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Cardano’s Hydra
Hydra is a layer-2 scaling solution designed for the Cardano blockchain to significantly enhance its transaction throughput and efficiency. As the Cardano ecosystem grows with decentralized applications (dApps), decentralized finance (DeFi), and other blockchain-based services, the demand for higher scalability, low fees, and faster transaction processing increases. Hydra addresses these needs by enabling the blockchain…
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Byzantine Fault Tolerance (BFT)
Byzantine Fault Tolerance (BFT) on Cardano refers to the blockchain’s ability to function correctly even when some nodes in the network behave maliciously or incorrectly, either due to bugs, network failures, or deliberate attacks. In a distributed system like Cardano, where multiple nodes work together to maintain consensus, BFT ensures that the network can tolerate…
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Crash Fault Tolerance (CFT)
Crash Fault Tolerance (CFT) on Cardano refers to the blockchain’s ability to continue operating correctly even if some nodes in the network experience failures or become unresponsive. CFT is a crucial aspect of distributed systems like blockchain, where multiple nodes work together to maintain the ledger and validate transactions. Key Aspects of Crash Fault Tolerance…
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Channel Capacity (Blockchain)
In the context of the Cardano blockchain, channel capacity typically refers to the maximum amount of information or transactions that can be transmitted across the network within a given time frame. This concept is crucial for understanding how much data the network can handle, particularly when it comes to processing transactions or smart contract executions…
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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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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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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…
