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…
Decentralised Oracle Networks are systems that connect blockchains to external data sources, allowing smart contracts to access real-world information securely. Instead of relying on a single data provider, these networks use multiple independent nodes to fetch and verify data, reducing the risk of errors or manipulation. This approach ensures that data entering a blockchain is…
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 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 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…
Stablecoin collateralisation refers to the process of backing a digital currency, known as a stablecoin, with assets that help maintain its value. These assets can include traditional money, cryptocurrencies, or other valuable items. The goal is to keep the stablecoin’s price steady, usually linked to a currency like the US dollar or the euro. This…
NFT royalties are payments set up so that the original creator of a digital asset, like artwork or music, receives a percentage each time the NFT is resold. These royalties are coded into the NFT’s smart contract, which automatically sends the agreed percentage to the creator whenever a sale happens on compatible marketplaces. This system…
Soulbound Tokens (SBTs) are a type of digital token that cannot be transferred from one person to another once they are issued. Unlike typical cryptocurrencies or NFTs, SBTs are designed to represent personal achievements, credentials, or memberships that are unique to an individual. They are stored in a digital wallet and function as a permanent…
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.