Algorithmic stable currencies
Stable currencies are supposed to be less volatile than regular cryptocurrencies, as many issuers say they support their value while maintaining another asset. Algorithmic stable currencies, on the other hand, are designed to maintain their linkage (and investor confidence) through mathematical equations and active trading incentives to manage supply and demand. U.S. Treasury Secretary Janet Yellen said in May that stable currencies need a regulatory framework as they pose a risk to financial stability. This was partly in response to the collapse of the TerraUSD algorithmic stablecoin.
Any cryptocurrency that came after Bitcoin can be called altcoin. Some cryptography enthusiasts find the term insulting because they think it means the supremacy of Bitcoin over other currencies.
Cryptographic investors who believe that the original cryptocurrency is the only thing the world will need. They stick to the original vision of the creator of Bitcoin, the pseudonym Satoshi Nakamoto, and rule out concerns about its volatility and high energy consumption.
A twist on the word “Bitcoin,” Buttcoin refers to a Reddit forum where people post memes and jokes that denigrate cryptography. Buttcoin community members especially enjoy the sharp drops in the prices of Bitcoin and other digital currencies.
Software that connects blockchains that otherwise cannot talk to each other. These mechanisms allow users to exchange coins from one network into tokens from another blockchain. Ideally, these bridges operate independently of anyone, through lines of code known as smart contracts. However, a number of recent thefts have exposed the weaknesses of its architecture.
This reference to prolonged declines in the cryptocurrency markets was used during the period between early 2018 and mid-2020, when Bitcoin and digital rival Ether stagnated. It resurfaced in 2022 when Bitcoin fell more than 50% from a record high.
Imagine a time before the banks, when people were trading, lending and lending directly to each other. That’s the idea behind decentralized finance, or DeFi, whose blockchain-based software allows for such interactions. DeFi apps like MakerDAO, Aave, and Compound are attracting billions of dollars from users, many of them hoping to make transactions anonymously and reap huge profits. TradFi is the traditional financial industry that these startups want to replace.
Decentralized exchanges such as Uniswap and dYdX that allow users to trade currencies or cryptocurrencies anonymously and without intermediaries such as banks.
Decentralized applications (“dapps”) with economic incentives. They usually involve tokens awarded as rewards for performing game-related tasks, such as winning battles, extracting precious resources, or cultivating digital crops. It is an approach also known as play-to-earn.
A non-fungible token is a blockchain line of code that confirms the unique ownership of a piece of digital or collectible art, such as a video clip, meme, or item used in an online game. Some NFTs get millions of dollars. Notable collections include Bored Ape Yacht Club, CryptoPunks and NBA Top Shot. Brands began offering them as loyalty rewards or rewards. Even Ukraine has been selling NFT to help fund the rebuilding of cultural institutions destroyed since the Russian invasion in February.
A term used for coins that should be avoided as they have little value or useful purpose. To make matters worse, there is a real cryptocurrency called Shitcoin.
A process in which holders of a cryptocurrency allow their tokens to be used to help sort transactions in the blockchain of that currency. The bet has been on the rise in part due to the incentive-based aspect of cryptography, where several new currencies and blockchains compete for so-called validators, sometimes promising potentially stratospheric annual returns in the form of new currencies. Betting is seen as a relatively low risk way to get returns through DeFi.
Total value locked. In many DeFi applications, users deposit their coins for returns, for example, to lend their coins. The total of those deposits in an application is the total locked value. Users often check how the TVL of an application changes over time, or compares to that of rival applications, to make decisions about where to deposit their digital currencies.
If the crypto community has a political manifesto, this is: a vision for a new World Wide Web built on blockchain applications that returns power to users of technology companies who have built vast empires by absorbing our data and selling it to advertisers. .
Farmers plant crops to make money. Risk-taking crypto investors place their currencies in yield collection schemes to get returns. A typical strategy involves lending one token, ordering another, and earning another token. At one point, investors were earning three-digit yields from such complex combinations.
Much of the terminology found in cryptographic forums reflects the hopes and anxieties of people who have opted for various tokens and blockchain projects. Here is a selection:
When Lambo? – An aspiring reference to Italian sports cars that has lasted since the early days of the Bitcoin craze.
LFG – “Let’s go!” (with an added insult in the middle). A common cryptographic cry. Not coincidentally, these are also the initials of the Luna Foundation Guard, a group of investors who support the controversial TerraUSD stable currency.
HFSP – “Have fun being poor.” A mockery for those who don’t totally agree that the digital currency you’re supporting will go “to the moon”.
DYOR – “Do your own research.” What could you say today to the ninth person asking you to explain a new digital asset before you invest.
WAGMI – “We’ll all get it.” It’s a phrase used by cryptography fans to show their mutual support or to inspire confidence in a project. You can probably guess what NGMI means.
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