Explore approved Crypto definitions, everyday examples and related lessons.
Showing 5 of 5 matching terms
Deciding protocol changes through public proposals, discussion and voluntary software upgrades, rather than through votes recorded on the blockchain.
Example: Neighbours discuss a rule and choose whether to adopt it. A blockchain community can similarly coordinate through discussion and software choices rather than a binding token vote.
An on-ramp converts national currency into crypto, for example by bank transfer or card. An off-ramp converts crypto back into national currency and pays it out.
Example: A Canadian learner uses CAD to acquire crypto through an on ramp, and later converts crypto to CAD through an off ramp. Each step can have fees, limits and verification requirements.
The number of derivatives contracts still open at a point in time. Each contract has one long side and one short side, and it is counted once.
Example: If 100 contracts remain open, they represent 100 matched long and short pairs, not 200 contracts. A data service may display a money equivalent instead, so read the units.
Keep in mind: Read the reporting units: a service may publish contracts, asset units or a converted notional amount.
A mechanism supplying information to blockchain applications, often bringing outside data such as prices on chain. Its sources, update rules and trust assumptions affect applications that rely on it.
Example: A heating controller needs a thermometer reading. A contract using an external price likewise depends on the quality and freshness of the supplied reading.
Keep in mind: An oracle does not guarantee the truth of the information it supplies.
A loan supported by collateral worth more than the borrowed amount at the stated valuation time. This buffer can shrink; liquidation, price gaps or other failures can still leave losses.
Example: A lender takes security worth more than a loan when it starts. If that security falls quickly or cannot be sold, the extra starting value may not prevent a loss.