DeFi and Blockchain Basics
This blockchain feature enables the provision of financial services without intermediaries.
What is DeFi?
This consensus mechanism relies on computational power to solve mathematical problems in exchange for transaction validation rewards.
What is Proof of Work?
These cryptocurrencies are pegged to assets like the US dollar to ensure transaction stability.
What are stablecoins?
These unique digital assets can verify ownership and provenance of art, music, and collectibles.
What are NFTs?
Bitcoin uses this energy-intensive consensus mechanism.
What is Proof of Work?
This concept solved the issue of trust production, allowing value to be exchanged without third-party intermediaries.
What is blockchain?
The second largest cryptocurrency network, known for running decentralized applications through smart contracts.
What is Ethereum?
The transparency and reserve practices of this prominent stablecoin have been under scrutiny.
What is Tether?
NFTs are increasingly being used in financial applications, including insurance, derivatives, and this type of loan.
What is NFT lending?
This segment of development in crypto focuses on solutions for storing private keys securely.
What is key management?
The major challenges DeFi faces include market volatility, smart contract risks, and this looming uncertainty.
What is regulation?
This mechanism uses validators and selects one randomly to update the blockchain based on their crypto stake.
What is Proof of Stake?
These tokens represent ownership claims on traditional assets recorded on a blockchain.
What are security tokens?
This revenue stream for NFT creators is generated from sales on both primary and secondary markets.
What are royalties?
One of the largest barriers to mainstream Web3 adoption involves securing these essential assets.
What are private keys?
The future of DeFi includes under-collateralized lending and the integration of these into the ecosystem.
What are real-world assets?
This tolerance system allows blockchains to keep functioning even if some nodes act maliciously.
What is Byzantine Fault Tolerance?
One challenge faced by security tokens in comparison to traditional securities.
What is regulatory compliance?
Two platforms commonly associated with trading and lending NFTs.
What are OpenSea and NFT lending platforms?
This challenge in Web3 is the result of frequent fluctuations in the price of cryptocurrencies.
What is volatility?
Peer-to-pool models for lending and borrowing can be found in these three major DeFi protocols.
What are MAKER, AAVE, and Compound?
In Bitcoin, this term refers to the process by which miners solve complex puzzles to add new blocks to the blockchain.
What is mining?
Faster settlements and lower issuance costs are advantages of these blockchain-based assets.
What are security tokens?
This NFT-based game introduced a "play-to-earn" model where players own in-game assets.
What is Axie Infinity?
This law suggests that the cost of solar modules drops by 20% for each doubling in solar module shipments, which could help solve Web3’s energy issues.
What is Swanson’s Law?