- Location: USA
Blockchain technology is taking the world by storm and, while the technology is rapidly growing, so is the vocabulary surrounding it. Learn the basic terminology for blockchain technology with #TheGreatXBlockchainGlossary101
ASSET-BACKED DIGITAL SECURITIES are digital claims on physical assets that are backed by those assets, which can include real estate, gold, equity, or any other real, physical asset.
COIN is a digital store of value, and it lives on a blockchain or cryptocurrency network. Coins, as opposed to tokens, are not intended to serve utility. When transactions are made with coins, the physical coins do not move, as they exist solely as data on the blockchain, and instead, the balances on the accounts of the two transaction parties will change.
This is like two individuals making transactions through their bank with no physical cash being moved, and instead, their personal accounts reflect the transaction.
CRYPTOCURRENCIES are digital and decentralized currencies that can be used to buy and sell things, or as a store of value.
CRYPTOCURRENCY EXCHANGES are digital marketplaces where individuals can buy and sell cryptocurrency.
PEER-TO-PEER NETWORKS allow users to interact directly without an intermediary.
PROOF OF WORK is a consensus mechanism used by miners to add valid blocks to the blockchain. Miners use specialized computers to run computations with the goal of solving the blockchain’s algorithm.
The more computations a miner can churn out, the more likely they are to earn the reward associated with being the first miner to find the target solution to the current math problem; Every time a solution is found, the miners begin competing against to be the first to solve the next algorithm.
PROOF OF STAKE is a faster and less resource-intensive consensus mechanism that aims to lower fees. In this system, staking, the process by which network participants are selected to add the most recent transactions to the blockchain in exchange for some crypto, is like proof of work’s mining. Proof of stake has a community of individuals who contribute their personal crypto in exchange for being randomly selected to validate the newest transactions and update the blockchain.
SMART CONTRACTS are algorithms that enact the terms of a contract automatically based on its code. Smart contracts are processed by the blockchain, which allows them to occur without an intermediary.
STABLECOINS are digital currencies that peg their values to stable reserves, such as the U.S. dollar or gold. Unlike unpegged cryptocurrencies, like Bitcoin or Shib, stablecoins are meant to be less volatile.
TOKEN does not have its own blockchain and instead lives on the blockchains of crypto coins. For example, many tokens are created on the Ethereum blockchain, which has a native coin Ether. Token transactions rely on smart contracts, while coin transactions rely on the blockchain. When a token is exchanged in a transaction, the token is physically moved from one place to another.
Tokens can serve a range of purposes: representing physical assets, activating features of the blockchain, gaming in virtual platforms, or performing work. In order to make transactions with tokens, users often have to pay a coin fee in exchange for using the blockchain.
TOKENIZATION is a process where assets are converted into a token that can be stored, moved, and recorded on a blockchain. Great X has tokenized hotel rooms, allowing investors to be entitled to the earnings of the rooms in which they choose.
GreatX is aimed at simplifying Blockchain and Blockchain-related transactions for everyone.
GreatX – Fulfilling Your Aspiration Is Our Aspiration
Disclaimer
This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.
In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
ASSET-BACKED DIGITAL SECURITIES are digital claims on physical assets that are backed by those assets, which can include real estate, gold, equity, or any other real, physical asset.
COIN is a digital store of value, and it lives on a blockchain or cryptocurrency network. Coins, as opposed to tokens, are not intended to serve utility. When transactions are made with coins, the physical coins do not move, as they exist solely as data on the blockchain, and instead, the balances on the accounts of the two transaction parties will change.
This is like two individuals making transactions through their bank with no physical cash being moved, and instead, their personal accounts reflect the transaction.
CRYPTOCURRENCIES are digital and decentralized currencies that can be used to buy and sell things, or as a store of value.
CRYPTOCURRENCY EXCHANGES are digital marketplaces where individuals can buy and sell cryptocurrency.
PEER-TO-PEER NETWORKS allow users to interact directly without an intermediary.
PROOF OF WORK is a consensus mechanism used by miners to add valid blocks to the blockchain. Miners use specialized computers to run computations with the goal of solving the blockchain’s algorithm.
The more computations a miner can churn out, the more likely they are to earn the reward associated with being the first miner to find the target solution to the current math problem; Every time a solution is found, the miners begin competing against to be the first to solve the next algorithm.
PROOF OF STAKE is a faster and less resource-intensive consensus mechanism that aims to lower fees. In this system, staking, the process by which network participants are selected to add the most recent transactions to the blockchain in exchange for some crypto, is like proof of work’s mining. Proof of stake has a community of individuals who contribute their personal crypto in exchange for being randomly selected to validate the newest transactions and update the blockchain.
SMART CONTRACTS are algorithms that enact the terms of a contract automatically based on its code. Smart contracts are processed by the blockchain, which allows them to occur without an intermediary.
STABLECOINS are digital currencies that peg their values to stable reserves, such as the U.S. dollar or gold. Unlike unpegged cryptocurrencies, like Bitcoin or Shib, stablecoins are meant to be less volatile.
TOKEN does not have its own blockchain and instead lives on the blockchains of crypto coins. For example, many tokens are created on the Ethereum blockchain, which has a native coin Ether. Token transactions rely on smart contracts, while coin transactions rely on the blockchain. When a token is exchanged in a transaction, the token is physically moved from one place to another.
Tokens can serve a range of purposes: representing physical assets, activating features of the blockchain, gaming in virtual platforms, or performing work. In order to make transactions with tokens, users often have to pay a coin fee in exchange for using the blockchain.
TOKENIZATION is a process where assets are converted into a token that can be stored, moved, and recorded on a blockchain. Great X has tokenized hotel rooms, allowing investors to be entitled to the earnings of the rooms in which they choose.
GreatX is aimed at simplifying Blockchain and Blockchain-related transactions for everyone.
GreatX – Fulfilling Your Aspiration Is Our Aspiration
Disclaimer
This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.
In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
About the Author
Annelise Osborne
Co-Founder
Women of Influence (Innovation) winner Annelise is the co-founder of GreatX with prestigious accolades to her name. Annelise has 25+ years of experience in the capital market and has in the past managed portfolios as large as $400B.
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