure of an investment's profitability. ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and, finally, multiplying it by 100. ROI has a wide range of uses. It can be used to measure the profitability of stock shares, to decide whether to purchase a business, or to evaluate the success of a real estate transaction. One disadvantage of ROI is that it doesn't account for how long an investment is held.
Revenue
Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure from which costs are subtracted to determine net income. Revenue is also known as sales on the income statement. KEY TAKEAWAYS Revenue, often referred to as sales or the top line, is the money received from normal business operations. Operating income is revenue (from the sale of goods or services) less operating expenses. Non-operating income is infrequent or nonrecurring income derived from secondary sources (e.g., lawsuit proceeds). Non-business entities such as governments, nonprofits, or individuals also report revenue, though calculations and sources for each differ. Revenue is only sale proceeds, while income or profit incorporate the expenses to generate revenue and report the net (not gross) earnings.
Satoshi
Noun
The satoshi is currently the smallest unit of the bitcoin currency recorded on the block chain.[1] It is a one hundred millionth of a single bitcoin (0.00000001 BTC).[1] The unit has been named in collective homage to the original creator of Bitcoin, Satoshi Nakamoto.[2] All amounts in the blockchain are denominated in satoshi before being converted for display.[3] The source code also uses satoshi when specifying an amount of bitcoin.[4] When displaying an extremely fine fraction of a bitcoin, such as when calculating fee per byte or a faucet reward, the amount is displayed in satoshi for readability.[5][6] Although the satoshi is the finest amount that can be recorded in the blockchain,[3] payment channels may need to make very granular payments and so are sometimes denominated in millisatoshi, which are one hundred billionths of a single bitcoin.[7] In January 2018, 1 Euro cent is worth approximately 83 satoshi. The satoshi is the smallest unit of the cryptocurrency bitcoin. It is named after Satoshi Nakamoto, the founder(s) of the protocol used in blockchains and the bitcoin cryptocurrency. The satoshi to bitcoin ratio is 100 million satoshis to one bitcoin. A satoshi is the smallest denomination of bitcoin, equivalent to 100 millionth of a bitcoin. Bitcoins can be split into smaller units to facilitate smaller transactions. The satoshi was named after the bitcoin founder(s) known as Satoshi Nakamoto.
Satoshi Nakamoto
Satoshi Nakamoto is a pseudonym that was used by the Bitcoin’s creator in email communications, forum posts and publications such as the Bitcoin Whitepaper. For all we know, this could have been a male, a female or a group of persons. The name is clearly of Japanese origin, but since the person was writing in perfect English, many believe that Satoshi comes from an English-speaking country. On 31 October, Nakamoto published a white paper on the cryptography mailing list at metzdowd.com describing a digital cryptocurrency, titled "Bitcoin: A Peer-to-Peer Electronic Cash System
Scalability
noun
Scalability is the property of a system to handle a growing amount of work by adding resources to the system. In an economic context, a scalable business model implies that a company can increase sales given increased resources. the capacity to be changed in size or scale. "scalability of the service has not been an issue" the ability of a computing process to be used or produced in a range of capabilities. "the key is the scalability of the software" Scalability is the measure of a system’s ability to increase or decrease in performance and cost in response to changes in application and system processing demands. Examples would include how well a hardware system performs when the number of users is increased, how well a database withstands growing numbers of queries, or how well an operating system performs on different classes of hardware. Enterprises that are growing rapidly should pay special attention to scalability when evaluating hardware and software.
Scalability
Scalability is the property of a system to handle a growing amount of work by adding resources to the system. In an economic context, a scalable business model implies that a company can increase sales given increased resources. Scalability is the measure of a system’s ability to increase or decrease in performance and cost in response to changes in application and system processing demands. Examples would include how well a hardware system performs when the number of users is increased, how well a database withstands growing numbers of queries, or how well an operating system performs on different classes of hardware. Enterprises that are growing rapidly should pay special attention to scalability when evaluating hardware and software.
Scam
A scam is an illegal trick, usually with the purpose of getting money from people or avoiding paying tax. A scam is a term used to describe any fraudulent business or scheme that takes money or other goods from an unsuspecting person. With the world becoming more connected thanks to the Internet, online scams have increased, and it's often up to you to help stay cautious with people on the Internet.
