ipedia - your finance and crypto dictionary


A mainnet is a full flesh blockchain, typically the pre-stage testing phase of a blockchain is called a testnet, a mainnet is rolled out when the developers believe all programs work as expected and the functional desires are met.


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A margin is typically an amount one has to deposit with a broker or counterparty to cover one's credit risks.


Put simply, a collateral an investor has to commit to cover for his risk credits or positions or purchased financial instruments.


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Margin Call

A margin call is a call to increase the amount on one's margin account or balance. Typically, a margin call occurs when one's current balance is below a broker's requirements to hold a position.


This balance typically contains the borrowed amount and investors' money.


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Margin Trading

Margin trading is the trading of financial assets with borrowed capital, typically, investors trade margin as it offers the ability to buy and manage larger positions than they would normally afford.


Buying margin grants investors more or larger acquisitions for the collateral amount. 


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Market Capitalization

Market capitalization or simply market cap is a determinant of value or worth. Typically, a market cap represents the total market value of a company's outstanding shares or as in the case of cryptocurrencies, the total value of its circulating supply.


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Market Order

A market order is a type of trade order that demands a broker sells or buys a certain asset not limited to stocks and bonds at the best available market price.


Simply, a market order means buying or selling at the best available bid or sell order.


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A memecoin or memecoins are a category of cryptocurrencies designed or created with humorous attributes.


Simply, a memecoin is a joke coin, basically having no intrinsic value and just intended to be a joke creation. The most famous memecoins are Dogecoin, Shiba Inu, and Babydoge.


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Merkle Tree

A Merkle tree, also known as a binary hash tree or just a hash tree simply is a structure of data, represented in a tree-like design, Merkle trees as with cryptocurrency and blockchain, are used to securely encrypt data.


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A mempool or memory pool is simply where impending transactions assemble and wait to be grouped into a block and verified by miners


The size of the mempool has significant effects on the average transaction verification time, considering the rise in the number of transactions translates to network congestion.


Miners typically prioritize transactions with the highest transaction fees paid.


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Metamask is a cryptocurrency wallet that enables its users to access and interact with the Ethereum network


The Metamask software can be accessed via a browser extension or a mobile app. Metamask is fully compatible with decentralized applications, thus users can create an influence on the blockchain via the use of metamask.


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The Metaverse is seen as many things, primarily due to the futuristic technologies with interoperable frameworks people believe will reshape the internet.


The Metaverse currently, is simply a virtual world with a wide range of utilities. The Metaverse is primarily centered on networking, social connections are expected to turn a new leaf with these developments.


The Metaverse is accessible via virtual and augmented reality


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Micropayments are petty transactions, like fractions of a dollar, and are oftentimes facilitated via internet protocols.


Fintech emerged to solve some of the problems credit card companies and their fee system had. Via numerous technologies, with cryptocurrencies as a major example, the processability of micropayments for minor expenses has never been easier.


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A Miner is typically someone running cryptocurrency mining software, sometimes referenced as a node operator.


Typically, a miner secures a cryptocurrency blockchain via the grouping of data, usually transactions into blocks and posting to the chain. 


A miner earns an incentive in cryptocurrencies called block rewards, additionally, miners may earn transaction fees depending on the network.


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Mining is the process of creating new cryptocurrencies by performing certain activities and operating by a pre-defined algorithm.


Typically, mining involves verification transactions on a blockchain, and as with Bitcoin, the process includes solving a mathematical puzzle and arriving at a consensus via a proof-of-work(PoW) mechanism.


Coins created via mining typically go to the miners, the emission rates of these coins are managed by the blockchain and so, follow certain rules of creation and distribution.


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Mining Difficulty

Mining difficulty is typically data representing how difficult it is for miners to solve for a hash below or equal to the target hash.


In simpler terms, mining difficulty shows how hard it is for miners to verify a Bitcoin block. This typically depends on various factors including the mempool size which causes network congestion, the hash rate of the entire blockchain miners or nodes, and more.


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Monero is a privacy coin,  designed to aid in financial confidentiality.


Monero is a cryptocurrency that utilizes advanced technologies to keep transactions private, aiding in the anonymity of transacting individuals.


