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Liquid vs. Frozen Stake
Liquid stake and frozen stake are terms often used in Proof of Stake (PoS) blockchain systems to describe different states of a staker’s funds (cryptocurrency) in relation to their participation in the network’s consensus and reward mechanisms. 1. Liquid Stake Liquid stake refers to the portion of a staker’s funds that are not currently locked…
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What is the Cardano Constitution?
The Cardano Constitution is an evolving concept that represents a set of guiding principles or rules designed to govern the Cardano blockchain. It is part of Cardano’s vision for on-chain governance and decentralization. The Cardano Constitution will establish a framework for decision-making, allowing the Cardano community to actively participate in the future development and management…
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What’s the difference between a pool and a node on Cardano?
In the Cardano blockchain ecosystem, both pools and nodes are critical components, but they serve different purposes and have distinct roles. Here’s a breakdown of the differences between a stake pool and a node on Cardano: 1. Node A node in Cardano is a piece of software that runs the Cardano protocol and participates in…
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Is there a Cardano Virtual Machine (VM)?
Blockchains like Ethereum, Solana, and others that use an account-based ledger model can be thought of as a single, large, interconnected system, where the state of the blockchain is continuously changing. Every account, balance, contract, and transaction is interdependent, forming a complex web of interactions. All of this activity must be managed in a unified…
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What’s a practical example of a UTxO limitation in the real world?
A practical limitation of the UTxO model can be illustrated with a scenario involving smart contracts and concurrent access, especially in use cases like decentralized exchanges (DEXs). Example: Decentralized Exchange (DEX) on a UTxO-Based Blockchain Let’s imagine a decentralized exchange (DEX) built on a traditional UTxO blockchain (such as Bitcoin’s model). In this scenario, multiple…
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What’s the difference between UTxOs and eUTxOs?
The UTxO (Unspent Transaction Output) model and eUTxO (Extended Unspent Transaction Output) model are two different blockchain architectures used to manage how transactions are recorded and validated on a blockchain. Cardano introduced the eUTxO model as an evolution of the traditional UTxO model used by Bitcoin. Let’s explore the differences and how the eUTXO model…
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What is a 51% attack?
A 51% attack is a type of attack on a blockchain where a single entity or group of entities gains control of more than 50% of the network’s computational power (in a Proof of Work system) or stake (in a Proof of Stake system). With this majority control, the attacker can manipulate the blockchain in…
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How is the performance of a blockchain measured?
The performance of a blockchain is measured using several key metrics and factors that assess its efficiency, scalability, security, and overall functionality. These metrics help determine how well the blockchain can handle transactions, secure data, and support decentralized applications (dApps). Here are the most common ways to measure the performance of a blockchain: 1. Transaction…
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What are the different types of tokens on Cardano?
Cardano supports multiple types of tokens, thanks to its multi-asset ledger introduced with the Mary hard fork in March 2021. These tokens are categorized based on their purpose and how they interact with the Cardano blockchain. Here are the main types of tokens on Cardano: 1. ADA 2. Native Tokens Key Features of Native Tokens:…
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What’s the difference between eras, intra-eras, forks, and development phases in Cardano?
In Cardano, eras, intra-eras, forks, and development phases refer to different stages or changes in the network’s evolution. Each term highlights a specific aspect of how the blockchain is upgraded or organized. Here’s the difference between these concepts: 1. Eras 2. Intra-Eras 3. Forks 4. Development Phases How They Interrelate: Conclusion In essence, eras are…
