From the archive.
Dust Transactions
Small amounts of cryptocurrency that are considered too low in value to be worth transacting, as the transaction fees would exceed the amount being transferred. Dust can accumulate in wallets over time from receiving small…
EIP (Ethereum Improvement Proposal)
A standard way of proposing improvements to the Ethereum network, detailing potential new features, processes, or environment changes. EIPs play a critical role in the democratic and open governance model of Ethereum, allowing for community…
Farming
In the context of decentralized finance (DeFi), farming refers to the practice of staking or locking up cryptocurrencies in a smart contract to earn rewards or interest. This includes liquidity mining, where users provide liquidity…
Flash Loan
A type of loan in DeFi that allows borrowers to access significant amounts of cryptocurrency for a very short period, typically without collateral. The loan must be borrowed and repaid within the same blockchain transaction,…
Gwei
A denomination of ether (ETH), the native cryptocurrency of the Ethereum network. One gwei equals one billionth of an ether. Gwei is commonly used to measure gas fees, which are payments made by users to…
Hard Cap
In the context of an Initial Coin Offering (ICO) or token sale, the hard cap is the maximum amount of funds that the project plans to raise. Once the hard cap is reached, the project…
Impermanent Loss
A term used in DeFi, particularly in the context of providing liquidity to a liquidity pool, referring to the temporary loss of funds experienced by liquidity providers due to volatility in the price of assets…
KYC (Know Your Customer)
A regulatory and compliance process where businesses verify the identity of their clients in order to prevent money laundering, terrorist financing, and other illegal financial activities. In the cryptocurrency world, KYC processes are often implemented…
Layer 2
Solutions built on top of a base blockchain (Layer 1) to enhance scalability and transaction speed without sacrificing security. Layer 2 solutions, such as state channels, plasma chains, and rollups, offload transactions from the main…
Liquidity Pool
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…