"Glossary" TAG

Quantifying Smart Contract Network Demand
  • research
Such networks, referred to by some as ‘Blockchain 3.0’, attempt to iterate on both Bitcoin and Ethereum’s core functionalities, seeking to provide marked improvements in scalability, interoperability, and privacy. While many are yet to debut, a significant number have had functioning mainnets for some time, which has led to quantifiable comparisons between these emergent networks...
Payment Tokens
  • glossary
Payment tokens are tokens that enables holders to pay for goods and services on a platform. Transacting on the platform is like transacting in a country: native currency is generally required, even for transactions occurring via a digital payment network. Tokens with such a function are generally the exclusive or highly privileged accepted platform currency....
Access Tokens
  • glossary
Access tokens confer holders access to key premium features on a platform. The token resembles a tradable membership, in which members (token holders) get access to exclusive experiences and still have an asset they can resell to a future member. If the token is only required for *premium* features, somewhat like a VIP membership, then...
Nakamoto Consensus
  • glossary
Nakamoto Consensus is the consensus mechanism employed by most Proof-of-Work blockchains, most notably Bitcoin. Its name derived from the Bitcoin creator’s pseudonym, Satoshi Nakamoto, Nakamoto Consensus states that the longest chain of verified blocks existing within a network of nodes is valid, and all others are to be ‘orphaned.’ In essence, nodes on the network...
Nothing-at-Stake Problem
  • glossary
The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks. This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork...
Seigniorage Shares
  • glossary
Seigniorage style stablecoins represent an algorithmically governed approach to expanding and contracting a stablecoin’s money supply. They are inspired by a 2014 paper written by Robert Sams, and constitute one of the three primary approaches to stablecoin development, the two others being, respectively, on-chain (MakerDao) and off-chain (Tether) collateralized stablecoins. Seigniorage-style stablecoins are designed to have flexible...
Hash Rate / Hash Power
  • glossary
Hash rate, also referred to as hash power, is a key indicator of the processing power of distributed ledger technology systems utilizing Proof-of-Work consensus mechanisms. The process of hashing involves taking a string of arbitrary data of any size and length, and running it through a function that produces an output, or ‘hash,’ of data...
Security Token Offering (STO)
  • glossary
A Security Token Offering (STO) is the process through which Security Tokens are made available to qualified investors through a sale. They are defined by fundraising platforms and procedures that adhere to the applicable securities laws regarding appropriate distribution practices in the jurisdiction in which the offering is made. This contrasts with the various practices...
ERC-721
  • glossary
ERC-721 is a technical standard for token implementation using smart contracts on the Ethereum blockchain. ERC-721 standards function similarly to ERC-20 standards in that they provide a common set of rules for the purpose of simplifying the creation and ensuring the functionality of tokens. This also allows most wallets supporting Ether and ERC-20 tokens to...
ERC-223
  • glossary
ERC-223 is a technical standard for token implementation using smart contracts on the Ethereum blockchain. ERC-223 tokens serve a purpose similar to and seek to improve up ERC-20 tokens. While ubiquitous, ERC-20 tokens are vulnerable in that may be permanently ‘lost’ should they be accidentally sent to a smart contract not intended to receive them....
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