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Crypto Glossary

A glossary also known as a vocabulary or clavis, is an alphabetical list of terms in a particular domain of knowledge with the definitions for those terms.

Traditionally, a glossary appears at the end of a book and includes terms within that book that are either newly introduced, uncommon, or specialized. 




























Attack 51%

A 51% attack (also known as a majority attack) is a possible attack on the integrity of a blockchain system if a single bad actor or group can seize more than half of the network's total hashing power, potentially resulting in network disruption.

A single rogue user, or a group of bad users operating jointly, can override the network's consensus mechanism and engage in a fraudulent activity like double-spending if they control more than 50% of the total network hashing rate for a blockchain. The attacker would have sufficient mining power to change the order of transactions on purpose, preventing some or all of them from being confirmed (aka. transaction denial of service). Additionally, he would have the power to stop some or all other miners from working, creating a "mining monopoly."

Absolute Advantage

An economic concept in which one party has a direct efficiency advantage over another in producing/providing a specific good or service.

Active Management

Active management (or active investing) is a strategy used by fund managers or brokers to trade financial assets to profit from both bull and bear markets. Active managers typically seek market inefficiencies in the hopes of achieving a target return or outperforming a specific index, such as the S&P500.'

Individually, active management is simply the act of frequently buying and selling assets based on seemingly good market opportunities that arise. However, in a broader sense, "active management" refers to a group of managers or brokers who attempt to profit by trading a specific set of assets.

Ad Hoc

The phrase "ad hoc" is of Latin origin and means "for this purpose" or "specifically for this" in modern English. Most dictionaries give the direct translation of the Latin phrase as "for this."

The term "ad hoc" can refer to a solution found for a specific problem or issue that should not be considered a default solution to be used in future applications.


An address on the blockchain, like an address in the real world or on a website, refers to a string of text used to identify a specific location or user. It is the string of text that specifies the location of a specific wallet on the blockchain, which can be used to send or receive digital assets.

Every blockchain has wallet addresses in some form or another, and the majority of them take the form of a long string of letters and numbers in a line of text that is difficult for a human to interpret but easily understood by a computer network.


The term "airdrop" in the cryptocurrency and blockchain ecosystem refers to the distribution of digital assets to the public, either by holding another token or simply by having an active wallet address on a specific blockchain.

This is distinct from the allocation of tokens or coins that occurs during an ICO event. During an ICO, the digital asset being offered is typically purchased with a different coin or token. In the case of airdrops, the recipient is not required to make a purchase, so the assets are distributed for free.

Airdrops are frequently used as a marketing tool to increase awareness of the coin or token being distributed, as well as a method of diversifying the number of asset holders.

To be eligible for an airdrop, a user must hold a certain amount of the asset in a public wallet at the time of the snapshot, which is taken as a view of the current state of the blockchain at that particular point in time.


An algorithm is a series of steps that define a series of actions. It can also be defined as a set of commands designed to accomplish a specific goal or solve a specific problem. Algorithms are most commonly used and studied in the fields of mathematics and computer science, but they can also be applied to biological neural networks and electronic devices.

An algorithm in computer science is a sequence of unambiguous instructions that direct computer programs to perform a variety of tasks. They can be programmed to perform simple operations such as subtracting two numbers or more complex operations such as determining the best route between two or more geographic locations. As a result, computer algorithms are extremely useful for a wide range of tasks, including calculations, data processing, and even decision-making.

Every algorithm has a fixed beginning and end point and produces outputs based on the inputs and predefined steps. Multiple algorithms can be combined to perform more complex tasks, but increased complexity necessitates more computational resources.

The correctness and efficiency of algorithms can be measured. The algorithm's correctness refers to its accuracy and whether or not it can solve a specific problem. The amount of resources and time required by an algorithm to perform a specific task is referred to as its efficiency. Many computer scientists use asymptotic analysis, a mathematical analysis technique, to compare different algorithms regardless of the programming language or hardware on which they run.

In the context of blockchain, the Bitcoin Proof of Work algorithm is an essential component of the mining process, which verifies and validates transactions while also securing the network and ensuring its proper operation.

All or None Order (AON)

An All or None order, often abbreviated to AON, is a financial exchange order to buy or sell a specific volume of assets at a fixed price. In contrast to other order types, such as a market or limit order, an all or none order is placed with specific instructions as to how the order should be filled.

As the name implies, an AON order must be filled entirely or not at all once placed. This prevents orders from being partially filled and gives the buyer or seller confidence in the fixed execution price for the entire volume.

This type of order can be used in algorithmic trading, for example, to gauge a market's directional trend and to avoid partial fill situations, which can occur when a market exhibits high levels of volatility with low volumes, such as during a flash crash type event.

All-Time High (ATH)

The term "All-Time High" refers to the highest price that an asset has ever achieved in exchange for the current trading pair. For example, if a share of XZY Corp stocks IPOs at $5 per share and then trades as high as $20 per share before falling to $10 in a given period, we could say that the "All-Time High" for the XZY Corp share price was $20.

Many cryptocurrencies set new all-time high records during the late-2017 bull run, with Bitcoin setting a new ATH in mid-December. Each cryptocurrency exchange has a different Bitcoin ATH value. In some markets, each coin was trading above the $20,000 mark, but many believe that Bitcoin's ATH was around $19,665.

On November the 30th, 2020, Bitcoin broke its previous ATH on many exchanges. The previous ATH on Binance for the BTC/USDT pair was 19,798.68 USDT, which was broken around 15:00 UTC. This event signaled the beginning of a new phase in Bitcoin's price discovery.

The ATH value represents the theoretical maximum price that an asset could have been sold for, as well as the maximum price that another trader was willing to pay for that asset during that period. However, given the fractional nature of most digital assets, the ATH could have been obtained by trading a fraction of an asset rather than a full coin or token.

For example, at the peak of a bull run, a trader may buy 0.1BTC for $5,000 just before a big drop. Proportionally, this would give Bitcoin a new ATH of $50,000 per unit of BTC, even though only 0.1 BTC has ever traded at that price.

The concept of all-time high can also be applied to market capitalization values (market cap). The market cap of the entire cryptocurrency market reached an ATH of about $661.2 billion in early January 2018, a few weeks after Bitcoin's ATH.

The "All Time Low" (ATL) is the inverse of ATH and refers to the lowest price point an asset has traded at, which is typically only recorded after an asset is listed and begins trading on an exchange.


Allocation is the distribution of tokens or equity to a specific investor, team, group, organization, or other related entity that can be earned, purchased, or set aside.

For a crypto team in the early stages of development, the executive team or community may work on determining how token allocations should be divided up among various initiatives and departments, such as development, marketing, operational costs, and so on. If a team has a foundation or other entity that controls funds, it may decide to create an allocation for a token treasury to be used as the team or community specifies.

Investors can also receive allocations in investment rounds. In a private sale round, for example, a team may sell allocations of a certain "ticket size," or maximum amount, to early investors. In this case, each of these individual investors would own a portion of the total amount offered in that round of sales. An individual entity may be able to hold allocations from multiple rounds of sales, implying that they may eventually participate in different stages of an Initial Coin Offering (ICO) or token sale event, with a predefined allocation for each stage.

As a reward for their efforts, team members working on a specific coin, protocol, or project may receive a portion of a team allocation. These allocations, for example, could be paid out all at once on a specific date—such as the date of a token generation event (TGE)—or spread out over time according to a predefined schedule.

In some cases, the allocations are spread out over time as part of a block reward, or over a vesting period or cliff.


A software development team will frequently work in stages to release their product. Soliciting input and advice from a community is a common practice so that ideas, suggestions, and improvements can be shared and incorporated before a final product is released to the general public.

The first stage in this type of production process (also known as the software release life cycle) is alpha, which consists of the very first version of a primitive, basic software or product. The software is subjected to various tests during the alpha phase, kicking off the production and feedback loop. It is an important milestone for developer teams because it allows for some product iteration, which provides additional insight into the efficiency and quality of the software.

Software development firms can choose whether to launch their product's first stage as an open alpha test or a closed alpha test. During an open alpha, any user can visit a website, such as Github, and download the source code to test the newly released product. Another option is to create an "invite only" alpha in which only a select group of users is permitted to access and test the product.


An altcoin is a term used to describe alternative digital assets that are not Bitcoin, such as a coin or token. This terminology stems from the notion that Bitcoin is the original cryptocurrency and that all others are "alternate" or "alternative" coins.

The term "altcoin" is also used to refer to digital assets that are technically referred to as "tokens" rather than coins. The ERC-20 tokens that exist on top of the Ethereum blockchain are the most well-known examples.

More than 2,000 alternative cryptocurrencies have been deployed since the inception of Bitcoin in 2008. Many of these altcoins were created as modified copies of Bitcoin via the hard fork process. Despite some similarities, each altcoin has its own set of capabilities.

Forked from Bitcoin, altcoins frequently use a similar mining process that relies on the Proof of Work consensus algorithm. Several other cryptocurrencies, however, are experimenting with alternative methods of reaching consensus within distributed blockchain networks. The most common alternative to Proof of Work is the Proof of Stake consensus algorithm, but other notable examples include the Delegated Proof of Stake, Proof of Burn, Proof of Authority, and Delayed Proof of Work consensus algorithms.

Angel investor

Angel investors, also known as seed or private investors, actively seek out opportunities to provide funding for entrepreneurs or start-up businesses. They are frequently high-net-worth individuals looking for new ways to increase their wealth while also assisting in the launch of a new venture.

Angel investors are not simply lending money to a project or company when they invest. Instead, they frequently demand a percentage of ownership in the venture in exchange for their initial investment. In some cases, the investment may be ongoing as the business grows. However, it could also happen as a one-time contribution to help the venture get started.

Angel investing is advantageous to both the entrepreneur and the early investor. For example, the investor may discover an opportunity to profit from earning interest at a rate that is not available in the standard financial market. The entrepreneur receives funding at a level that they would not have received otherwise by applying to traditional loan entities, especially as a start-up.

Anti-Money Laundering (AML)

Anti-money laundering (AML) refers to laws and regulations put in place to prevent criminals from making or moving illegal funds. While AML laws target many illegal activities, some of the most serious are tax evasion, public corruption, and market manipulation through methods such as wash trading.

Many governmental institutions and pieces of legislation contribute to the development of AML requirements. In the United States, agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) set AML standards by providing general information and resources to broker-dealers and futures commission merchants.

The Bank Secrecy Act of 1970, the Money Laundering Control Act of 1986, and the USA PATRIOT Act of 2001 all contributed to anti-money laundering requirements in the United States.

Because of the complexities of the applicable laws, many financial institutions use AML software to detect suspicious activity. These software solutions perform tasks ranging from checking customer names against government lists of prohibited users to generating records required for compliance.

Application Programming Interface (API)

An API, or application programming interface, is a piece of code that allows two applications to share data.

A good example of an API is a hotel booking aggregator site. In response to a customer's request, the aggregator site uses APIs to request information from various hotel chains.

For example, the customer inquires about available rooms that meet certain criteria, such as the start and end date of the stay, geographical area, and cost. This data is transmitted to the hotel's systems via an API, which converts the request into a format that the hotel's servers can understand. These systems then respond via the API with the available rooms that meet these criteria.

Even though the aggregator site and the hotel system are built with different technology and by different companies, the API allows information to be exchanged quickly and easily.

Application-Specific Integrated Circuit (ASIC)

ASICs, as the name implies, are integrated circuits that have been designed to serve a specific use case, as opposed to general-purpose circuits such as the CPUs that power our computers and mobile devices.

In some cases, simple computing tasks do not necessitate the financial and computational overhead that a general-purpose CPU would bring to the table. An ASIC, on the other hand, can be used as a much simpler and more efficient alternative (both in terms of cost and energy).

The term ASIC is commonly used in the cryptocurrency world to refer to the specialized hardware developed and improved regularly by companies such as Bitmain and Halong Mining. These pieces of hardware are solely intended for Bitcoin mining (or other cryptocurrencies). Some coins cannot be effectively mined using ASIC miners and are thus referred to as ASIC-resistant cryptocurrencies.

In a nutshell, mining is the process of performing a plethora of hashing functions until a valid hash output is produced. The miner who discovers a valid hash uses it as proof of their work, allowing them to validate the next block of transactions and collect the block reward.

Although ASICs can be highly efficient, their limitation to a single use case renders them completely useless for anything else. Furthermore, as technology advances in the cryptocurrency space, new ASIC models emerge, quickly rendering older designs unprofitable.


Arbitrage is the practice of buying and selling assets across two or more markets to profit from price differences. A trader, for example, could buy a specific asset in one market and quickly sell the same asset in another market at a higher price.

The existence of arbitrage is due to market inefficiencies. This means that a particular asset may have different trading prices in different markets even if both markets offer the same asset (or very similar ones).

Arbitrage is frequently regarded as a fundamental force in financial markets because it prevents distinct markets from creating significant price disparities among similar or identical assets. As a result, arbitrage relies on minor price differences and, as a result, tends to cause price convergence. The rate at which this convergence occurs can be used to gauge overall market efficiency. A perfectly efficient market would offer no arbitrage opportunities because every trading asset would have the same price across all exchanges.


An ASIC-resistant cryptocurrency is "immune" to ASIC mining.

ASICs are integrated circuits designed to perform a specific computing task for a specific use case. ASIC devices are designed to participate in the Bitcoin mining process in the cryptocurrency world (or other cryptocurrencies). As a result, Bitcoin is an example of a cryptocurrency that is not ASIC-resistant.

An ASIC-resistant cryptocurrency's protocol and mining algorithm are designed in such a way that using ASIC machines to mine the coin is either impossible or provides no significant advantage over traditional GPU mining. In some cases, using ASICs on ASIC-resistant cryptocurrencies may be worse than using standard hardware.

Because mining entails multiple attempts to solve a mathematical problem, an ASIC's job is to perform as many attempts as possible (i.e., as many hashing functions per second as possible). This means that using ASICs to mine Bitcoin or other Proof of Work cryptocurrencies outperforms using general-purpose hardware like a GPU card.

However, making a cryptocurrency ASIC-resistant is a defensive game that necessitates ongoing development and modifications. This is because ASIC designers and manufacturers are constantly developing new models of ASIC miners, and sometimes the newer models can circumvent the ASIC resistance of certain cryptocurrencies.


An ASIC-resistant cryptocurrency is "immune" to ASIC mining.

ASICs are integrated circuits designed to perform a specific computing task for a specific use case. ASIC devices are designed to participate in the Bitcoin mining process in the cryptocurrency world (or other cryptocurrencies). As a result, Bitcoin is an example of a cryptocurrency that is not ASIC-resistant.

An ASIC-resistant cryptocurrency's protocol and mining algorithm are designed in such a way that using ASIC machines to mine the coin is either impossible or provides no significant advantage over traditional GPU mining. In some cases, using ASICs on ASIC-resistant cryptocurrencies may be worse than using standard hardware.

Because mining entails multiple attempts to solve a mathematical problem, an ASIC's job is to perform as many attempts as possible (i.e., as many hashing functions per second as possible). This means that using ASICs to mine Bitcoin or other Proof of Work cryptocurrencies outperforms using general-purpose hardware like a GPU card.

However, making a cryptocurrency ASIC-resistant is a defensive game that necessitates ongoing development and modifications. This is because ASIC designers and manufacturers are constantly developing new models of ASIC miners, and sometimes the newer models can circumvent the ASIC resistance of certain cryptocurrencies.

Ask Price

Bids and asks are terms used in traditional financial markets to describe buy and sell orders placed on a specific market. Bids are offers in a base currency for a unit of the trading asset, whereas asks are selling prices set by those who own the asset and want to sell it. As a result, the asking price is the lowest price at which an individual is willing to sell their asset or the lowest amount they want to receive in exchange for the unit they are selling.

When a trader uses a market order, the highest bid and the lowest asking price are the first to fill in an exchange's order book, implying that a selling market order will match the highest bid and a buying market order will match the lowest asking price.

The spread of the market is the difference between the lowest asking price and the highest bid price. A liquid market has a smaller spread because the buying and selling sides have more orders (more people in the market that are willing to place an order into the order book).

Asset Management

Asset management refers to any method or system that assists individuals or businesses in managing their assets. These assets can be physical goods (such as a house, apartment, or car) or non-physical ones (like copyrights, patents, cryptocurrencies, or other digital assets).

Asset management strategies can take many forms and apply to many different areas:

  • Financial Asset Management - investment funds;
  • Enterprise Asset Management - fixed assets for an organization;
  • Infrastructure Asset Management - public infrastructures such as roads and bridges;
  • Public Asset Management - schools, parks;
  • IT Asset Management - hardware and software;
  • Digital Asset Management - information collections.


While there are numerous forms of asset management, this article focuses on financial asset management.


Asynchronous means not concurrent, or not occurring at the same time or speed. Asynchrony in computer science refers to the occurrence of events that are unrelated to the main program.

Events, rather than a global clock signal, coordinate operations in an asynchronous system (changes in the system). Asynchronous systems do not rely on external signals or messages to function reliably.

A modular framework is frequently used in the design of asynchronous systems. Each module in such systems can operate independently and communicate with other modules. These interconnected modules then combine to form a functional system.

Asynchronous communication allows data to be transmitted infrequently rather than in a steady stream. Email and online forums are common examples, where participants send messages at different times.

Atomic Swap

Atomic swap is a smart contract-based technology that allows the exchange of different cryptocurrencies without the use of a centralized market or other intermediaries. Atomic swaps, also known as atomic cross-chain trading, involve the exchange of one cryptocurrency for another, even if they are running on different blockchain networks.

Tiernol first described the concept of an atomic swap in 2013. It was presented as a novel method that would enable independent parties to exchange cryptocurrency units directly from their addresses (or cryptocurrency wallets). Although Tier Nolan is widely regarded as the inventor of atomic swaps, the concept of performing cross-chain peer-to-peer trades had been discussed before that. Daniel Larimer invented the P2PTradeX trustless exchange protocol in 2012, which many regards as the prototype of atomic swap technology.

One of the primary benefits of using atomic swaps is security, as users are never required to provide or use their private keys. Another advantage of such technology is that there is no need for centralized exchanges, which results in much lower costs (no deposit, withdrawal, or trading fees).

Attack surface

A software environment's attack surface is the set of ways in which an unauthorized user (attacker) can enter or extract data from the system. The attack surface of a system is an indicator of its security.

A system is more vulnerable to attacks if it has a larger attack surface. When it comes to software security, keeping the attack surface as small as possible is critical.

Attack vectors infiltrate the attack surface. Buffer overflows, network protocol flaws and web-based attack vectors such as trojans, adware, malware, and others are examples.

An unauthorized user's attack has the potential to cause damage by altering or extracting information from the system. However, reducing the attack surface does not reduce the amount of damage that a malicious actor can do once they have breached the system.

Finding just one vulnerable or insecure point on a system's attack surface is sufficient to infiltrate its attack surface. To launch a more sophisticated attack, attackers may first visualize the system and map out all of the devices and their paths. Then, for each node, potential vulnerabilities can be identified and exploited.


Auctions are live events in which items ranging from furniture to real estate can be purchased via a bidding process. The auctioneer (the person in charge of leading and managing the bidding process) will pitch a starting bid to the audience when the item is first presented at the auction.

When bidding begins, interested parties will offer competing bids until no one is willing to raise their bid price any higher. When the auctioneer recognizes the final bid, the highest bidder is declared. The auction ends when the highest bidder pays for and receives the item. A large number of potential buyers is usually desired, as this may drive bids up to higher values for an optimal sale.

Auctions have evolved, but the fundamental guiding principles have not. The process can begin with a preview session in which potential buyers can identify the items that most interest them. There is usually a formal registration process to participate in the auction. Each bidder will be given their bidding card after registering, which will contain a unique identifier assigned to them during registration.



In the cryptocurrency world, the term "bag" refers to the coins and tokens that are part of one's portfolio. Typically, the term refers to a significant amount of a specific cryptocurrency. There is no set minimum, but when the value is relatively high, they may be holding "heavy bags" of a particular coin or token.

Bagholders are investors who hold bags for an extended period. Although the term can refer to a variety of situations, it is most commonly associated with investors who insist on holding their bags despite poor market performance. In other words, bagholders are HODLers who hold onto their assets even when the value of their bags falls significantly (during strong bear markets).

Bear Market

A bear market is defined as a downward trend in a market's prices. It is widely used not only in cryptocurrency markets but also in traditional markets such as stocks, bonds, real estate, and commodities.

A bear market is a severe market downtrend characterized by significant price declines over a short period. Cryptocurrency markets are smaller and thus more volatile than traditional markets. As a result, stronger and longer-lasting crypto bear markets are common, with price drops of up to 85% not uncommon.


In a nutshell, a benchmark is a standard that serves as a point of reference. A benchmark is a measurement standard used in the financial industry to assess the performance of a specific asset or investment portfolio. Indexes, which are financial instruments used to represent a group of individual market prices or a collection of data points, are among the most common types of benchmarks.

Various benchmarks have been developed for various asset classes, including securities, bonds, stocks, and cryptocurrencies. The S&P 500 index, which considers the market cap of 500 large US companies, is a popular example of a benchmark. These businesses are chosen by a specialized committee using a weighting methodology.


