Wiki

Blockchain

A

Airdrop

Distribution of cryptocurrency to multiple wallet addresses

AMM(Automated Market Maker)

AMM is an algorithm that automatically determines the price of an asset by a mathematical formula when a trader wants to buy or sell an asset. AMM is based on a pool of liquidity, not an order book like cebtralized exchanges. AMM is a type of DEX(decentralized exchange) protocol

API(application programming interface)

A type of software connection between computers, which offers services to other software

Asset-backed token

It refers to digital assets backed by tangible or intangible assets with economic value, such as real estate and energy.

Atomic swap

It refers to direct exchange of two different cryptocurrencies without going through exchanges

B

Bitcoin

The world-first decentrallized cryptocurrency without any central bank or government to control it

Block/Blockchain

A block is a group to collect and manage multiple transactions as one. For example, in the case of Bitcoin, about 2,000 transactions conducted for 10 minutes are bundled into one block and managed. In the case of Litecoin, the transaction history for about 2 minutes and 30 seconds is created and managed as one block. A chain structure can be created using hashes to connect one block to the next. A chain structure can be created using hashes to connect one block to the next. In this way, a number of transactions are bundled into a block and then chained in chronological order. This is called blockchain.

Blocktime

It refers to how long it takes a blockchain network to add one block of transactions to the blockchain.

Bootstrapping node

A bootstrapping node is a node that offers initial configuration information to newly joining nodes so that they may successfully join the overlay network.

C

Coin

Cryptocurrency which has its own independant blockchain protocols(mainnet) like Bitcoin, Ethereum as opposed to token which doesn't have its own mainnet

Consensus

Consensus is a process of reaching general agreement. It has double meaning: 1.Algorithm: when a new block is added, the full nodes verifi it and then after getting the full nodes´consensus, it is added. 2. Human perspective added: a group of people discuss and/or vote then get the general agreement, consensus .

Cosmos

Cosmos is an ecosystem of blockchains that can scale and interoperate with each other using Tendermint consensus algorithm

CW20

CW20 is a specification for fungible tokens based on CosmWasm. The name and design is loosely based on Ethereum's ERC20 standard, but many changes have been made.

D

DAO

A decentralized autonomous organization represented by rules encoded as a computer program, "code is law" and as it is decentralized, it is not influenced by a central authorities

DSO

We came up with DSO(decentralized social organization), loosely based upon DAO but emphasizing on the off-chain consensus building process. We believe human interpretation of law is necessary.

DDOS attack

Distributed Denial of Service, a cyber attack which targets websites and online services making them inoperable by overwhelming them with more traffic

Decentralization

Decentralization is the process by which decision-making of an organization is away from a central group. Blockchain based networks are designed to support decentralization and decentralized protocols, applications could be difficult for central authorities, governments to censor, control or regulate.

Delegation

In a dPoS(delegated Proof of Stake), delegators delegate their tokens to the validators, delegators help validators build their stakes and validators secure the network. However, Delegators don´t do due diligence on validators, tend to pursue their yield farming, pile into small number of validators who provide lower commission, sometimes even zero commission. This could lead to concentration of power to only the richest few validators.

DEX(Decentralized exchange)

As opposed to CEX(centralized exchange), decentralized exchange(DEX) is a peer-to-peer(P2P) marketplace that connects buyers and sellers of cryptocurrency. It is non-custodial which means users control their own private keys for the transaction.

Double sign

In the Cosmos blockchain ecosystem, double signing refers two signing and broadcasting two different pieces of information for the same height for the same chain. When this happens, usually the validator who double signed get punished/slashed.

dPoS

delegated Proof of Stake consensus, variation of Proof of Stake where delegators offer tokens to validators to stake and secure the blockchain. In theory, delegators need to compare each validators but they tend to choose "big" validators and/or with lower commission which leads to concentration of power to a few validators.

E

Engagement

In Tgrade, we use Proof of Engagement consensus. This is for the chain's sustainability, all the community members can contribute/engage in their own way, be it technical or non-technical like promotion, and all of this is done in a decentralized manner.

