Impermanent loss refers to the potential losses one incurs when the prices of assets provided to a liquidity pool change.
Immutable/immutability is a state of being unchangeable. The word gets thrown around a lot while defining a blockchain, this is simply because the database is considered unchangeable due to its distributed nature.
The blockchain attains immutability through various measures which include data distribution, consensus, and data chaining difficulty algorithm, the chain of blocks primarily required said steps to be updated with new records.
Incentives are simply rewards offered as encouragement. In the cryptocurrency space, incentives are applied at various points including mining incentives called block rewards, staking incentives, liquidity provider incentives, and investors incentives which are typically seen in projects that pay hodlers of specified assets.
Income refers to the inflow of cash, typically money one receives as payment for labor or as a return on investment(ROI).
Inflation refers to the rising prices of goods and services, the notable effect of inflation is that the base currency loses its purchasing power in the process.
The building of basic physical systems like transportation systems, schools, and community networks is often the most referenced definition of infrastructure, however, in the digital realm, the word is used to describe the underlying structures or simply the foundation of an economy.
An initial Coin Offering (ICO) is an approach taken by companies or projects in need of cash to fund developments.
Typically, the company sells tokens or coins to raise capital through an ICO, this has similarities with Initial Public Offering(IPO) which has to do with shares, not cryptocurrencies.
The similarities between Initial Coin Offering (ICO) and Initial Public Offering (IPO) remain, only that an Initial Exchange Offering (IEO) differs in that the selling of tokens or coins to raise capital is done through an already established exchange that's in contrast to the project team or company owners singlehandedly running the offerings.
An Initial Public Offering is the selling of shares of a once-private company to the public as a way of raising capital for diverse reasons.
Whilst making the company now publicly traded, an IPO gives opportunities for the public to own a piece of the company while aiding the company to gather capital for the required funding.
Insurance is simply a policy contract that protects a beholder from damages or losses incurred going forward.
Typically, there's always some sort of insurance contract ranging from car insurance, house insurance, or even life insurance, the policyholder basically gains an amount of financial protection from the insurance company.
An interest rate typically refers to the percentage amount of a principal(the amount borrowed) that a borrower has to pay to a lender as represented in the loan contract, calculated by an annual percentage rate (APR).
Similarly, this rate also applies to the savings interest one stands to enjoy and is calculated by an annual percentage yield (APY).
An intermediary in a financial contract is simply a middle person that acts as a pillar of agreement between both transacting parties.
An investor is an individual, cooperative, company, or entity that commits money as an investment into a defined item, digital or physical, typically with the sole goal of generating a profit.
Kimchi premium typically refers to the price difference observed on a South Korean exchange with other exchanges globally.
Most often, South Korean exchanges are seen with different price feeds than that of global exchanges, this makes such marketplaces a honeypot for arbitrage traders who attempt to make a profit trading the gap.
Know your customer(KYC) is basically a means of verification. This guideline is drawn for service providers, typically financial service providers, to verify the identity of their clients or customers.
A KYC is a collection of personal data, which gives the collector some insights into a client's finance structures including experience and estimated earning amounts.
A layer 1 blockchain is typically the base infrastructure of any network.
Bitcoin, Ethereum, and Hive blockchains are all layer 1 blockchains, they are the foundation of all running programs or algorithms on the network, thus, the finality of transactions and security of the ecosystem is based on this structure.
Layer 2 blockchains are structures built on top of layer one. Basically, the base blockchain is perceived to be uncommon for scaling, the tweaking of layer 1 can be a headache, and we've seen this with the case of Bitcoin, and more suitably Ethereum's journey to transition from proof-of-work to proof-of-stake via the merge.
That said, Layer 2 blockchains rely on the base structure for the finality of transactions, thus security and consensus. However, layer 2 blockchains have more room to scale past the flaws of the base layer, we can take the polygon network as an example of a layer 2 network built on top of Ethereum.
A ledger is a record or a database for storing information in different categories, the blockchain is an example of a ledger, a digital ledger that is distributed by design.
Ledgers can simply be seen as a book of records, where appropriate data are being allocated a place for safekeeping.
A legal tender is simply anything ruled in or recognized by the law as an acceptable means of trade or any financial contract settlement.
Typically, a native or national currency is the most common legal tender, however, this isn't limited to these fiat currencies, Bitcoin has been made a legal tender in El Salvador, which makes it recognized by law as a valid means of trade settlement, as such, digital assets can also be made legal tender.
To leverage simply means to make use, but in the financial realm, leverage is typically a borrowed amount used to finance risk investments or increase firms' capital to grow or finance assets.
Leverage is a strategy applied in investment that basically involves the use of borrowed financial instruments or capital to increase or generate profit or income from risky investments.
Liability is basically something owed. It's common to say a liability takes money from your hand, while an asset puts money in your hand.
Basically, the exact opposite of what an asset is. Liabilities are owed sums or obligations between two parties. Put simply a debt, if you may, liabilities may be borrowed sums for company financing, or simply a service owed.
The lightning network aims to push the adoption of the Bitcoin network by making transactions fast and cheap.
The lightning network is a layer 2 structure built as a bridge to the Bitcoin blockchain, lightning is decentralized, it utilizes smart contracts to enable instant payments across participants on the distributed ledger.
A limit order is simply an order to buy or sell a defined asset at a specified price or better. Limit orders guarantee the traders an absolute trade return following the specified prices.
However, there aren't any guarantees of the order being entirely filled or even filled at all.
This is because there has to be an open order in the order book that meets the trader's specified transaction term request.
Put simply a pile of assets paired together. A liquidity pool is essentially what makes decentralized exchanges(DEXs) functioning via an automated market maker(AMM) model work.
Liquidity pools are what enable trade. When two assets are paired together, then pooled in a smart contract on a DEX, individuals are then able to trade these pooled assets against each other.
Litecoin is a virtual currency, created as a fork of Bitcoin whilst the concerns of Bitcoin being centrally controlled by mining firms in 2011.
Litecoin is censorship-resistant, open source, facilitating secure, low-cost, borderless transactions across participants on its network.
A loan is simply an amount borrowed from or owed to another. Though not limited to money, a loan can be a property, physical or digital asset, usually given with the intent of receiving an interest or reward on the principal item or amount at an agreed repayment time.