BEP-2 is a technical standard for the issuance and implementation of Binance Chain tokens. This standard establishes a set of guidelines for tokens to follow to function in the Binance Chain ecosystem. ERC-20 is a comparable token standard for issuing tokens on the Ethereum blockchain.

BEP-2 is a set of technical specifications rather than a piece of software. These rules ensure that tokens in the Binance Chain ecosystem can seamlessly interact with one another. BEP-2 tokens can be used to represent a variety of digital assets and tradable goods. The standard ensures that they can all coexist peacefully with one another and with the surrounding ecosystem.

The BEP-2 standard also defines some of the most fundamental characteristics of Binance Chain tokens. Even though the standard defines the rules, different tokens will have different implementations for the specific use cases for which they were designed. Nonetheless, creating a standard like this reduces the amount of effort required from developers to issue tokens significantly.


BEP-20 is a Binance Smart Chain token standard that extends ERC-20, the most common Ethereum token standard. Consider it a blueprint for tokens that defines how they can be spent, who can spend them, and other usage rules. It is compatible with both Binance Chain's BEP-2 and Ethereum's ERC-20 due to their similarities.

BEP-20 was designed as a technical specification for Binance Smart Chain, to provide a versatile format for developers to launch a variety of tokens. These could be anything from stock in a company to money in a bank vault (i.e., a stablecoin). Of course, a native asset could be created as a BEP-20 token, or tokens from other blockchains could be pegged to Binance Smart Chain.

This is how "Peggy" coins, which are essentially BEP-20 versions of other crypto assets (such as LINK or XRP), are used.   BEP-20 token transfers, like BEP-2 token transfers on the Binance Chain, are fueled by BNB. This provides an incentive for validators to include the transactions in the blockchain, as they will be compensated with BNB for their efforts.


BEP-721 is a Binance Smart Chain (BSC) token standard that allows non-fungible tokens to be created (NFTs). It is an extension of ERC-721, one of the most widely used NFT standards, and is compatible with the Ethereum Virtual Machine (EVM). Each NFT is distinct and cannot be exchanged for another token.

BEP-721 tokens enable you to tokenize data ownership and assign it a unique identifier. This characteristic distinguishes the token from other BEP-20 tokens. BEP-20 allows developers to create multiple identical tokens within a single smart contract. BEP-721, on the other hand, assigns a unique token ID to each token. Thanks to their unique IDs, BEP-721 tokens can be used to represent collectible, non-fungible items.

Users can trade and transfer these tokens based on their market value, which is determined by the rarity or utility of the token. BEP-721 tokens can represent:

  • Digital and physical art Collectibles
  • In-game items
  • Physical property and real estate
  • Lottery tickets

BEP-721 token transfers, like other Binance Smart Chain tokens, require BNB for gas fees. BEP-721 tokens can be generated on a variety of BSC ecosystem platforms, including the Binance NFT Marketplace, Featured By Binance, BakerySwap, and Juggerworld.

BEP-721 token functions

The BEP-721 token has a set of functions that govern how it interacts with the Binance Smart Chain. Some of these are fairly common and are also included in the BEP-20 standard:

  • Name: defines the BEP-721 token’s name, which other contracts will identify it by.
  • Symbol: A short name for the token, similar to a ticker symbol Balance: 
  • Displays a specific address's token balance.
  • Total Supply:This defines the total number of tokens created.

There is also a set of fundamental ownership functions, some of which are optional. The metadata function is a distinguishing feature of NFTs: TokenMetadata: This function allows metadata to be included in a token that is used to link to an artwork file or another collectible aspect of the NFT. For example, each CryptoPunk contains metadata within the NFT that points to a specific punk in a grid of 10,000 punks. Although CryptoPunks do not use the BEP-721 token standard, they do use metadata.


Binance Evolution Proposal BEP-95 adds a real-time burning mechanism to the Binance Smart Chain. It was added to make BNB's tokenomics more dynamic and to further decentralize the network.

With BEP-95, the network will burn a fixed percentage of the gas fees collected by validators for each block. The precise ratio will be determined by the governance mechanisms of BSC. Even after BSC has reached its target of 100 million BNB, the burns will continue. By reducing the supply of BNB, upward pressure on the coin's price is applied. The BEP may also reduce the number of BNB delegators and validators assigned. However, as prices rise, the fiat value may rise as well, offsetting any decrease in coin value.

To do so, the network collects each block's gas fees and divides them between two smart contracts:

1.      system reward contract. 1/16 of the gas fee will enter into the System Reward Contract until it reaches a maximum of 100 BNB. These coins will be used as cross-chain package subsidies.

2.      ValidatorSet Contract All other gas fees will enter the ValidatorSet Contract and be shared daily with delegators and validators via the Binance Chain.

The ValidatorSet Contract includes a burnRatio variable that can be used to perform a burn. After each block is completed, a validator will sign a transaction transferring its gas fees to the smart contracts. The deposit function includes burning logic, which results in the simple formula: burnRatio * gasFee. This amount is then transferred to the burn address. The burnratio will be initially set to 10%.

Beta (coefficient)

A beta coefficient is a tool used in finance to measure the volatility of a specific asset about the volatility of the overall market or a specific portfolio. In other words, beta can be used to assess an investment's risk about a benchmark, which can be a broad market index or a specific portfolio.

For example, beta can be used to calculate an asset's expected return on investment based on its market volatility. As a result, beta is not used to assess the risk of investing in a single asset. Instead, it assesses the amount of risk that the investment would introduce into an already-existing portfolio.

If we consider all investable assets in existence, we are comparing the entire market to itself, implying that the value of beta is exactly one. However, when we compare a financial instrument to the market, we will almost certainly get a beta greater than or less than 1. A beta greater than one indicates that the asset is both volatile and highly correlated with the market. Low or negative beta values, on the other hand, may indicate that an investment is less volatile than the market or that its price movements are not highly correlated with the market.

Beta (Release)

The term "beta" in computer science refers to the second stage of a software development cycle, following the alpha stage. Beta is a stage in which the software has all of its major features and functions operational, but its efficiency, usability, and security require additional testing. During the beta stage, the software is usually made available to testers who are not part of the development team or company.

The software is made available to developers and potential customers to conduct such tests. This procedure is also known as a "beta release," and the people who contribute to it are known as "beta testers." A program can be released for testing to a small group of invited testers (closed beta) or made public to anyone interested (open beta).

Closed (or private) beta testing, as the name implies, involves a smaller group of testers. This method may be appropriate for testing software that seeks feedback from specific target demographics or that cannot be tested on a larger scale due to scaling constraints. Open beta testing, on the other hand, typically involves a large user base, which is frequently made up of potential customers. In this context, open beta may also be viewed as a marketing strategy aimed at demonstrating the product.

Bid Price

The bid price is the most a specific buyer is willing to pay for a specific product or service. In financial markets, it is the price paid by buyers for an asset such as a commodity, security, or cryptocurrency.

A trading order book contains multiple bid prices (on the buyer's side) and asking prices (on the seller's side). The highest bid price is always lower than the lowest asking price, and the difference is known as the bid-ask spread.

Traders or investors who want to sell their assets or stock positions must either accept one of the bid prices on the order book (ideally, the highest one) or set an asking price and wait for a buyer to bid against that value, filling the order.

Traders in financial markets can decide what price they are willing to pay to buy or sell an asset at the time they place their order. If the price they set differs significantly from the current market price, their order will not be filled.

Bid-Ask spread

The bid-ask spread refers to the difference between the lowest asking price (sell order) and the highest bid price (buy order).

Essentially, the bid-ask spread can be formed in two ways. First, it can be created as a way for a broker (or trading intermediary) to monetize their service. Second, it can be generated solely by differences in limit orders placed by traders on an open market.

The bid-ask spread is a common method of monetizing trading activities in traditional markets. Many brokers and trading platforms, for example, provide commission-free services that are only monetized through the bid-ask spread. This is possible because they provide liquidity to the market, which means that sellers and buyers must accept the price set by the broker. Otherwise, they will be unable to participate in that market. In other words, they set the difference between selling and buying prices and profit from it, essentially buying from sellers at a lower price and selling to buyers at a higher price.

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The world's first decentralized charity platform that promotes the idea of 'blockchain for social good.'

Binance Community Vote

When the community is allowed to vote for their favorite project to win a free Binance listing.  

Binance Ecosystem Fund (BEF)

Binance's initiative to collaborate with partners who are interested in the blockchain/cryptocurrency ecosystem.

  Binance Labs

An initiative to incubate, invest in and empower blockchain and cryptocurrency entrepreneurs, projects, and communities.


Bitcoin is a digital currency that operates on a distributed network of computers (nodes). However, in a broader sense, many people use the term "Bitcoin" to refer to several different things: a digital currency, a decentralized public ledger, a protocol, or simply the large ecosystem that encompasses all of these. However, there are some significant differences between these functions.

To begin, Bitcoin is the name of a peer-to-peer (P2P) digital currency that is also known as bitcoin (with a lower "b") or simply BTC. Bitcoin is a cryptocurrency, which is a digital currency protected by cryptographic techniques. It was the first cryptocurrency to exist, and the first Bitcoin block, known as the genesis block (or block 0), was mined on January 3, 2009.

Second, "blockchain" refers to the Bitcoin decentralized public ledger. Despite their similarities, bitcoin and blockchain are distinct concepts. Blockchain technology is responsible for the overall structure that allows Bitcoin transactions to be broadcast and recorded in an untrustworthy and secure manner. It is important to note that "trustless" in this context means that the blockchain system does not require any kind of trust to function because it is supported by computer code and mathematical algorithms. As a result, the Bitcoin blockchain functions as a decentralized digital ledger that publishes all confirmed BTC transactions.

Finally, the term "Bitcoin" was used to refer to the protocol, which is constantly being developed as open source software. To avoid further misunderstanding, the original Bitcoin client software was officially rebranded as Bitcoin Core in 2014. Bitcoin Core is open-source software with many contributors from around the world.

Bitcoin was invented by a person (or group of people) using the alias Satoshi Nakamoto. The idea was to develop a one-of-a-kind digital payment system that would enable borderless financial transactions to take place without the need for intermediaries such as banks or governments. Due to the distributed architecture provided by blockchain technology, combined with cryptographic techniques, Bitcoin is highly resistant to attacks and fraud.

Bitcoin Core

Bitcoin Core is the leading software implementation that allows users to interact with the Bitcoin network. It is not owned by any single company or organization but is instead updated and reviewed by a global developer community. Satoshi Nakamoto initially released the software under the name Bitcoin, but it was later renamed Bitcoin Core to avoid confusion.

What does it do?

A user becomes a node on the network by running the Bitcoin Core code. They can independently validate received blocks as well as transactions sent by other users. This discourages miners and eliminates the need for the user to rely on anyone (such as a wallet provider) to display the correct view of the blockchain. A wallet is included with the software. Users can use this directly from the app, or they can tether external wallets to their node to validate received transactions.

Should I run Bitcoin Core?

Users who frequently transact in Bitcoin should consider running a node to reap the benefits of privacy and security. A typical software wallet (one that does not communicate with the user's node) looks up the user's balance on third-party servers. This practice is concerning because it allows the server to link the user's balance to their IP address. The third-party can reasonably conclude that the user owns the public addresses in question. Similarly, relying solely on a block explorer is risky in terms of transparency. Because users only have one point of reference for their balances, it is easy for the server to send them incorrect information.Bitcoin is a digital currency that operates on a distributed network of computers (nodes). However, in a broader sense, many people use the term "Bitcoin" to refer to several different things: a digital currency, a decentralized public ledger, a protocol, or simply the large ecosystem that encompasses all of these. However, there are some significant differences between these functions.

To begin, Bitcoin is the name of a peer-to-peer (P2P) digital currency that is also known as bitcoin (with a lower "b") or simply BTC. Bitcoin is a cryptocurrency, which is a digital currency protected by cryptographic techniques. It was the first cryptocurrency to exist, and the first Bitcoin block, known as the genesis block (or block 0), was mined on January 3, 2009.

Second, "blockchain" refers to the Bitcoin decentralized public ledger. Despite their similarities, bitcoin and blockchain are distinct concepts. Blockchain technology is responsible for the overall structure that allows Bitcoin transactions to be broadcast and recorded in an untrustworthy and secure manner. It is important to note that "trustless" in this context means that the blockchain system does not require any kind of trust to function because it is supported by computer code and mathematical algorithms. As a result, the Bitcoin blockchain functions as a decentralized digital ledger that publishes all confirmed BTC transactions.

Finally, the term "Bitcoin" was used to refer to the protocol, which is constantly being developed as open source software. To avoid further misunderstanding, the original Bitcoin client software was officially rebranded as Bitcoin Core in 2014. Bitcoin Core is open-source software with many contributors from around the world.

Bitcoin was invented by a person (or group of people) using the alias Satoshi Nakamoto. The idea was to develop a one-of-a-kind digital payment system that would enable borderless financial transactions to take place without the need for intermediaries such as banks or governments. Due to the distributed architecture provided by blockchain technology, combined with cryptographic techniques, Bitcoin is highly resistant to attacks and fraud.

Bitcoin dominance

Bitcoin is the world's largest cryptocurrency in terms of market capitalization (market cap), and it commands a sizable portion of the trading volume (and attention) in the cryptocurrency markets. By looking at the summative market capitalizations of all existing cryptocurrencies, we can arrive at a total market cap valuation for the cryptocurrency space. As a result, Bitcoin dominance is defined as the ratio of Bitcoin's market cap to the rest of the cryptocurrency markets.

While Bitcoin was by far the largest cryptocurrency-and one of the few in existence-for many years, its dominance was much closer to 100 percent than it is today. However, as new cryptocurrencies emerged, Bitcoin's dominance waned significantly. This is most likely due to the increased popularity of ICOs since Ethereum and the ERC-20 token standard were introduced.

Interestingly, Bitcoin's dominance is frequently influenced by so-called "alt seasons," in which altcoins gain market share relative to Bitcoin, reducing Bitcoin's dominance. However, because Bitcoin dominance is a ratio rather than an absolute term, it is not always directly affected by bull or bear markets. This means that if Bitcoin's price falls but the rest of the cryptocurrency market falls at the same rate, Bitcoin's dominance is likely to remain unchanged.

Bitcoin Pizza

Bitcoin Pizza is the name given to the first known bitcoin purchase of physical goods.

On May 22, 2010, a programmer named Laszlo Hanyecz posted on Bitcointalk, the only Bitcoin forum at the time. Hanyecz stated

I’ll pay 10,000 bitcoins for a couple of pizzas. I like maybe 2 large ones so I have some leftovers for the next day.

10,000 BTC was worth approximately 41 USD at the time. This corresponds to a Bitcoin price of approximately 0.0041 USD. Another Bitcointalk user accepted Hanyecz's offer and paid 25 USD for the two pizzas, netting a whopping 16 USD profit even at the time!

Let's put this in context by fast-forwarding about seven years. In April 2021, Bitcoin was trading at around 60,000 USD. The Bitcoin Pizza transaction was worth 600,000,000 USD at the time.

May 22nd has become known as Bitcoin Pizza Day as a result of this now-famous transaction.

Hanyecz obtained the coins by mining them on his laptop. Back then, mining on even consumer-grade hardware was a perfectly reasonable way to obtain bitcoins. Bitcoin mining has since evolved into a highly competitive industry. Large mining companies invest millions of dollars in the development of specialized mining hardware, such as ASICs.

In interviews, Hanyecz has stated that he does not regret spending 10,000 BTC on two pizzas. At the time, Bitcoin was an obscure Internet phenomenon that only a few enthusiasts were aware of. Using cryptocurrency to purchase a physical good seems more improbable than it does now. This transaction may have even appeared to be a steal at the time! Without a doubt, the world of cryptocurrencies has progressed significantly since then.

Hanyecz used the Bitcoin Lightning Network to purchase two pizzas for 0.00649 BTC in 2018.

Black Swan Event Bitcoin Pizza

In its most basic form, a Black Swan event is unexpected and has a significant impact.

The Black Swan Theory - or Theory of Black Swan Events - has its roots in a Latin expression from the 2nd century by Roman poet Juvenal, who described something as: “rara avis in terris nigroque simillima cygno” This Latin phrase translates to "a rare bird in the lands, resembling a black swan."

When this phrase was first used, it was believed that black swans did not exist.   Nassim Nicholas Taleb, a statistician, and trader expanded on the Black Swan theory. In 2007, he published The Black Swan: The Impact of the Highly Improbable, a book that explained and formalized the Black Swan theory.


Briefly, a block is a computer file that stores transaction data. These blocks are arranged in a linear sequence to form an infinite chain of blocks, thus the term blockchain.

As a result, all information about blockchain transactions is gathered and recorded within these blocks, and each newly generated block is linked to the previous one using cryptographic techniques.

The chain of linked blocks contains all of the transaction data generated since the inception of a specific blockchain. As a result, the records go back to the first block, also known as the zero blocks or genesis block. The block height is the number of confirmed blocks since the genesis block.

Blocks on the Bitcoin blockchain, for example, are made up of multiple elements. A Bitcoin block includes a list of recent transactions, a timestamp, and a reference to the block that came before it. This reference is a cryptographic hash of the data from the previous block.
The hash of the previous block is always included in the generation of a new block, which is what makes the blocks cryptographically linked. A secure database that is highly resistant to tampering and attacks can be created using such a structure. The block hash serves as an identifier. It is unique to each block and is created through the mining process.

Block Explorer

A block explorer is a tool that provides detailed analytics about a blockchain network beginning with the genesis block. A block explorer can be thought of as a search engine and a browser that allows users to find information about individual blocks, public addresses, and transactions associated with a particular cryptocurrency.

Some block explorers also offer real-time statistics and market charts, as well as information on mining pools, pending transactions, network hash rate, rich list, block validators, orphan blocks, hard forks, and other topics.
Block explorers can be useful for users who are waiting for block confirmations when it comes to pending transactions. Many exchanges, for example, give their users the transaction ID of their deposit or withdrawal request so they can track the movement of their funds in real-time.

Block explorers can also serve as general information hubs, depending on the type of blockchain. For example, there are thousands of ERC-20 tokens running on top of the Ethereum blockchain, and users can learn more about them by visiting Etherscan or another Ethereum block explorer.

Block explorers are critical for monitoring the current state of a cryptocurrency network. Users can check the current status of BNB on the Binance Chain Explorer, which includes coin burn transactions and the current total supply.

Block header 

A block header is a section in a block that summarizes the rest of the block. It contains all of the metadata, such as the time and difficulty of mining the block, the Merkle root of the included transactions, and the nonce. The previous block's hash is also present, which allows us to create the "chain" of blocks. In essence, the block header contains any data other than the raw transaction list.

A block header is what miners hash to validate the block. This is far more efficient than hashing the entire block, which can consist of thousands of transactions. It would be far more difficult for a miner to change the nonce and rehash an entire 2MB block for each attempt. This is in contrast to hashing Bitcoin's block headers, which have a fixed length of 80 bytes.

Block headers are excellent for mining, but because of their small size, they are also ideal for light clients. The Bitcoin blockchain is far too large to be stored on mobile devices. If the chain had 100,000 1MB blocks, you'd need 100GB of storage. However, if you only used the block headers for those same blocks, you'd only take up 0.008GB, or 8MB.

Block height 

The number of confirmed blocks in the history of a specific blockchain network, from the genesis block (or block zero) to the most recent one, is represented by block height. All other blocks, except the genesis block, contain a reference (hash) to the block that came before them, and the block height is the number of each block in that sequence. As a result, the genesis block has a block height of 0 and the first block mined has a block height of 1.

Because blockchains are made up of blocks, one analogy used to describe them is to imagine them as stacks of legos. There is no way to remove a lego from the middle of the stack without destroying the entire structure-it's not like Jenga, where you can sneak out a block without affecting the others.

As a result, the block height can be calculated by dividing the time since the blockchain's launch by the chain's average block time. In other words, the block height is the number of blocks mined (or validated) since the inception of a specific blockchain network.
Based on the level of mining difficulty, the average block time should be close to the target block time. Many blockchains adjust mining difficulty based on the network's aggregate hash rate so that the block period remains roughly constant. In the case of Bitcoin, the average block time is 10 minutes. Otherwise, the expected block period may vary depending on how much computational power miners devote to that particular network.

Block reward 

The cryptocurrency awarded to a miner when they successfully validate a new block is referred to as a "block reward." The block reward is composed of two parts: the block subsidy and transaction fees. The block subsidy is made up of newly generated coins and constitutes the majority of a block reward. The remaining portion is made up of all fees paid by the transactions included in the block.

Because the block reward is almost entirely composed of the block subsidy, it is very common to hear people discussing the block subsidy while referring to the block reward. As a result, in popular parlance, the term "block reward" does not account for the fees.
In the case of Bitcoin, the block subsidy began at 50 BTC and is halved every 210,000 blocks (approximately once every four years). This is referred to as the Bitcoin halving. The block subsidy for Bitcoin was reduced to 25 BTC in 2012 and 12.5 BTC in 2016. The next halving is scheduled for May 2020.

A transaction is known as a "coinbase transaction" creates the newly generated coins. The coinbase transaction is typically the first transaction added to a block, and it generates coins out of thin air because the coins are generated from a single blank input.


