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Blockchain & Tokenization

1. ERC-20​

  • A technical standard for tokens issued on the Ethereum blockchain, ensuring compatibility with the broader Ethereum ecosystem.

2. ERC-721​

  • A standard for non-fungible tokens (NFTs) on the Ethereum blockchain, allowing for unique, indivisible tokens representing digital or physical assets.

3. ERC-3643​

  • A token standard on the Ethereum blockchain for compliant security tokens, facilitating regulated asset transactions.

4. Security Token​

  • A digital token that represents ownership in a regulated financial asset, such as shares in a company, and complies with securities laws.

5. Asset-Referenced Token​

  • A type of cryptocurrency that is backed by real-world assets, such as commodities or real estate, providing stability and intrinsic value.

6. Smart Contract​

  • A self-executing contract with the terms of the agreement directly written into code, running on a blockchain.

7. Tokenization​

  • The process of converting ownership rights to an asset into digital tokens that can be traded on a blockchain.

8. Wallet​

  • A digital tool that allows users to store, send, and receive cryptocurrencies or tokens.

9. Yield Farming​

  • The practice of staking or lending cryptocurrency assets to generate high returns or rewards in the form of additional cryptocurrency.

10. Liquidity Pool​

  • A collection of funds locked in a smart contract, used to facilitate trading by providing liquidity.

11. Proof of Stake (PoS)​

  • A consensus mechanism where validators are chosen to create new blocks and validate transactions based on the number of tokens they hold and are willing to "stake" as collateral.

12. Proof of Work (PoW)​

  • A consensus mechanism used by some blockchains where miners compete to solve complex mathematical problems to validate transactions and create new blocks.

13. Layer 1 Blockchain​

  • The base layer of a blockchain network that handles all transaction data and consensus. Examples include Bitcoin and Ethereum.

14. Layer 2 Blockchain​

  • An overlaying network built on top of a Layer 1 blockchain to improve scalability and efficiency, such as the Lightning Network on Bitcoin or Optimism on Ethereum.

15. Permissioned Blockchain​

  • A blockchain where access to the network is restricted to specific participants, providing controlled and secure environments for business applications.

16. Permissionless Blockchain​

  • A blockchain where anyone can join and participate without needing approval, ensuring openness and decentralization.