(noun): A record or database that keeps track of transactions and balances.
Example: The blockchain technology uses a distributed ledger to store all the transactions in a transparent and secure manner.
(noun): The ease with which an asset can be bought or sold without causing significant price changes.
Example: The high liquidity of major cryptocurrencies allows traders to quickly buy or sell them at stable prices.
(noun): The base layer of a blockchain network, responsible for the core functionality and security.
Example: Bitcoin operates on layer 1, where transactions are recorded and secured through the process of mining.
(noun): An additional layer built on top of a blockchain’s base layer to enhance scalability and transaction speed.
Example: The Lightning Network is a layer 2 solution for Bitcoin that enables faster and cheaper transactions by conducting them off-chain.
(noun): A layer 2 payment protocol that enables faster and cheaper Bitcoin transactions.
Example: With the Lightning Network, Alice can send instant Bitcoin payments to Bob without having to wait for confirmations on the blockchain.
(verb): The act of providing funds to someone with the expectation of repayment, usually with interest.
Example: Sarah decided to lend money to her friend to help him start a small business, and they agreed on a repayment plan.
(noun): A pool of funds provided by multiple participants, used for decentralized trading and liquidity provision.
Example: Traders can contribute their funds to a liquidity pool, allowing others to trade assets more easily and earn a share of the pool’s fees.
(noun): A process in decentralized finance (DeFi) where participants can earn rewards by providing liquidity to a protocol.
Example: By adding their tokens to a liquidity pool, users can participate in liquidity mining and receive additional tokens as a reward.
(adjective + noun): Refers to charges or costs that are inexpensive or below average.
Example: The cryptocurrency exchange prided itself on offering low fees, making it an attractive option for traders who wanted to minimize transaction costs.