A blockchain, briefly, is a digital, ever-growing list of data records. A list like this is made up of many blocks of data that are organized chronologically and linked and secured by cryptographic proofs.

The first blockchain prototype was created in the early 1990s by computer scientist Stuart Haber and physicist W. Scott Stornetta, who used cryptographic techniques in a chain of blocks to secure digital documents from data tampering. Haber and Stornetta's work undoubtedly influenced the work of Dave Bayer, Hal Finney, and many other computer scientists and cryptography enthusiasts, ultimately leading to the creation of Bitcoin, the first decentralized electronic cash system (or simply the first cryptocurrency). The Bitcoin whitepaper was published in 2008 under the pseudonym Satoshi Nakamoto.

Although blockchain technology predates Bitcoin, it is a critical underlying component of most cryptocurrency networks, serving as a decentralized, distributed, and public digital ledger responsible for maintaining a permanent record (chain of blocks) of all previously confirmed transactions.

Blockchain transactions take place on a peer-to-peer network of globally dispersed computers (nodes). Each node keeps a copy of the blockchain and contributes to the network's functionality and security. This is what distinguishes Bitcoin as a decentralized digital currency with no borders, no censorship, and no need for third-party intermediation.

Bloom filter 

A Bloom filter is a data structure that can be used to tell a user if a specific item is part of a set. Though it cannot be certain whether an element is in the set, it can be certain that it is not.

Bloom filters, invented by Burton Howard Bloom in 1970, are an appealing offering for a variety of applications due to their efficiency in space usage. They play an important role in Simplified Payment Verification, or SPV, in some cryptocurrencies (most notably Bitcoin).
Users can interact with the Bitcoin network by using an SPV client instead of running a full node. Full nodes have specific storage and computational requirements that make them difficult to run on low-powered devices such as smartphones. SPV clients, on the other hand, simply query full nodes for wallet-related information (s).

The simplest way to relay this data to the user would be to make full nodes aware of the client's keys so that only relevant transactions are sent to them. This is a poor solution because the client's privacy would be jeopardized. Downloading all transactions only to discard the majority of them, on the other hand, would be a waste of bandwidth. Bloom filters come into play.


Binance Token (BNB) is a cryptocurrency (token) that was created in 2017. It was first issued and launched during an Initial Coin Offering (ICO) crowdfunding event that took place from June 26th to July 3rd.
The token sale provided 100,000,000 BNB units (half of the total supply). The initial coin offering price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB (around 0.11 USD back then).

BNB was initially issued as an ERC-20 token (on the Ethereum platform), but it will be moved to the main Binance Chain shortly. The initial total supply of BNB was defined as 200,000,000 coins, but the supply is gradually decreasing due to regular coin burn events. Please watch this Binance Academy video to learn more about BNB coin burns.

BNB has a variety of applications, but within the Binance Exchange ecosystem, it is used as a utility token that allows users to receive discounts on trading fees. This article contains a discount schedule. Furthermore, the fee structure varies depending on the trading volume (30 days) and account tier level (more details on this page).

Bollinger bands 

John Bollinger, a financial analyst, and trader created the Bollinger Bands (BB) in the 1980s. Many traders and chartists have used the BB as technical analysis (TA) indicator since then.

In essence, the Bollinger Bands are a tool for measuring market oscillations. As a result, the BB indicator can be used to identify when a particular market exhibits high or low volatility. They can also be useful in detecting potential overbought or oversold market conditions.
The BB indicator is made up of two sidelong bands and a central line. These three components show how prices move closer to an average value, which is represented by the middle band. When market volatility is high, the upper and lower bands expand, and when market volatility is low, they contract. They either move away from or toward the middle band (high volatility) or the low volatility zone.

The Bollinger Bands are a popular TA indicator, particularly in traditional financial markets. They are, however, used by cryptocurrency traders. However, BB should not be used in isolation but rather in conjunction with other TA tools and indicators to reduce overall risks.


A bounty is a reward posted by a group or individual to encourage specific work, behavior, or development. Referral programs, for example, could be considered a type of reward.

A bounty program is a marketing strategy used by startups during their initial coin offering (ICO) campaigns in the context of cryptocurrencies. It enables them to devote a portion of their coin supply to promote their project.
Bounty programs typically target the cryptocurrency community and include the following activities:

• Social Media Campaigns - These use the social media accounts of participants to raise awareness of the ICO project. Likes, reposts, shares, views, and comments on popular platforms such as Twitter, Facebook, Youtube, WhatsApp, WeChat, and Telegram are examples of events.
• Content Creation Campaigns: These campaigns encourage bloggers, writers, video content creators, and enthusiasts to create articles, blog posts, or videos. The content can then be shared across social networks and platforms to raise awareness of the ICO. Typically, the rewards will be determined by the impact or level of engagement of the created content.
• Bitcointalk Signature Campaigns: These are open to all Bitcointalk forum members. They simply need to include the official ICO signature in their profiles. The number of stakes received is determined by the participants' ranking. Such events are usually restricted to members with a Jr. Member rank or higher on this forum.
• Translation Campaigns: This bounty consists of translating important project documents to ensure global reach. The ICO Whitepaper, the official website, and the Bitcointalk ANN thread are all examples of this.
• Bug Reporting Campaigns – The goal of this bounty program is to encourage developers and security researchers to report potential bugs and vulnerabilities in software and blockchain infrastructures. The value of the rewards is determined by the severity and interest level of the identified bugs.

Notably, the Binance Academy team is currently accepting submissions from the community. If you are a content creator and want to help us educate the world, please see our Submission Guidelines page.

Break-even point (BEP) 

The breakeven point (BEP) is the point at which total costs and total revenue are equal. That means there is no profit or loss at this point, and all necessary expenses have been met. To be more specific, the breakeven point (BEP) is the number of sales required to cover the total cost (fixed and variable costs).

The breakeven point is one of the most commonly used tools in financial analysis. It is used by entrepreneurs, investors, accountants, and even traders. BEPs can be beneficial to a variety of businesses, including those in the blockchain and cryptocurrency space. When a company manages to break above the breakeven point, it is said to be making profits. A BEP analysis within a business also allows companies to determine how far they are from profitability based on their income and fixed operational costs.

Cryptocurrency traders in the blockchain space can use breakeven point analysis to determine their current state of profits and losses and adjust their trading strategies accordingly. As a result, the BEP is closely related to the breakeven multiple concepts.
Miners use BEP calculations to determine whether or not their mining operations are profitable. In this case, it considers the costs of electricity, mining hardware, and the current value of the cryptocurrency being mined.

Breakeven multiple 

The Breakeven Multiple is the amount that the current price of a coin or asset must be multiplied by to reach its breakeven point (BEP). The initial acquisition cost paid by a trader or investor is referred to as the breakeven point (including trading fees). As a result, if the market price of an asset falls below the price paid, the trader must wait for it to rise again to break even and close their positions without profit or loss.

For example, if a trader purchases a coin at a market price of $10 per unit and then sees it fall to $5, he would need the coin's value to double (a 100 percent increase) to return to its original purchase price. The breakeven multiple, in this case, would be 2.

The Breakeven Multiple is sometimes used to refer to the multiple by which a cryptocurrency (or any other asset) must rise to reach its previous All-Time High (ATH). Assume a cryptocurrency's all-time high was $1,000, but it is now trading for $250 (a 75 percent drop). The breakeven multiple is 4 because it takes a 4-fold gain (300 percent increase) to return to the peak price.


A breakout in technical analysis (TA) refers to the price of an asset moving above or below a resistance or support area. A breakout may indicate that the asset's price will begin to trend in the direction of the breakout.

Breakouts with high volume may be regarded as stronger signals than breakouts with average volume. If the volume is high, the price is more likely to begin trending in the breakout direction.

Price pattern breakouts such as triangles, flags, wedges, or head and shoulders patterns, as well as range or channel breakouts, can result in breakouts. A period of low volatility usually precedes a breakout.

Typically, the more developed the pattern, the more explosive the breakout. Many traders may use the same price levels to set their stop-loss orders if the levels are clearly defined. When those stop orders begin to be triggered, they may cause a cascade effect, resulting in a rapid price movement.

The theory behind breakout trading is straightforward. If the price is contained within a range by support and resistance levels, a break of that range may signal a larger move.
Breakout trading can be applied to almost any timeframe and trading style.


Buidl, like "HODL," is a warping of the word "build." BUIDL is a call to arms for building and contributing to the blockchain and cryptocurrency ecosystems, rather than passively holding on.

The BUIDL movement believes that rather than simply accumulating or trading cryptocurrencies, people should begin contributing proactively to aid adoption and improve the ecosystem in which they have invested.

The first thought that comes to mind when discussing building in a highly technological space such as the crypto space is that you need to be a programming expert to contribute, but this is not the case with BUIDLing.

Building can simply involve using a cryptocurrency for its intended purpose, utilizing smart contracts, beta testing products, writing articles, playing blockchain games, using cryptocurrency wallets, and anything else that could aid in the evolution and expansion of the blockchain and cryptocurrency fields.

It is unknown who was the first to use the term BUIDL. However, many prominent figures in the cryptocurrency ecosystem believe in BUIDLing and frequently use the term to promote the overall development of the ecosystem.

Bull Market 

A bull market is defined as a positive trend in a market's prices. It is widely used not only in cryptocurrency markets but also in traditional markets. In short, a bull market refers to a strong market uptrend that results in significant price increases in a relatively short period. Cryptocurrency markets are smaller and, as a result, more volatile than traditional markets. As a result, strong and consistent bull runs are quite common, with a 40% price increase in 1 or 2 days being quite common.

Although the term "bull market" can be applied to any period of strong market activity, it is most commonly used in traditional markets when the price of an asset rises by 20% or more from its previous low point. A bull market typically occurs when investors are bullish on the future performance of an asset or the overall market indexes.

Historically, a variety of factors have contributed to the emergence of a bull market. In traditional exchange markets, a strong GDP and low unemployment rates are two factors that frequently produce favorable market conditions, increasing investor confidence. These factors can also have an indirect impact on cryptocurrency markets, but because the crypto space is smaller, it tends to behave differently and is not always correlated with traditional markets or economic indexes.

While a 20% increase in market prices is commonly regarded as the start of a bullish trend, most indicators of an impending bull market are not as obvious. Traders and analysts employ a variety of tools and systems to assist them in identifying signals and trends. Moving averages (MAs), the Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI), and the On-Balance-Volume are a few examples of technical analysis indicators (OBV).

Buy wall

A buy wall is the result of a single large buy order or the combination of multiple large buy orders placed in the order book of a specific market at the same price. A wealthy individual, a group of traders, or an institution can construct a buying wall.

Trading on cryptocurrency exchanges takes place through an order book, in which buyers indicate their buying prices (bids) and sellers indicate their selling prices (asks). Essentially, buy walls keep market prices from falling because they generate a large number of orders at the same price, requiring large sums of money to be executed and passed over.

Buy or sell walls typically occur when large holders (whales) of any cryptocurrency want to manipulate the prices to their advantage. As a result, whale traders frequently construct buy and sell walls in an attempt to manipulate markets.

When a large buy or sell orders appear in the order book, other traders typically place their orders immediately after the walls. For example, if a large buy wall for Bitcoin is set at $5,000.00, other traders who want to buy will typically place their order at $5,000.01 or higher. They do so because they believe there is a very low chance that their orders will be filled if they are placed together or behind the wall (for $4,999.99 or less).

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Candidate Block

A candidate block is one that a mining node (miner) is attempting to mine to receive the block reward. As a result, a candidate block can be thought of as a temporary block that will be validated or discarded by the network. Miners compete with one another to validate the next block and add it to the blockchain, but first, they must create a candidate block to compete.

Miners create candidate blocks by collecting and organizing multiple unconfirmed transactions from the memory pool. The transactions are then hashed to form a Merkle tree structure, from which a Merkle root is eventually produced (or root hash). The Merkle root is a single hash that represents all previous hashes of that tree and thus all transactions in that specific block.

The root hash, along with the previous block's hash and a random number called a nonce, is then appended to the block's header. The miner then hashes the block header, producing an output based on those components (root hash, previous block's hash, and nonce) as well as a few others. The resulting output is the block hash, which will serve as the newly generated block's unique identifier (candidate block).

To be considered valid, the output (block hash) must begin with a specific number of zeros (less than a target value that is defined by the protocol). This means that the mining process is based on multiple attempts (trial and error), as the mining nodes must perform a plethora of hashing functions with varying nonce values until a valid block hash is produced. The block hash generated proves that the miner completed his task (hence Proof of Work).

When a miner discovers a valid block hash, their candidate block is broadcast to the rest of the network's nodes, who verify the hash's authenticity. If everything checks out, the candidate block will be added to the blockchain. At this point, each validating node's copy of the blockchain data is updated to reflect the most recently mined block, and the miner receives the block reward.


A candlestick is a graphical representation of a trading asset's price action. It enables chartists and traders to see the open, high, low, and closing prices for a given period.

While candlestick charts can be used to analyze other types of data, they were originally designed to aid in the analysis of financial markets. Candlesticks are thought to have originated in the 17th century with Japanese traders.

A 1-hour chart, for example, is made up of multiple candlesticks, each of which depicts a 1-hour market movement. Each candlestick shows the opening and closing prices, as well as the high and low price points (body of the candlestick) (long lines above and below the body, also known as wicks).

Candlesticks have different disposals of the closing and opening prices, as well as different colors, depending on the direction of market movements. Ascending candlesticks are typically shown in green or black (filled). Typically, descending candlesticks are red or hollow (white).

Ascending candlestick
• Upper wick: highest traded price in that period.
• Close: last traded price in that period.
• Open: first traded price in that period.
• Lower wick: lowest traded price in that period.
Descending candlestick
• Upper wick: highest traded price in that period.
• Open: first traded price in that period.
• Close: last traded price in that period.
• Lower wick: lowest traded price in that period.

Among the many different types of charts, the candlestick is probably the most popular among traders and chartists. Perhaps because candlestick charts are easier to interpret visually than traditional line and bar charts.
Candlestick charts have been widely used and studied since their inception, and they are now an important part of the financial markets. As a result, learning how to read candlesticks and identify their patterns is one of the most fundamental steps for any aspiring trader.


A period of intense selling activity in which investors abandon positions and sell their holdings as quickly as possible. It is often referred to as panic selling because sell orders peak at a much higher-than-average level during a period of capitulation, rapidly driving the asset price lower and lower until a bottom is eventually reached.

Capitulation is defined as the point at which investors lose hope, accept losses and give up previous gains. When the panic selling period ends, signaling the end of the capitulation, it may be followed by either a settling period (sideways price movements) or an upward trend, which could indicate the start of a bull market.

Capitulation periods frequently result in price reversals and strong upward trends because they are characterized by FUD and panic, which cause selling pressure to exceed normal levels, resulting in oversold conditions. The more violent and abrupt the price drop, the more likely it will be followed by a strong bounce.

Originally, militaries used the term "capitulation" to refer to the act of surrendering a territory or troops when negotiating terms with an enemy army. When used in a financial context, the term refers to the point at which investors surrender to market forces. Rather than hoarding in anticipation of a market recovery or bounce, investors choose to sell their holdings at the current market price (market orders are often used during periods of panic selling).

When the market exhibits an unusually high volume of sell orders in a short time, as well as a rapid price decline, it may indicate that capitulation is occurring. Although not always easy to predict, capitulation is easily identified because it puts extreme downward pressure on market prices—with sharp and quick movements.

Capitulations are common in cryptocurrency markets, and they are often stronger and faster than in traditional markets. A clear example of this is Bitcoin's precipitous price drop in January 2015.

evere FUD at the start of 2015. Fearing even greater losses, investors began to panic-sell their holdings. The capitulation occurred on January 15th, 2015, when a massive spike in sell orders over a short period resulted in a 38 percent drop in Bitcoin's price in two days.
The bottom was reached at around $167, representing an 85.5 percent drop from the 2013 high (roughly $1153), and the end of capitulation signaled the beginning of a bull market. The next day saw a spike that was just as strong as the previous day's drop, with a 38 percent increase in one day.

Capitulations are more likely to occur and are easier to detect in smaller markets with higher levels of volatility. However, keep in mind that they do not always result in a bull market and should not be interpreted as an indication of future performance.

Censorship resistance

Censorship resistance could refer to a feature of a cryptocurrency network. This property implies that any party wishing to conduct business on the network can do so as long as they follow the network protocol's rules.

It could also refer to a network property that prevents any party from changing transactions on it. When a transaction is added to the blockchain, it is distributed and propagated across thousands of nodes. Once a transaction is added, it is nearly impossible to remove or change it, rendering it (and the network) immutable.

Censorship resistance is regarded as one of Bitcoin's primary value propositions. The idea is that no nation-state, corporation, or third party has control over who can transact or store wealth on the network. Censorship resistance ensures that the network's laws are set in advance and cannot be changed retroactively to suit a specific agenda.

While traditional financial institutions are controlled by intermediaries, no single entity owns the Bitcoin network. As a result, it is nearly impossible to censor transactions on it, which is not the case with traditional finance. If a person is deemed an enemy of an authoritarian state, for example, the ruling government may freeze their account and prevent them from moving their funds. While Bitcoin is primarily used for speculation, this is likely the most fundamental reason why it is a significant innovation.

Censoring transactions on the Bitcoin network is not completely impossible, but it is extremely resource-intensive. Bitcoin's security model is heavily reliant on the majority rule. This means that, in theory, a single entity could amass enough hash rate to take control of the network in a scenario known as a 51 percent attack. The chances of this happening are slim, but it is still possible.

Central Bank

A central bank is in charge of a country's monetary policy. It is in charge of controlling a country's money supply (via the issuance of fiat currency) and setting interest rates. Its stated objectives include preventing inflation, combating unemployment, and stabilizing the currency system. The money supply of a country can have a significant impact on these and other economic factors, which is why when a country is experiencing economic strife, central banks frequently resort to currency manipulation in an attempt to stabilize the economy.
The Federal Reserve Bank of the United States—the "Fed"—serves as the country's central bank. The European Central Bank, the People's Bank of China, and the Bank of England are among the world's other notable central banks.
Most countries in the world have central banks. Along with commercial banks, they use a variety of methods to manage their countries' monetary systems. Commercial banks that are members of the Federal Reserve System in the United States are also referred to as member banks. Setting reserve requirements, adjusting banking interest rates, and directing open market operations are all common methods.

Financial reserves

Reserves are required as part of the fractional reserve banking system used by the majority of international financial institutions. The central bank is in charge of determining the minimum reserve requirement for commercial banks, which means that these banks must hold a small percentage of the money deposited by their customers in their accounts while still being able to make loans with the remainder.

Interest rates

When member banks advance credit through short-term loans, the central banks set the interest rates charged. Member banks are in charge of lending to businesses and consumers for mortgages, vehicles, business expansion, equipment, and other large purchases. They also sell fixed-interest bonds. The interest rate set by the central bank is intended to guide commercial banks in their lending activities. Banks are more likely to lend money when interest rates are low. However, when the central bank raises interest rates, member banks tighten lending practices.

Open Market Operations

The central bank sells and buys securities from member banks (e.g., government bonds and mortgage-backed securities). When a central bank purchases securities from its member banks, commercial banks receive more cash to lend to their customers. In recent economic downturns, central banks have used this method to aid economic recovery through quantitative easing (QE). In a nutshell, QE strategies "create" new money by crediting a bank's financial reserves.

Central Processing Unit (CPU)

CPU is a computer's electronic circuitry that is in charge of interpreting computer program instructions and carrying out basic operations by those instructions. The fundamental operations are arithmetic, logical, controlling, and input/output (I/O). Since the early 1960s, the term "central processing unit" (CPU) has been widely used in the computer industry.

The CPU is composed essentially of four functional units:

• The Control Unit (CU) is in charge of controlling the flow of instructions and data within the CPU.
• The Arithmetic Logic Unit (ALU) performs all of the CPU's arithmetic and logical operation calculations.
• Registers: These are internal memory cells that can be accessed quickly. These elements are used to store variables (data, addresses) or intermediate results of arithmetic or logic operations.
• Cache is a smaller and faster memory that reduces access to main memory and thus improves CPU performance.
The clock rate synchronizes these units, which are linked by three types of buses:
• The Data bus is in charge of data transmission.
• The Address Bus transports memory addresses to be read or written.
• The control bus allows other components and I/O devices to be managed.

A CPU's architecture also includes the set of instructions that it can execute. In general, instruction set architectures are classified into two types:
• A CISC (complex instruction set computer) is a computer with a large number of complex instructions that can perform multiple low-level operations such as arithmetic, memory access, or address calculations in a single clock cycle.
• RISC (Reduced Instruction Set Computer): a computer with a smaller set of instructions that can perform a single low-level operation in a single clock cycle.


The centralization of power and authority in an organization or network is referred to as centralization. When a system is centralized, it means that the mechanisms for planning and decision-making are concentrated in a single location within the system.

Any system requires a governance mechanism. Otherwise, no decisions that direct the rest of the network can be made. The level of governance can range from establishing the fundamental rules to micromanaging each system’s function.