Scarcity
Scarcity refers to a basic economics problem—the gap between limited resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible. Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity. Scarcity is also referred to as "paucity." KEY TAKEAWAYS Scarcity is when the means to fulfill ends are limited and costly. Scarcity is the foundation of the essential problem of economics: the allocation of limited means to fulfill unlimited wants and needs. Even free natural resources can become scarce if costs arise in obtaining or consuming them, or if consumer demand for previously unwanted resources increases due to changing preferences or newly discovered uses.
Security token
Because blockchain technology emerged from the field of data science, many of the terms used in cryptocurrency and tokens are similar to those used in those fields. The term "token" is one of them. A token, in data science, is a value—like a randomly-generated number—assigned to sensitive data to mask the original information. So in a blockchain, a token is a number assigned to data stored within the blockchain. Giving an asset a token is called "tokenization." As an investment asset, a security token is a digital asset that represents ownership or other rights and transfers value from an asset or bundle of assets to a token. In plain language, security tokens are the digital form of traditional investments like stocks, bonds, or other securitized assets. For example, a company that wishes to raise funds for an expansionary project can decide to issue fractionalized ownership of their company through a digital token instead of issuing stock. It could then offer this token to investors on an exchange that allows digital security tokens. Learn more about security tokens, how they work and are regulated, and how they are different from other digital assets. KEY TAKEAWAYS Security tokens are digital assets that represent transferred ownership rights or asset value to a blockchain token. A security token is created using tokenization, where the investment criteria are selected. The information is entered into the blockchain, which then creates a token. Security tokens are not yet available to retail investors, but many institutions are working to develop and offer them. The Securities and Exchange Commission must approve security tokens.
Security Token Offering
A security token offering / tokenized IPO is a type of public offering in which tokenized digital securities, known as security tokens, are sold in security token exchanges. Regulators today want token offerings to remain compliant with the existing laws and rules around securities — hence, the Security Token Offering was born. STO is very similar to ICO but is compliant with securities legislation in the location where the token is being offered for investment. As STOs are compliant with related laws and rules, they create additional legal obligations for issuing equities in the company.
SegWit update
Segregated Witness, or SegWit, is the name used for an implemented soft fork change in the transaction format of Bitcoin. Segregated Witness (SegWit) refers to a change in the transaction format of Bitcoin. Its stated purpose as a protocol upgrade was to protect against transaction malleability and decrease transaction times by increasing block capacity. Transaction malleability refers to the possibility that tiny pieces of transaction information could be changed, invalidating new cryptocurrency blocks. It was also intended to speed up the validation process by storing more transactions in a block. KEY TAKEAWAYS Segregated Witness (SegWit) refers to a change in Bitcoin's transaction format where the witness information was removed from the input field of the block. The stated purpose of Segregated Witness is to prevent non-intentional Bitcoin transaction malleability and allow for more transactions to be stored within a block. SegWit was also intended to solve a blockchain size limitation problem that reduced Bitcoin transaction speed.
Simple Ledger Protocol (SLP)
The Simple Ledger Protocol (SLP for short) is a token platform on the Bitcoin Cash blockchain. Tokens can be used to represent almost anything, from deeds, titles, and stocks to video game items, collectibles, and even votes. Simple Ledger Protocol is a token system for the Bitcoin Cash network. It allows users to create, issue, and transfer digital tokens that enjoy the same security model and network of Bitcoin Cash. Users can associate the created tokens with assets and values, and thus, utilize the Blockchain as the public ledger to achieve transparency and integrity for their transactions.
Smart Contract
A smart contract is a computer program or a transaction protocol that is intended to automatically execute, control or document legally relevant events and actions according to the terms of a contract or an agreement. A smart contract, like any contract, establishes the terms of an agreement. But unlike a traditional contract, a smart contract’s terms are executed as code running on a blockchain like Ethereum. Smart contracts allow developers to build apps that take advantage of blockchain security, reliability, and accessibility while offering sophisticated peer-to-peer functionality — everything from loans and insurance to logistics and gaming.
Soft Fork
In blockchain technology, a soft fork is a change to the software protocol where only previously valid transaction blocks are made invalid. Because old nodes will recognize the new blocks as valid, a soft fork is backwards-compatible. A soft fork can be used to add new features and functions that do not change the rules a blockchain must follow. Soft forks are often used to implement new features at a programming level.
