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Algorithmic Stablecoin |
Algorithmic stablecoins are cryptocurrencies designed to achieve price stability and balance the circulating supply of the asset with demand (usually pegged to a reserve price). |
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| anonymity |
Anonymity |
“Anonymous” is if no one knows who you are. |
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| arbitrage-bots |
Arbitrage Bots |
Trading bots are computer programs that algorithmically buy and sell various cryptocurrencies at the right time with the goal of generating a profit. Arbitrage bots are a specific subset of trading bots that structure trades to take advantage of different prices for a single asset either across different trading pairs or on different trading platforms. |
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Audits |
Generally speaking, an audit is an independent assessment of a project seen through the lens of a particular concern. Examples of these concerns include code correctness, security, compliance, economics, etc. |
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| amm |
Automated Market Makers |
Decentralized exchanges that implement liquidity pools of trading pairs rather than a centralized orderbook. |
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Block Rewards |
The reward given to miners for successfully solving a cryptographic problem at each block in a Proof-of-Work blockchain system. |
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Bonding Curves |
A linear or non-linear function that relates the price of a token algorithmically to its supply. |
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| bft |
Byzantine Fault Tolerance |
Byzantine Fault Tolerance is the characteristic which defines a system that tolerates the class of failures that belong to the Byzantine Generals’ Problem |
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| chain-reorg-attacks |
Chain Reorganization |
Chain reorganisations happen when a node on the blockchain network realizes that what it thought was the canonical chain turned out not to be. When this happens, the transactions in the latter part of its chain (i.e. the most recent transactions) are reverted and rather the transactions in the newer replacement are executed. |
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| consensus |
Consensus |
Consensus is a group decision-making process in which group members develop, and agree to support a particular decision (e.g. the one in the best interest of the whole or the most valid decision). |
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| cfmm |
Constant Function Market Maker |
Automated market makers that use a fixed formula to relate price to reserve balances. |
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Constant Mean Markets |
A generalization of a constant product market maker which allows for more than 2 assets and where the reserves of each asset can be weighted in arbitrary other methods than simply 50/50. |
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| constant-product |
Constant Product Markets |
Automated market makers that use a formula of the form x*y=k where k is constant to relate price to reserve balances, e.g. Uniswap. |
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Correct-By-Construction Casper |
CBC Casper is a family of ""correct-by-construction"" consensus protocols that share the same proof of asynchronous, Byzantine fault tolerant consensus safety. |
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| dao |
DAO |
Decentralized Autonomous Organization. A public and permissionless organization that is governed programmatically and is not under the control of a single entity. |
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| dex |
Decentralized Exchange |
A platform for exchanging asset pairs that is not under the control of a single entity and is generally implemented using a smart contract, allowing users to trade with each other or with the protocol directly without requiring a trusted third party. |
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| defi |
DeFi |
A collective term for public financial products and services that are accessible built on top of smart contract based blockchain systems and are not under the control of a single entity. |
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| derivatives |
Derivatives |
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index). |
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| eip1559 |
EIP-1559 |
A particular improvement proposal to the Ethereum blockchain that implements a moving base fee in accordance with demand and gas usage. |
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| ethereum |
Ethereum |
Ethereum is a decentralized blockchain which implements automated smart contracts in a payment and transaction oriented architecture. |
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| flash-loans |
Flash Loans |
Flash loans are loans issued on a smart-contract based blockchain that require no capital from the borrower and are allowed to be paid back in the same block, allowing users to instantaneously perform arbitrage trades without significant capital investment. |
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| formal-verification |
Formal Verification |
Formal verification is essentially concerned with identifying the correctness of hardware and software design operation. |
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Fraud Proofs |
A fraud proof is a way to prove that a blockchain tip is invalid. |
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| front-running |
Front-Running |
Entering into an equity trade, options or futures contracts with advance knowledge of a block transaction that will influence the price of the underlying security to capitalize on the trade. |
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| game-theory |
Game Theory |
Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents. |
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Gas Costs |
Gas refers to the unit that measures the amount of computational effort required to execute specific operations on the Ethereum network. Since each Ethereum transaction requires computational resources to execute, each transaction requires a fee. Gas refers to the fee required to successfully conduct a transaction on Ethereum. |
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| governance |
Governance |
The problem area for answering who can make decisions, how they are made, and who is accountable for a given system. |
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| interoperability |
Interoperability |
Interoperability refers to the basic ability of computerized systems to connect and communicate with one another readily, even if they were developed by widely different manufacturers in different industries. In cryptonetworks, this generally refers to between different blockchain systems. |
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| iot |
Internet of Things |
Internet of Things (IoT) describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. |
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| layer-2 |
Layer 2 |
Layer 2 is a collective term for solutions designed to help scale applications by handling transactions off the main chain (layer 1). |
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| mev |
Miner Extractable Value |
Value that is extractable by miners directly from smart contracts as cryptocurrency profits. |
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| mining |
Mining |
Mining is the process of verifying cryptocurrency transactions and recording them in the public blockchain ledger. Those who have the required hardware and computing power are called miners. |