A central point of power authorizes and enforces decisions in a centralized system, which are then passed down to lower tiers of power.
A decentralized system is the polar opposite of a centralized one, in which decisions are made in a distributed manner without the coordination of a central authority.

The key question in the debate between centralization and decentralization is whether decision-making should take place at a central point in the network or be delegated away from any central authority.
Centralization can have several advantages.
• A long-term strategy can be tightly controlled.
• Responsibilities are well-defined within the system.
• Decision-making is fast and clear.
• The central power has an interest in the prosperity of the entire network.
Some of the disadvantages of centralization can be:
• Miscommunication and discrepancies between the center and other places
• Corruption is very likely.
• Requirement to retain power at the top level.
• Excludes actors at the local level with specific knowledge or expertise.

Before the invention of Bitcoin, it was widely assumed that it was impossible to design a decentralized network in which consensus could be achieved without significant drawbacks.

With the introduction of Bitcoin, however, a decentralized network has emerged as a viable alternative to centralized networks. This complicated the debate between centralized and decentralized power structures and offered a potential alternative to existing power structures.


A cipher is a set of defined instructions that can be used to encrypt or decrypt a text message in cryptography. Encryption is the process of converting clear information into an unreadable or inaccessible version. Plaintext refers to the original, understandable text, whereas ciphertext refers to the encrypted version. The only difference between the two texts is that the ciphertext is written in a format that can only be read or accessed by those who have the correct decryption mechanism.

The majority of cipher algorithms make use of a specific piece of secret information known as a cryptographic key. The encryption scheme differs depending on the key model, and cipher algorithms are classified as either symmetric or asymmetric. Asymmetric ciphers use different keys for each operation, whereas symmetric ciphers use the same key for both encryption and decryption.

Although computers perform the majority of modern encryption techniques, ciphers have been used to encode messages since before the ancient Greeks, around 400 BC. Julius Caesar, a well-known Roman politician, made extensive use of substitution ciphers, replacing each letter in a message with the letter located three positions further down the alphabet.

If we use the same technique to encrypt the word BINANCE, the resulting ciphertext is ELQDQFH. This message appears meaningless to a third party, but the intended recipient can easily decrypt it because he already knows the shift number used by the sender to encrypt it.

Circulating Supply

The number of cryptocurrency coins or tokens that are publicly available and circulating in the market is referred to as the circulating supply.

A cryptocurrency's circulating supply can rise or fall over time. The circulating supply of Bitcoin, for example, will gradually increase until the maximum supply of 21 million coins is reached. This gradual increase is due to the mining process, which generates new coins every 10 minutes on average. Alternatively, coin burn events, such as those held by Binance, reduce the circulating supply, effectively removing coins from the market.

The circulating supply refers to coins that are available to the general public and should not be confused with the total or maximum supply. The total supply is used to calculate the number of coins in circulation, which is the number of coins that have already been issued minus the coins that have been burned. The total supply is essentially the sum of the circulating supply and the coins in escrow. The max supply, on the other hand, quantifies the maximum number of coins that will ever exist, including coins that will be mined or made available in the future.

Furthermore, a cryptocurrency's circulating supply can be used to calculate its market capitalization, which is calculated by multiplying the current market price by the number of coins in circulation. So, if a cryptocurrency has a circulating supply of 1,000,000 coins that are traded at $5.00 each, the market cap is $5,000,000.


The term "cloud" in computer science refers to a shared pool of resources that are made available to multiple users via the Internet. These resources are typically associated with data storage and computing power, but they can also include various types of services, applications, networks, and servers.

Cloud-based resources are typically easily and conveniently accessible, and they can be dynamically reconfigured to fit multiple purposes with varying levels of scalability. Cloud computing technology is now widely used in many aspects of human life. A cloud is used to build a variety of services and applications.

On-demand streaming services, for example, use cloud computing capabilities to scale efficiently and provide the best user experience possible. Cloud computing is also used by popular online messaging and voice call applications, such as Skype and WhatsApp, to enable high-quality communication between their users. Other examples include Microsoft Office 365 and Google G Suite cloud-based solutions, which help millions of people worldwide by allowing them to work and collaborate in real-time from anywhere and at any time.

The US National Institute of Standards and Technology (NISTPeter)'s Mell and Timothy Grance define cloud computing as a technology comprised of three service models and four deployment models.

The three cloud computing service models are as follows:
• Infrastructure as a service (IaaS) provides basic computing resources such as data processing, storage, and networking. These can be built on cloud computing platforms such as Amazon EC2, Microsoft Azure, and Google Compute Engine.

• PaaS (Platform as a Service): Platforms that allow customers to develop and deploy acquired or user-created applications to a cloud computing platform. PaaS models include AWS Elastic Beanstalk, Heroku, and Google App Engine.

• Software as a service (SaaS), a cloud-based infrastructure and software delivery model. Users have access to a provider's software applications and databases, while the cloud provider manages the underlying infrastructure and platforms on which the applications run. SaaS models include Salesforce, Microsoft Office 365, and Slack.

The four cloud computing deployment models include:
• A public cloud is owned and operated by businesses, governments, or other third-party cloud service providers. Public clouds are intended for general public use.

• A private cloud virtualizes and distributes IT infrastructure for the exclusive use of a single organization and its customers or business units (i.e., not open to the general public).

• A community cloud is a cloud that virtualizes and distributes IT infrastructure for a specific group or community of consumers with similar goals and concerns (e.g., security requirements, policy, compliance considerations, etc.).

• A hybrid cloud is a cloud infrastructure that combines two or more different cloud infrastructures (public, community, or private).


A cryptocurrency or digital currency that is not linked to any other blockchain or platform. A coin's main feature is that it is a currency, and the term can also refer to a cryptocurrency asset that is not a token.

Coins, unlike cryptocurrency tokens, are not designed to perform utility functions such as representing votes within a community or denoting storage capacity on decentralized cloud storage. A coin, on the other hand, operates on its independent blockchain and functions as a native currency within a specific financial system. As a result, a coin serves as a medium of exchange or a store of value within a digital economic network. Most blockchains function as a decentralized, distributed ledger that tracks and verifies each transaction, and their native coins can only be transferred among network participants.

As a single unit of currency, a coin can be exchanged for an agreed-upon value based on current market conditions. It can occasionally be exchanged for another coin or token from another blockchain, either through a cryptocurrency exchange or through private transfers (like peer-to-peer and OTC trades). Decentralized exchanges and atomic swaps are also viable options for trading coins and tokens.

Many blockchain companies and startups choose to raise funds before building their blockchain, which is often done through an Initial Coin Offering (ICO) crowd sale. The majority of ICO fundraising events were held on top of the Ethereum network, with tokens distributed via the Ethereum Token Standard protocol (also known as ERC20). Instead of issuing their coin, these companies decided to create a digital token that is issued on top of an existing blockchain network.

ICO tokens are typically offered in exchange for Bitcoin or Ethereum, but some startups have also accepted fiat currency or other cryptocurrencies as payment during their fundraising. In some cases, the tokens represent the future project and are intended to be exchanged for native coins once the blockchain is fully operational.


Simply put, collateral is something of value given as a guarantee in exchange for something else. A borrower, for example, may offer their car as collateral to a lender when applying for a loan. If the borrower fails to pay their debts, the vehicle serves as a safeguard or warranty.
When compared to non-collateralized loans, collateralized loans typically have much lower interest rates. Collateral can take various forms. Mortgage collateral, invoice financing collateral, and margin trading collateral are some of the most common types.

Borrowers are most likely to use mortgage or real estate collateral. They are loans that are secured by real estate, such as an apartment, a house, or farmland. The property is the asset that secures the loan in this case. So, if the borrower fails to make the payments as agreed, the lender has the right to seize ownership of the property.

In contrast, invoice financing is a short-term borrowing method used by businesses. Companies employ this strategy by using unpaid invoices from customers as collateral. As a result, they can use funds in advance. Assume an online retailer sold $500,000 in products, but because the majority of customers paid by credit card, the company won't be able to use the money anytime soon. In this case, the invoice financing strategy would be appropriate, allowing the company to improve cash flow by using the money ahead of time for high-priority needs.

The term "collateral" in margin trading refers to the assets kept in a margin trading account to cover potential losses traders may incur when trading on leverage. To put it another way, when you borrow money to trade on margin, your account balance serves as collateral. If the market moves against you, the brokerage (or exchange) reserves the right to liquidate your assets.


In general, colocation (or colo) refers to the creation of a shared facility for the storage of multiple individuals' or companies' IT equipment and specialized hardware.

High-frequency trading (HFT) colocation refers to a dedicated space within a stock exchange's data center. Its primary goal is to house HFT traders' and firms' computers in the same building as the stock exchange servers.

As a result, HFT firms and traders can receive current market prices before the rest of the public. Even though the difference is of the order of nanoseconds, HFT firms frequently pay millions of dollars for such an advantage.

In other words, high-frequency traders use colocation to gain an advantage by having their computers physically close to the stock exchange servers.

Colocation has grown in popularity over the last decade, giving birth to a new type of business. According to some, the increasing demand for colocation services explains why stock traders are building larger data centers near major stock exchange servers.

For example, the previous New York Stock Exchange (NYSE) facility occupied approximately 4600 square feet. The new data center, on the other hand, is approximately 39800 square feet in size, making it nine times larger than the previous one.

Apart from the trading environment, colocation can also refer to specialized colocation centers (also known as carrier hotels). These are data centers where you can rent office space, professional hardware, bandwidth, and other IT services. This specialized service is available not only to other businesses but also to individual customers.

For institutions that require advanced security features, these data centers provide cages, open racks, and private suites. Finally, colocation is a great option for smaller businesses because it provides them with the infrastructure they need without the need to build everything from scratch.

Commodity Futures Trading Commission (CFTC)

The Commodity Futures Trading Commission (CFTC) is a US-based regulatory agency that oversees the derivatives markets, which include options, swaps, and futures contracts. It was established in 1974 as an independent organization to take over the responsibilities of the previous regulatory agency, the Commodity Exchange Authority (CEA).

Futures contracts were commonly traded in the context of agricultural commodities in the past. That is one of the reasons the CEA was incorporated into the US Department of Agriculture (USDA). However, the futures industry has grown in complexity and now offers a wide range of contracts.

The CFTC's stated mission and responsibilities are to ensure that the US derivatives markets operate efficiently: "The Commodity Futures Trading Commission's (CFTC's) mission is to foster open, transparent, competitive, and financially sound markets." By focusing on avoiding systemic risk, the Commission hopes to protect market participants and their funds, consumers, and the general public from fraud, manipulation, and abusive practices involving derivatives and other products governed by the Commodity Exchange Act (CEA).

Despite its focus on different industry sectors, the CFTC and the Securities and Exchange Commission share common goals (SEC). Both agencies are working to prevent market manipulation and fraud, such as Ponzi and pyramid schemes. The so-called whistleblower programs, as part of their strategy, reward citizens who provide valuable information about fraudulent activities. Since 2014, the CFTC Whistleblower program has awarded over $85 million.

Following the 2008 financial crisis, Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which gave the CFTC and SEC expanded authority, particularly over large derivatives traders.
Currently, the CFTC counts eight major operating units:

• Division of Swap Dealer and Intermediary Oversight
• Division of Clearing and Risk
• Division of Market Oversight
• Division of Enforcement
• Office of Chief Economist
• Office of the General Counsel
• Office of the Executive Director
• Office of the Whistleblower

Confirmation Time

The time elapsed between the time a blockchain transaction is submitted to the network and the time it is finally recorded into a confirmed block is referred to as confirmation time. In other words, it represents the total amount of time a user must wait for a miner node to collect and confirm their transaction.

Depending on the blockchain and network architecture, this time can be reduced by charging a higher transaction fee, giving miners an incentive to prioritize your transaction.

The average speed of a blockchain network can be measured using confirmation time. However, because the actual time between submission and confirmation can vary due to individual factors and fluctuating demand, it is more reasonable to calculate a blockchain's efficiency and speed by using an averaged confirmation time based on its current state and the most recent blocks.

After a miner has included a transaction in a block, the block must be validated by the network's other nodes. When a block is confirmed to be valid, it is considered to have a single confirmation, which means that each new block mined on top of it represents another confirmation.

Because the most recent blocks in a blockchain are not fully secure, it is often advised to wait for additional block confirmations before declaring the transaction successful and irreversible. This is especially true for cryptocurrency payment recipients, such as merchants and online service providers.

The number of confirmations required before a transaction is considered final varies and is directly proportional to the computational power (hash rate) dedicated to securing each blockchain network. For example, while Bitcoin users consider a minimum of 6 block confirmations to be highly secure, other chains with less power would require significantly more.


Originally, the term "confluence" refers to a geographic location where two or more rivers join to form a single body of water. However, using the same logic, it can also be used in finance to describe the convergence of multiple investment strategies or trading signals.

Confluence can be achieved in long-term investments when an investor, advisor, or portfolio manager creates a portfolio based on various strategies, typically investing in multiple asset classes. In most cases, this would result in portfolio diversification. It is important to note that confluence refers to the combination of different strategies, whereas diversification essentially refers to a portfolio with different types of assets.

Confluence in trading and technical analysis (TA) can be defined as the development of a trading plan or strategy that takes into account various trading methods or TA indicators. Furthermore, the term can refer to the use of multiple trading signals in tandem to confirm the validity of a potential buy or sell signal.

Assume a trader identified a potential reversal price zone based on resistance and support levels. However, before entering the trade (i.e., opening a position), the trader could examine the position of moving averages to see if any of them indicate the same reversal zone. Aside from that, they could use the Ichimoku Cloud method to confirm the validity of their analysis even further.

As a result, we can say that a market trend or price reversal level can be confirmed by utilizing multiple data sources and trading signals. This is referred to as technical analysis convergence. As a result, a trader would have more reasons to open or close a position, or simply wait for a better opportunity to act.

Consumer Price Index (CPI)

An example of an index is the Consumer Price Index (CPI), which tracks the prices of a variety of assets to provide information about different market segments. The DJIA, the NASDAQ Composite, and the S&P 500 are some examples of indices (all of which measure the performance of the major stocks).

The word "CPI" refers to any index used to track the cost of consumer goods, services, and home goods; there is no single CPI. Let's say we have a basket full of expenses, including food, personal care items, gas, rent, and so on. In essence, we can apply this to any purchase that a typical buyer would make.

By using weighted averages to assign more "weight" to more significant things, we'll record the overall cost of the goods in that basket. Next, we'll add the year, month, and time frame. We can gain a sense of the index's performance over time by doing this at predetermined intervals.

Why is CPI used?

The consumer price index provides a strong baseline for gauging economic growth. It is specifically used to track the effects of inflation and deflation. This is helpful for a variety of reasons, including helping governments understand their monetary policy choices and determining how much money should be sent to individuals on subsidized incomes.
CPI = current year / base year * 100


Identifying data Usernames, passwords, email addresses, credentials, and many more are examples.

Crypto Winter

The phrase "crypto winter" describes a protracted period of dropping or stagnant prices and pessimistic market sentiment. Similar to a bear stock market, a crypto winter frequently sees overvalued projects fail, businesses lay off employees, venture investments decline, and overall industry activity decline.

Although there is no agreed-upon definition of crypto winter, cryptocurrency prices are thought to be a crucial sign. From 2017 to August 2022, using the price of bitcoin as a baseline, there have been five crypto winters.

The beginning of a crypto winter can be caused by several variables. Regulation tightening, interest rate increases, deteriorating macroeconomic conditions, and financial market contagion – all of which have been linked to previous crypto winters – can all be external and crypto-specific causes. There may be a unique collection of catalysts in each situation. For instance, the mid-2022 crypto winter is thought to have come after the failure of several well-known stablecoin and crypto loan ventures, as well as disruptions in the DeFi industry.

A bull market with sharp price increases in digital assets and excessively upbeat emotions is typically followed by a crypto winter. Crypto winters can be seen as a natural component of the market cycle that helps rectify the excesses that impede the long-term growth of the sector in this respect. Contrary to popular belief, a crypto winter can be a terrific opportunity for industry players to concentrate on creating valuable products rather than trying to profit from the short-term enthusiasm typically associated with bull market periods.


A peer-to-peer (P2P) digital currency that is protected by cryptography and often used as a medium of trade in digital economies. These systems are entirely impervious to fraud and counterfeiting due to the use of cryptographic algorithms.

The first cryptocurrency ever established was Bitcoin, which was unmasked creator Satoshi Nakamoto's creation in 2009. To eliminate the need for middlemen like banks or governmental organizations in digital financial transactions, Nakamoto set out to develop a unique electronic payment system.

The decentralized framework used by the majority of cryptocurrency systems is collectively upheld by a distributed network of computers. A node is a computer (or another device) that connects to the network. Any physical object that is connected to a network and can transmit, receive and forward data is referred to as a node. Each node is assigned a category based on the tasks it completes for the system. For instance, there are at least seven different types of nodes in the Bitcoin network, and the nodes that can perform every function are referred to as "complete nodes."

Systems that employ cryptocurrency are seen as decentralized because they don't rely on a single central authority. The issuance and management of cryptocurrency units are based on pre-programmed algorithms and mathematical proofs, and network nodes are widely dispersed throughout the globe. But because each cryptocurrency operates uniquely, there are different levels of decentralization. In other words, depending on the network architecture and the distribution of nodes, some cryptocurrencies may be regarded as being more decentralized than others.

The majority of cryptocurrency systems are based on a blockchain, which is essentially an expanding list of data that is very hard to change. In the context of cryptocurrencies, a blockchain is responsible for maintaining a permanent record of all confirmed transactions (and accompanying data), all of which are encrypted by cryptography. A blockchain is composed of a linear chain of blocks, as its name suggests. In general, every cryptocurrency operates on top of a blockchain that follows a predetermined set of guidelines (i.e., an underlying protocol). The protocol specifies how the Bitcoin system and blockchain should function.


Data is now more easily available because of advances in computer technology, which offer both benefits and drawbacks. Online data is vulnerable to a variety of risks, such as theft and corruption. One method for preventing information from some of the risks connected with data storage and distribution is cryptography (or cryptology). To suggest that the idea of encrypting data is brand new would be inaccurate. People have been masking communications to keep unexpected audiences from reading them since the dawn of the digital age. However, the widespread usage of computing devices has advanced the field of encryption research significantly.

What is cryptography?

Briefly, cryptography is the study of information concealment. Modern cryptography explicitly uses mathematical theories and computing to encrypt and decode data or to ensure the integrity and validity of the information.

Text encryption works by converting plaintext (material that can be understood plainly) into ciphertext using an encryption process (which is unreadable). By doing this, it is possible to ensure that the data supplied can only be decrypted and decoded by a certain decryption key.
Sensitive data can be sent even across unsafe networks by employing specialized encryption methods. The level of encryption will vary depending on how much protection the data needs. For instance, the security utilized on bitcoin networks differs from that used on conventional personal files (such as contacts).

Understanding the operation of cryptography is essential to comprehend its significance in cryptocurrency systems. Most blockchain systems, like the one used by Bitcoin, rely on a specific combination of cryptographic tricks to work as a decentralized and public ledger where very secure digital transactions can be carried out.

How Does Cryptography Work?

Although there are many subfields of research in modern cryptography, some of the more important ones are symmetric encryption, asymmetric encryption, hash functions, and digital signatures.

Cryptographic proofs are used by the Bitcoin protocol to protect the network and guarantee the accuracy of every transaction. Digital signatures ensure that each user can only spend money from his or her wallet, and that money can only be spent once. For instance, if Alice pays Bob 2 bitcoins, she makes a transaction, which is essentially a message confirming the removal of the coins from Alice's wallet and the addition of 2 bitcoins to Bob's wallet. She can only accomplish this by offering a digital signature, though.

The Hashcash function, which establishes the Proof of Work consensus mechanism and the mining process, is another crucial component of the Bitcoin Protocol (responsible for securing the network, validating transactions, and generating new coins). The cryptographic function SHA-256 is used by Hashcash.

Since cryptography is a fundamental component of blockchain technology, it is important for all cryptocurrencies. The development of Bitcoin and other decentralized digital currencies was made possible by the application of cryptographic proofs to distributed networks, which allowed for the development of trustless economic systems.


In the world of finance, the term "custody" describes the process of an institution retaining assets for a client. An asset owner may find it advantageous to utilize a custodial service because it reduces security concerns like theft and loss.

Since they are unable to use the assets they retain for their purposes, custodians typically differ from banks in this regard. The institution would typically charge a fee for the custody of the assets as compensation for their trouble. This may also include any sales made at the customer's request.

Custodial cryptocurrency solutions are ones in which a third party maintains custody of the user's private keys to their funds. The only people that can truly send and receive the user's coins are them. Although the cryptocurrency's owner legally owns it, they do not own any ownership rights at the protocol level. A custodial strategy is used by almost all exchanges since it enables them to offer a better user experience.

Custodial solutions may be more secure for new users who are not yet familiar with key management. However, it should be highlighted that this exposes consumers to counterparty risk. When a custodian is compromised or shut down, users have few options for recovering their currencies.

This is not meant to downplay the significance of these organizations. Custodians are essential to the ecosystem, helping to onboard new users and giving seasoned users cutting-edge trading tools. Businesses that handle asset management and storage on an institutional scale are multiplying. Some have additional insurance to compensate their clients in the event of financial loss.