Software
Software is a set of programs, which is designed to perform a well-defined function. A program is a sequence of instructions written to solve a particular problem. There are two types of software − System Software Application Software System Software The system software is a collection of programs designed to operate, control, and extend the processing capabilities of the computer itself. System software is generally prepared by the computer manufacturers. These software products comprise of programs written in low-level languages, which interact with the hardware at a very basic level. System software serves as the interface between the hardware and the end users.
Software update
An update is new, improved, or fixed software, which replaces older versions of the same software. For example, updating your operating system brings it up-to-date with the latest drivers, system utilities, and security software. Updates are often provided by the software publisher free of additional charge.
Solana
Solana is a public blockchain platform with smart contract functionality. Its native cryptocurrency is SOL. Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, Solana is an open-source project currently run by Solana Foundation based in Geneva, while the blockchain was built by San Francisco-based Solana Labs. 1 Solana is much faster in terms of the number of transactions it can process and has significantly lower transaction fees compared to rival blockchains like Ethereum. The cryptocurrency that runs on the Solana blockchain—also named Solana (SOLUSD) and with the ticker symbol SOL—has soared almost 12,000% so far in 2021, 2 and with a market capitalization of over $66 billion, it is the fifth-largest cryptocurrency by this measure. 3 KEY TAKEAWAYS Solana is a blockchain platform designed to host decentralized, scalable applications. Solana can process many more transactions per second and charges much lower transaction fees than rival blockchains like Ethereum. Solana's native cryptocurrency, which has the ticker SOL, has a market capitalization of over $66 billion, 2 making it the fifth-largest cryptocurrency. 3 Solana is a proof-of-stake (PoS) blockchain and also uses a new technology called Proof of History (PoH).
Stablecoin
Noun
Stablecoins are cryptocurrencies where the price is designed to be pegged to a reference asset. The reference asset may be fiat money, exchange-traded commodities, or a cryptocurrency. any cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm. Stablecoins are cryptocurrencies the value of which is pegged, or tied, to that of another currency, commodity or financial instrument. Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies including Bitcoin (BTC), which has made such investments less suitable for wide use in transactions.Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference. Stablecoins are more useful than more volatile cryptocurrencies as a medium of exchange. Stablecoins may be pegged to a currency like the U.S. dollar or to the price of a commodity such as gold. Stablecoins pursue price stability by maintaining reserve assets as collateral or through algorithmic formulas that are supposed to control supply.
Staking
Noun
You may think of staking as a less resource-intensive alternative to mining. It involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking cryptocurrencies to receive rewards. In most cases, you’ll be able to stake your coins directly from your crypto wallet, such as Trust Wallet. On the other hand, many exchanges offer staking services to their users. Binance Staking lets you earn rewards in an utterly simple way – all you have to do is hold your coins on the exchange. More on this later. To get a better grasp of what staking is, you’ll first need to understand how Proof of Stake (PoS) works. PoS is a consensus mechanism that allows blockchains to operate more energy-efficiently while maintaining a decent degree of decentralization (at least, in theory). Let’s dive into what PoS is and how staking works. Proof-of-stake protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof-of-work schemes.
Staking Pool
A staking pool allows multiple stakeholders (or bagholders) to combine their computational resources as a way to increase their chances of being rewarded. In other words, they unite their staking power in the process of verifying and validating new blocks, so they have a higher probability of earning the block rewards. A staking pool involves multiple users combining their individual computing power to increase their overall staking power, which increases their chances of earning rewards. Increased computing power allows for more blocks to be verified and validated via the Proof of Stake (PoS) mechanism, which increases the total sum of rewards a staking pool can earn. Staking pools can be either public or private, with each pool usually having a pool administrator who keeps the nodes or validators in operation. Digital assets are still staked in pools and often involve a lock-up period.
Storage layer
The data storage layer is very eminent in the Lambda Architecture pattern as this layer defines the reactivity of the overall solution to the incoming event/data streams. As per the theory of connected systems, a system is only as fast as the slowest system in the chain
Store of value
A store of value is an asset, commodity, or currency that maintains its value without depreciating. KEY TAKEAWAYS A store of value is an asset that maintains its value, rather than depreciating. Gold and other precious metals are good stores of value because their shelf lives are essentially perpetual. A nation's currency must be a reasonable store of value for its economy to function smoothly. A store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.
