A 51% attack is a situation where a single person or group gains control of more than half of the computing power on a blockchain network. With this majority, they can manipulate the system by reversing transactions or blocking new ones from being confirmed. This threatens the security and trustworthiness of the blockchain, as it…
Hash rate is a measure of how quickly a computer or network can perform cryptographic calculations, called hashes, each second. In cryptocurrency mining, a higher hash rate means more attempts to solve the mathematical puzzles needed to add new blocks to the blockchain. This metric is important because it reflects the overall processing power and…
EVM compatibility means that a blockchain can run software and smart contracts designed for the Ethereum Virtual Machine. This allows developers to use familiar tools and programming languages when building applications on different blockchains. Blockchains with EVM compatibility can interact with Ethereum-based apps and services more easily.
Nakamoto Consensus is the method used by Bitcoin and similar cryptocurrencies to agree on the transaction history of the network. It combines a process called proof-of-work, where computers solve complex puzzles, with rules that help the network decide which version of the blockchain is correct. This ensures that everyone on the network can trust the…
A validator node is a computer in a blockchain network that checks and approves transactions to ensure they follow the rules. Validator nodes help keep the network secure and trustworthy by confirming that each transaction is valid before it is added to the blockchain. People or organisations who run validator nodes are often rewarded for…
Crypto staking is a process where you lock up your cryptocurrency in a blockchain network to help support its operations, such as validating transactions. In return, you can earn rewards, typically in the form of additional coins. Staking is often available on blockchains that use a consensus method called Proof of Stake, which relies on…
Slippage tolerance is a setting used when making financial transactions, especially in cryptocurrency trading. It represents the maximum difference you are willing to accept between the expected price of a trade and the actual price at which it is executed. This helps prevent unexpected losses if market prices change quickly during the transaction process.
Wrapped tokens are digital assets that represent another cryptocurrency on a different blockchain. They allow tokens from one blockchain, like Bitcoin, to be used on another, such as Ethereum, by creating a compatible version. This makes it possible to use assets across different platforms and take advantage of various services, such as decentralised finance applications.
A token airdrop is when a blockchain project distributes free tokens or cryptocurrencies to a group of people, usually to promote the project or reward loyalty. Recipients might be chosen based on criteria like holding a specific cryptocurrency, participating in a community, or signing up for an event. The process is designed to spread awareness…
An Initial Coin Offering (ICO) is a way for new cryptocurrency projects to raise money by selling their own digital tokens to investors. These tokens are usually bought with established cryptocurrencies like Bitcoin or Ethereum. The funds collected help the project team develop their product or service. ICOs are somewhat similar to crowdfunding, but instead…