For the average user, however, sizable sums of money ought to be kept in cold storage if they aren't being utilized right away. Staking, trading, or other kinds of passive income are examples of active utilization.



A background process, which waits for a certain circumstance or occurrence before it can be activated.

Dead Cat Bounce

The phrase "dead cat bounce" is used on Wall Street to refer to a momentary increase in the price of a decreasing asset that is swiftly followed by a resumption of the downward trend.

The expression is claimed to have its origins in the notion that "even a dead cat would bounce if it fell from a tremendous height." This expression, which has its roots on Wall Street, is often used to describe circumstances in which there is a brief uptick during a prolonged slump.

A Dead Cat Bounce is a technical analysis pattern that bitcoin traders and traders of the financial markets may use occasionally. The pattern can fall within the category of continuation patterns, making it possible to predict the continuance of recent significant price movements.
A Dead Cat Bounce pattern may be mistaken for a general trend reversal in its early stages. After some time, though, the price stalls and the downward trend persists, shattering earlier support levels and setting new lows. As a result, Dead Cat Bounce patterns may also lead to a bull trap, in which investors establish long positions in anticipation of a trend reversal that never materializes.

Early in December 1985, the phrase "Dead Cat Bounce" appeared for the first time in news reports. Horace Brag and Wong Sulong of the Financial Times cited a broker as saying, "This is what we call a dead cat bounce." The broker was alluding to the financial markets in Singapore and Malaysia, which had seen significant declines but were now showing indications of recovery. Following that, the economies of Malaysia and Singapore continued to decline and would only begin to recover in the years that followed.

FAQ 3 title

Applications known as Decentralized Applications (DApps) run on a blockchain network, which is a distributed computing system. Although there are several ways to define a DApp, they are typically referred to as applications with the following features:

• Open Source: The source code is consciously made public, allowing anybody to examine, use, copy, and alter it.
• Decentralized (DApps) are not under the jurisdiction of a single organization or authority because they operate on blockchain networks. Instead, they are kept up by numerous users (or nodes).
• A public blockchain is used to store and preserve all of the data, which makes the program cryptographically secure. No single point of failure exists.

The DApps aim to address several problems with legacy apps. The key advantage of a DApp over a standard app is that the latter uses a centralized design by keeping its data on servers managed by a single company, which makes it less advantageous. As a result, they have a single point of failure that is vulnerable to both malicious attacks and technical difficulties.

The network of the program as a whole could be brought down by a compromised centralized server, rendering it inaccessible either momentarily or permanently. In addition, centralized systems frequently experience data loss or theft, endangering both businesses and individual users.

There is a wide range of DApps with various use cases. Games, social media networks, cryptocurrency wallets, and banking applications may be among them (DeFi).

Through a tokenized architecture, decentralized applications support their activities (digital tokens are created through the use of smart contracts). Tokens may be unique to a certain DApp (such as the Steem token used on Steemit) or they may be native to the blockchain that hosts the DApp, as in the instance of CryptoKitties' use of ether (ETH).

To summarize, DApps are created as open-source programs that operate on top of a blockchain network. Transparency, decentralization, and assault resistance are provided by the distributed nature of these networks.

Decentralized Autonomous Cooperative (DAC)

A company that is managed by shareholders as opposed to a single controlling force.

Decentralized Autonomous Organization (DAO)

Decentralized Autonomous Organization is referred to by the abbreviation DAO. A DAO is often a set of hard-coded rules that specify the course of action for a decentralized organization. The name "DAO" could also particularly refer to the 2016 Ethereum blockchain organization "The DAO," which was conceived of.

Simply explained, a DAO is a specific type of organization that, in contrast to traditional businesses, is built on open-source software and is run by its community. As a result, a DAO's fundamental structure and operating principles are not dependent on any type of hierarchical management (which is quite common in traditional businesses).

In other words, a DAO does not have a single body in command, a directory board, or any centralization of power. DAOs are managed by the combined efforts of their contributors and community members and are run by computer-encoded rules (smart contracts).
Decentralized organizations (DO) as a concept are not new, but what makes DAO a practical and interesting idea is the use of smart contracts to automate certain of its functioning procedures and capabilities. With the help of such a cutting-edge framework, a whole new form of business model is possible, allowing for the automated and fully decentralized execution of many different types of operations.

The DAO model may be helpful in several situations, including automated fundraising campaigns (like ICOs), the creation of digital tokens, and the tokenization of assets, as well as systems for voting on proposals and making decisions. The DAO model also makes it possible to build systems that are more effective by requiring fewer human inputs, which lowers total operational costs and dangers associated with human behavior.

DAOs have the potential to revolutionize a variety of industries through the use of decentralized governance models backed by smart contracts, much like how Bitcoin built a peer-to-peer digital economic system by doing away with the need for banks and other trusted third parties.

Decentralized Exchange (DEX)

A trading platform that doesn't hold users' funds for them and doesn't require them to deposit money to start trading. Users trade straight from their wallets instead.

Decentralized Finance (DeFi)

"Decentralized finance" (abbreviated as "DeFi") refers to the ecosystem of financial applications being built on top of blockchain technology.

Decentralized financial innovation (DeFi) is a movement that supports the development of various financial services and products using decentralized networks and open-source software. The goal is to build and run financial decentralized applications (DApps) on top of a transparent and untrustworthy infrastructure, such as permissionless blockchains and other peer-to-peer (P2P) protocols.

The three primary duties of DeFi at this time are:
• Establishing financial banking services (e.g., issuance of stablecoins)
• Offering platforms for peer-to-peer or pooled lending and borrowing
• Enabling sophisticated financial tools like DEX, tokenization platforms, derivatives, and prediction markets.
There are various kinds of DeFi services available within those three categories. Funding protocols, software development tools, index creation, subscription payment methods, and data analysis software are a few further examples of products and use cases. DeFi dApps can also be used for identity management services like KYC and AML.

Compared to conventional financial services, decentralized finance reveals many advantages. Using distributed systems and smart contracts makes it much easier and safer to deploy financial applications and products. For instance, a large number of decentralized applications (dApps) are being created on top of the Ethereum blockchain, which offers cheaper entry costs and operations costs.
In conclusion, the DeFi movement is moving traditional financial goods to the open source and decentralized world, eliminating the need for intermediaries, cutting costs overall, and significantly enhancing security.


Decryption refers to the process of undoing encryption so that previously encrypted data can be viewed or accessed. It entails making ciphertext, which is unreadable data, readable (plaintext).

Decryption is the act of returning encrypted material to its original, comprehensible form, whereas encryption is the process of rendering it unreadable. A particular type of cryptographic key is required for this method of encrypting and decrypting data.

These keys, which are typically represented as a string of numbers and letters, are produced by cryptographic algorithms. Using the corresponding decryption key, it is simple to restore an encrypted piece of data to its original state. Decryption, however, becomes far more challenging without the right key and can only be accomplished through brute-force attacks. Strong encryption techniques provide virtually unbreakable keys.

Applied to both symmetric and asymmetric encryption are cryptographic keys. The techniques can be separated into two main categories known as symmetric key cryptography and public key cryptography, depending on how keys are created and utilized (PKC).

The same key is used to encrypt and decrypt data in symmetric key cryptography. This was the only type of encryption method that was known up to 1976. On the other hand, asymmetric encryption (also known as public key encryption) uses a pair of mathematically related keys. A public key and a private key make up such a pair of keys. The public key encrypts data, but the private key is required to decrypt it.

Deep Web

The area of the World Wide Web (WWW) that is largely concealed is known as the "deep web. Pages on it are not indexed by popular search engines, including Google, Bing, and DuckDuckGo.

The "surface web" is also referred to as the "deep web. For this reason, it is also sometimes referred to as the "hidden web" or the "invisible web."

Beyond the surface

Over 99% of online content is found on the deep web. It is a section of the WWW that is distinct from the "surface web," which is the portion of the web that is visible. The layer that is easiest to access is the surface web. It contains all the pages that can be searched or indexed.
The surface web is significantly less information-rich than the deep web, despite the massive amount of content that can be found through search engines. According to a 2001 study, less than 0.05% of all content is accessible on the surface web, with the remaining 99.95% being accessible only through the deep web.

What is the Deep Web?

The deep web is understood to encompass both obscure pages and those that require a particular authentication procedure to access. Due to their obscurity, they can only be reached by using a direct URL (searching on Google is useless). Nevertheless, the latter category includes the lion's share of the deep web's content.

Along those lines, every website that requests a login and password may be regarded as a component of the deep web. In other words, a large portion of the websites that people visit every day are truly deep websites. This includes bank accounts, email addresses, and social media platforms.

The deep web is often referred to as the cryptic web, which may initially sound perplexing. Still, statistics and personal databases make up the majority of the deep web. For instance, a sizable portion of this digital data is accounted for by U.S. government organizations, including the Securities and Exchange Commission (SEC), National Oceanic and Atmospheric Administration (NOAA), and Commodity Futures Trading Commission (CFTC).

The deep web versus the dark web

Confusion over the distinctions between the deep web and the black web is another typical occurrence. In a nutshell, the dark web is the anonymous section of the deep web.

As a result, it is frequently linked to websites that enable unlawful activity or offer activists and whistleblowers some sort of privacy benefit (including black hat hackers and hacktivists). The dark web, which can only be accessed through specialist platforms like Tor, is thought to make up less than 0.01% of the deep web.


Delisting is the process of removing a commodity from a market. The asset's team or the asset itself may seek it or it may occur as a result of no longer meeting the listing conditions set forth by the exchange. Many variables could affect whether an exchange decides to delist an asset. Following is a list of some of these elements:

• overall dedication of the team to the project
• the nature and intensity of development activities
• stability of the project network or smart contracts
• Public relations efforts of the project team
• response to an exchange's due diligence inquiries
• Proof of unethical or dishonest behavior
• Whether the initiative is assisting in the development of a strong, long-lasting blockchain and cryptocurrency ecosystem
• Other factors that the exchange considers make working with the project unpleasant or unsafe

All of an asset's trading pairs are eliminated when it is delisted from an exchange. The asset will no longer be traded on the exchange that delisted it, but it may still be traded on other exchanges (such as decentralized exchanges) or through over-the-counter (OTC) trading. Asset withdrawals from the exchange will be available after the trading pairs connected to the delisted asset have been eliminated for a predetermined amount of time. As a result, even if trading is no longer possible on the site, consumers still have the opportunity to withdraw any existing monies that have been held on the exchange.

Design Flaw Attack

A design-fault attack is when a hostile user intentionally develops a smart contract, decentralized market, or other software with awareness of certain defects to deceive those participating in the permissionless ecosystem.

High-apparent incentives for customers to lock their money within a smart contract are frequent in design flaw attacks. A faulty definition in some contract-related regulations or the protocol upon which the contract is based may result in an unfair settlement or money release.

A hostile user may potentially carry out a design fault attack by choosing to take advantage of errors in a contract that another user innocently constructed. An informational imbalance between the attacker and any possible open network participants would be the basis for the attack in this scenario.


One target of design flaw attacks on the Augur platform is the prediction markets. For instance, many of its flawed markets rely on imprecise and ambiguous definitions to dupe consumers into placing bets on contracts whose outcome will be disputed due to divergent specifications and interpretations.

Oracles or data sources like price feeds may be the target of further possible design flaw attacks. An attacker can, for example, choose to target a market or protocol that has a single external pricing source API that may be deprecated before a contract expiration or settlement date to gain an advantage in manipulating any smart contracts that rely on this data source.

Diamond Hands

The phrase "diamond hands" first appeared in online investor forums on sites like Reddit and Twitter. It refers to keeping a financial asset regardless of its volatility and not selling it. Typically, extremely volatile investments like cryptocurrency, options, futures contracts, and meme stocks are held in diamond hands. The phrase alludes to diamonds, which are among the strongest and most resilient natural materials.

Someone with diamond hands won't sell the asset if its value rises to make quick money. In the future, they anticipate an even greater increase. If the price falls sharply, the investor doesn't want to lock in losses too soon because they believe the asset will eventually rise again.

When the price of an asset has dropped by 50% and the investor hasn't sold it, they may claim to have "diamond hands." The fact that having diamond hands is virtually always dangerous is sort of ironic. It's undoubtedly not a good method to manage your portfolio, and people frequently use the cliché to make big losses seem less depressing. Investors not only claim to have diamond hands but also share several photographs to support the claim.

The phrase first appeared because conventional investors frequently used the phrase "keep your assets" and since diamonds are among the hardest materials available, the term "HODL" derives from the concept of holding. This cryptocurrency-specific colloquialism also indicates that you should keep your position and refrain from selling.

Users of digital assets are still primarily restricted from using diamond hands. However, with the expansion of the meme stock movement, it has begun to appear in conventional financial jargon. Term paper hands are comparable to diamond hands. Selling your possessions as soon as the value starts to fall or rise is known as "having paper hands."


The work necessary to mine a block is referred to as difficulty in the context of cryptocurrencies. In Proof of Work blockchains, specific rules are put into place that forces this to climb or fall based on the network's overall hashing power.

Block production is slowed down as a result, and the network's continuous security is also ensured. For instance, Bitcoin limits the block period to about 10 minutes (the average time it takes to find a new block). The objective will be raised if blocks are regularly harder to locate. It will be reduced if blocks are discovered too soon.

Difficulty Bomb

The progressive increase in Ethereum mining complexity as a result of the cryptocurrency's switch to a Proof of Stake method is referred to as a "difficulty bomb."

Users make educated guesses at a protocol-defined puzzle solution when they mine. The problem is designed to take miners a specific amount of time to solve (10–20 seconds in Ethereum). However, it stands to reason that the more users who make educated guesses, the faster they will find the answer. To address this, the protocol increases the puzzle's difficulty as hashing power rises.

This kind of consensus algorithm is used by Ethereum, but it also has a difficulty bomb that raises the total difficulty at specific block heights. The intended result of such an increase is a drop in the mining industry's profitability. Block generation gets progressively more difficult over time, and logical miners will stop doing it. In the end, the difficulty bomb causes the so-called "Ice Age," in which mining is so challenging that the chain is essentially frozen.

By Ethereum's current roadmap, this technique aims to do away with Proof of Work. The difficulty bomb aims to deter anyone from continuing to generate blocks on the old chain because it is anticipated that the network will switch to staking in the future. This could, among other things, stop the chain from forking into two divisive branches.

Additionally, because developers are constantly updating the Ethereum chain to keep it from breaking, it prevents development on the chain from stagnating.


Divergence is a term used in finance to describe when the market price of an asset moves in the opposite direction of some other data, typically represented by a technical analysis indicator. Investors and traders utilize divergences to try to ascertain whether a market trend is weakening, which could result in a consolidation period or a trend reversal.

One straightforward indicator that can result in divergences is trading volume. When the market price moves against the direction of the trade volume in this situation, a divergence is produced. An example of divergence would be if the price of an asset is increasing while the volume of trades is falling.

Although that divergence can occur between the market price of an asset and any other piece of data, it is most frequently employed in conjunction with oscillator-type technical analysis indicators, particularly the Relative Strength Index (RSI) and the Stochastic RSI.
Divergences can be both good and bad, but it's important to remember that they're not always there. When an asset's price is down but the technical indicator indicates that the buying forces are strengthening, there may be a positive divergence (or a decrease in selling). As a result, a bullish indicator, a positive divergence, could sometimes indicate a price reversal to the upside. In contrast, a negative divergence is exhibited when the asset's price is rising but the indication shows that the buying power is waning (or stronger selling pressure).

Divergences may aid traders in deciding where to place their stop losses, entry positions, and exit points. Divergences, however, should not be depended upon as a primary indicator because they are sometimes difficult to see and can also result in erroneous trading signals.


Allocating capital to various financial instruments within and across asset classes is referred to as diversification in the context of financial markets. The basic objective is to lower the overall risks associated with holding a single asset class, like a stock, bond, commodity, or cryptocurrency.

The theory underlying the diversification strategy is that a portfolio comprised of a wide range of assets is more likely to produce superior long-term returns while simultaneously lowering the likelihood of substantial losses. Investments in several sorts of cryptocurrencies, for example, or a variety of other asset classes can accomplish diversification within a single asset class (e.g., investing in cryptocurrencies, stocks, and commodities).

A diversified portfolio will typically experience smoother changes in net value. This is primarily because investments that perform well tend to balance out investments that perform poorly. As a result, it is crucial to take into account the correlation between the assets that comprise a portfolio of investments. A portfolio of strongly correlated cryptocurrencies, for instance, will respond to market forces very similarly to a single-asset bag. Because they react to market pressures differently and have a propensity to move in opposite directions, negatively correlated assets are more advantageous in terms of diversification.

In addition to that, diversification plans may also consider other elements like the geographic location of the asset, a particular industry specialty, the size of the organization, and so forth. For instance, holding stocks from international companies will result in a higher level of diversification than holding a variety of stock shares from US-based companies.

An investor may achieve diversification within the crypto asset class by holding a wide range of coins and tokens. When comparing blockchains and their cryptocurrencies, for instance, they might take a look at various use cases, such as supply chain tokens, smart contract platforms, digital currencies, and so forth.

The phrase "don't put all your eggs in one basket" is frequently used, and it perfectly captures the rationale behind diversification. Holding many baskets minimizes the likelihood of losing all of them while incurring higher costs and an increased risk of losing one egg. Diversification, on the other hand, restricts the potential for growth because a single asset can generate higher positive returns.

Do Your Own Research (DYOR)

Do Your Own Research, or DYOR is a term that cryptocurrency enthusiasts frequently employ. The acronym is not, however, specific to the world of cryptocurrencies. Due to how quickly and readily false information can spread online, it is frequently employed.

Cryptocurrency DYOR

The goal of DYOR is to slash the proportion of ignorant cryptocurrency investors. It encourages them to learn more about cryptocurrencies before investing so they can explain in detail why they are purchasing that currency and supporting that particular project.
When bitcoin traders and fans write publicly or share their market assessments on social media sites, the phrase "with a disclaimer" is frequently used as a disclaimer.

Why is it important to do your own research?

Shilling, when users promote their cryptocurrency holdings to drive up the price, is a widespread practice in the industry. Sometimes, it can be challenging to tell a shill post from an objective one. Before investing in any cryptocurrency, it is important to conduct your research and not rely solely on recommendations from others.

Sybil assaults are quite prevalent on Facebook, Twitter, and Reddit, just a few of the social media sites. People with bad intentions might swiftly set up numerous false accounts to deceive investors into buying a cryptocurrency based on a social media platform's "popular" post. However, it is not always simple to identify bogus accounts, so it is crucial to exercise caution and conduct your research.

Dollar Cost Averaging (DCA)

The practice of investing set sums at regular intervals (for example, $20 each week) is known as dollar-cost averaging. Investors that want to lessen the impact of volatility on their investments and, as a result, lower their risk exposure should employ this method.

Because of the potential for lowering the average cost of the total quantity of assets purchased, the term "dollar cost averaging" was developed. As a result, the investor may purchase fewer units of an asset while it is still relatively expensive and more units as the price declines. To put it another way, the investor would take a position gradually rather than all at once.

Double Spending

When a certain number of coins are used multiple times. typically as a result of a 51% or racial attack.


Eclipse Attack

When a large portion of the network's peers are hostile and monopolizes it to prevent some nodes from receiving information from trustworthy nodes.

Efficient Market Hypothesis (EMH)

According to the efficient market hypothesis (EMH), all information about the value of assets is reflected in the financial markets at all times. The thesis, which was first put forth by economist Eugene Fama in the 1960s, contends that it is almost impossible for investors to outperform the market over the long term. All known knowledge will be traded on until it is no longer valuable, therefore assets will be valued at their fair market worth.

Theorists distinguish between three levels of available knowledge when discussing efficient markets: weak, semi-strong, and strong.
The weak suggests that all prior data is taken into account by current prices, making technical analysis unnecessary. It excludes other types of knowledge, though, and does not disprove the idea that strategies like lengthy research and fundamental analysis might be employed to gain an advantage.

The semi-strong form requires that the price already takes into account all available information (news, statements by companies, etc.). As a result, supporters of this school think that even fundamental analysis is useless. Utilizing confidential information that is not yet public knowledge is the only method to outperform the market.

In addition to previous performance and public information, any data made available to insiders will also be exploited, according to the strong form, which states that all public and private information is represented in an asset's price. According to this theory, no market participant could obtain an advantage through the use of any kind of knowledge because the market would already have taken it into account.

Although EMH is a well-known theory, it is not without its detractors. Although empirical evidence has not sufficiently supported or refuted the veracity of the idea, many detractors think that a variety of emotional reasons contribute to the undervaluation or overvaluation of stocks.


What is encryption?

To prevent unwanted parties from accessing clear information, encryption fundamentally involves turning it into code. Encryption techniques are used by organizations, governments, and individuals to protect their personal information and stop fraud. According to recent surveys, the HTTPS protocol already encrypts around 50% of all online data and conversations.

How does data encryption work?

The process of encryption entails transforming readable data into unreadable data. Text encryption works by converting plaintext (material that can be understood plainly) into ciphertext using an encryption process (which is unreadable). By doing this, it is possible to ensure that the data supplied can only be decrypted and decoded by a certain decryption key. The data is restored to its original condition when this key is used to decrypt it.