Supply and demand
The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand. As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows. Levels of supply and demand for varying prices can be plotted on a graph as curves. The intersection of these curves marks the equilibrium, or market-clearing price at which demand equals supply, and represents the process of price discovery in the marketplace. KEY TAKEAWAYS The law of demand holds that the demand level for a product or a resource will decline as its price rises, and rise as the price drops. Conversely, the law of supply says higher prices boost supply of an economic good while lower ones tend to diminish it. A market-clearing price balances supply and demand, and can be graphically represented as the intersection of the supply and demand curves. The degree to which changes in price translate into changes in demand and supply is known as the product's price elasticity. Demand for basic necessities is relatively inelastic, meaning it is less responsive to changes in their price.
Taproot
Taproot is an upgrade to the Bitcoin network that facilitates more private and secure transactions, while also improving scalability. Comprising a series of changes which alter the way transactions are handled, Taproot also helps enable new functionalities on the Bitcoin blockchain. Taproot is an upgrade to Bitcoin which introduced several new features. Taproot integrated the Schnorr digital signature scheme into Bitcoin, upgrading Bitcoin’s core cryptography. Taproot built on the SegWit upgrade to improve Bitcoin’s privacy and lower transaction fees. Taproot made future Bitcoin upgrades easier by reforming Bitcoin’s scripting language.
Tezos
Tezos is an open-source blockchain that can execute peer-to-peer transactions and serve as a platform for deploying smart contracts. The native cryptocurrency for the Tezos blockchain is the tez. The Tezos network achieves consensus using proof-of-stake. Tezos is a blockchain network hosting the associated digital token Tez (XTZ), which is also known as tezzie. Like other cryptocurrency blockchains, Tezos facilitates user participation in decentralized finance (DeFi), decentralized applications and non-fungible token (NFT) projects. In contrast with other blockchains, Tezos precludes hard forks, or blockchain splits, with a blockchain-based governance mechanism that adopts and implements protocol upgrades chosen by voting proportional to users' economic stake in Tezos. KEY TAKEAWAYS Tezos is a blockchain network linked to a digital token known as Tez, or tezzie. The network's governance is based on economic stakes, and precludes forks. Tezos uses a proof-of-stake mechanism to validate blockchain transactions, which uses less energy than Bitcoin mining. Following a highly successful ICO, Tezos was dogged by a power struggle and lawsuits. After topping $8 in October 2021, the price of a Tez declined to little more than $2 by June 2022.
The Graph
The Graph (GRT) is an Ethereum token that powers The Graph, a decentralized protocol for indexing and querying data from blockchains. Just as Google indexes the web, The Graph indexes blockchain data from networks like Ethereum and Filecoin. This data is grouped into open APIs called subgraphs that anyone can query. The Graph is an open-sourced software used to collect, process and store data from various blockchain applications to facilitate information retrieval. Originally launched on the Ethereum blockchain, The Graph’s mission is to help developers use relevant data to increase the efficiency of their decentralized application (dapp). The Graph analyzes and gathers blockchain data before storing it into various indices, called Subgraphs, allowing any application to send a query to its protocol and receive an immediate response. Queries are posed by dapps through GraphQL, a widely used language originally created by Facebook to gather data for a user's news feed. The Graph users who provide services to the network, called indexers and delegators, help to process the data and pass them on to end-users and applications. The Graph’s native cryptocurrency, GRT, is used to ensure the integrity of the data secured within its network. Any user, whether they are indexers, curators or delegators, must stake GRT to perform their roles, and, in return, earn fees from the network. The Graph is being used by popular Ethereum dapps like Aave, Curve and Uniswap. Users wishing to stay connected on the current development of The Graph can bookmark their official blog for up-to-date details.
