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

Ethereum virtual machine (EVM)

The Ethereum Virtual Machine (EVM) is a computing engine that functions as a decentralized computer with millions of applications that can be executed. It serves as the virtual computer that underpins Ethereum's whole organizational framework.It is regarded as the component of Ethereum that manages the execution and deployment of smart contracts. The EVM's job is to provide a few new features to the Blockchain so that users of the distributed ledger encounter problems. The EVM is used by each and every Ethereum node to maintain blockchain consensus.

Other Important Terms

Pump and Dump

A "pump and dump" strategy is a deception in which the value of an asset rises and then falls precipitously. Typically, pump and dump systems are unlawful. The decentralized crypto market, on the other hand, is unregulated. Crypto "pump and dumpers" are typically found on social media platforms, and they frequently collaborate in groups to give the appearance of widespread interest in a currency or token. Scammers who "pump and dump" financial assets deceive their audience, causing additional investors to purchase. When the price has increased sufficiently, the criminals benefit from the investment while others lose. Schemers frequently purchase a large quantity of the assets in order to activate the "pump." Pump-and-dump strategies are particularly prevalent in small and micro-cap assets with low liquidity, where large value swings are simpler to achieve Due diligence, skepticism about unexplained price increases, and understanding of affinity fraud can help safeguard investors from being duped by a "pump and dump."

51% Attack

A '51 percent attack' is a potential attack on a blockchain by a group of miners who possess more than 50% of the hashrate. In such a case, the'miners' have the option of purposefully failing to confirm transactions or issuing transactions twice (double-spend).

Scalability Trilemma

A trilemma is a dilemma that has three unique components. The "scalability trilemma" refers to the unavoidable compromises that developers must make while optimizing certain blockchain features. The word was invented by Ethereum founder Vitalik Buterin. The trilemma is sometimes portrayed as a triangle with three positive blockchain features — scalability, decentralisation, and security – at each point. According to the trilemma, improving any two of these attributes holds back the third. This tradeoff often constrains blockchains and results in slower transaction processing times. Layer-2 solutions are used by developers to address the trilemma. These methods delegate part of the processes of a primary chain to other protocols and related chains.

Automated Market Maker (AMM)

Decentralized exchanges which use liquidity pools and complex mathematical equations to ensure asset liquidity and reduce price slippage are known as automated market makers. AMMs do not follow the traditional "order book" approach, it requires buyers and sellers to be present and agree on an asset price in order to complete trades. For small, decentralized exchanges with a small number of users, this strategy is unreliable. AMMs, on the other hand, allow their users to "donate" their funds to liquidity pools. The pooled currencies of the users are subsequently made available to purchasers, resulting in significant levels of liquidity. Liquidity pools remove the need for exchanges to price assets using complex matching algorithms. Instead, they use a consistent product formula and smart contract technology to keep asset values stable.

Web 3.0

Web 3.0 is an umbrella term that refers to the next stage of the internet's emergence. This new internet is being deliberately created to address common, potentially harmful flaws present in today's internet, and it will establish an online environment in which human-centric and highly individualized interactions I the norm. While the intricacies of Web 3.0's underlying architecture have yet to be determined, but in a broad sense it appears more probable that the primary elements of Web 3.0 will be linked and enabled by decentralized technology.

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