TERMS DEFINED

DesCrypto Knowledge Base

A

Adoption curve, commonly referred to as the Bell Curve, indicates the pace of adoption of a new technology by people in various target segments from innovators and early adopters to mass market to the late adopters.

An altcoin is any coin that’s not Bitcoin. Altcoins can be anything from the second-most popular coin, Ethereum, to any of the thousands of coins with very minimal market value. Experts say you should largely stick to the bigger, more mainstream cryptocurrencies as an investment.

Application Programming Interface (API), it is a piece of code which allows two applications to share information.  It is a set of routines, protocols, and tools for building software applications. APIs will dictate how software components should interact, such as what data to use and what actions should be taken.

B

Bitcoin is the most popular and first cryptocurrency ever developed, it was introduced in 2008 
Groups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records. Each block can hold only a certain amount of information. Once it reaches that limit, a new block is formed to continue the chain.
A digital form of record keeping, and the underlying technology behind all cryptocurrencies, Defi and Fintech industries. A blockchain is the result of sequential blocks that build upon one another, creating a permanent and unchangeable ledger of transactions or other valuable data.

C

A central ledger is a physical book or a computer file used to record transactions in a centralized manner.
A secure method of storing your cryptocurrency completely offline. Many cold wallets, are physical devices that look similar to a USB drive.
A digital currency that is secured by cryptography to work as a medium of exchange within a peer-to-peer (P2P) economic system.
Science of using mathematical theories and computation in order to encrypt and decrypt information.

D

Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.
Applications that run on a P2P network of computers rather than one central computer. This allows the software to run on the internet without being controlled by a single entity.
The ecosystem comprised of decentralized financial applications developed on top of blockchain networks.
Refers to anything that was previously impossible to make, or anything that shouldn’t be able to exist in today’s Defi ecosystem including but not limited to a more integrated digital and real world decentralized financial system.

E

ERC-1155 digital token standard was created by Enjin and offers more security in comparison to older token standards. It can be used to create both fungible and non-fungible assets on the Ethereum network.
A technical standard used to issue and implement tokens on the Ethereum blockchain proposed in November 2015 by Fabian Vogelsteller.

F

Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets.

G

The pricing mechanism employed on the Ethereum blockchain to calculate the costs of smart contracts operations and transaction fees.
A small denomination of Ether. It is widely used as a measure of gas prices. 1,000,000,000 wei = 1 Giga wei (Gwei)

H

A cryptographic hash function is an algorithm that takes an arbitrary amount of data input and produces a fixed-size output of enciphered text called a hash value, or just “hash.” 

Now famously coined “Hold On for Dear Life” though the term originated from a user typo on a trading forum in 2013. It refers to a passive investment strategy in which people buy and hold onto cryptocurrency rather than trading it in hopes it will increase in value over time.

A software-based cryptocurrency wallet connected to the Internet.

I

Initial Coin Offering: a type of funding or crowdsale using cryptocurrencies as a means for raising capital for early-stage companies.

Initial Dex Offering: (IDX) alternative to ICO

Initial Exchange Offering: used for start ups to generated capital by listing on exchange in order to crowdsource funding.

Initial Farm Offering: used to raise capital for DeFi projects through a farming feature offered on decentralized exchanges.

Initial Game Offering: provide individuals with an opportunity to invest in gaming projects at an early stage that offer high returns after launch.

Initial Token Offering: very similar to an initial coin offering but are focused on intrinsic utility in the form of software of ecosystem usage.

Security Token Offering: a type of public offering or crowdsourcing of funds in which tokenized digital securities are sold in security token exchanges.

J

Java is an object-oriented programming language that produces software for multiple platforms. When a programmer writes a Java application, the compiled code (known as bytecode) runs on most operating systems (OS), including Windows, Linux and Mac OS.

Stands for Joy of Missing Out

K

Short for Know Your Customer, these are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers.

L

Layer 0 is a network framework running beneath the blockchain. It is made up of protocols, connections, hardware, miners, and everything else that forms the foundation of the blockchain ecosystem.
Layer 1 blockchain is a set of solutions that improve the base protocol itself.
Layer 2 is the name given to a scaling solution that enables high throughput of transactions whilst fully inheriting the security of the underlying blockchain that it is built on.

