Category: Cryptocurrency

Fork Choice Rules

Fork choice rules are the guidelines a blockchain network uses to decide which version of the blockchain is the correct one when there are multiple competing versions. These rules help nodes agree on which chain to follow, ensuring that everyone is working with the same history of transactions. Without fork choice rules, disagreements could cause…

Liquidity Mining

Liquidity mining is a process where people provide their digital assets to a platform, such as a decentralised exchange, to help others trade more easily. In return, those who supply their assets receive rewards, often in the form of new tokens or a share of the fees collected by the platform. This approach helps platforms…

Yield Farming

Yield farming is a way for people to earn rewards by lending or staking their cryptocurrency in special online platforms called decentralised finance, or DeFi, protocols. Users provide their funds to these platforms, which then use the money for things like loans or trading, and in return, users receive interest or new tokens as a…

Staking Derivatives

Staking derivatives are financial products that represent a claim on staked cryptocurrency and the rewards it earns. They allow users to access the value of their staked assets without waiting for lock-up periods to end. By holding a staking derivative, users can trade, transfer, or use their staked funds in other financial activities while still…

Schnorr Signatures

Schnorr signatures are a type of digital signature scheme used to prove the authenticity of digital messages or transactions. They are valued for their simplicity, efficiency, and strong security properties compared to other signature methods. Schnorr signatures allow multiple signatures to be combined into one, reducing the amount of data needed and improving privacy.

Fiat On-Ramp / Off-Ramp

A fiat on-ramp is a service or platform that allows people to exchange traditional money, like pounds or euros, for digital assets such as cryptocurrencies. A fiat off-ramp does the opposite, enabling users to convert digital assets back into traditional money. These systems are essential for making digital assets accessible to everyday users and for…

MEV (Miner Extractable Value)

MEV, or Miner Extractable Value, refers to the extra profits that blockchain miners or validators can earn by choosing the order and inclusion of transactions in a block. This happens because some transactions are more valuable than others, often due to price changes or trading opportunities. By reordering, including, or excluding certain transactions, miners can…

Hash Rate

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…