FAQ

Proof of Importance (PoI) is a protocol that first appeared in NEM (XEM). The selection of miners is carried out based on criteria in the “harvesting” process. Nodes receive important points based on transactions made in the last 30 days, network activity, and the number of locked coins. The higher the overall score, the more likely it is that a node will be selected to validate a block. Unlike the Proof of Stake protocol, a high stake alone is not a guarantee of node selection.

Proof of Authority (PoA) is a consensus mechanism that works by selecting suitable validators based on their reputation. PoA, invented by Ethereum co-founder Gavin Wood in 2017, is a modified version of PoS. Validators do not lock their coins in staking. They use their reputation to get the right to validate blocks. The use of this mechanism does not require high computing power, but the participants have to disclose their identities. Also, the weak point of the Proof of Authority protocol is decentralization, since only selected users can become validators.

Proof of Activity (PoA) is a hybrid mechanism that combines proof of work (PoW) and proof of stake (PoS). The mining process in POA begins as standard with the participation of all miners who try to get ahead of each other when finding a new block. The miner with the higher computing power wins. When a new block is found, the system switches to PoS. The found block contains only the address of the miner to receive the reward and the header.

Proof of Elapsed Time is a proof of time protocol that prevents the overuse of resources and increased power consumption. The protocol was invented by Intel in 2016. According to the protocol, all network nodes must wait for an arbitrary amount of time. The first node that times out finds a new block. Each node generates a timeout randomly and goes to sleep mode. The participant with the shortest waiting time “wakes up” first. It is that node that includes a new block in the chain, transferring all the necessary data to the peer-to-peer network.

Gas is a unit of measurement that determines the amount of commission received by miners for transactions on the Ethereum blockchain. The gas limit is the maximum amount of gas that the user is willing to pay for a certain action. The minimum gas limit is 21000. The price of gas is calculated by the amount of gwei that the user is willing to pay for each unit of gas. The user himself sets the price and gas limit. The higher the price of gas, the more priority the transaction for miners.

Gwei is the nominal unit of Ether, a cryptocurrency that is used on the Ethereum blockchain. Gwei equals 1000000000 Wei, the smallest nominal unit of ether, just like Satoshi in BTC. Gwei (gigawey) is considered the most common unit, which is more often used to determine the gas denomination in the Ethereum blockchain.

The network effect in cryptocurrencies is a phenomenon that implies that a network becomes more valuable when more users join it. When analyzing the value of cryptocurrencies, it is important to take into account the network effect indicator, because the usefulness of the blockchain and digital money directly depends on the number of users. By joining the network, each user increases its value by incentivizing other users to join.

Tendermint is a special open-source blockchain startup software that allows you to create and run applications in any language. The main feature of Tendermint is the possibility of its interaction with other blockchains. Tendermint solves the main problems of popular blockchains, such as an inflexible structure that forces developers to run applications inside a limited environment or create forks and their own blockchains.

OmiseGO (OMG) is a financial technology available to everyone based on Ethereum. The network integrates currency exchange and payment transfers in real-time mode. Thanks to OmiseGO (OMG), any user, regardless of jurisdiction, can send funds using the payment network. The user does not need a bank account. No commission is charged.

Tezos (XTZ) is a blockchain project that has built-in governance mechanisms to upgrade the network. To make changes to the Tezos blockchain, holders of a certain number of tokens send coded offers. When a sufficient number of offers are received, a vote is taken. Thanks to the self-evolving capability of the Tezos protocol, the network is easily upgraded without the need for hard forks. In July 2017, Tezos raised $232 million, making it one of the largest fundraising projects in the history of cryptocurrencies. The Tezos mainnet, launched in 2018, has performed well during the bear market.

FileCoin is a peer-to-peer decentralized network that allows any user to buy and rent storage space. Thanks to the network, users can store their data on different computers around the world instead of trusting only one company. FileCoin, created in 2014, has become the best alternative to cloud storage and such popular storage services as DropBox and Amazon S3.

