CRYPTO CURRENCY DICTIONARY

TERMS COMMONLY USED IN THE WORLD OF BLOCKCHAIN AND CRYPTOCURRENCY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Decentralized Finance (DeFi)

The term "Decentralized Finance" refers to an existing global financial system that does not rely on centralized financial coordinators. Instead of using banks, commerce, or businesses to provide financial products and services, DeFi uses smart non-human smart contracts that compile code to create agreements between users. DeFi applications use open source code, blockchain technology, and cryptography, allowing anyone with an internet connection and device to transfer funds. Currently, the top leading DeFi application platform is the Ethereum blockchain. This type of financial dApp has a selection of key components, including stablecoin, exchange (dex), financial markets, insurance, and Synthetix.

Other Important Terms

Mainnet

A mainnet is a fully functional, active blockchain. Mainnet blockchains properly validate transactions and consist of immutable, distributed ledgers that everyone can examine openly. Mainnets are operational and trade "actual" cryptocurrencies having monetary value, as opposed to testnets, which exchange symbolic, worthless coins. After testing and revising their projects and updates on testnets, developers launch them to mainnets. The principal blockchains of Ethereum and Bitcoin are both examples of mainnets.

Cold Wallet

Cold wallets - also known as offline wallets - are offline cryptocurrency wallets. Cold wallets enable users to save their private keys offline via a paper wallet, a hardware wallet, or an offline software wallet. The majority of cold pockets are hardware pockets in the form of a USB stick. Cold wallets are used by long-term bitcoin traders because they are less vulnerable to internet assaults than hot wallets. Cold digital bags are frequently used to strengthen security. This enables users to scan their code for harmful activities. Because trading and wallets are less regulated than traditional financial institutions, security is vital while handling cryptocurrency.

Immutable X (IMX)

Immutable X is the first Layer-2 solution that is only dedicated on scaling Ethereum-based non-fungible tokens (NFTs). The necessity for scalable, rapid, and affordable NFT markets cannot be stressed enough as NFTs expand in the decentralized gaming and metaverse space. Immutable X may provide a feasible alternative for game creators wishing to mint millions of NFTs as in-game assets: no gas fees, instantaneous transactions, and all the security of the underlying Ethereum network owing to zk-Rollup technology.

Tezos

Tezos is a 2014 open-source blockchain platform for dApps and smart contracts. It was developed to overcome blockchain adoption challenges such as the future of long-term upgrades, the security of smart contracts, and open participation. Unlike the Bitcoin and Ethereum blockchains, which presently employ inefficient Proof of Work consensus models, Tezos uses a Proof of Stake model, which uses on-chain procedures to alter chain protocol autonomously once proposals have been agreed by the community. The "Tez" token is the Tezos blockchain's native coin (XTZ).

metamask

MetaMask isa browser extension designed to make accessing Ethereum's Dapp ecosystemeasier. It also serves as a wallet for holding ERC-20 tokens allowing users toaccess services built on the network via the wallet.In laymanterms, MetaMask is a browser plugin that serves as an Ethereum wallet. TheMetaMask wallet allows users to store Ether and other ERC-20 tokens. The walletmay also communicate with decentralized applications, or dapps.

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