Glossary

Understanding Permissionless Systems A permissionless system operates without gatekeepers or centralized authorities that control access or usage. In the context of blockchain technology, Bitcoin exemplifies a permissionless system. It allows anyone to participate in its network without restrictions, as long as they adhere to the protocol’s rules. There are no barriers or intermediaries to prevent…

What is Proof of History (PoH)? Proof of History (PoH) is a consensus mechanism that establishes a verifiable and cryptographic timeline of events on a blockchain. It enables extremely fast and efficient transaction processing by ensuring all nodes agree on the order of transactions without requiring frequent communication. PoH was developed as an innovative solution…

What Is Proof-of-Stake (PoS)? Proof-of-Stake (PoS) is a consensus mechanism used in blockchain systems to validate transactions and secure the network while addressing the problem of double counting—when the same coin or token is used in more than one transaction. In decentralized systems like cryptocurrencies, mechanisms such as PoS or Proof-of-Work (PoW) are critical for…

What Is Proof-of-Work (PoW)? Proof-of-Work (PoW) is a consensus mechanism used by many cryptocurrencies to validate transactions and secure the blockchain. In a PoW system, miners compete to solve complex mathematical puzzles, and the first miner to solve the puzzle is rewarded with cryptocurrency and allowed to add a new block to the blockchain. This…

What is Rebase? A rebase token (or price-elastic token) is a type of cryptocurrency designed with a mechanism that adjusts its circulating supply automatically in response to price fluctuations. This adjustment, known as the rebase mechanism, causes the supply to expand or contract without affecting the total value of the tokens held by users. Rebase…

What is Rekt in Crypto? In the cryptocurrency community, Rekt is internet slang derived from the word “wrecked.” It refers to someone who has suffered a significant financial loss due to a bad trade, poor investment decision, or market downturn. The term is commonly used in online forums and discussions to describe the aftermath of…

What is a Rug Pull? A rug pull is a scam in the cryptocurrency and decentralized finance (DeFi) space where developers of a project suddenly remove all the funds from a liquidity pool, rendering the associated token worthless. This fraudulent act often leaves investors with unusable tokens and significant financial losses. Rug pulls are particularly…

Who Is Satoshi Nakamoto? Satoshi Nakamoto is the pseudonym used by the person, or group of people, credited with creating Bitcoin. This enigmatic figure wrote the Bitcoin whitepaper, a groundbreaking document that introduced the concept of a decentralized digital currency. Published in 2008 during the aftermath of the global financial crisis, the whitepaper proposed a…

What is Slippage? Slippage occurs when the final price of a cryptocurrency trade differs from the price you expected at the time of placing the order. This happens because cryptocurrency markets are highly dynamic, and prices can fluctuate rapidly between the moment you initiate a trade and when it is completed. Slippage is a common…