zk-Rollups – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What are zk-Rollups? zk-Rollups are a layer 2 scaling solution for blockchains that aim to improve scalability and reduce transaction costs. They use zero-knowledge proofs to bundle multiple transactions into a single proof, which is then submitted to the main chain. This allows for more efficient processing of transactions and reduces the burden on the … Read more

Shielded Transactions – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What are Shielded Transactions? Shielded transactions are a type of transaction in blockchain and cryptocurrencies that provide enhanced privacy and security by obfuscating the sender, receiver, and transaction amount. These transactions use advanced cryptographic techniques to ensure that the details of the transaction are hidden from prying eyes, making it difficult for third parties to … Read more

Initial Coin Offering (ICO) – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What is an Initial Coin Offering (ICO)? An Initial Coin Offering (ICO) is a fundraising method used by cryptocurrency startups to raise capital for new projects. In an ICO, companies issue digital tokens or coins to investors in exchange for funding. These tokens can represent a stake in the project, access to a product or … Read more

Stablecoin – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What is a Stablecoin? A stablecoin is a type of cryptocurrency that is designed to have a stable value, typically pegged to a fiat currency like the US dollar or a commodity like gold. Unlike other cryptocurrencies such as Bitcoin or Ethereum, which can be highly volatile in terms of price, stablecoins aim to maintain … Read more

Block Reward – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What is a Block Reward? A block reward is a form of incentive given to miners who successfully validate transactions and add them to the blockchain. It is essentially a reward for the work done by miners in securing the network and maintaining the integrity of the blockchain. Block rewards are typically given in the … Read more

Mining Rig – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What is a mining rig? A mining rig is a specialized computer system designed for the sole purpose of mining cryptocurrencies. It consists of high-performance hardware components that are optimized for solving complex mathematical algorithms required to validate transactions on a blockchain network. Mining rigs are essential for cryptocurrency mining as they provide the computational … Read more

Distributed Ledger Technology (DLT) – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What is Distributed Ledger Technology (DLT)? Distributed Ledger Technology (DLT) is a digital system that records transactions or any other data in multiple locations simultaneously. Unlike traditional centralized databases where data is stored in a single location, DLT distributes data across a network of computers, making it decentralized and transparent. This technology enables secure and … Read more

Decentralized Finance (DeFi) – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

1. What is Decentralized Finance (DeFi)? Decentralized Finance, commonly referred to as DeFi, is a term used to describe a new financial system that operates without the need for traditional intermediaries such as banks, brokers, or exchanges. Instead, DeFi relies on blockchain technology to create a decentralized network of financial applications and services that are … Read more

Proof of Burn (PoB) – Definition & Detailed Explanation – Blockchain and Cryptocurrencies Glossary

What is Proof of Burn (PoB)? Proof of Burn (PoB) is a consensus mechanism used in blockchain technology to achieve distributed consensus. In PoB, participants destroy or “burn” a certain amount of cryptocurrency tokens by sending them to a verifiably unspendable address. This act of burning tokens serves as a form of proof that the … Read more