Covenant contracts are a type of agreement used mainly in decentralised finance and blockchain systems. They include specific rules or restrictions about how and when assets can be used or transferred. These contracts help ensure that certain conditions are met before actions are carried out, adding an extra layer of security and trust to transactions….
A verifiable random function, or VRF, is a type of cryptographic tool that produces random outputs which can be independently checked for correctness. When someone uses a VRF, they generate a random value along with a proof that the value was correctly created. Anyone can use this proof to verify the result without needing to…
Decentralised key management is a way to handle digital keys, such as those for encryption or signing, without relying on a single central authority. Instead, the responsibility for creating, storing, and sharing keys is spread across multiple people or systems, making it harder for any one person or group to compromise the entire system. This…
Front-running mitigation refers to methods and strategies used to prevent or reduce the chances of unfair trading practices where someone takes advantage of prior knowledge about upcoming transactions. In digital finance and blockchain systems, front-running often happens when someone sees a pending transaction and quickly places their own order first to benefit from the price…
Futarchy is a proposed system of governance where decisions are made based on predictions of their outcomes, often using prediction markets. Instead of voting directly on what to do, people vote on which goals to pursue, then use markets to predict which actions will best achieve those goals. This approach aims to use collective intelligence…
Quadratic voting is a method of collective decision-making where people allocate votes not just by choosing a single option, but by buying multiple votes for the issues they care most about. The cost of each extra vote increases quadratically, meaning the second vote costs more than the first, the third more than the second, and…
Token Curated Registries are online lists or directories that are managed and maintained by a group of people using tokens as a form of voting power. Anyone can propose an addition to the list, but the community decides which entries are accepted or removed by staking tokens and voting. This system aims to create trustworthy…
Proof of Authority is a consensus mechanism used in some blockchain networks where a small number of approved participants, known as validators, are given the authority to create new blocks and verify transactions. Unlike systems that rely on mining or staking, Proof of Authority depends on the reputation and identity of the validators. This method…
Proof of Burn is a method used in some cryptocurrencies to verify transactions and create new coins. It involves sending tokens or coins to a public address where they cannot be accessed or spent, essentially removing them from circulation. This process is used to demonstrate commitment or investment in the network, as participants must sacrifice…
Sybil resistance is a set of techniques used to prevent or limit the impact of fake or duplicate identities in online systems. Without these protections, one person could create many accounts to unfairly influence votes, gain rewards, or disrupt services. Sybil resistance helps ensure that each user is unique and prevents abuse from people pretending…