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Monetization is the act or process of integrating money-generating features or abilities into something


To monetize is simply to make things generate income or revenue, the process of monetization differs, depending on the subject and method utilized.


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Monetary Policy

Monetary policy is a defined strategy applied by the central banks to control the supply of money whilst ensuring a healthy economic environment.


The Federal Reserve(Fed) controls the supply of dollars via monetary policies that include revising interest rates to keep inflation in check while at the same time promoting maximum employment.


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Money is a generally accepted medium of exchange, typically what is viewed as money has some sort of value and is acceptable via trade as an exchange for goods or services.


Fiat currencies are the most commonly used money, most globally adopted as a unit of account onto which things are priced in.


Money is expected to attract and retain value, this is why the often thrown characteristic of money is being a “store of value".


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The word "moon or mooning" is used to describe or reference an event where a cryptocurrency makes an upward price movement or rally, or simply increases in price value.


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Mt. Gox

Mt. Gox is a cryptocurrency exchange popularly known for handling about 70% of bitcoin transactions during the time of operations, 2010-2014.


Mt. Gox declared bankruptcy in 2014 and has since been a case for the investors and cryptocurrency space. In 2021 a rehabilitation plan was reached as an agreement between creditors in the Tokyo district court. 


Mt. Gox is Tokyo based exchange and has been subject to lawsuits since its abrupt closure of service. Speculation about the reimbursement of investors has sparked fears in the cryptocurrency space as individuals throw concerns of possible price decline as thousands of bitcoins are expected to flow into the markets.


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Multi-Signature (Multisig)

A multi-signature or simply multisig is a set of digital signatures, typically, a multisig is formed with the combination of multiple unique signatures. 


As with cryptocurrencies, an address with multisig implemented typically requires the authorization of all unique signatures before funds or assets held in that account can be moved.


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A network is typically formed when two or more computers are linked or connected together to share resources or communicate.


Networking involves the exchange of information or data, primarily by individuals and then by computer systems.


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A node is typically a device that is part of a network. The larger network is made up of nodes all communicating with each other and most often sharing resources, information, or data.


In cryptocurrency and blockchain, a node is a computer system that runs a specified blockchain software to participate in securing the network via the validation of transactions and the storing of block history, this is done through a process called mining.


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A no-coiner is an individual that shows apathy for cryptocurrencies. Typically, a no-coiner believes cryptocurrencies have no value and so are liable or simply meant to fail.


A no-coiner in most cases spreads crypto FUD and so, can also be termed a FUDster, which is anyone that attempts to spread fear in the cryptocurrency space.


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Non-Custodial Wallet

A non-custodial as oppressed to a custodial wallet is a cryptocurrency wallet whereas the sole responsibility of safekeeping the funds or assets therein is given to the individuals that create them.


Typically, the private keys of a cryptocurrency wallet are generated and given to individuals with no third-party records of said keys, granting the individual full ownership of the wallet and the digital assets contained.


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Non-Fungible Tokens (NFTs)

A non-fungible token(NFT) is a unique asset that lives on the blockchain. Typically, these tokens are not interchangeable or exchangeable in a way that fungible tokens or coins like bitcoin and ether can.


An NFT as a cryptographic data set has some unique characteristics and varies in utilities depending on the issuer and network.


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Not Your Keys, Not Your Crypto

Not your keys, not your crypto is a saying used to describe an event of centralized crypto management. 


Most investors believe that while using a custodial wallet, users don't exactly own the assets therein as they don't directly control the private keys attached to those wallet addresses.


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Off-chain simply refers to activities done outside the blockchain.


Typically, all operations on the distributed ledger are called transactions, considering this, off-chain transactions don't exactly reflect on the network at present time and usually, come with no cost as miners are not needed to validate them.


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On-chain activities typically live on the blockchain and are most often referred to as "transactions".


Transactions on-chain require the validation of miners before the data can be grouped into blocks and posted to the chain


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Open Source

Open source software is generally computer programs by which the developers grant users or individuals the rights to use, change, make adjustments, and redistribute the software to others for whatever purpose.


Most cryptocurrencies, like Bitcoin, are open-source projects, meaning that anyone can access the source code and make adjustments to it.