Contrary to popular opinion, the majority of cryptocurrencies and the networks that support them do not use encryption. They rely on digital signatures and hash functions instead. Cryptographic proofs, for instance, are used by the Bitcoin Protocol to safeguard the network and guarantee the accuracy of each transaction. The use of digital signatures ensures that each user may only use the money in his or her wallet once and that it cannot be used again.

To protect client information, bitcoin websites may employ encryption. To safeguard wallet files and passwords, cryptocurrency wallets also employ encryption.

What are the benefits of encryption?

Protecting sensitive data, including names, addresses, phone numbers, private messages, and social security numbers, is possible using encryption. Without a decryption key, hackers who breach a computer network and gain access to a system will be unable to decode this data.

Businesses and individuals can maintain their privacy through encryption. They may share encrypted information over the internet and avoid government surveillance. These technologies are now being used to protect consumer information by many of the largest companies in the world. In the event of a data breach, hackers won't be able to access a customer's private information, like a credit card number or address.

Additionally, organizations may utilize encryption to strengthen their compliance protocols. For instance, to meet HIPAA data quality requirements, healthcare organizations in the US must encrypt patient data. Companies that do not adequately protect patient data may be subject to fines from the federal government.

Encryption makes it safer to send money online while using cryptocurrencies by preventing hackers from accessing data, increasing compliance, lowering fraud, and improving security. This method is increasingly being used by businesses and individuals to protect their sensitive data.

Enterprise Ethereum Alliance (EEA)

Delivering an open, standards-based architecture and specification to speed up the adoption of Enterprise Ethereum, the first worldwide standards organization in the sector.


Tokens on the Ethereum network are created and implemented using the ERC-20 technical standard. Fabian Vogelsteller, an Ethereum engineer, suggested this in November 2015. The standard outlines a set of guidelines that must be adhered to for a token to operate correctly within the Ethereum ecosystem. As a result, ERC-20 shouldn't be viewed as a program or piece of software. Instead, it might be referred to as a technical standard or guideline.

The ERC-20 standard makes it simpler for developers to forecast with greater accuracy how various tokens and applications will interact. Additionally, it specifies how ERC-20 tokens are moved throughout the Ethereum network as well as how their supply and address balances are continually kept track of.

In other words, the ERC-20 provides developers with a set of guidelines to adhere to, allowing for smooth operation inside the larger Ethereum ecosystem. ERC-20 tokens are supported by many decentralized applications (DApps) and services, making it simpler for community members and businesses to adopt and use them in a variety of applications (such as cryptocurrency wallets, decentralized exchanges, games, and so forth).

On the Ethereum blockchain, there are many ERC20-compliant tokens in use, each with a different implementation. The tokens can be used to represent a variety of digital assets or tradeable items, depending on the strategy (such as coins, vouchers, gold certificates, loyalty points, and IOUs). Additionally, voting rights during elections may be tokenized using ERC-20 tokens.

The ERC-20 standard dramatically decreased the amount of work necessary to develop and release a digital token, which is likely related to the growing popularity of ICO crowdfunding campaigns and blockchain technology in general. The technical standard is already in use by several projects, and in the past two years, the number of ERC-20 token contracts has significantly increased. On the Ethereum network, there were about 5,500 ERC-20 smart contracts as of the middle of 2017. This number increased to over 40,000 in early 2018 and has now risen to well over 160.000.

Even though most tokens on the Ethereum network adhere to the ERC-20 standard, some do not. For instance, Ether (ETH) was developed before the standard and is not yet compliant. As a result, the so-called Wrapped Ether (WETH), an ERC-20 token with a 1:1 representation of Ether (1 WETH = 1 ETH), was developed. On decentralized exchanges, WETH users can exchange their ETH for other ERC-20 tokens.
Technically speaking, the ERC-20 standard outlines six functions that preserve various features and functionality of digital tokens based on Ethereum. These features cover how tokens are moved between addresses as well as some crucial information about the token smart contract, such as its symbol, name, and supply.


Because they are non-fungible, ERC-721 tokens are different from ERC-20 tokens. As a result, each token is distinct and cannot be used with another token.

ERC dismantling

The Ethereum Request for Comments is referred to as "ERC. This isn't a technology or platform; rather, it offers technical advice to builders. There are nine final Ethereum Requests for Comments as of December 2018. ERC-20, ERC-55, ERC-137, ERC-162, ERC-165, ERC-181, ERC-190, and ERC-1167 are some examples of ERCs.

Through the submission of an Ethereum Improvement Proposal, developers can construct an ERC (EIP).

Due to the capabilities of the ERC-20 interface, William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs developed ERC-721-The Non-Fungible Token Standard by way of an Ethereum Improvement Proposal (EIP) on January 24th, 2018.

ERC-721 was used by the well-known Ethereum decentralized application Cryptokitties to produce one-of-a-kind digital collectibles in the shape of cats.

According to the marketplace's users, every kitten had a different value for each buyer. Every kitten is different and fetches a different price, so each token must be special.

The development of non-fungible coins based on blockchain enables

• physical property (houses, artwork, and vehicles).
• Virtual Collectibles (Cryptokitties, rare pepes, collectible cards)
• Assets with negative value (loans)

The contract must adhere to both the ERC-721 and ERC-165 interfaces to create an ERC-721 token.


An exchange is a regulated marketplace where commodities, securities, and other financial instruments are traded. An exchange may run on physical space or a virtual platform. To facilitate electronic trading, several traditional exchanges, which were previously only permitted to conduct physical trades, now offer digitized services (also known as paperless trading).

As an intermediary allowing traders to quickly purchase and sell their assets while being less vulnerable to financial hazards, an exchange serves one of its primary functions by providing liquidity within a secure and organized trading environment.

Exchanges can be categorized based on the type of deal that is being made. The only exchanges that do spot trading are traditional exchanges (immediate settlement). On the other side, some exchanges offer trading in derivatives like futures and options. Exchanges can also be divided into categories based on the financial instruments that are traded, such as the cryptocurrency exchange, stock exchange, securities exchange, commodities exchange, and foreign exchange market (Forex). However, a lot of exchanges offer a wide range of services and trading opportunities. For instance, futures trading is available on several commodity exchanges.

The principal exchange is the most significant stock exchange in a certain nation. The New York Stock Exchange, Tokyo Stock Exchange, and London Stock Exchange are a few examples of principal exchanges. Only businesses that successfully meet specified criteria are listed on the majority of stock exchanges' rigorous listing criteria.

Digital exchanges are in charge of giving consumers a platform where they may swap one cryptocurrency for another or buy and sell their coins for fiat money in the context of cryptocurrencies. The majority of cryptocurrency exchanges now use a centralized system that is managed by a private business that serves as a middleman and is in charge of managing all trades and transactions. Liquidity and simplicity of use are centralized exchanges' main benefits. In terms of drawbacks, these centralized systems are vulnerable to outages and cyberattacks, which raises serious questions about security. It is crucial to select an exchange that has a track record of being dependable and secure because users must trust the company with their holdings to be able to trade.

As an alternative to centralized exchanges, decentralized cryptocurrency exchanges (often referred to as DEX) were developed. DEX platforms handle trades and transactions in a trustless automated environment without the need for a middleman (based on smart contracts). Decentralized exchanges cannot offer fiat currency services like fiat/crypto trading or fiat withdrawals/deposits, even though these trading platforms are less vulnerable to cyber-attacks and infrastructure failures. Additionally, because these exchanges are less well-known and have fewer features than centralized ones, their trading volume is typically substantially smaller.



Technical analysis (TA) uses the word "fakeout" to describe a situation where a trader enters a position anticipating a price movement that ultimately doesn't occur. A "fakeout" is most often used to describe a circumstance in which the price moves in the opposite direction of the trade idea or indication.

A "fake breakout," also known as a "false breakout," occurs when a price breaks out of a technical price structure only to quickly revert.
Fakeouts can result in substantial losses. Technical analysts could spot a pattern that exactly matches their plan of action and appears to be unfolding as predicted. However, external circumstances could cause the price to suddenly reverse, making the transaction a significant loser very soon. As a result, many traders will prepare their exit strategy and place stop-loss orders before initiating transactions to prepare for a fakeout. Using this approach for basic risk management is extremely popular.

Many traders will restrict the amount of capital they risk in a given trade to reduce the danger of fakeouts. Many traders will, as a general rule, avoid investing more than 1% of their trading capital in a single trade. Does this imply that they only invest 1% of their capital when taking a position? it simply means that they will only lose 1% of their trading capital on a single position if the market turns and their stop-loss is reached.

Using various technical indicators to enter a trade is another tactic that helps reduce the possible effects of a fakeout. Technical analysts may have very strict standards for what their trading signal technique will accept. If one indicator emits a signal, it might not necessarily constitute a buy or sell signal in and of itself. However, it may validate the intensity of a signal if several indicators are indicating the same thing. Even so, there are no assurances in the world of finance, and even the most convincing signal can turn out to be a fakeout.

Falling Knife

Purchasing an object whose value is rapidly declining, also known as "Catching the Bottoms," is the practice of catching a falling knife.
Such an action is typically justified by the notion that one could foresee the price's bottom just before a Dead Cat Bounce or price reversal takes place. A trader would earn handsomely on the way up if they were able to "catch the knife," or buy the asset very nearly at its most recent low.
However, attempting to grab a falling knife is unquestionably highly risky, and in practice, the majority of attempts to do so fail and frequently result in large losses.


Many traders started to "grab attractive offers" and buy shares of Internet companies as the dot-com bubble started to implode in 2000, expecting a rapid turnaround and enormous gains. A few weeks later, the bubble burst, rendering the majority of the purportedly "excellent offers" useless.

When Bitcoin unexpectedly plunged from $20,000 to $17,000 in December 2017, many investors took the opportunity to invest and began buying in anticipation of potential new highs. A few days later, the price reached $10,000, a reduction of 35% from what had been viewed as a "good deal" at the outset.

These are the two most prominent instances of knife-catching failures, which undoubtedly resulted in significant financial losses for many traders and investors around the world.

Fear Of Missing Out (FOMO)

The term "FOMO" stands for "Fear Of Missing Out." Dr. Dan Herman first introduced the idea in 2000 in a research article titled "The Journal of Brand Management." However, Patrick McGinnis came up with the acronym FOMO a few years later in an article he wrote for the American magazine "The Harbus" in 2004.

The idea relates to the uneasy sensation or the perception that others are enjoying a special or great event while you are missing out. It is a phenomenon that is extremely common on social media, where people's feeds frequently emphasize and highlight the happy and fulfilling aspects of their lives, making the viewer feel depressed or insufficient about their own experiences.

The worry that a trader or investor feels after missing out on a potentially lucrative investment or trading opportunity is referred to as FOMO in the context of financial markets and trading. FOMO is especially common when an asset increases in value dramatically over a relatively short period. As a result, there is a chance that a person (and the market community as a whole) could base their decisions on fear of missing out rather than reason and logic. This is particularly risky for the untrained retail investor since it frequently results in trades being made for overpriced assets, which increases the likelihood of suffering significant financial losses.

Fear, Uncertainty, and Doubt (FUD)

The act of disseminating suspect or incorrect information about a company, startup, or cryptocurrency project is referred to as "fear, uncertainty, and doubt" (FUD). The phrase is also used to refer to a wave of unfavorable emotions that spread among traders and investors whenever unfavorable news is released or the market exhibits a significant bearish decline.

The original definition of FUD refers to a deceptive marketing tactic that involves spreading unfavorable information about a company's rivals to diminish their credibility. The goal is to foster rumors and adverse perceptions about the goods and services of rival companies to undermine consumer confidence in them.

FUD is frequently used in the corporate world, even though it is considered to be an unethical activity. To keep their customers or expand their market share, many established businesses strive to disseminate FUD about their rivals. For instance, a large corporation can influence consumer behavior by releasing dubious information about the alternatives offered by the market.

FUD, in other words, is a marketing tactic that ignores the real value of the goods or services. It entails disseminating an unfavorable opinion regardless of the technological viability, usability, or quality. It primarily targets customers' negative emotions, namely fear.
Although the term "fear, uncertainty, and doubt" (or "FUD"), as it is more often known, dates back to the 1920s, it first became popular in 1975. When Gene Amdahl left IBM to start his own business, it became a well-known case of FUD and he was made the target. Amdahl with credited as being the first to explain FUD tactics in the computer industry.


A form of payment that has been approved by the government as legal tender is usually accompanied by such legislation. The word "fiat" is derived from Latin and is used to refer to a law, rule, or decision made by the government. Fiat money is, by definition, a form of money that has no inherent value because it is not backed by a physical good and is typically made of cheap or useless materials (such as a small piece of paper). Fiat money is still commonly used as a form of payment.

The primary reason fiat money is seen as legitimate and valuable in our culture, aside from official sanctions and regulation, is because of a shared belief. To put it another way, the fiat value is heavily reliant on a general agreement that it has a market value, can be used as a medium of exchange, and has inherent purchasing power. Consequently, both a governmental directive and a societal custom have a significant role in determining whether fiat money is accepted (and the expectation that it will keep its value in the future). If either the societal belief or the governmental mandate is challenged, the real worth of the currency as a means of exchange is rapidly and significantly diminished.

Because most fiat currencies are not backed by precious metals (such as gold, silver, and copper) or other commodities, central banks have the power to significantly alter the money supply, which could eventually result in periods of extraordinarily high inflation rates (hyperinflation).

According to historical evidence, China's earliest paper currency dates back to the 11th century. The so-called jiaozi, regarded as the first paper currency ever issued by a government, was a specialty of the Song dynasty. The Jiaozi was a crude type of banknote designed to take the place of the time's hefty iron money coins. The Great Yuan dynasty that followed, on the other hand, was the first to genuinely accept and use fiat money as the primary means of exchange on a large scale. The Great Yuan era lasted from 1271 to 1368, but the succeeding Great Ming dynasty kept using fiat money (1368–1644).

Fill Or Kill Order (FOK)

Several trading platforms and exchanges provide a type of order known as a "Fill or Kill Order" (FOK). The phrase expresses the idea that order must either be fully fulfilled instantly or not at all. It has a lot in common with the "All or Nothing" (AON) order type, which designates a request that can either be fulfilled entirely or not at all. AON commands, in contrast to FOK orders, do not have a distinct focus on the present moment.

When a trader doesn't want to accept partial delivery of assets, fill or kill orders are frequently used. When they must fill their orders quickly on separate and unrelated markets or exchanges, for instance, So they could create many orders and wait for one to be fully executed without worrying about getting partial fills if they used a FOK order. The trader can cancel the other orders once one order has been filled.


The promise or assurance of finality is that once a bitcoin transaction has been completed, it cannot be changed, reversed, or canceled. The finality rate of a chain will eventually depend on the latency of the chain.

Therefore, finality is a metric used to determine how long it will take for a reasonable assurance that cryptocurrency transactions carried out on the blockchain won't be modified or reversed. In other words, they won't be misplaced.

Because waiting indefinitely on a blockchain network can have a significant negative impact on firms or organizations that accept cryptocurrency as a form of payment, finality is a crucial element for initiatives accepting cryptocurrencies. Low latency is essential for the creation of a successful payment system.

To put this into perspective, going shopping would rapidly become incredibly inconvenient if you had to wait 10 minutes each time you wanted to make a purchase. Companies in the financial sector must also be able to quickly determine whether they are the owners of specific assets.

As a result of its finality, transactions are considered immutable when it comes to blockchain technology. However, the majority of blockchain protocols only display a probabilistic finality of transactions, which means that while they are not immediately or automatically final, they do get "more and more final" over time (as more blocks are confirmed).

Therefore, the kind of the chain's finality rate depends on how long it takes a blockchain network to complete a transaction (latency). The various blockchain networks and the typical time it takes for each of them to reach finality are displayed in the table below.

First-Mover Advantage (FMA)

The first initiative to introduce a service or product into a new and untapped market or industry is said to have the first mover advantage, which is a competitive advantage. Being the first to market gives you the unrivaled chance to build your brand's awareness, market share, and customer base before other companies and products inevitably enter the market as competitors.

Such a benefit is particularly significant in the cryptocurrency sector, where blockchain-based initiatives and cryptocurrency exchanges compete for a small but growing user base and market share. Getting a big user base early on can be a big lead for these businesses because their visibility and reputation are directly correlated with their networks.

In terms of cryptocurrency exchanges, switching from one well-known trading platform to another entails expenses for transactions as well as some hazards. Users may not always be willing to switch from their current exchange of preference to a recently launched one for a variety of reasons, especially if the services offered are dependable and effective. To put it another way, a business that is not a "first mover" will require considerably more time and effort to "persuade" people to switch.

Being the first to do something, though, has its drawbacks. There is no assurance that the product will be embraced before its reputation and user base are eventually developed. Consumer opinion can be positive or negative, and if the business doesn't offer a reliable and worthwhile service or good, its early users will undoubtedly feel duped.

Additionally, being the first entrant into a market frequently means that they must bear the added expense and overhead associated with untapped areas. While competitors who enter later can profit from some of the trailblazing company's mistakes, or even duplicate and improve some of their offerings, first movers face new and unexpected challenges.

Fiscal Policy

The word "fiscal policy" refers to how government officials modify a nation's tax rates and spending caps. Regulating the collection and use of public money enables them to keep an eye on and ultimately affect the economy of a country.

In other words, fiscal policies are employed in conjunction with monetary policies to alter an economy's course and preserve its stability. They can also have a stabilizing influence on a nation's rate of growth and produce favorable results for employment rates and other social indices.

Increased public expenditure and tax cuts, which are intended to boost the economy's overall demand while also reducing the surpluses in the budget, are two examples of fiscal policy. Different people in an economy are impacted by the adoption of fiscal policies. The method is predicated on the idea that governments may affect macroeconomic productivity by raising or lowering public spending and tax rates.
An economy can benefit from the effect in several ways. For instance, by raising employment rates, reducing inflation, and preserving a generally sound value for money. If not done correctly, it could have adverse implications, especially in nations with high levels of corruption.

Most fiscal policies are based on taxes. primarily because they have an impact on the amount of funding the government makes available for various societal sectors. Taxes may also affect a citizen's willingness to spend money.

Deciding how much government involvement in the economy is both possible and desirable in such a situation is a major challenge faced by policymakers frequently. Although there is considerable disagreement on this point, some economists and political scientists hold the opinion that for a society to be stable, there must be some level of government intervention.

In conclusion, fiscal policies give the government the ability to alter a nation's tax structure and economic climate by influencing rates of aggregate demand, inflation, consumption, and employment.


Charlie Lee created the word "flappening" at the beginning of 2018 to refer to the time when Litecoin (LTC) overtook Bitcoin Cash (BCH) in terms of market capitalization. It is a lighthearted pun on the term Flippening, which refers to the probable moment when the market capitalization of Ethereum (ETH) overtakes that of Bitcoin (BTC). A cryptocurrency's market capitalization is roughly calculated by multiplying its circulating supply by its current market price, though some calculations exclude lost coins or tokens.

Contrary to Flippening, which has not yet happened as of April 2019, Flappening took place on December 14th, 2018, when Litecoin's market cap topped that of Bitcoin Cash. Since that time, the word has been used to refer to the encroachment of other significant cryptocurrencies. The Flappening Watch allows you to keep track of the Flappening's progress.


The potential of Ethereum (ETH) to replace Bitcoin in terms of market value is known as "flippening," a phrase that was casually created in 2017. (BTC). The phrase, therefore, refers to the speculative period in the future when Ethereum overtakes Bitcoin in terms of market capitalization.

The market capitalization (market cap) of a cryptocurrency is generally calculated by multiplying the circulating supply by the current market price (although some calculations exclude lost coins or tokens). In terms of market capitalization, Bitcoin now holds the top spot, followed by Ethereum.

Although Bitcoin (BTC) has always been the most valuable cryptocurrency, its market share has dramatically declined in recent years. Particularly noticeable were the declines in mid-2017 and early 2018. Many Ethereum supporters hoped that the flipping would take place around those times. Speculators predicted that Ethereum would surpass Bitcoin in these rankings due to its greater flexibility and the capacity to create smart contracts, but the Flippening never actually happened.

Forced Liquidation

Involuntary conversion of assets into cash or cash equivalents is referred to as forced liquidation (such as stablecoins). This system generates market orders to get out of leveraged positions. Liquidation simply refers to the act of selling assets for money. When certain requirements are met, this sale is said to be a forced liquidation.

Forced liquidation occurs in the context of cryptocurrencies when a trader or investor is unable to meet the margin requirements for a leveraged position. Both futures and margin trading fall under the umbrella of the liquidation idea.

The liquidation price is something you should pay particular attention to when trading with leverage. The liquidation price is closer to your entrance price, the more leverage you utilize. How so? Let's examine a case in point.

With $50, you can start. You take a 10x leveraged long position in the BTC/USDT market, resulting in a $500 position size. Therefore, this $500 is made up of your $50 and the $450 you borrowed. What would happen if the cost of Bitcoin dropped by 10%? Right now, the position is worth $450. Additional losses on the position would be charged against the borrowed money. The person that loaned you those dollars doesn't want to take a chance on a loss for you, so they sell your stake to preserve their capital. This indicates that the trade has been closed and that you have lost your initial $50 investment.

