# 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.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://cagacrypto.gitbook.io/caga-whitepaper/tokenomics-and-utility/glossary.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.