Light nodes, also known as downloaded wallets, play a crucial role in validating the information stored on the blockchain by connecting to full nodes.
Monthly Archives: November 2023
Over-Collateralization, also known as OC, refers to the practice of providing collateral that exceeds the value required to compensate for potential losses in the event of a default.
The InterPlanetary File System (IPFS) is a decentralized network that allows for the storage and retrieval of files, websites, and applications. Unlike traditional systems that rely on location-based addressing, IPFS uses content addressing. This means that instead of referencing the location of a file, IPFS uses a unique identifier based on the content itself. This approach ensures that files can be accessed and shared efficiently, even if their location changes or they are offline. IPFS is a peer-to-peer system, meaning that files are distributed across multiple nodes in the network, making it more resilient to censorship and ensuring that files are always available. With its decentralized and content-addressable architecture, IPFS is revolutionizing the way we store and access information on the internet.
Layer 0 serves as the underlying network framework for the blockchain. It encompasses various elements such as protocols, connections, hardware, miners, and other components that establish the fundamental structure of the blockchain ecosystem.
Layer 2 refers to a scaling solution that allows for a significant increase in transaction throughput while still maintaining the security of the underlying blockchain it is based on.
The actual worth of an asset, known as its intrinsic value, is determined through a complex financial calculation rather than relying on its current price.
Investing refers to the act of allocating funds into a financial scheme with the purpose of achieving a profit.
Investment vehicles, also known as asset classes, are the means through which investors allocate their funds in the anticipation of growing their portfolio’s value over time.
An IOU, which stands for “I owe you,” is a written document that acknowledges a debt owed by one party to another party.
IP addresses are numeric addresses that are assigned to devices connected to the internet or a local network. These addresses are unique and serve as identifiers for the devices.