The Sandbox
The Sandbox is an Ethereum-based metaverse and gaming ecosystem where you can create, share, and monetize assets and games. The Sandbox is a decentralized, community-driven virtual world where creators can design, share, and sell in-world assets. The Sandbox metaverse is one of several blockchain-based virtual worlds attempting to change the dynamics of the gaming market and reward creators for the value they produce through user-generated content. The Sandbox is software running on Ethereum that operates a decentralized virtual gaming world. At its core, the Sandbox is a game in which players can buy digital plots of land, called LAND, and create experiences on top of them to share with other users. In this way, The Sandbox is one model of a blockchain-based metaverse in the same vein as Decentraland. SAND tokens
Tokens
Noun
A crypto token is a virtual currency token or a denomination of a cryptocurrency. It represents a tradable asset or utility that resides on its own blockchain and allows the holder to use it for investment or economic purposes. Technically, “token” is just another word for “cryptocurrency” or “cryptoasset.” But increasingly it has taken on a couple of more specific meanings depending on context. The first is to describe all cryptocurrencies besides Bitcoin and Ethereum (even though they are technically also tokens). The second is to describe certain digital assets that run on top of another cryptocurrencies’ blockchain, as many decentralized finance (or DeFi) tokens do. Tokens have a huge range of potential functions, from helping make decentralized exchanges possible to selling rare items in video games. But they can all be traded or held like any other cryptocurrency. the other increasingly common meaning for “token” has an even more specific connotation, which is to describe cryptoassets that run on top of another cryptocurrency’s blockchain. Security Tokens, Non- fungible tokens, governance tokens and more. They are designed to do the same job as physical tokens or coins like American cents, British pounds, etc. They are simple units of value that can be passed from one person to another.
Trackers
Crypto trackers are websites and applications that were designed specifically to address the needs of cryptocurrency investors, and provide real-time information about cryptocurrency prices in multiple currencies, trading activity, supply fluctuations, market capitalization and other key metrics. A cryptocurrency portfolio tracker is a digital platform, such as an app or website, that enables you as an investor to keep track of the ever-changing value of your different coins so that you can manage your portfolio properly.
Trading
noun
Trade refers to the voluntary exchange of goods or services between different economic actors. Since the parties are under no obligation to trade, a transaction will only occur if both parties consider it beneficial to their interests. Trade can have more specific meanings in different contexts. In financial markets, trade refers to the purchase and sale of securities, commodities, or derivatives. Free trade means international exchanges of products and services, without obstruction by tariffs or other trade barriers. the act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries: domestic trade; foreign trade. the act of buying, selling, or exchanging stocks, bonds, or currency: Stock brokerages typically charge a commission per trade.
Trading pair
“Trading pairs” or “cryptocurrency pairs” are assets that can be traded for each other on an exchange. Two specific examples of trading pairs are bitcoin/litecoin (BTC/LTC) and ether/bitcoin cash (ETH/BCH). A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation. Understanding Pairs Trade Pairs trading was first introduced in the mid-1980s by a group of technical analyst researchers that were employed by Morgan Stanley, the multinational investment bank and financial services company. The pairs trade strategy uses statistical and technical analysis to seek out potential market-neutral profits. KEY TAKEAWAYS A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation. Pairs trading was first introduced in the mid-1980s by a group of technical analyst researchers. A pairs trade strategy is based on the historical correlation of two securities; the securities in a pairs trade must have a high positive correlation, which is the primary driver behind the strategy’s profits.
Transaction
a n instance of buying or selling something; a business deal. A transaction is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets in return for money. The term is also commonly used in corporate accounting. In business bookkeeping, this plain definition can get tricky. A transaction may be recorded by a company earlier or later depending on whether it uses accrual accounting or cash accounting. KEY TAKEAWAYS A transaction involves a monetary exchange for a good or service. Transactions can be a little more tricky when it comes to corporate accounting. Accrual accounting recognizes a transaction immediately after it is finalized, regardless of when payment is received or made. Cash accounting is used mostly by smaller businesses and records a transaction only when money is received or paid out. Third-party transactions can often complicate the process.
Transaction fees
A transaction fee is a charge that a business has to pay every time it processes a customer's payment. The cost of the transaction fee will vary depending on the service used. Transaction Fees is a type of a fee when the client needs to pay every moment it processes an electronic payment. Transaction Fees can vary among the services. On average, the fee is a proportion of the amount of the transfers fulfilled. It is an additional payment for the purchases the merchant has already done successfully.
Trendlines
A trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contraction. A trend line is a chart pattern that is defined as a series of highs or lows that form a straight line. It is constructed by joining two or more price points with a straight line. The purpose of a trend line is to identify the historical trend of the price movements and to indicate support and resistance levels. In technical analysis, it is one of the basic components of other chart patterns such as trend channels, wedges, flags, and triangles. Trend lines are used: To identify and confirm trends To predict levels of support and resistance Trend lines can be composed of highs (resistance) or lows (support).