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Multi-Signature |
Multisignature wallets (or multisig, for short), are cryptocurrency wallets that require two or more private keys to sign and send a transaction. The storage method requires multiple cryptographic signatures (a private key’s unique fingerprint) to access the wallet. |
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| network-security |
Network Security |
Blockchain network security is a comprehensive risk management system for a blockchain network, using cybersecurity frameworks, assurance services and best practices to reduce risks against attacks and fraud. |
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| non-fungible |
Non-Fungible |
Non-fungible assets are unique, indivisible, and not interchangeable. |
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On-Chain Governance |
On-chain governance refers to the system for managing control and development of a blockchain-based network. This encompasses methods for collecting information, structuring incentives, collecting signal from ecosystem participants, and ultimately acheiving consensus (usually voting) on decisions. |
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Optimistic |
Optimism refers to transaction schemes that use Optimisitic Rollups. I.e. they rely on using fraud proofs to prevent invalid state transitions from happening. In simple terms, if there was a dispute about the result of a transaction that modifies a user's ETH balance, the user would try to replay that exact transaction on Ethereum to demonstrate the correct result there. |
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| oracles |
Oracles |
Oracles are smart contract structures that deliver off-chain information to on-chain systems. |
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| payment-channel |
Payment Channel |
A Payment Channel is class of techniques designed to allow users to make multiple payment transaction, namely on Bitcoin, without commiting all of the transactions to the Bitcoin block chain. In a typical payment channel, only two transactions are added to the blockchain but a nearly unlimted number of payments can be made between the participants off-chain. |
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Plasma |
An architecture which frames all blockchain calculation into a community of MapReduce structures, plus an additional way to execute Proof-of-Stake token linkage ahead of pre-existing blockchains, with the conception that Nakamoto Consensus Drivers disincline block restraint, guaranteed by implementing a smart contract on the root blockchain using the Proof-of-Fraud method. |
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| post-mortem |
Post-Mortem |
A retrospective analysis of events that have taken place in the cryptocurrency and cryptonetwork space. |
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| privacy |
Privacy |
“Private” is if what you purchased, and for what amount, are unknown. |
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| proof-of-reserve |
Proof-of-Reserve |
A definitive proof regarding the amount of monetary value held in a given account or wallet. |
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| proof-of-stake |
Proof of Stake |
Proof of stake is a type of consensus mechanism used by blockchain networks to achieve distributed consensus where users stake their assets to become a validator in the network. Validators are responsible for the same thing as miners in proof-of-work: ordering transactions and creating new blocks so that all nodes can agree on the state of the network. |
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| proof-of-work |
Proof of Work |
Proof-of-work is the underlying algorithm that sets the difficulty and rules for the work miners do. Mining is the ""work"" itself. It's the act of adding valid blocks to the chain. This is important because the chain's length helps the network spot the valid chain and understand the chain's current state. The more ""work"" done, the longer the chain, and the higher the block number, the more certain the network can be of the current state of things |
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| quantum-computing |
Quantum Computing |
Quantum computer are quantum bits or qubits (CUE-bits) which can store information in quantum form (superposition of multiple states). |
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Randomness Beacons |
A cryptographic beacon (also known as a randomness beacon) is a service that provides a public source of randomness. |
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| regulatory |
Regulatory |
Refers to regulatory topics, policies, and bodies. |
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| rollups |
Rollups |
Rollups are solutions that perform transaction execution outside layer 1, but post transaction data on layer 1 and inherit the security properties of the layer 1 chain. |
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| scalability |
Scalability |
Scalability is the measure of a system’s ability to increase or decrease in performance and cost in response to changes in application and system processing demands. In cryptonetworks, this refers to how transaction costs grow relative to increased size and usage of the network. |
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| schelling-point |
Schelling Point |
The ability of actors to coordinate their behavior even when not able to communicate. Coordinative solutions in games which are arrived at more often than theory would predict. |
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| securitization |
Securities |
Securities are fungible and tradable financial instruments used to raise capital in public and private markets. |
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| simulation |
Simulation |
Computer simulation is a program that is run on a computer and that uses step-by-step methods to explore the approximate behavior of a mathematical model |
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Sidechain |
Sidechains are emerging mechanisms that allow tokens and other digital assets from one blockchain to be securely used in a separate blockchain and then be moved back to the original blockchain if needed. |
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| staking-derivatives |
Staking Derivatives |
Derivative products linked to either the amount of stake deposited by a user into a protocol and/or the staking rewards distributed by the protocol to network participants. |
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| sybil-protection |
Sybil Protection |
Protection against an attack where where a node in a network illegitimately claims multiple identities. |
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| testing |
Testing |
Software testing is an investigation conducted to provide stakeholders with information about the quality of the product or service under test. |
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Verifiable Delay Functions |
A verifiable delay function (VDF) is a function f : X → Y that takes a prescribed time to compute, even on a parallel computer. However once computed, the output can be quickly verified by anyone. Moreover, every input x ∈ X must have a unique valid output y ∈ Y. |
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| zero-knowledge |
Zero Knowledge Proofs |
An indirect proof of a public statement where the indirect proof leaks no sensitive details and has the property that trurth of the indirect proof means the direct proof is also true. |
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