Find our glossary of terms from the blockchain universe, updated regularly.
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BLOCKCHAIN
Technological solution for the storage and transmission of secure, transparent decentralized information. A “blockchain” comprises a series of nodes and blocks that contain transactions and information, each of which can verify the validity, like a transparent, pseudonymous and tamper-proof accounting book.
DEX
Decentralized exchange platform on the blockchain, which allows the exchange of one cryptocurrency or token for another.
DLT
Distributed Ledger Technologies, or distributed ledger technologies, correspond to a digital system that records exchanges and related information in several locations simultaneously, and not in a centralized reference or administration register. In this system, each node operates and verifies each element of the transactions. The comparison of the different nodes validates the veracity of the elements and makes the information practically unfalsifiable. Blockchain is the best-known type of DLT application.
FORK
Mining protocols can be modified for several reasons (bug, malicious attack, wish of some developers to correct the protocol to improve it). If the modification is adopted by a certain number of users, it gives rise to an alternative blockchain. The original blockchain continues to function and a new blockchain is born from the fork.
ICO (INITIAL COIN OFFERING)
Fundraising method based on the issuance of digital assets, called tokens, exchangeable for cryptocurrencies during the start-up phase of a project.
IMPERMANENT LOSS
The composition of a liquidity pool comprising a pair of tokens is constantly readjusted according to price changes, so that the distribution of each in the pool (often 50/50) remains constant in value. The more the price of a token goes up compared to the other, the less there will be in quantity in the pool, and vice versa.
MINING
Provision of the computing power of a computer system (computer in particular) to process transactions and secure the network.
LIQUIDITY POOL
On a dex, the liquidity between two cryptocurrencies / tokens is ensured by a fund comprising most often half of one and the other in value. Financial operators can draw from it as needed and against interest.
PROOF OF WORK
Part of the mining process that determines who will be the next miner allowed to add the next block to the blockchain.
SCALABILITY
Technical possibility of adapting the network to an increase in needs in order to meet challenges such as the slowdown in transaction times or the increase in user fees.
SMART CONTRACT
Self-executing smart contracts, where the terms of the transaction are written into the lines of code. The contract is hosted on a blockchain, which makes it possible to carry out transactions and agreements of trust without resorting to a central authority from a third party. Thanks to this, transactions are traced, transparent and irreversible.
STABLECOIN
Cryptocurrency attached to an asset or a basket of assets (currency of a central bank, commodities, precious or industrial metals, other cryptocurrencies) whose value is stabilized within a price range (by various technical means).
TOKEN
Digital asset individualized by its creator. It is based on a blockchain, which allows its issuance and authorizes its exchangeability. Unique and tamper-proof, a token sees all of its exchanges secured and recorded in an unmodifiable register. Non-duplicable, a token is however freely transferable online between two parties.
WALLET
wallet for storing crypto-currencies on a computer or online, with encrypted keys to secure access to data. Each currency can have its own wallet. For added security, a physical storage device may be an alternative. It is also possible to store your crypto-currencies on online exchanges, but the risks of data hacking are higher.
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