100,000 Questions and Answers about Cryptocurrencies 6
What is a blockchain oracle?
A blockchain oracle is a trusted third-party service that provides external data to smart contracts on a blockchain. It allows smart contracts to interact with off-chain information.
What is a non-custodial wallet?
A non-custodial wallet is a cryptocurrency wallet where the user retains full control of their private keys and funds. The wallet provider does not have access to or custody of the user's funds.
What is a custodial wallet?
A custodial wallet is a cryptocurrency wallet where the wallet provider holds custody of the user's private keys and funds. The user relies on the provider to keep their funds safe.
What is a wallet backup?
A wallet backup is a process of storing a copy of a crypto wallet's private keys and other important information in a secure location in case the original wallet is lost or damaged.
What is a multi-chain wallet?
A multi-chain wallet is a cryptocurrency wallet that supports multiple blockchains, allowing users to store and manage tokens from different networks in a single wallet.
What is a proof-of-stake consensus mechanism?
Proof-of-stake (PoS) is a consensus mechanism used by some blockchains where validators stake their coins to participate in block production and earn rewards. It aims to be more energy-efficient than proof-of-work.
What is a Layer 2 solution?
Layer 2 solutions are scaling techniques built on top of existing blockchains (Layer 1) to improve transaction throughput and reduce fees. They include rollups, sidechains, and payment channels.
What is a crypto wallet recovery phrase?
A crypto wallet recovery phrase, also known as a seed phrase, is a series of words that can be used to restore a wallet and its funds if the original wallet is lost or forgotten.
What is a token sale?
A token sale is a fundraising event where new cryptocurrency tokens are sold to investors in exchange for fiat currency or other cryptocurrencies. It can be an initial coin offering (ICO), initial exchange offering (IEO), or security token offering (STO).
What is a liquidity mining?
Liquidity mining is a process where users provide liquidity to a decentralized exchange or liquidity pool and earn rewards in the form of tokens or trading fees.
What is a blockchain gas fee?
A blockchain gas fee is a payment made by users to compensate for the computational resources required to process and validate transactions on a blockchain network.
What is a crypto mining rig?
A crypto mining rig is a specialized computer system designed for mining cryptocurrencies. It consists of high-performance graphics cards and other hardware optimized for solving cryptographic puzzles.
What is a mining pool hash rate?
A mining pool hash rate refers to the combined computing power of all the miners participating in a mining pool. It determines the pool's chances of finding a block and earning rewards.
What is a smart contract audit?
A smart contract audit is a process where security experts review and analyze the code of a smart contract to identify potential vulnerabilities and ensure it behaves as intended.
What is a crypto asset management?
Crypto asset management refers to the management of a portfolio of cryptocurrencies and digital assets, including investment strategies, risk management, and tax optimization.
What is a crypto derivatives market?
A crypto derivatives market is a financial market where derivatives contracts, such as futures, options, and swaps, are traded based on the price of cryptocurrencies.
What is a blockchain scalability trilemma?
The blockchain scalability trilemma refers to the trade-off between scalability, decentralization, and security in blockchain networks. It highlights the challenges in achieving all three simultaneously.
What is a blockchain explorer API?
A blockchain explorer API allows developers to programmatically access and retrieve information from a blockchain explorer, such as block data, transaction details, and addresses.
What is a blockchain bridge validator?
A blockchain bridge validator is a node or entity that participates in validating cross-chain transactions on a blockchain bridge. They ensure the integrity and security of transactions between different blockchains.
What is a crypto market capitalization?
Crypto market capitalization refers to the total value of a cryptocurrency, calculated by multiplying the price of a coin by its circulating supply. It is a metric used to gauge the size and popularity of a cryptocurrency.