"Glossary" TAG

ERC-777
  • glossary
ERC-777 is a technical standard for token implementation using smart contracts on the Ethereum blockchain. These tokens are similar to ERC-223 tokens in that, unlike ERC-20 tokens, they will not be permanently lost should they accidentally be sent to an unprepared smart contract. Also, like ERC-223 tokens, they are backwards compatible with and retain all...
Asset-backed Tokens
  • glossary
Asset-based tokens are relatively straightforward: they are tokens backed by or represent an asset for which tokens can be redeemed. These assets can be physical, such as company equity, property, or art; virtual, such as digital goods; or crypto-graphic assets, such as Cryptokitties. The token itself rarely has unique properties and it is intended primarily...
Contribution Tokens
  • glossary
Contribution tokens are those that confer holders the right to play critical roles in the consensus process, contribute to network maintenance, or perform other types of work. This can include block creation or validation (as in all Proof of Stake mechanisms) but can also include many other roles that are important to the protocol, platform,...
Governance Tokens
  • glossary
Governance tokens confer holders the power to influence decisions concerning the core protocol, product or feature roadmap, hiring and staffing, and changes to governance parameters. All software needs mechanisms for being updated or patched. Unforeseen vulnerabilities might be found. In addition, the community could find that poor token design or unforeseen events have left elements...
Blockchain Oracle
  • glossary
Blockchain oracles are information feeds used to incorporate external, off-chain data into blockchains. The main function of blockchain oracles is to act as triggers for smart contracts, initiating transactions when certain external conditions are met. Examples of external conditions that can signal oracles to initiate a smart contract are stock and commodity prices, scores of...
Layer 2 Scalability
  • glossary
One approach to increasing a blockchain network’s transaction scalability is to utilize linked Layer 2 networks to reduce burden on the main chain. They do so by allowing users to conduct a number of transactions on this separate channel, while only recording the final state (net changes) of both accounts to the main blockchain. This...
Block Explorer
  • glossary
A block explorer is an application that allows for the examination of blockchains. These programs enable the user to view information as detailed as individual blocks, transactions and addresses at a given point in time. One can also view histories of forks and orphaned chains. Block explorers are specific to certain blockchains and can only...
Proof of Capacity (PoC)
  • glossary
Proof of Capacity (PoC), or Proof of Space (PoSpace), is a consensus mechanism used to prove that a miner has dedicated a sufficient amount of their physical storage to a given endeavor. While Proof of Stake and Proof of Work methods use stake size and computing power, respectively, to determine who is able to verify...
Over-the-Counter Trading (OTC)
  • glossary
Over-the-counter trading is a process for trading assets (both crypto and traditional securities) that does not involve exchanges but instead uses a brokerage to facilitate transactions. Unlike exchanges, where prices are set by market makers, OTC trading involves negotiation between buyers and sellers, with brokers acting as intermediaries. These brokers are also responsible for initially...
Fiat Currency
  • glossary
A fiat currency is a currency issued and controlled by a central government. Fiat currencies are often not backed by physical commodities (i.e. precious metals, diamonds, etc.). Rather, the value of fiat money is largely determined by the government that issues it, which can manipulate the currency through changing its circulating supply (among other methods)....
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