Usually, there is an additional liquidation fee for forced liquidations. This changes depending on the platform and is there to encourage traders to manually close positions instead of waiting for them to be automatically liquidated. Therefore, before taking a leveraged position, be sure you are aware of all the dangers.

Forex (FX)

Foreign exchange, also known as forex (FX), is the global market for buying and selling currencies. With trillions of dollars worth of trading activity every day, the Forex market is without a doubt the biggest and most liquid financial market in the world.

International banks and day traders are among the participants who determine the rates of all currencies. Considering that commercial banks account for the majority of trading activity, major institutions will inevitably have a more significant impact. These participants communicate with one another either directly or through electronic brokers.

Participants trade currency pairs, just like in cryptocurrency marketplaces. The distinction is that they only work with fiat currencies like the Canadian dollar, the British pound, or the Japanese yen. Another resemblance is uptime: unlike digital currency exchanges, which are online 24/7/365, Forex is open every day of the week, excluding weekends.

You might also contrast the two markets' decentralized structures. When trading currencies, you are not constrained to exchanges like the NYSE or NASDAQ, as you are when trading equities. Worldwide exchanges take place without being governed by a single regulatory authority.

Forex, as we know it today, is a relatively recent phenomenon, largely spurred on by the termination of the Bretton Woods system in 1971. This resulted in the decoupling of the US dollar from gold, opening it up to floating exchange rates determined by supply and demand in the foreign exchange market.

Trading in forex can be speculative or it can be used as a hedging technique. Trades could also be made to obtain funds to purchase goods in another nation. Most deals take place in the spot markets. This makes sense because derivative products need this real-time volume to operate efficiently. Trading professionals frequently choose to utilize a combination of technical analysis, leverage, and scalping to increase the efficiency of spot transactions (especially given the extremely narrow margins).

The preferred alternatives to the spot markets are futures and forward contracts. These can be very helpful for hedging purposes.

Formal Verification

Mathematically precise proofs ensure specific characteristics of cryptographic algorithms and blockchain technologies

Full Node

A computer that fully validates transactions and blocks on a blockchain and fully executes the rules of the underlying blockchain network.

Fundamental Analysis (FA)

By looking at as many qualitative and quantitative factors as possible, such as company management and reputation, industry health, market capitalization, and other economic factors, fundamental analysis (FA), also known as asset valuation, is a technique used by investors and traders in the financial markets to determine the intrinsic value of an asset or business. Fundamental analysis aims to find out whether an asset's price is overvalued or undervalued.

Fundamental analysis is founded on the idea that an asset's future potential should be determined by factors other than past performance alone. It considers factors that could affect that specific market's microeconomic and macroeconomic circumstances.

As a result, we may say that FA aims to ascertain how external elements, particularly those that aren't immediately obvious, can impact a company's or project's performance. These factors emphasize qualitative, less quantitative factors, including a company's leadership and how those individuals have succeeded in previous business undertakings.

Additionally, the fundamental analysis aims to comprehend the industry-specific market and the potential of a certain good or service therein. Their ultimate objective is to establish quantitative pricing that can be contrasted with the real cost of the relevant asset. FA, then, is a technique that may be used to assess if a value is too high or too low.

Fundamental analysis is relevant to practically all types of assets, including cryptocurrencies, despite being historically used to appraise stocks.

Fundamental analysis vs. technical analysis

Fundamental analysis considers a wider range of influencing elements when determining an asset's price, whereas technical analysis (TA) is solely concerned with past market data and market charts. While TA is used as a technique to forecast price action based on trading volume and historical trends, FA aims to ascertain the true value of a trading asset. The majority of traders and investors probably concur that each FA and TA has value in its own right. Therefore, a contextualized and balanced usage of the two seems more rational than depending just on one or the other.


When the components of an item may be swapped for one another without noticeable differences, the component is said to be fungible. To put it another way, a class of assets is fungible if each unit of that class has the same market worth and validity. A pound of pure gold, for instance, is equivalent to every other pound of pure gold, regardless of shape. Commodities, fiat money, bonds, precious metals, and virtual currencies are more examples of fungible asset classes.

However, swapping two identical units for an equivalent amount of a fungible item is not always required. A transaction can be regarded as an equal exchange as long as it takes place between instruments of the same type and functioning. For instance, five one-dollar bills can be used in place of one five-dollar bill, and both have the same value. In this instance, the US dollar serves as a fungible asset, and the bills are only a representation of its intrinsic value.

The majority of cryptocurrencies are generally regarded as fungible assets. For instance, Bitcoin is fungible because each unit of BTC is equal to every other unit, which means they are all of the same caliber and functionality. Because all Bitcoin units are a part of the same blockchain and have the same functionality, it doesn't matter which block the coins were issued (mined) in. It should be noted that if the blockchain is forked, the new Bitcoin that results will not be regarded as original since it will be a part of a different network.
It has been noted that some coins may be less attractive than others due to the inherent traceability of BTC and comparable cryptocurrencies, particularly if they have been utilized in shady or illegal operations in the past. This means that certain businesses or service providers may decline to accept Bitcoins as payment if they think those specific coins have a history of being used by criminals.
Contrary to popular belief, this fact does not eliminate Bitcoin's fungibility. Although each Bitcoin has a transactional history, they are all the same in terms of quality, technology, and functionality. Traceability and fungibility are two different concepts. Similar to how the US currency remains a fungible asset despite decades of use by criminals for illegal purposes.

Futures Contract

Futures contracts, often known as "futures," are contracts that obligate traders to buy or sell assets at a predetermined price and date in the future. Both speculators and hedgers regularly use these financial instruments as a technique to perhaps predict future price fluctuations, either for hedging against risks or profiting from them.

In a futures contract, the quantity of an asset that will be purchased or sold, along with its price and "change of hands" time, are all specified. When the contract expires, it is settled, and the holder of the futures is then required to buy or sell the underlying asset at the predetermined price.

Futures can be held until they expire, but a lot of traders and speculators prefer to buy and sell the contracts on the open market before they do. Futures traders have three basic options for releasing their positions after taking a position on a futures contract. The first and most popular one is offset, which is the process of closing one position by opening a new one of comparable size and value. The rollover option is the second most popular alternative. Before the contract expires, futures traders may opt to roll over (extend) their position. To accomplish this, they first offset their position before opening a fresh batch of futures contracts with the same size but a different expiration date (further in the future). The third choice is to just wait for the contract's expiration and resolution. All parties are required by law to swap their assets (or cash) by their future contract positions at settlement.

Futures contracts are a kind of derivative, but they are distinct from more well-known derivatives like options and forwards. While execution is a necessity in a futures contract, options provide a trader the option to buy an item at a specified time but do not require that they do so. While forward contracts and futures contracts are extremely similar, forward contracts are often private or informal agreements established between two parties, as opposed to contracts traded on a public market. Furthermore, because they may be more easily customized, forward contracts tend to give traders greater freedom than futures contracts, which are more rigidly standardized.

Futures contracts can be used to trade a variety of assets, including fiat currency, equities, indices, debt instruments issued by governments, and cryptocurrencies. Futures contracts are also used in the trading of commodities such as oil, precious metals, food, and other things.

In addition to the numerous underlying assets, there are two distinct methods by which contracts for futures might be resolved. The underlying asset is physically delivered to the party who has agreed to buy it in a physical settlement. Contrarily, cash settlements do not entail the asset being transferred directly. The CME Bitcoin Futures market, which solely trades cash-based contracts based on the performance of the underlying cryptocurrency market, is an example of a futures contract with a cash settlement. This market does not trade Bitcoins.

Futures traders frequently combine technical analysis indicators with fundamental analysis to gain additional insights into the price behavior of futures contract markets, just as they do with the majority of investing and trading products.



The pricing system employed on the Ethereum network is referred to as "gas. Such a method determines the fees (costs) associated with carrying out a transaction or carrying out a smart contract function. While the Ethereum network is powered by the cryptocurrency ether (ETH), a special unit called gas is utilized to calculate how much "work" (or computational resources) is needed to complete a certain task. The cost of gas will naturally be higher for laborious procedures than for less laborious ones.

Although fees are still paid in ether (ETH), it should be noted that gas and ETH are two separate things. To put it simply, computations are evaluated in terms of "gas cost". On the other hand, there is a "gas price" for each unit of gas that is specified in ether (ETH). As a result, there is a distinct "gas price" for each unit of gas in every transaction.

In other words, the cost of gas equals the quantity of work, and the cost of gas equals the amount paid for "per hour" of work. The connection between these two, in addition to the gas cap, determines the overall cost of an operation or transaction.

Therefore, it makes sense to pay more for gas if you need your transaction to be validated quickly so that validators (miners) will be motivated to do so before others. In a similar vein, establishing a low gas price would discourage miners from validating your transaction, which would result in it getting stuck.

The gas pricing mechanism is crucial because it ensures that costs are being assessed reasonably and fairly. As a result, it stops money from being squandered on activities that are not beneficial to the Ethereum network.

Gas Limit

The highest amount a cryptocurrency user is willing to spend while submitting a transaction or executing a smart contract function on the Ethereum blockchain is referred to as the "gas limit." The maximum value that the transaction or function may "charge" or "take" from the user is determined by the gas limit, which is used to calculate these fees in units of gas. As a result, the gas limit functions as a security feature that stops huge fees from being unjustly charged as a result of a smart contract defect or error.

While some wallets and services set the gas prices and caps automatically, in some situations, users can also manually modify them to suit their needs. A typical Ether (ETH) transaction would typically have a gas limit of at least 21,000 units. The process will go significantly faster if the gas cap and gas pricing (Gwei) are set to higher values. Still, speedier operations will certainly charge more. On the other hand, having a very low gas cap and price might be hazardous because transactions might not be confirmed quickly enough or perhaps become stuck (fail).

The cost of gas, however, is what determines the worth of transaction fees. Since the gas limit is merely a definition of the maximum value, the gas price has more of an impact. In other words, the quantity of ether required to complete a transaction is equal to the gas price (in Gwei) times the gas limit.

General Public License

A free, copyleft software license is referred to as the GPL, or General Public License (GPL). It gives everyone the freedom to use, read, copy, share, alter, and distribute any sort of work, including computer programs. The GPL was the first copyleft license to be adopted for the widespread use and was initially created for the GNU Project. Richard Stallman, the founder of the Free Software Foundation, developed it around the beginning of 1989. (FSF).

In contrast to copyright, the word copyleft refers to the GPL's requirement that derivative works be distributed under the same terms as the original work. Therefore, users are not permitted to utilize GPL-licensed software and simultaneously publish a derivative work under a different license. Other kinds of free software licenses, including the MIT and the Berkley Software Distribution (BSD) licenses, do not have the same restrictions.

The MIT and BSD licenses are examples of permissive licenses. Users can copy, modify, and distribute software under both copyleft and permissive licenses, although the terms of each are slightly different.

On the one hand, copyleft licensing ensures that everyone can continue to use open-source software. Additionally, it prevents someone else from making money off of a piece of work that was made freely available. Advocates for copyleft are frequently more focused on maintaining some level of creative control.

Contrarily, permissive licenses allow for widespread software use as long as the original creators are acknowledged and given credit for their work. To put it another way, a permissive license permits anybody to distribute, modify, and copy a work under any form of permission. Giving credit to the original creators is the only requirement.

Genesis Block

The genesis block, also known as Block 0 or Block 1, is the very first block ever to be added to a certain blockchain network.
A block refers to the preceding block when it is broadcast to the blockchain. There is no earlier block to refer to in the genesis block's case, though.

The majority of the time, genesis blocks are hardcoded into the software because there is no previous block to refer to.
The genesis block for Bitcoin was created on January 3, 2009. The reward for this block was 50 Bitcoin, which will never be usable. There was no explanation from Satoshi Nakamoto addressing whether the genesis block's reward was purposefully ineligible for spending, hence it is unknown.


Users can post files, papers, and computer code to their accounts on GitHub, an online platform for open source development. Users can read, download, and even contribute to the uploaded files and source code repositories on GitHub, whether they are registered or not. The largest source code platform in the world, GitHub, is used by many developers to undertake collaborative work and to share a range of software, files, and documentation due to its low cost and functionality.

How to use GitHub

Once a person has registered for a GitHub account, they can build their repository, which is a directory of files and materials. One can construct the so-called master branch after creating a repository. The sole starting point for any project is a GitHub master branch. It is up to the user to decide whether to share a project with all users (public repository) or to limit access to it (private repository). Sub-branches can be created from a master branch, essentially enabling the user to work on various project components independently. Other users have the option to suggest changes to the code on a public repository, which eventually results in the uploading of new versions of the files. Pull requests, a tool that lets developers discuss and review proposed changes before they are implemented, are used to submit suggestions. Developers may easily track their overall progress, make or undo changes, and use a range of features and tools via the GitHub platform.

A pull request is what?

Users can inform others of the modifications they have made to a particular branch or repository via a pull request. The user is led to an overview screen after creating a pull request, where he may quickly see all the changes made to the code and contrast the old and new versions. As a result, all modifications are noted and logged, and users can also add remarks, milestone labels, and tasks to other contributors.

Who utilizes GitHub?

GitHub has users from the public and private sectors due to its adaptable platform. Examples include software firms, app developers, individual programmers, and cryptocurrency developers. The Bitcoin source code is being reviewed and improved by a large community of engineers that work on it as an open source project on GitHub.

GitHub, is it free?

All open-source and for-profit development projects can use GitHub for nothing. The number of private and public repositories that can be created by an account is limited on the free plans, though. The maximum number of contributors a project can have is likewise restricted in the free plans. Therefore, depending on their requirements, larger projects could need to upgrade to a paying GitHub subscription.

Golden Cross

A shorter-term moving average (MA) crossing above the longer-term moving average forms a golden cross on a chart. Typically, a golden cross is interpreted as a bullish sign.

A golden cross occurs in three phases:
• The shorter-term MA is below the longer-term MA, indicating a downtrend.
• The shorter-term MA crosses over the longer-term MA when the market turns around.
• The shorter-term MA remains above the longer-term MA as an uptrend continues.

The 50-period and 200-period moving averages are the two most frequently employed moving averages when taking into account a golden cross. Since the main concept is simply that the shorter-term average price is crossing above the longer-term average price, many other moving average pairs may be used. For instance, day traders can quickly identify entry and exit points by using the 5-period and 15-period moving averages. The 15-period and 50-period moving average pairs, as well as the 100-period and 200-period moving average pairs, are further typical examples.

Both exponential moving average (EMA) pairs and simple moving average (SMA) pairs can be used to validate a golden cross. Some traders can search for a large trading volume to go along with the golden cross to further support the pattern.
The longer-term moving average is often regarded as a strong place of support once the crossing occurs. Some traders might hold off on entering the market until this moving average is retested.

Higher-timeframe indications are often more trustworthy than lower-timeframe signals, as is the case with every chart pattern. As a result, a golden cross on the daily chart is likely to have a greater effect on the market than a golden cross on the hourly chart.
But even a high-timeframe golden cross can be a false signal, it's vital to remember that. The golden cross theoretically occurs in a situation like this, but the market reverses soon after, invalidating the golden cross. This is why it's crucial to always effectively manage risk and safeguard your downside.

A death cross, which is a chart pattern where a shorter-term moving average crosses below a longer-term moving average, is the reverse of a golden cross. As a result, the death cross is sometimes regarded as a bearish indication.

Gossip Protocol

A specific form of P2P (peer-to-peer) communication that occurs between computers and other digital devices is referred to as the "gag protocol. The traditional type of gossip that is prevalent among social groups served as the model for the term's creation.

A type of communication that occurs when data is passed through various computer nodes that are a part of a dispersed network is referred to as the gossip protocol in the domain of computer science. Information is broadcast from one computer to another until it is eventually diffused throughout the network, as the name of the protocol suggests. The Gossip protocol now has many variations that can be used in various situations depending on the requirements of the user or organization. According to University of Szeged professor Márk Jelasity, there are two primary forms of gossip expression: information diffusion and information aggregation. These two kinds are important components of large-scale distributed systems.

On the one hand, the spread of rumors, often referred to as multicast, has a connection to the conventional method of data distribution (one network node at a time). However, aggregating gossip protocols are those that analyze data, that is, those that first summarize information before disseminating it (this type of gossip communication may also be referred to as distributed data mining).

The Hashgraph, developed by Leemon Baird in 2016, is an intriguing illustration of a distributed system that makes use of a gossip protocol. It is a distributed ledger technology that uses the aBFT consensus mechanism or asynchronous Byzantine Fault Tolerance. A hashgraph network's nodes acquire and summarize data regarding transactions and other events, then disseminate this information to randomly selected neighbor nodes. As a result, the hashgraph network creates a tree of events where all information is captured rather than a chain of blocks (no data is ever discarded).


The currency of the Ethereum blockchain, ether (ETH), which is referred to as Gwei, is available in small denominations. As the name implies, Gwei, along with ETH, is the most commonly used cryptocurrency on Ethereum, and it is very helpful when talking about gas. Simply put, the Ethereum network's pricing system is known as "gas. This mechanism determines the fees when users carry out a transaction or carry out a smart contract operation.

Gwei is defined as one billionth (one nanometer) of an ether. So, 10-9 ETH or 0.000000001 Gwei are the same. In contrast, 1 ETH is equivalent to 1 billion (109) Gwei.

 There are several additional ether denominations, each of which represents a different number of wei, as shown on the Ethereum GitHub (the smallest unit of ETH). We can compare the notion of Gwei to the US dollar to better comprehend it. Gwei would be the equivalent of coins (cents), and ETH would be the equivalent of dollar notes. It's simpler to refer to prices for modest goods in cents rather than dollar amounts. As a result, Gwei may be useful when measuring small quantities, which is why it is frequently employed when figuring out the price of gas.

Even though these terms are less commonly used, Gwei is occasionally referred to as a Shannon, NanoEther, or Nano. The mathematician and cryptographer Claude Shannon, recognized as the father of information theory, is referred to by the name Shannon.



In general, anyone with a deep understanding of computers, including programmers and cybersecurity specialists, may be referred to as a hacker. However, in common parlance, a hacker is someone who attempts to take advantage of a computer system's or network's weaknesses. These individuals are also known as security hackers.

The meaning of the term "hacker" is still up for discussion. No implication of negativity existed in the original meaning. It was more concerned with using technology to experiment to solve issues or accomplish objectives. Today, however, the definition that is most widely used refers to the illegal operations carried out by security hackers.

Thus, we could characterize hackers as those who use their technical expertise to go beyond cybersecurity barriers and get unauthorized access to digital data and computing systems. Hackers occasionally utilize their abilities to stop or damage a particular application.
According to their methods and goals, security hackers are typically categorized as either white hat, black hat, or grey hat.

How does a hacker operate?

As previously established, the term "hacker" initially referred to someone who looked for creative methods to push computers over their predetermined boundaries. Today, however, the phrase is frequently used to describe someone who tries to compromise the security of a network or system. From those who merely guess account passwords to those who use sophisticated techniques to modify computer hardware.

Depending on the hacker's motivation, the impacts could be either favorable or unfavorable. Similar to how good or bad characters were traditionally distinguished in Western cowboy flicks, hackers are now portrayed as wearing various colored "hats."
reputable hackers

White hat hackers, also referred to as ethical hackers, work to strengthen security by identifying flaws so that they can be fixed. Some white hats are hired as full-time employees and work with their target's consent. Others pursue bounty schemes and hacking contests, which pay them for each security hole they uncover or each compromised system. Most white hat hackers have a degree in computer science or information security from college, and many of them have ethical hacking certifications.

White-hat hackers

Black hats, sometimes known as "crackers," conduct unlawful operations against their targets. They look for weaknesses that they can take advantage of for harm or their gain. A black hat hacker may have several goals, such as making money, becoming well-known, obtaining company secrets, disseminating false information, or even intercepting conversations from national intelligence agencies.

Shady hackers

Grey hats, as their name suggests, fall somewhere between the other two categories. They typically employ their talents to gain unauthorized access to systems and networks, but they do so for a variety of reasons.

Grey hat hackers occasionally identify flaws and notify the program's or website's proprietors. They could charge you for their assistance in fixing it. Gray hats frequently engage in unlawful or unethical behaviors, even though they are not usually motivated by financial rewards.
Because they are driven by political or social objectives, a different group of hackers, known as hacktivists, is frequently referred to as "grey hat" hackers. A well-known example of a hacktivist group is Anonymous.

Haha Money Printer Go Brrrrr

In a photograph that first appeared in early 2020, a younger man is seen yelling at an older Federal Reserve boss who is printing money with the caption "Haha Money Printer Go Brrr."

The meme was made in response to the US Federal Reserve's announcement that it would improve stock market liquidity. It attempted to inject $1.5 trillion in the form of short-term loans into the economy in response to the COVID-19 epidemic.

The meme raises some issues with the idea of the government merely "creating money" to address economic crises. Since its introduction, it has gained popularity among people who oppose inflation in fiat money systems. Government intervention in the economy is usually criticized for its potential to create money "out of thin air," among other things.