M

An independent blockchain running its own network with its own technology and protocol.
An independent blockchain running its own network with its own technology and protocol.
It’s a combination of multiple elements of technology, including virtual reality, augmented reality and video where users “live” within a digital universe.

N

Non-fungible Token, or NFTs, are pieces of unique digital content linked to and verified by the blockchain. 

Non-fungible means that it’s unique and can’t be replaced with something else. 

O

Off-chain transactions occur outside the blockchain network. Such a transaction doesn’t need the services of miners because no ledger verification is conducted.Unlike on-chain transactions, off-chain transactions can be made instantly. This method entails lower fees, happens instantly, and offers more anonymity. Off-chain transactions, on the other hand, occur almost instantly via a few different methods. Without having to wait for confirmations from the blockchain network, transactions are conducted faster. On-chain transactions require validators to validate the transactions and end up costing high fees. While off-chain transactions are usually free or low cost. These transactions aren’t visible on the blockchain, offering more privacy. Off-chain transactions can occur between two parties by having a transfer agreement. A third party might work as a guarantor to ensure a successful transaction. Today, some payment processors also work along these lines.
On-chain transactions are reflected on the distributed ledger by the blockchain network. It includes the verification of the ledger by miners to validate the transaction. Since it’s all happening on-chain, transaction details are recorded. The transaction is added to the distributed ledger and made visible on the entire blockchain. This makes it irreversible.Considering various other transactions waiting for validation in the queue and a number of steps to be fulfilled, it is easy to understand why on-chain transactions take longer to occur successfully. On top of that, there are potentially high fees associated with on-chain transactions.
Open Source Software:Software released under a license that gives anyone the ability and right to use, update, and distribute it freely.

P

Proof of Stake: protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency.
Proof of Work: is a form of cryptographic proof in which one party (the prover) proves to others (the verifiers) that a certain amount of a specific computational effort has been expended. … This idea is also known as a CPU cost function, client puzzle, computational puzzle, or CPU pricing function.

Q

A computer that harnesses phenomena from quantum mechanics in order to perform much more efficient computations than older, classical computer technologies are capable of.

R

A computer that harnesses phenomena from quantum mechanics in order to perform much more efficient computations than older, classical computer technologies are capable of.

S

The smallest unit of bitcoin with a value of 0.00000001 BTC.

A systematic analysis to evaluate how safe a system, smart contract, or blockchain is against attacks or technical failures.
Secure Multi-Party Computation (sMPC)SMPC is a subfield of cryptography that allows parties to compute a function while keeping the inputs private.

T

Total Value Locked: this represents the number of assets that are currently being staked in a specific protocol.

U

Unbanked refers to individuals who remain unable to access basic banking products and services, most of them coming from marginalized sectors of society, and thus, rejected by traditional financial institutions for various reasons. The unbanked also includes people who have chosen not to use banks or other traditional financial services.In many cases, most of the unbanked are poor individuals who can not afford nor fulfill the requirements of opening a bank account. Despite governments’ efforts in working on developing new financial products that can help reach out to unbanked populations through microfinancing and other methods, many banks continue to deny low-income customers for not having enough resources.
A public ledger that is open to anyone, without being controlled by a single owner.

Unspent Transaction Output: An output created in a transaction, which must be referenced in a future transaction to spend funds.

V

A blockchain validator is someone who is responsible for verifying transactions on a blockchain. Once transactions are verified, they are added to the distributed ledger.

W

A place where cryptocurrency users can store, send and receive digital assets.
Web 3.0 is the third generation of internet services for websites and applications that will focus on using a machine-based understanding of data to provide a data-driven and Semantic Web. The ultimate goal of Web 3.0 is to create more intelligent, connected and open websites.
The smallest possible denomination of ether (ETH), the currency used on the Ethereum network. Often used when referring to gas prices. Also Called GWei.

Y

Yield farming involves earning interest and fees by investing crypto in decentralized finance markets.

Z

Proving certain information or data is true without revealing it.

January 2012, a professor at UC Berkeley named Alessandro Chiesa co-authored a paper that coined the term zk-SNARK for the zero-knowledge proofs they constructed for the first time.

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