URL
A Uniform Resource Locator, colloquially termed a web address, is a reference to a web resource that specifies its location on a computer network and a mechanism for retrieving it. A URL is a specific type of Uniform Resource Identifier, although many people use the two terms interchangeably. A Uniform Resource Locator (URL), otherwise known as a Universal Resource Locator, is the address of a resource on the Internet and the protocol used to access it. It indicates the location of a web resource like a street address indicates where a person lives physically — because of this, an URL is often referred to as: “web address”. A URL contains the following information: The protocol used to access the resource. The location of the server (whether by IP address or domain name). The port number on the server (optional). The location of the resource in the directory structure of the server. A fragment identifier (optional).
USB
Universal Serial Bus is an industry standard that establishes specifications for cables, connectors and protocols for connection, communication and power supply between computers, peripherals and other computers. USB, in full universal serial bus, technology used to connect computers with peripheral devices. First introduced in 1996, the USB standard was developed by a number of American companies, including IBM, Intel Corporation, and Microsoft Corporation, as a simpler way of connecting hardware to personal computers (PCs).
Utility token
Noun
Usually associated with initial coin offerings (ICOs), a utility token is a special type of cryptographic asset that is primarily aimed at garnering the funds necessary to develop a cryptocurrency project. A utility token is a crypto token that serves some use case within a specific ecosystem. These tokens allow users to perform some action on a certain network. a digital token of cryptocurrency that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency
Utility token
a digital token of cryptocurrency that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency sold utility tokens as a method of fundraising for the start-up. A utility token is a crypto token that serves some use case within a specific ecosystem. These tokens allow users to perform some action on a certain network. A utility token is unique to its ecosystem. Brave’s Basic Attention Token (BAT), for example, can only be used to tip content creators through the Brave browser or through other applications that have integrated BAT wallets, like Twitter. BAT has no other use beyond speculating on its value. The same can be said of any utility token. Utility tokens are not mineable cryptocurrencies. They are usually pre-mined, being created all at once and distributed in a manner chosen by the team behind the project.
Validation rewards
Validation in a Proof of Stake (PoS) network involves processing, confirmation and the writing of transactions into a new block on the blockchain. Within a peer-to-peer network, a computer node that is elected to validate a new block is referred to as a “validator” and those validators that accept stakes from investors who are “delegators” and delegate smaller amounts of coins as a stake are referred to as “stake pool”. The term “staking” is derived from the concept of putting something (in our case coins or tokens) “at stake”, which means that you place a portion of your crypto assets in a staking pool for a set amount of time. The reason why cryptocurrency holders put their coins “at stake” in a stake pool within a network is because they receive a share of the staking rewards awarded to the pool in return, similar to receiving interest payments on savings in the traditional world of finance. While many cryptocurrencies pay out staking rewards in a network’s original coins or tokens, other blockchains have created their own or separate coins and tokens which are utilised as staking rewards, as well as for the blockchain’s internal operations.
Validators
A ‘Validator’ on a Blockchain is like a banker who verifies every incoming transaction. A transaction will only be completed on the blockchain when it has been verified by the validator. Validators are assigned the duty to verify transactions to whether or not they are legal and accurate. Every POS blockchain network is constituted of more than a single validator based upon the system requirements. Whenever transactions are broadcasted, all network validators or some validate the transactions to be legitimate and then the validated transactions are placed into the blockchain.
Variable expenses
Variable expenses represent those daily spending decisions such as eating at restaurants, buying clothes, grabbing coffee at Starbucks, and playing a round of golf with your buddies. Typical variable expenses include: Groceries Dining out Gas Entertainment Hobbies Personal care An expense is variable when its total amount changes in proportion to the change in sales, production, or some other activity. In other words, a variable expense increases when an activity increases, and it decreases when the activity decreases.
Volatility
Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured from either the standard deviation or variance between returns from that same security or market index. In the securities markets, volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a "volatile" market. An asset's volatility is a key factor when pricing options contracts. KEY TAKEAWAYS Volatility represents how large an asset's prices swing around the mean price—it is a statistical measure of its dispersion of returns. There are several ways to measure volatility, including beta coefficients, option pricing models, and standard deviations of returns. Volatile assets are often considered riskier than less volatile assets because the price is expected to be less predictable. Volatility is an important variable for calculating options prices.
