Glossary

LimeChain Glossary

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  • An account is an entity in a blockchain system that holds crypto assets and can send transactions to other accounts on the same blockchain network. Accounts can be controlled by the users or, if the blockchain supports them, by smart contracts.
  • A method for distributing crypto assets in which cryptocurrencies or tokens are sent directly to user wallets. Airdrops are often used to kickstart adoption of a token, dApp or protocol.
  • An alternative to Bitcoin, the original cryptocurrency.
  • An automated market maker is a type of DEX that utilizes algorithms and crypto asset pools (liquidity pools) to facilitate crypto trading without order books. The assets in a liquidity pool (one pool can represent a single trading pair) are algorithmically kept in a ratio which allows the pool to automatically quote prices.
  • A commonly employed trading strategy wherein the trader buys a security in one market and simultaneously sells it on another market, profiting from the temporary difference in price. In the context of crypto trading, arbitrage is the practice of buying a cryptocurrency on one exchange and quickly selling it on another where the price is higher
  • ASICs, or application specific integrated circuits, are specially designed chips that have been optimized to perform a specific task as efficiently as possible. In crypto, ASICs are widely used for crypto mining in Proof-of-Work networks.
  • The launch of the Beacon Chain on December 1, 2020, marked the beginning of Ethereum’s transition to Proof of Stake.
  • The granddaddy of all cryptocurrencies, Bitcoin was first proposed by Satoshi Nakamoto. It was conceived as an alternative system for electronic payments.
  • A block is the fundamental component of any blockchain. It's a data structure that stores records of transactions. When multiple blocks are cryptographically chained together we call that larger data structure a blockchain. Crucially, each new block can only be added to the endpoint of the chain, thus appending the chain without changing the existing record.
  • A blockchain is a distributed ledger designed to store the transactional history of a peer-to-peer network. The transaction data is recorded in so called data blocks, which are cryptographically chained together, hence the name blockchain. A blockchain ledger cannot be altered, only appended, as new blocks can only be added to the end of an existing chain. Blockchains employ consensus mechanisms that manage how new blocks are created and approved.
  • A numerical value that reflects how many blocks have already been added to a blockchain network before a particular block. For example, the block height of the genesis block of a blockchain is zero, because there are no blocks that precede it. Block height is an important identifier for blocks and can be used to measure the rate at which new blocks are added to a blockchain.
  • Byzantine Fault Tolerance is the ability of  a distributed system to remain operational even if a number of its nodes are faulty or otherwise compromised. As highly decentralized, distributed systems, blockchain networks need to have Byzantine fault tolerance to ensure reliable and secure service. This is why the most prominent blockchain consensus mechanisms like Proof of Work and Proof of Stake are designed to achieve BFT.
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  • A cryptocurrency is a type of digital currency that is designed to be used on a blockchain or another Web3 network. New cryptocurrency is generated as rewards for the people that maintain the network and validate transactions. Bitcoin was the original cryptocurrency.
  • Cryptocurrency exchanges are platforms that allow people to trade crypto assets, either for fiat or for other crypto assets. Crypto exchanges generally fall into two main categories - centralized exchanges and decentralized exchanges or DEXes.