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A thorough examination of the code behind a smart contract to ensure it is secure and functions as intended. Audits are crucial for identifying vulnerabilities and bugs that could be exploited once the contract is deployed on the blockchain.
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A scaling solution for blockchains, where the database is divided into smaller partitions called ‘shards’. Each shard contains its own independent state, meaning a unique set of account balances and smart contracts. Sharding is expected to improve the throughput and capacity of blockchain networks.
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A type of scam in the cryptocurrency world where developers abandon a project and run away with investors’ funds. This usually happens in decentralized finance (DeFi) projects and can occur when the developers have too much control over the project’s liquidity pool.
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Slang in the cryptocurrency community for a severe financial loss. It is often used to describe the situation of an investor who has made a poor trade that has resulted in significant losses.
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A cryptographic code that allows a user to receive cryptocurrencies into their wallet. The public key is derived from the private key and can be safely shared with others to receive funds.
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A secure digital code known only to the owner that allows them to access their cryptocurrency wallet. The private key is essential for signing transactions and proving ownership of a blockchain address.
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A decentralized network architecture that allows each participant (peer) to interact directly with the others. In the context of cryptocurrencies, P2P refers to the direct exchange of digital assets without the need for intermediaries, such as banks or traditional financial institutions.
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A group of cryptocurrency miners who combine their computational resources over a network to increase their chances of finding a block and receiving the block reward. The rewards are then distributed among the pool participants, proportional to the amount of computing power each contributed.
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A collection of funds locked in a smart contract, used to facilitate decentralized trading, lending, and many other functions on a DeFi platform. Liquidity pools are essential for ensuring enough liquidity on a decentralized exchange (DEX) and enable users to earn fees by providing liquidity.