Payment channels are a technology that allows two parties to conduct multiple transactions between each other without recording every transaction on a public blockchain. Instead, only the opening and closing balances are recorded, which helps reduce fees and increase transaction speed. This method is commonly used to make frequent or small payments more efficient.
Batch auctions are a way of selling or buying items where all bids and offers are collected over a set period of time. Instead of matching each buyer and seller instantly, as in continuous trading, the auction processes all orders together at once. This approach helps to create a single fair price for everyone participating…
Gasless transactions are blockchain transactions where users do not need to pay transaction fees, commonly known as gas. Instead, a third party, such as a sponsor or a smart contract, covers the fees on the user’s behalf. This makes it easier for newcomers to use blockchain applications without needing to hold cryptocurrency for fees.
Bonding curves are mathematical formulas used in digital markets to set the price of a token based on its supply. As more people buy tokens, the price automatically rises according to the curve, and when tokens are sold, the price falls. This system helps automate pricing and liquidity without needing a traditional market or order…
An Initial DEX Offering (IDO) is a way for new cryptocurrency projects to raise funds by selling their tokens directly on a decentralised exchange (DEX). This method allows anyone to participate in the token sale, often with fewer restrictions than traditional fundraising methods. IDOs typically offer immediate trading of tokens once the sale ends, providing…
Token burning is the process of permanently removing a certain amount of cryptocurrency tokens from circulation. This is usually done by sending the tokens to a special address that cannot be accessed or recovered. The main goal is to reduce the total supply, which can help manage inflation or increase the value of the remaining…
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…