Note that this does not affect the original blockchain, the adjusted source code will result in a totally new network if a mainnet is launched, unless, the adjustment is a proposed development which will be posted as a bitcoin improvement proposal(BIP), and will be subject to miners voting on whether or not it should be added to the core software.


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A blockchain oracle is typically a service that bridges the real world with the blockchain.


Oracle specializes in data synchronization, aiding smart contracts to execute programs based on inputs from the off-chain or real world.


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Orphan Block

An Orphan block is grouped data or simply a block that has been solved but not added to the chain.


The blockchain typically accepts the chain with the longest verified blocks.


Considering this, when two miners simultaneously solve valid blocks, the network uses both blocks until one chain is longer than the other, miners will typically switch to the longer chain, leaving the other blocks in the shorter chain orphaned.


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The term peer-to-peer(P2P) refers to the interaction made by two, without the involvement of a third party, most often a trade session or simply a transaction.


Considering this, P2P is mostly applied in trading practices in the cryptocurrency space, typically, P2P trading is a trading method that involves two users exchanging assets between themselves on a decentralized platform.


Though the term gets used a lot, most P2P platforms are not entirely decentralized as most just are designed to act as escrows, however, services like atomic swap are entirely peer-to-peer with the integration of smart contracts, the platform is unique in a number of ways.


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A peg is typically a price target to which a cryptocurrency aims to sustain.


A peg value is mostly applied to stablecoins, whereas in contrast to floating price values of other volatile cryptocurrencies, a stablecoin aims to hold a peg of $1 or any other specified peg currency.


When we consider algorithm stablecoins(often decentralized), the process of sustaining a peg may differ from centralized stablecoins in which pegs are met with reserve currencies of the underlying asset (the peg currency), that is fiat currencies.


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Polkadot (DOT) is an open-source cryptocurrency and blockchain that aims to bring to life the interoperability of blockchains via the integration of a secure platform where independent chains can interact, exchange data and perform transactions with each other.


Polkadot is decentralized, thus the process of cross-chain interoperability requires no third-party involvement.


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Polygon(MATIC) is a layer 2 cryptocurrency and blockchain, built on top of Ethereum


Polygon is essentially known to bring scalability to the Ethereum network, the layer 2 blockchain enables developers to build scalable DApps on a secure network whilst paying very little for it.


Matic is the native currency of the network, typically, transaction fees are paid in Matic.


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Ponzi Scheme

A Ponzi scheme is a typical investment scam that promises a high "return on investment(ROI)" with minimal investor risk.


A Ponzi scheme is designed to convince investors that the offered investment products are "risk off", whilst mostly paying early investors with the funds received from new investors until the scheme eventually comes to a closure.


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Primary market

The word "primarily" means the main, principal or first, thus, a primary market generally refers to the main market.


Applying this concept to the world of cryptocurrencies, a primary market refers to the principal exchange medium, where in most cases, only the participants of that network can access the products therein.


Coming to traditional finance where we embrace the likes of the capital market, a primary market herein is a part of the capital market whereas the issuance of securities is made to a select audience, directly from the issuer.


Products on a primary market are usually not available to everyone, however, this is where a secondary market comes in.


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Privacy Coins

Privacy coins are a type of cryptocurrency that utilizes several advanced technologies to engineer its underlying structures and aid in attaining usage confidentiality.


In much simpler terms, privacy coins and their blockchain keep transactions private by using several technologies to anonymize transaction records whilst not sacrificing the security of the network.


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Private Blockchain

A private blockchain, as the name implies, is privately managed. Yes, some blockchains are private and centralized, however, does not take away the characteristics of a blockchain which the very fundamental is being "distributed and immutable


A question of actual immutability may be challenged when it comes to private blockchains, due to the fact that the protocol and its ledger are centralized and only accessible to a few. 


Notwithstanding, private blockchains as opposed to public blockchains are often embraced by centralized companies looking to have a digital database for their company-related information or data.


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Private Key

A private key is a string of numbers or/and letters that serves as proof of ownership of a specified address.


The blockchain is a unique database, in order to render a message or transaction on the chain, one has to have access to a private key associated with the specified account or wallet address or public key to which the transaction is to be made.


This private key is a cryptographic password or code that grants an individual full control over a cryptocurrency wallet address and the assets therein.