We refer to this procedure as quantitative easing (QE). Although the process is more complex than simply printing money (it entails procedures like buying securities from banks), the result is an expansion of the money supply. When government printing goes out of control, as it has numerous times before, critics point to repercussions like hyperinflation. Opponents also emphasize the fact that their assets depreciate as a result of a rise in the money supply, albeit this is a less serious consequence.

You'll notice that the younger man's bow tie features the anarcho-capitalist flag's colors. This school of thought completely opposes the idea of government, and its adherents favor forms of money that have inherent value (or, at least, backed by intrinsic value). For instance, gold differs greatly from fiat. Precious metals have been used successfully as currencies even before the invention of fiat due to a variety of factors (such as inherent scarcity).

The meme has taken many different forms throughout the years, usually with one person being upset with another for breaking the rules.


In the context of cryptocurrencies, "halving" refers to a process that slows down the rate at which new coins are created. The block subsidy paid to miners is reduced by half regularly. Due to the halving, a bitcoin asset will continue to be released until its maximum quantity is eventually reached.

New coins are constantly being minted in Bitcoin as part of the block reward (which is made up of the block subsidy plus transaction fees). As a result, whenever a miner successfully "finds" and "verifies" a new block, they are rewarded with newly created coins in exchange for their labor.

Therefore, the mining process, which operates at a known and controlled rate, is how new Bitcoins are added to the system. Every 10 minutes on average, a new Bitcoin block is created, and the block subsidy decreases at a set rate. As a result, the halving ensures that the block subsidy will decrease by 50% every 210,000 blocks. (every four years or so).

With the genesis block, Bitcoin's block subsidy started at 50 BTC. Then it was reduced to 25 BTC in 2012, and then to 12.5 BTC in 2016. It is projected that the subsequent halving, which will reduce the block subsidy to 6.25 BTC, will occur in May 2020. After 32 halvings, the process is over and no more Bitcoins will be created. The 21 million BTC supply limit will have been reached at this point.

Hard Cap

The phrase "hard cap" for an Initial Coin Offering (ICO) refers to the maximum number of tokens that may be sold. It has to do with the highest sum of money the development team will accept in return for tokens at that initial funding stage.

Therefore, the tokens are deemed sold out for that round of an ICO fundraising campaign if the hard cap is achieved. In other words, it indicates that the ICO event's maximum target has been met and that the project's developers are no longer accepting payments from investors in return for project tokens.

 The development team will decide exactly how high to set the hard cap, keeping in mind the need to strike a balance between the fundraising goal's upper bound and the tokens' relative economic scarcity (and their perceived worth).

There is some debate over this, although some publications also use the phrase "hard cap" to describe the maximum quantity of a specific token or coin. In this scenario, the hard cap would stand in for the issuance cap established by a cryptocurrency's protocol. It establishes the maximum number of tokens or coins that may ever exist on a specific blockchain network. However, as "hard cap" is frequently used to refer to the maximum objective of ICO funding rounds, adopting the term "maximum supply" seems much more acceptable in this situation.

In contrast to soft caps

The word "soft cap" refers to the minimum possible investment for a specific project to start its development, whereas the term "hard cap" designates the maximum number of tokens that can be sold during an ICO campaign. As a result, the hard cap is typically set far higher than the soft cap because it is a fundraising objective rather than a realistic minimum.


When a piece of data is submitted (mapped) through a hash function, the word "hash" refers to the result that is generated. The result of hash functions can also be referred to as a hash value, hash code, or digest in addition to just being called a hash.
It is important to examine what hash functions are and how they operate to comprehend what a hash is.

Hash functions are mathematical procedures that transform any size of an input value into a fixed-size output (hash). The output often takes the form of a hexadecimal number. As a result, the hash is frequently represented by a combination of letters and digits (0 to 9) (a to f).

Hashes can be used to validate the accuracy of specific information without revealing the exact content. Hash functions can be used in a variety of situations in real life. Database searches, analysis of big files, and data management are a few of the use cases.
We have what is known as cryptographic hash functions when paired with cryptographic methods. These are a crucial component of the majority of blockchain networks and are widely employed in information security.

Hash Rate

The phrase "hash rate" describes the rate at which a computer can carry out hashing operations. The hash rate, in the context of Bitcoin and other cryptocurrencies, stands for the effectiveness and performance of a mining device. It specifies how quickly mining equipment attempts to compute the correct block hash.

To obtain a valid hash, mining requires a large number of hashing attempts. To put it another way, to create a hash, a bitcoin miner must process a large amount of data through a hash function. They are only successful when a specific hash value is produced (a hash that starts with a certain number of zeros).

Therefore, the profitability of a miner or mining pool is closely correlated with the hash rate. A higher hash rate increases the likelihood of mining a block, which increases the miner's likelihood of obtaining the block reward.

The hash rate is typically expressed in terms of hashes per second (h/s) with an SI prefix, such as mega, Giga, or tera. For instance, a blockchain network with a hash rate of 1 T/s would compute one trillion hashes every second.

Hashed TimeLock Contract (HTLC)

HTLC is the name of a unique feature that is used to build smart contracts with the ability to change payment channels. The establishment of time-bound transactions between two users is technically made possible by the HTLC functionality. In reality, the recipient of an HTLC transaction must give cryptographic proof within a predetermined window to acknowledge the payment (number of blocks). The payment will be forfeited or returned to the sender if the receiver doesn't claim it.

To enable safe financial transfers over numerous channels without necessitating faith in any middlemen, the HTLC feature is employed in both bidirectional and routed payment channels.

HTLC differs from conventional bitcoin transactions in two important ways, namely:

• Hashlock is a feature that prevents money from being spent until a particular piece of information is made available to the public (as cryptographic proof). The pre-image of the hash lock is another name for this evidence. Simply said, the pre-image is the piece of data that is utilized to create the hash lock and later release its funds.

• Timelock is a feature that prevents money from being spent before a certain time (or block height) in the future. For instance, the CheckLockTimeVerify and CheckSequenceVerify functions in Bitcoin can be used to accomplish this.

Hashed Timelocked Contracts are one of the most frequently used use cases in the Bitcoin Lightning Network. Without requiring any level of confidence, money can be transferred from user to user over connected payment channels by integrating HTLC. Network routing is the term for this procedure. Even though Alice and Carol are not directly connected through a payment channel, it enables them to transact money. With the help of HTLCs, Alice can send money to Carol via other network users (like Bob), and the hash lock and timelock features make sure that Bob cannot steal the money.

High-Frequency Trading (HFT)

High-Frequency Trading (HFT) is an algorithmic trading style that involves completing a lot of orders in a short period. HFT uses sophisticated computerized trading tools and high-frequency financial data to assess markets and quickly execute a large number of orders.

High-frequency traders enter and exit deals quickly to make tiny profits each time that, over time, add up to a sizable profit. Usually, algorithms with quicker execution times outperform algorithms with slower execution times.

Due to its steady supply of liquidity and the probable removal of wide bid-ask spreads, HFT can help the market. Some exchanges encourage HFT by giving rebates or waiving fees to HFT providers to reward this beneficial effect on the markets.

HFT, on the other hand, has the potential to greatly enhance market volatility because algorithms are capable of making judgments in a matter of milliseconds without involving any human beings.

HFT is a contentious trading technique since the liquidity it offers can emerge and vanish very quickly, making it impossible for other traders to profit from it.


Investors in cryptocurrencies who refuse to sell their holdings, regardless of market fluctuations, are known as "HODLers." When people refuse to sell their coins despite the price decline during a bear market, it is increasingly frequently used.

Later, the term "HODL" was modified to stand for "Hold On for Dear Life," which refers to holding onto investments despite high market volatility and subpar market performance.

People who admit they cannot execute short-term trades, such as scalping, day trading, or swing trading, now adopt the HODL approach. A similar term, "BUILD," which is frequently used by the cryptocurrency community to describe the various applications that are being developed inside the blockchain sector, was also inspired by the phrase "HODL."


A computer security tool for detecting or preventing illegal access to information systems.


Iceberg Order

is a conditional order that divides the purchase or sale of a large number of assets into smaller, predefined amounts while concealing the overall order amount.


Immutability translates to invariability. An immutable object in computer science is one whose state cannot be changed after it is created.
 One of the primary characteristics of Bitcoin and blockchain technology is immutability. Thanks to immutable transactions, any entity (such as a government or business) won't be able to alter, modify, or fabricate data stored on the network.

Immutability allows for a high level of data integrity because every past transaction may be audited at any point in time.
Public blockchains' immutability can improve the current system of trust and auditing. Due to how much easier or redundant it is to check information, it can cut down on the time and expense of audits.

By enabling many organizations to keep a complete historical record of their business processes, immutability can also improve the efficiency of those businesses as a whole. Immutability also offers a verified, common source of truth, which can bring clarity to many business disagreements.

 Although immutability is one of the main advantages of Bitcoin and blockchain technology, data kept on these systems aren’t fully impervious to security flaws. The so-called 51% attack allows a bad entity to change otherwise unchangeable data if it can gather a majority of the network hash rate.

The attacker might then stop new transactions from receiving confirmations or perhaps completely turn around existing ones. At least in the case of Bitcoin, gaining control of this much hashing power would be extremely expensive, requiring massive hardware and large quantities of electricity.

 However, because gathering the necessary amount of hashing power to attack the network isn't a particularly difficult task, Proof of Work networks with lower hash rates are more susceptible to such an attack.


Index is a system that assesses something's worth about its past performance or another established norm or benchmark. It might alternatively be explained as a financial tool used to aggregate various prices or data sets.
An index is a valuable tool for tracking the price of a specific item or basket of assets because it is often calculated as a single number from a range of prices and quantities over a specific period.
Indexes are frequently used in the financial markets to track the performance of the stock market through a statistical measure of changes. They serve as a tiny sample that more accurately represents the stock market as a whole. Although each index has its own set of guidelines and methods for calculation, in theory, an index's value variation should represent an exactly proportional change in the stocks. As a result, a 5% change in one index should correspond to an average 5% change across all stock markets taken into account in the computation.

Some of the most important and well-known examples of financial indexes include the DJIA (Dow Jones Industrial Average) and the S&P 500 (previously Standard & Poor's 500).

 The DJIA index now gauges the performance of 30 significant US corporations. The Dow Jones Index was initially calculated using a straightforward arithmetic average, in which the number of businesses on the list was divided by the total price of all stocks. The Dow Divisor, however, has been altered numerous times to account for structural changes like stock splits and dividends. As a result, the index is now a price-weighted index rather than a basic arithmetic average. The DJIA is frequently attacked for its limited sample, the fact that it ignores market capitalization, and the relative size of a company, despite being one of the most frequently mentioned stock market indices.
The S&P 500 is an American stock market index that takes into account the market capitalization of 500 large corporations. The companies that make up the index are chosen by a committee using a weighting technique. Many people believe that the S&P 500 is a better predictor of the performance of the US stock market than the DJIA.

 The FTSE 100 and the German DAX index serve as additional examples. The FTSE 100 Index (Financial Times Stock Exchange 100 Index) is a share index that evaluates the top 100 market capitalization companies on a segment of the London Stock Exchange. The German stock index, known as the DAX (Deutscher Aktienindex), is determined by using the 30 largest businesses currently trading on the Frankfurt Stock Exchange.

Indices Funds

Indexes cannot be traded or invested in directly, but index funds do allow investors to base their investments on an index's performance. One index fund that replicates the performance of the S&P 500 index is the Vanguard S&P 500 ETF.

Initial Coin Offering (ICO)

Initial Coin Offerings (ICOs) are a cutting-edge method for generating money using virtual currency (cryptocurrencies). Such a tactic is more common in cryptocurrency ventures that haven't finished building out their blockchain-based platform, product, or service. Typically, Bitcoin (BTC) or Ether (ETH) are used to pay for ICO events, but fiat money may also be accepted in rare circumstances.

Typically, investors participate in initial coin offerings (ICOs) in the hopes and expectations that the digital token (or coin) and the firm that corresponds to it will succeed, possibly leading to a healthy return on investment (ROI) for those who are seen as early backers.
Although ICOs are frequently likened to IPOs (Initial Public Offerings), they differ significantly in that investors do not purchase any form of ownership or shares in a firm. The primary purpose of initial coin offering events is to raise money for startups that are still in the very early phases of development and require funding to advance the idea.

 Unfortunately, many ICOs are carried out by shady organizations that raise significant sums of money before disappearing without providing any updates on their progress. Due diligence, also known as DYOR, is crucial for investors to perform before deciding to invest in the cryptocurrency business.

A cryptocurrency token or coin can be issued in a variety of methods before making them available on ICO crowd sales. While some businesses decide to start from scratch with their blockchain and create their native coin, the bulk of ICO events that have been organized so far have followed the so-called ERC-20 token standard on the Ethereum network.

For instance, a startup may use smart contracts to build its cryptocurrency as an ERC-20 token on the Ethereum network. In this case, the smart contracts ensure that the ERC-20 protocol's set of rules for creating digital tokens on the Ethereum network is adhered to in a trustworthy and independent manner.

The production and issue of digital tokens, which are then made available through initial coin offerings (ICOs), are supported by a few other blockchain systems, except Ethereum, which is the most widely used. These platforms include Komodo, Waves, NEM, NEO, and Stellar, to name a few.

 Initial Coin Offering crowd sales are undoubtedly a successful way to raise venture capital and project funding, enabling firms and projects to get money in their initial phases.

Initial Exchange Offering (IEO)

An Initial Exchange Offering, or IEO for short, is a fundraising campaign managed by an exchange. An Initial Exchange Offering (IEO) differs from an Initial Coin Offering (ICO) in that it is carried out by the project team itself. Instead, it is carried out on a well-known exchange's fundraising platform, like Binance Launchpad, where users can buy tokens using funds directly from their exchange wallet.
For those looking to join in the token releases of new blockchain projects in 2017, the ICO craze has proven to be a particularly risky environment due to the possibility of funds being sent inadvertently to the wrong wallet or project companies evading payment.

What are the advantages of an IEO?

An IEO is simple for users to participate in because they don't have to manage on-chain transactions using various wallets on several blockchains. Instead, a user can engage fully through the trustworthy website's interface with just an account on the exchange and some funds in their account. Furthermore, the exchange is placing its reputation and a higher level of confidence behind the projects on its platform.

An IEO promises a project seeking funding an immediate userbase that can see their product, and depending on the exchange's audience size, could mean the project can cut its outside fundraising marketing channels, allowing them to concentrate entirely on the creation of their product.

Initial Public Offering (IPO)

An initial public offering (IPO) describes the first time a private company makes its shares available to the general public. In some informal contexts, the phrase "going public" may also be used to describe IPOs.

 Many businesses choose to do an IPO to allow shareholders to sell their shares to the general public. Startup businesses, expanding businesses, or business owners in need of capital frequently select the IPO option to generate money for future projects. A committee of financial and regulatory specialists should be established before making an IPO audit of all essential procedures.

 After a firm has completed its initial public offering, it can still decide to raise more money in the future by doing secondary offers. Being a publicly traded company has advantages of its own, such as making staff stockholders, which would likely increase their motivation to work. Making an IPO could, in some cases, improve a company's legitimacy and reputation.

 However, following an IPO, the company's value will probably be determined by the value of its stock, which could obscure the actual performance. Additionally, some businesses might falsely inflate the value of their stocks, which could potentially cause issues.

IPOs and ICOs

Although they are frequently used interchangeably, IPOs and ICOs (Initial Coin Offerings) are two entirely separate entities. IPOs typically relate to existing enterprises that sell shares of a portion of their company to raise money. However, ICOs are primarily used as a fundraising tool, allowing businesses to raise funds for their product at an early stage (investors do not purchase stock in the company).
These IPOs are also heavily controlled by governmental agencies and, generally speaking, function effectively in centralized settings. For ICOs, on the other hand, there is less regulation and the dangers are typically significantly larger.

Integrated Circuit (IC)

A compact chip, usually composed of silicon, known as an integrated circuit (IC), houses a collection of electronic components such as transistors, resistors, and capacitors. These tiny chips are utilized often today and can be found in the majority of electrical products. They can serve as data storage, microprocessors, amplifiers, and oscillators in addition to performing calculations. Integrated circuits are dependable and have enormous production capacities. They have played and continue to play a significant part in the global advancement of electronics because of their affordability.

In a very small space, integrated circuits can contain billions of transistors. Modern computers are vastly more efficient than earlier computers because of the technological advances made with these tiny processors. Digital integrated circuits used in computers operate with binary values of 1 and 0. In essence, low signals indicate 0, and high signals indicate 1. Radios and other audio equipment that converts an input value into an output value employ analog integrated circuits.

Discrete circuits were in use before integrated circuits were developed. Individual transistors, resistors, or capacitors make up a discrete circuit. These circuits were typically connected, which required more time and was physically unstable. After integrated circuits were developed, discrete circuits could no longer compete with their performance and price. In addition to being more affordable and effective, ICs consume a lot fewer resources than humans do.


A theory that would enable blockchains to work together and build on one another's capabilities and use cases.

InterPlanetary File System (IPFS)

A peer-to-peer file system is being developed by the open-source InterPlanetary File System (IPFS). The ambitious IPFS project has the potential to alter how we use the Internet. Its ultimate objective is to link all devices with the same file system, but not in the same way that the Web already does. It's useful to contrast IPFS with HTTP to grasp the fundamentals of the protocol.

In essence, the HTTP and HTTPS protocols form the foundation of the modern World Wide Web. These are, in essence, application protocols that allow for global data accessibility and communication.

 Based on where users (clients) are located, servers are connected to them via the request-response protocol known as HTTP. For example, if Alice visits a website, her web browser will ask the hosting server for the content (e.g., Amazon Web Services). If everything goes as planned, the AWS server will subsequently send her the web pages.

 However, because it is maintained by a centralized server, the content is not everlasting. Additionally, because AWS hosts so many websites, a sizable portion of the Internet is affected if their servers go down for any reason.

 Contrarily, IPFS enables the development of a perpetual and distributed Web where various types of digital data can be kept and distributed. While IPFS communications concentrate on the information itself, HTTP communications depend on a server (with a specific location) to provide the content.

 Thanks to IPFS, Alice would no longer ask for the content directly from the AWS server. She would instead query the scattered network to find out "who can supply me with this content," and the closest peers would answer immediately.

When opposed to HTTP, IPFS may offer several benefits depending on the implementation, including data integrity, censorship resistance, cheaper operational costs, improved performance, and security.

 Having few incentives to join the network results in a tiny population of peers, which is one of the constraints. Due to the low adoption, it is more difficult for files to be permanently accessible. Certain data will become unreachable if all the nodes that host it, which only number a handful, go offline


The abbreviation for a non-formal document that acknowledges an obligation between two parties is IOU, which stands for "I owe you."Although the debt typically has a monetary component, it can also pertain to other goods, such as tangible items or real estate.
IOUs, unlike bonds and promissory notes, are not regarded as legal negotiable instruments because of their informal nature, which makes them likely to contain a certain amount of uncertainty. This means that, simply because an IOU was written down and signed, the person who owes the amount is not necessarily required by law to pay it.

IOUs can be as straightforward as a piece of paper or even a verbal agreement between relatives. IOUs are occasionally used by companies to formally record the amount they owe, for instance, to their employees or another business.

IOUs are essentially just informal notes that people write to themselves to remind themselves that they have debts that need to be paid at a later time. They occasionally contain the names of the parties (or names of the companies), the value, the signer's signature, and the creation date. IOUs do not, however, contain any information regarding the repercussions of failing to pay, nor do they specify any particular dates for payment because they are informal agreements.

Isolated Margin

The margin balance allotted to a certain position is known as the isolated margin. By limiting the amount of margin allotted to each position, traders using the isolated margin mode can control the risk associated with each of their unique positions. Each position's allocated margin balance can be changed separately.

When a trader liquidates a position in Isolated Margin mode, just the Isolated Margin balance is liquidated, not the full margin balance.
Cross Margin is yet another popular margin mechanism on trading platforms. In Cross Margin mode, the whole margin balance is split across open positions to avoid liquidation. In the case of a liquidation, if the cross margin is enabled, the trader runs the risk of losing both their entire margin balance and any open positions. Any realized PnL from a position that is close to being liquidated can help a losing position.

Cross Margin is typically the default setting on most trading platforms because it is the simplest strategy, ideal for new traders. Isolated margin, however, can also be helpful for riskier trades that demand stringent downside restrictions.


Issuing anything means developing it and making it accessible. But in the crypto sector, issuance refers to the manufacture of new cryptocurrency tokens or coins, and this process can occur in a variety of different ways, according to the specifications defined by the designers of the project.

When it comes to Bitcoin, the issuance is carried out through a procedure called mining, in which mining nodes invest a lot of resources to validate fresh blocks of transactions and then produce brand-new Bitcoins as payment for their labor. While the Proof of Work consensus process and mining are required for Bitcoin issuance, certain other cryptocurrencies cannot be mined and hence have a separate method of issuance (for example, a gradual issuance over time or a pre-mined generation of coins).

Sometimes, immediately after being created by a startup or business, cryptocurrencies are sold to investors as tokens through Initial Coin Offering sales. A smart contract that predetermines the maximum quantity and initial total supply of each token is what governs how the tokens are issued. Based on the token economics that the project has presented, investors can then decide whether or not to take part in the sale.