BakerySwap is an automated market maker that combines popular decentralized finance features with non-fungible tokens. The curated marketplace is powered by Binance Smart Chain, offering users a wide range of De-Fi services and an NFT supermarket. Users can also provide liquidity to the BakerySwap protocols by being rewarded with trading fees as BAKE tokens.

TreasureLand in cryptocurrencies is a multi-chain NFT creation and trading platform. The goal of TreasureLand is to enable a decentralized connection to the creators, sellers, and buyers of non-fungible tokens. The platform has become one of the best ways to enter the Web3 world and a value catcher in the crypto world.

It is not possible to replace or cancel confirmed transactions on the Ethereum network. But when the network load is high, transaction confirmation can take several hours or several days. To speed up, you can replace the pending transaction with a higher commission because these are the transactions miners process in the first place. The cost of gas in the Ethereum network depends on the transaction complexity but users set the price and gas limit on their own. If the price is too low, the transaction will be pushed back by higher bidders. To speed up the transaction confirmation, you need to select the acceleration item in the wallet settings menu to notify the miners again and increase the gas price.

Synthetix is a decentralized finance protocol designed for synthetic cryptocurrency assets. The platform allows the issuance of synthetic assets on the Ethereum blockchain. Using Synthetix, traders can access various assets that are not available on the network. The protocol allows the creation of a De-Fi index to track asset prices using price oracles.

Hashflow (HEX) is a decentralized platform that allows users to trade any asset without commission. To carry out transactions, a trader should simply connect the wallet. The project provides an opportunity to conduct instant cross-chain transactions at fixed prices without synthetic assets and bridges. All transactions that take place on the platform are protected from MEV attacks and slippage.

QuickSwap is an automated market maker on the Polygon blockchain, which is a copy of Uniswapp that offers the same liquidity model. By adding pairs of tokens to liquidity pools, users earn a commission from other users exchanging their tokens in these pools. QuickSwap is compatible with the Ethereum blockchain, allowing users to exchange ERC-20 tokens.

Token standards are a set of specific agreements and rules that are used to govern how a token works. The most popular token standards include ERC-721, ERC-20, ERC-4626, ERC-1155, and BEP-20. Compliance with token standards is necessary to ensure interoperability, connectivity, and efficiency in cryptocurrencies.

A behavioral bias is an irrational belief that influences the decisions of a cryptocurrency trader. The most popular biases that can lead to wrong decisions include overconfidence, chasing trends, inattention, and selling or buying assets at the wrong time.

A cryptocurrency index fund is an investment vehicle that uses crypto-currency tokens as underlying assets instead of bonds and shares of a company. Cryptocurrency index fund allows you to invest in specific crypto-indices, providing access to a diversified portfolio of crypto assets without the need to purchase each token separately.

Venus Protokol is a money market system based on BNB Chain algorithms, whose main goal is to provide secure decentralized loans in the field of cryptocurrencies. The protocol is in the public domain. To start using it, it is enough to have a cryptocurrency wallet.

TrueFi is the first decentralized finance lending protocol. The TrueFi marketplace, which is built on Ethereum and Optimism, brings together investors, borrowers as well as money managers. Using the TrueFi protocol, you can receive cryptocurrency loans without providing collateral. The protocol provides online management of crypto assets, allowing you to get rid of intermediaries and offer creditors more favorable conditions when providing borrowed capital, and borrowers the opportunity to use the received capital more efficiently.

The consensus mechanism in cryptocurrencies is the process during which a group of identical nodes determines the validity of transactions on the blockchain. Consensus mechanisms are methods that are used to reach a single decision. These sets of rules and techniques help protect the network from hacker attacks. There are different consensus mechanisms with different scalability, power consumption, and security level. The methods are used in different blockchains, but the goal of any of them is to ensure the validity of transactions.

A cryptocurrency trading bot is an automated software that monitors, analyzes, and trades on cryptocurrency exchanges using predefined inputs. Usually, bots work on the basis of trading algorithm programs for the purchase and sale of crypto assets, taking into account certain strategies.