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Proof-of-Activity(PoA) is a consensus mechanism applied on a blockchain that aims to ensure that data posted to the distributed ledger are unique and that all miners come to a consensus.


Typically, the proof-of-activity system is a merge of both proof-of-work(PoW) and proof-of-stake(PoS) consensus algorithms, whereas mining begins following a PoW structure and then switches to a PoS when a new block is mined.


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Proof-of-assignment(PoA) is a not-so-popular consensus algorithm, however, its infrastructures are unique and could be considered a game changer if practically functional.


Simply, a proof-of-assignment could be viewed as a lightweight consensus algorithm, whereas mining devices are not required to store all the data on the distributed ledger.


The elimination of this aspect of mining or operating a node, proof-of-assignment allows for "micro mining" whereas devices compatible with the "internet of things (IoT)" perform simple tasks of finding the hash value.


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Proof-of-authority(PoA) is a reputation-based consensus mechanism. This algorithm runs on a staked reputation model.


Highly considered to be more fitting for private blockchains, the PoA consensus structure picks validators based on reputation and contrary to proof-of-stake(PoS) or proof-of-work(PoW), PoA leverages identity, not coins or computation power(hash rate).


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Proof of stake is a consensus mechanism whereas validators are picked to verify transactions based on their stake weight.


Simply, validators on a proof-of-stake blockchain have more chances of winning a block and block rewards for verifying transactions based on the number of coins held as stake.


This is contrary to proof-of-work(PoW) whereas, with Bitcoin, miners need high computational power to win a block.


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Proof-of-staked-authority (PoSA) is a product of both delegated-proof-of-stake(DPoS) and proof-of-authority(PoA) consensus mechanisms.


The proof-of-staked-authority consensus is reliant on first, an often central authority as in the case of "Proof-of-authority" to assign reputable validators to the network. After this, coin holders can then vote in the validators to secure the network.


Typically, a specified number of validators get to verify transactions, using binance smart chain(BSC) as an example, 21 validators get to verify transactions, thus, the number "21" is what token holders will elect. 


Basically, the validators assigned by a central authority, like Binance, may be more than 21, leaving the token holders to choose 21 suitable validators to secure the network.


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Proof-of-time(PoT) is a consensus mechanism that aims to decentralize the agreement process of blockchains.


PoT creates a fair environment for becoming a validator, whereas unlike proof-of-stake (PoS), validators do not need to stake a huge amount of coins to stand a chance. 


The algorithm runs on a specified number of required stakes, whereas coupled with the fixed stake, a validator is chosen based on its ranking score - a typical weight of historical activities based on event validation practices and other nodes' experiences.


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Proof-of-work (PoW) is a consensus mechanism whereby miners are required to expend computational power to verify transactions and earn block rewards.


Miners on a proof-of-work blockchain are chosen to verify transactions based on the computational work done, this requires running heavy hardware to solve a mathematical puzzle or simply to find a target hash that meets the network's difficulty requirement.


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A protocol is typically a set of languages, programs, or rules for data sourcing, formatting, and processing. 


Basically, a network protocol enables connected computers to interact with each other. Given this, we can factor in a blockchain protocol, where nodes can communicate with each other, sharing data amongst themselves, ultimately making the ledger secure. 


The distributed nature of this blockchain protocol makes it a unique database, as applied in cryptocurrency, these digital assets attain high functionality, scalability, flexibility, and security.


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Public Blockchain

A public blockchain, more often just called a blockchain, is a distributed ledger technology, whereas data processed and stored on the network are open to everyone.


Public blockchains are often decentralized, unlike private blockchains which are centrally managed.


Public blockchains, as applied in cryptocurrency developments, utilize several technologies to attain network security and database content authenticity.


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Public Key

A public key is another way to say "cryptocurrency wallet address". The public key works in hand with the private key to prove transaction authenticity.


The public key is what the blockchain reads, it is further associated with the private key to ensure the availability of a UTXO(unspent transaction - coins) in that address and also if the transaction was signed with the appropriate key.


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Pump and Dump

A pump and dump is a fraudulent activity in which a specified asset is publicized with misleading information, the spread of this sentiment is an attempt to create a hype big enough to increase the market value of the asset or assets.


Typically, the scheme operators usually have a pre-secured position on the asset, which they intend to sell off when the public buys into the hype.


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