Glossary

Blockchain: A system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

Ethereum Virtual Machine (EVM): A computation engine that acts as a decentralized computer, containing millions of executable projects. It serves as the runtime environment for every smart contract on the Ethereum network.

Proof of Authority (PoA): A consensus mechanism in a blockchain network where transactions and blocks are validated by approved accounts, known as validators. PoA is known for its speed and efficiency compared to proof-of-work systems.

Smart Contract: Self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.

Tokenomics: A term that combines 'token' and 'economics' and refers to the economics concerning the creation, distribution, and usage of a cryptocurrency or blockchain token.

Validator: A participant in the blockchain network responsible for verifying, voting on, and maintaining the ledger's accuracy and helping the network reach consensus.

Decentralized Applications (dApps): Digital applications or programs that exist and run on a blockchain or peer-to-peer network of computers instead of a single computer, and are outside the purview and control of a single authority.

Liquidity Pool: A collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions.

Yield Farming: The practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.

Governance Token: A token that can be used to vote on decisions that influence an ecosystem, giving holders a say in the operation of a decentralized finance (DeFi) project.