Web 3.0
Web 2.0 and Web 3.0 refer to successive iterations of the web, compared with the original Web 1.0 of the 1990s and early 2000s. Web 2.0 is the current version of the internet (a term often used interchangeably with the web) with which we are all familiar, while Web 3.0 represents its next phase. Web refers to the World Wide Web (WWW), the internet’s core information retrieval system. The WWW initialism used to (and often still does) preface a web address and was one of the first characters typed into a web browser when searching for a specific resource online. Internet pioneer Tim Berners-Lee is credited with coining the term World Wide Web to refer to the global web of information and resources interconnected through hypertext links. 1 KEY TAKEAWAYS Web 2.0 and Web 3.0 represent successive, advanced iterations of the original Web 1.0 of the 1990s and early 2000s. Web 2.0 is the current version of the web with which we are all familiar, while Web 3.0 represents its next phase, which will be decentralized, open, and of greater utility. Innovations such as smartphones, mobile internet access, and social networks have driven the exponential growth of Web 2.0. Web 2.0 has disrupted sectors that fail to integrate the new web-based business model. Defining features of Web 3.0 include decentralization; trustlessness and permissionlessness; artificial intelligence (AI) and machine learning; and connectivity and ubiquity. Web 3.0 is the upcoming third generation of the internet where websites and apps will be able to process information in a smart human-like way through technologies like machine learning (ML), Big Data, decentralized ledger technology (DLT), etc. Web 3.0 was originally called the Semantic Web by World Wide Web inventor Tim Berners-Lee, and was aimed at being a more autonomous, intelligent, and open internet. The Web 3.0 definition can be expanded as follows: data will be interconnected in a decentralized way, which would be a huge leap forward to our current generation of the internet (Web 2.0), where data is mostly stored in centralized repositories.
WiFI
a facility allowing computers, smartphones, or other devices to connect to the internet or communicate with one another wirelessly within a particular area. Wi-Fi is the radio signal sent from a wireless router to a nearby device, which translates the signal into data you can see and use. The device transmits a radio signal back to the router, which connects to the internet by wire or cable.
Yearn Finance
yearn.finance is a group of protocols running on the Ethereum blockchain that allow users to optimize their earnings on crypto assets through lending and trading services. One of a number of emerging decentralized finance (DeFi) projects, yearn.finance provides its services using only code, removing the need for a financial intermediary like a bank or custodian. To do this, it has built a system of automated incentives around its YFI cryptocurrency. The yearn.finance platform consists of several independent products, including: APY – A data table that shows interest rates across different lending protocols. Earn – Which identifies the highest interest rates users can earn lending an asset. Vaults – A collection of investment strategies designed to generate the highest returns from other DeFi projects. Zap – Which bundles several trades in one click, saving on costs and labor. Users earn YFI tokens by locking cryptocurrencies in yearn.finance contracts running on the Balancer and Curve DeFi trading platforms, using the yearn.finance platform. In this way, yearn.finance capitalizes on a practice commonly called “yield farming,” in which users lock up crypto assets in a DeFi protocol in order to earn more cryptocurrency. The more assets users lock in a platform, the more tokens they are awarded by the protocols.
Yield farming
Yield farming involves lending or staking cryptocurrency in exchange for interest and other rewards. Yield farmers measure their returns in terms of annual percentage yields (APY). While potentially profitable, yield farming is also incredibly risky. Yield farming is the process of using decentralized finance (DeFi) to maximize returns. Users lend or borrow crypto on a DeFi platform and earn cryptocurrency in return for their services. Yield farmers who want to increase their yield output can employ more complex tactics. For example, yield farmers can constantly shift their cryptos between multiple loan platforms to optimize their gains. Quick facts: Yield farming is the process of token holders maximizing rewards across various DeFi platforms. Yield farmers provide liquidity to various token pairs and earn rewards in cryptocurrencies. Top yield farming protocols include Aave, Curve Finance, Uniswap and many others. Yield farming can be a risky practice due to price volatility, rug pulls, smart contract hacks and more.
Yielding
giving a product or generating a financial return of a specified amount. "higher-yielding wheat" Definition: In financial terms, yield is used to describe a certain amount earned on a security, over a particular period of time. It refers to the interest or dividend earned on debt or equity, respectively, and is conventionally expressed annually as a percentage based on the current market value or face value of the security. Description: Yield is a major decision-making tool used by both companies and investors. It is a financial ratio that indicates how much a company pays in dividend/interest to investors, each year, relative to the security price. Yield is a measure of cash flow that an investor is getting on the money invested in a security