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Stablecoin
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency (like the U.S. dollar) or a commodity (like gold). Unlike more volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins aim to provide price stability, making them useful for everyday transactions,…
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How does Proof of Stake (PoS) solve the Byzantine Generals Problem on Cardano?
Proof of Stake (PoS) is a consensus mechanism used by blockchain networks like Cardano to solve the Byzantine Generals Problem, which is essentially the challenge of reaching agreement (consensus) in a distributed system even when some participants might act dishonestly or maliciously. Here’s how PoS helps resolve this issue on Cardano: Key Principles of Proof…
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Byzantine Generals Problem
The Byzantine Generals Problem is a famous thought experiment in computer science that illustrates a challenge in achieving reliable communication and consensus in a distributed system, especially when some members of the group may be unreliable or act maliciously. Imagine This Scenario: Several generals of the Byzantine army are positioned around a city that they…
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The Critical Role of Decentralized Systems in Shaping the Future
In recent years, decentralized systems have emerged as a powerful alternative to traditional, centralized models of control. Built on blockchain technology and other distributed frameworks, decentralized systems have transformed how we approach everything from finance to governance. As we move further into the digital age, understanding why these systems are necessary is becoming increasingly critical.…
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Yield Farming
Yield farming is a decentralized finance (DeFi) practice where users lend or stake their cryptocurrency assets in liquidity pools or other DeFi protocols to earn rewards, typically in the form of additional cryptocurrency tokens. The primary goal of yield farming is to maximize returns on crypto holdings by utilizing various DeFi platforms. How Yield Farming…
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Decentralized Exchange (DEX)
A Decentralized Exchange (DEX) is a type of cryptocurrency exchange that allows users to trade digital assets directly with one another without the need for an intermediary, such as a centralized exchange or a third-party custodian. Instead, DEXs operate through smart contracts on a blockchain, enabling peer-to-peer transactions in a secure and transparent manner. Key…
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Liquidity pools
Liquidity pools are collections of cryptocurrency tokens that are locked in smart contracts and used to facilitate trading on decentralized exchanges (DEXs) like those powered by automated market makers (AMMs). These pools provide the liquidity necessary for users to trade cryptocurrencies without relying on traditional order books and intermediaries, as seen on centralized exchanges. Key…
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Automated Market Maker (AMM)
An Automated Market Maker (AMM) is a type of decentralized exchange (DEX) mechanism that allows users to trade cryptocurrencies without the need for a traditional order book and intermediaries. Instead of matching buyers and sellers like on traditional exchanges, an AMM uses a mathematical formula and liquidity pools to facilitate trades directly between users and…
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Minswap
Minswap is a decentralized exchange (DEX) built on the Cardano blockchain. It allows users to trade cryptocurrencies and tokens in a decentralized manner, meaning that trades are executed via smart contracts without the need for a centralized intermediary. Minswap operates as an automated market maker (AMM), a type of DEX where trades are facilitated by…
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Decentralized Finance (DeFi)
Decentralized Finance (DeFi) refers to a financial system built on blockchain technology that operates without intermediaries such as banks, brokerages, or exchanges. Instead, DeFi relies on smart contracts, which are self-executing agreements with terms written into code, allowing users to engage in various financial activities directly with one another. Key Features of DeFi: Example of…