Engagement Rewards

When Tgrade community member engage, it is evaluated by Oversight community and he/she who engaged can get the engagement rewards. Validators can get combined rewards, staking and engagement rewards.

ERC20

ERC stands for Ethereum Request for Comment, and 20 is the proposal identifier. This token standard defines a set of rules that apply to all ERC20 tokens that allow them to interact seamlessly with one another.

ERC721

ERC721 is token standard interface of NFT(non-fungible tokens) on the Ethereum blockchain

Ethereum

Ethereum is a public blockchain protocol with smart contract scripting functionality made by Vitalik Buterin, and its current cryptocurrency market value is the second after Bitcoin.

F

Faucet

In the cryptocurrency world, faucet means an application or a website where users can get rewards in cryptocurrency in exchange of small task completion.

Fork

Blockchain fork means a split of blockchain network. There is hard fork and soft fork depends on its backward compatibility.

G

Genesis

A genesis block is the first block of the blockchain upon which we add additional block on it and normally we call them block 0.

H

Hardfork

Backward-incompatible software updates and this occurs when nodes add new rules which disagree with the old nodes and their rules.Therefore the blockchain splits, generating two separate networks, one with old rules and the otner with new rules. Famous example is Bitcoin(BTC) and Bitcoin Cash(BCH) hardfork.

I

IBC(Inter-Blockchain Communication)

Cosmos inter-blockchain communications standard for fast and secure cross-chain digital asset exchanges

L

LP(Liquidity Pool)

Liquidity pools are collection of tokens locked in smart contracts and are used to facilitate decentralized trading.

LP(Liquidity Provider)

Crypto user who offers his/her tokens to the liquidity pool to facilitate trading and earn passive income on his/her deposit.

M

Mining

The process of discovering new Bitcoin by solving mathematical problem using immense computing power in exchange of rewards.

N

NFT(Non-fungible token)

Non-fungible token which is unique and can't be replaced. Most NFTs are part of the Ethereum blockchain.It can be anything which has digital form and the current hype is around selling digital art.

Node

Blockchain nodes refer to a network's stakeholder and/or devices. Its main purpose is to verify the validity of each transaction called blocks and each node has a unique identifier.

P

PoE(Proof of Engagement)

Proof of Engagement is the best combination of Proof of Stake and Proof of Authority. It was developed as a paper and modelled in 2020 and is motivated by the observation that the strongest blockchains were supported by a community. The Proof of Stake models were seen to concentrate power in a smaller number of validators. PoE takes a different route to decentralisation, by using curves to eliminate the rewards of large stakes, and to distribute the rewards by combining engagement rewards with stake thus incentivising participation and innovation. The network security is built through the framework of PoE and the incentives to the whole community to collaborate along with the economic model to build and maintain a decentralised network.

PoS(Proof of Stake)

Proof of Stake is a consensus mechanism that works by selecting validators based on the coins they are staking, which means validators commit funds to the system locking their funds, malicious validators can lose their stake and kicked out of the network meanwhile honest validators are rewarded as new blocks generated. As opposed to Proof of Work, Proof of Stake does not require significant amounts of energy consumption as validators can secure the network using their individual machines not specialized mining hardware.

PoW(Proof of Work)

Proof of Work is a consensus used by Bitcoin, when miners compete to append new blocks and mint new coin, their success is proportional to their computational effort expended. Computational capacity leads to high energy consumption.

Private key

Typically a string of letters and numbers that is difficult to guess. Private key is used to decrypt message, meanwhile public key is used to encrypt message. It is impossible to deduce the private key even if you know the public key. This use of private key increase data and identity security. Private key encryption is known as symmetric encryption. Private key is essential part of cryptocurrency.

Public key

When you buy cryptocurrency, you are issued a public key and private key. Public key works like email address and private key like password. Public key for encryption and private key for decryption.

R

Reentrancy attack

Using the first reentrancy attack, the DAO was hacked and 3.6 million Ether ($50 Million) were stolen in 2016. A reentrancy attack occurs when the attacker drains funds from the target by recursively calling the target’s withdraw function. When the contract fails to update the user’s balance prior to sending funds, the attacker can continuously call the withdraw function to drain the contract’s funds.

