Glossary

A bear market is a period of time when the prices of assets (such as stocks, bonds, or cryptocurrencies) fall. It is usually characterized by a decrease in the value of assets by 20% or more from their previous highs. Causes of bear markets? The reasons may be different: economic factors, political events, changes in legislation, and other factors. In the case of cryptocurrencies, bear markets can occur due to a decrease in investor interest in certain projects or due to technical problems.

Byzantine Fault Tolerance (BFT) - this is a property of the system that allows it to continue working even if there are errors or failures in some nodes. This is especially important for systems that work with data stored on multiple nodes, for example, for the blockchain. In the context of cryptocurrencies, BFT means the ability of the network to continue working and confirm transactions even if some nodes do not respond or give incorrect data. This ensures the reliability and security of the

Consensus is a process in which all network participants agree that the data in the blockchain is reliable. This is one of the main principles of cryptocurrency operation, which ensures the security and reliability of the payment system. In the world of cryptocurrencies, consensus plays a key role in ensuring the security and integrity of user data. It allows you to avoid fraud and errors in the system, and also ensures transparency and openness of transactions. Types of blockchain consensus

Cryptojacking is a type of cyberattack in which attackers use other people's computers or servers to mine cryptocurrency without the owner's knowledge. This can lead to lower device performance, increased power consumption, and other security issues. How does cryptojacking work? Attackers inject malicious code into websites, applications, or other resources that are visited by a large number of people. When a user visits such a site or opens an application, the code starts using the

Difficulty (Difficulty) is a parameter that is used in some blockchain consensus algorithms to determine the complexity of solving a cryptographic problem. It affects how difficult or easy it is for miners (cryptocurrency mining specialists) to find a new solution to the problem and add a new block to the blockchain. How Complexity works (Difficulty) The Difficulty algorithm is based on the Proof-of-Work algorithm, which requires miners to solve complex mathematical problems. These tasks are

Double spending (double-spending) is a situation where the same cryptocurrency is used twice. This is possible due to the features of the blockchain, which is a distributed database where all transactions with cryptocurrency are stored. How does the blockchain work? A blockchain is a chain of blocks, each of which contains information about transactions. When a user sends cryptocurrency to another user, this transaction is recorded in a block and added to the blockchain. After that, you

DYOR (Do Your Own Research) is a call for independent research before making important decisions. In the world of cryptocurrencies, this principle is especially relevant, as the market is constantly changing, and it is important to keep up to date with the latest news and trends. What is DYOR? DYOR is an approach that implies that each investor or trader should independently study information about the project before investing money in it. This may include analyzing data, reviewing feedback

FOMO (Fear of Missing Out) is the fear of missing out on an opportunity to earn or lose money. This is a psychological condition that can lead to rash decisions and losses. In the field of cryptocurrencies, FOMO is especially dangerous, as the market is very volatile and unpredictable. Examples of FOMO in cryptocurrency: Pump and dump. This is a scheme in which a group of people artificially inflates the price of a cryptocurrency, and then quickly sells it at a higher price. Other investors,

Halving is a process in which the reward for mining a cryptocurrency is halved. This happens at certain time intervals, which are pre-set in the algorithm of a particular cryptocurrency. How does halving work? The blockchain is based on the mining process, which consists of solving complex mathematical problems to confirm transactions and add new blocks to the blockchain. For each successfully confirmed block, miners receive a reward in the form of a certain amount of cryptocurrency. When the

Hard fork (from English. a hard fork is a change in the rules of the blockchain that invalidates all transactions made after this change. This can split the network into two separate chains: the old chain and the new chain. To understand how a hard fork works, imagine a road with two directions of traffic. If there is an accident or repair on this road, traffic on it stops, and drivers have to look for alternative routes. In the case of a blockchain, when a hard fork occurs, the old chain