Key Terms

Blockchain: A blockchain is a digital ledger of transactions maintained by a network of computers in a way that makes it difficult to hack or alter. The technology offers a secure way for individuals to deal directly with each other, without an intermediary like a government, bank or another third party. Cryptocurrency: a digital asset that is secured using cryptography, making it virtually impossible to counterfeit or double-spend. Cryptocurrencies are decentralized and operate independently of a central bank or government. They are used as a medium of exchange and are transferred between users without the need for intermediaries. Bitcoin is the most well-known cryptocurrency, but it is just one of the thousands of digital currencies that are available today. Crypto investors often use digital currencies to purchase goods and services or to invest in other digital assets. Binance Smart Chain: Binance Chain, which was renamed BNB Beacon Chain in 2022, was launched by Binance in April 2019. Its primary focus is to facilitate fast, decentralized (or non-custodial) trading. Perhaps unsurprisingly, the biggest decentralized application (or DApp) on it is Binance DEX, one of the friendliest decentralized exchanges out there. You can use it via a web interface at binance.org or through its native integration with Trust Wallet. Farming: is the process of mining cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, by using specialized hardware. This hardware is designed to solve complex mathematical problems to validate transactions on the blockchain and earn rewards. Mining rewards come in the form of new coins or tokens and transaction fees. Crypto farming is an attractive option for investors who are looking to increase their holdings of cryptocurrencies and earn a passive income. Multi-Chain Staking Pools: these are pools of funds used to stake a certain cryptocurrency or asset to earn rewards. It is a way for investors to pool their funds together and take advantage of the reward system offered by certain blockchains. By staking in a pool, investors can increase their chances of earning rewards while also reducing the risk of their individual staking efforts. Non-Fungible Tokens (NFTs): are unique digital assets that exist on a blockchain. Unlike other digital assets, NFTs are not interchangeable and each token is unique and cannot be replicated. They are used to represent a wide variety of assets, including digital art, collectibles, in-game items, and more. They are also used to tokenize physical assets, such as real estate, cars, and other collectibles. NFTs are becoming increasingly popular, as they provide a secure, transparent, and immutable way to own and trade digital assets. Staking: is the process of holding a certain cryptocurrency or asset in order to earn rewards. It is a way for investors to take advantage of the reward system offered by certain blockchains, such as Proof of Stake (PoS). By staking their coins or tokens, investors are able to increase their chances of earning rewards while also reducing the risk of their individual staking efforts. Crypto staking is becoming increasingly popular, as it provides a passive income stream and is a low-risk investment.