S

Softfork

As opposed to Hardfork, a softfork is a backward-compatible upgrade of nodes, the new rules don't conflict with the old ones.

Stable coin

Stablecoin is a cryptocurrency whose value is pegged to the fiat money, other cryptocurrency or tradable commodities.

T

Token

Cryptocurrency which doesn't have its own independant blockchain mainnet as opposed to coin

Tokenization

Like securitization, tokenization refers to issuing tokens that digitally substitute the tradable assets such as painting, carbon credit, real estate etc.

Trusted Circle

Trusted circles are a circle of people you know and trust that you can build on Tgrade blockchain, you can issue your own digital asset and limited it to your trusted circle.

V

Validator

Blockchain validators verify transactions on blockchain, after this verification, the transaction can be added to the chain. Often called as "node operators".

Y

Yield-farming

Just like yield on a bond or dividend, yield-farming in DeFi is a process that allows crypto user earn rewards on their holding digital asset. Normally the goal is to maximize the return, yield farmers typically move between different strategies.

Z

Zero-knowledge

In cryptography, Zero-knowledge proof refers to an interactive method for one party to prove to another that a statement is true, without revealing anything other than the veracity of the statement.

Finance

A

Anti Money Laundering (AML)

Anti-money laundering (AML) refers to the regulations, procedures and laws whose purpose is to prevent criminals from disguising illegally obtained funds as legitimate income. Financial institutions like banks monitor transactions and report when there is suspicious activities. Typically AML is more broader level compared to KYC.

C

Central CounterParties (CCP)

Central Clearing Counterparties refers to a financial institution which provides clearing and settlement services for buyers as seller position, for sellers as buyer position.

Central Securities Depository (CSD)

Central Securities Depository refers to a financial institute that holds financial instruments such as mutual funds, equities, bonds etc.

Credit default swap

Credit Default Swap is a way to short bonds. This refers to a credit derivative contract between two counterparties. The buyer makes periodic payments to the seller, and in return receives a payoff if an underlying financial instrument defaults. The purpose of Credit Default Swap is either hedge or speculation.

E

Escrow

Escrow refers to a legal arrangement in which a third party temporarily holds money or property until a particular condition has been met. In the context of cryptocurrency too, escrow service refers to the mediation service that holds cryptocurrency between a buyer and a seller until a certain obligation fulfills.

ESG(Environment, Social and Governance)

Environmental, Social and Governance. This classification is important for transparency on how companies are performing to these benchmarks as investors are increasingly demanding this.

F

Fixed-income

Debt based instruments, issued for a fixed time period and paying interest. Also known as Fixed interest.

M

Multilateral Trading Facility

Multilateral Trading Facility(MTF) refers to a trading system that eases the exchange of financial instruments of different parties, and this is European Union regulatory term for a self-regulated financial trading venue.

P

Pump and Dump

Commonly seen in unregulated markets where people buy an asset and then take to social media to start talking about the asset to convince people that it will go up in value, as it rises in price, the Pump and Dump orchestators then sell their assets and stop promoting it.

S

Spoof

A spoof order is where an order is submitted to an order book to show demand or indicate a sale, others then submit orders believing there is activity, and the spoofer then cancels the order. It is used to artificially move the price.

W

Washtrade

A person using two accounts trades between themselves, often with low quantities to make it appear that the asset is rising or falling in value with the hope that others take up the trend. This price manipulation is similar to Pump and Dump.

Whitelist

Whitelist is a list of people or things considered to be trustworthy and if we use this as a verb, this means to put something or someone in the whitelist

Governance

G

Governance

In a blockchain network, governance refers to the decision-making process.

Q

Quorum

The number of votes cast as a proportion of the number of eligible votes. The level is set to ensure sufficient participation in voting takes place.

R

Reasoned Decision

Where all the facts are gathered, and an area of the law is discussed, the outcome is a reasoned decision that gives the reasoning on why the decision was made.

T

Threshold

The number of "yes" votes needed to pass a proposal.