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Tag: Glossary

Glossary of commonly found crypto terms, acronyms, profiles, and useful resources.

OFF-CHAIN ​​TRANSACTION

The term refers to an operation that occurs outside the main infrastructure of a blockchain. In the context of cryptocurrencies, this implies that the transaction is carried out privately or semi-privately and is possible thanks to scalability solutions and second level layers, such as payment channels or sidechains, which allow users to carry out a series of transactions “off” the main chain before recording the results on the public blockchain....

Blockchain, Cryptocurrencies, Glossary

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ON-BALANCE VOLUME (OBV)

It is a technical indicator used in crypto business analysis and other financial markets to measure the buying and selling pressure behind a particular asset. It was originally developed by Joseph Granville and is based on the premise that changes in trading volume can precede significant movements in the price of an asset. Calculating On-Balance Volume involves adding or subtracting the trading volume of the asset based on the price direction....

Cryptocurrencies, Glossary, Trading

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Yield Curve

The “Yield Curve” is a graph that shows the interest rates of bonds based on their maturities. In traditional finance, an inverted yield curve (where short-term rates are higher than long-term rates) is sometimes associated with recessions. It is a vital tool in the world of finance, as it provides a visual representation of interest rates in relation to bond maturities. This graphic representation is essential to understanding...

Glossary

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Zero-Day Vulnerability

In the changing and highly technical environment of cryptocurrencies, it is essential to be aware of the various risks that exist. One of the stealthiest and most potentially damaging is an entity known as a zero-day vulnerability. But what exactly is a zero-day vulnerability and how serious can it be for cryptocurrency market participants? A zero-day vulnerability refers to a security flaw that has not yet been discovered by software...

Blockchain, Cryptocurrencies, Glossary

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Zeppelin

Zeppelin, more precisely known as OpenZeppelin, is a name that resonates significantly in the cryptocurrency and blockchain ecosystems. Diving into the world of blockchain development and smart contracts can be challenging, but thanks to projects like OpenZeppelin, the process becomes more manageable and secure. Originating from the growing blockchain community, OpenZeppelin is a project dedicated to creating and maintaining open source libraries...

Blockchain, Erc20, Ethereum, Glossary

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UTXO

UTXO stands for Unspent Transaction Output. In the context of Bitcoin, it refers to the individual units of Bitcoin that have not yet been used or spent in previous transactions. Each UTXO holds a specific value, typically denoted in satoshis, the smallest unit of Bitcoin. These UTXOs are associated with the public key addresses of their recipients, allowing for the traceability and accountability of Bitcoin transactions. When a user initiates...

Bitcoin, Glossary

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APY (Annual Percentage Yield)

APY, or Annual Percentage Yield, is a measure of the rate of return that users earn when they deposit their funds in different cryptocurrency lending protocols and yield farming platforms. APY includes the effects of compound interest, which can transform low daily or hourly yields into significant amounts over time. Since APY reflects the investment return over one year, advertised rates should only be expected if funds are deposited for that...

Glossary

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Liquidity Pool

Crypto liquidity pools are groups of cryptocurrencies that are locked into a smart contract to provide liquidity to decentralized exchanges (DEXs). DEXs are cryptocurrency exchange platforms that do not require an intermediary, such as a bank or stock exchange. Liquidity pools allow users to buy and sell cryptocurrencies without having to trust a third party. Liquidity pools work as follows: A user deposits cryptocurrency into a pool. The...

DeFi, Glossary

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Realized Cap

Realized cap is a market capitalization metric that values each UTXO (unspent transaction output) based on the price when it was last moved as opposed to its current value. As such, it represents the realized value of all the coins in the network, as opposed to their market value. To calculate the realized cap, you first need to find the total number of UTXOs in circulation. Then, you need to find the price at which each UTXO was last moved....

Blockchain, Glossary

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What is Layer 2?

What are Layer 2 solutions, and how do they work? Blockchains are a powerful technology, but they have some limitations. One of the biggest limitations is scalability. Blockchains can only process a limited number of transactions per second, which can make them slow and expensive to use. Layer 2 solutions are a way to address the scalability limitations of blockchains. Layer 2 solutions are built on top of the underlying blockchain, but...

Glossary

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