Blockchain Archives

What is DeFi

December 5, 2021November 8, 2023 DeFiBook

DeFi book describes DeFi as short for Decentralized Finance. DeFi combines blockchain technologies with smart contracts to create a novel financial ecosystem. This new ecosystem replicates and complements many existing financial services and products. It also enables a completely new set of innovative services and products that are available to anyone, anywhere, at anytime!

Blockchain and smart contracts. — **Blockchain and Smart Contracts**.

In DeFi, participation is permissionless, and anyone is free to join. Anyone can also issue new tokens and trade them as they wish. These tokens can represent anything from currencies, properties, special rights or accesses, artwork, or any asset class, whether physical or digital.

What is Crypto

January 20, 2022December 21, 2022 DeFiBook

Crypto is short for cryptography. Recently, the scope of its meaning has expanded to include a broader range of definitions. These meanings can include basic cryptographic concepts or an entire ecosystem of crypto-enabled technologies, enterprises, and communities.

DeFi Book - Blockchain — **Proof of Work Blockchain using hashes and signed transactions.**

Cryptography is a multidisciplinary field that is focused on securing and validating information. It borrows and applies concepts from mathematics, computer science, electrical engineering, and physics.

What are NFTs

May 30, 2022December 21, 2022 DeFiBook

The acronym NFTs refers to Non-Fungible-Tokens. NFTs represent unique assets with properties that are not replaceable. These tokens contrast with Fungible Tokens that can be easily interchanged with another equal or similar asset (e.g., a cryptocurrency).

DeFi Book NTFs Assets Web3 — **Smartcontract** Tokenizing Assets and with Web3 Interfaces

NFTs became popularized with digital art projects like CryptoKitties (2017), CryptoPunks (2017), Bored Ape Yacht Club (2021), and the record-setting Beeple’s artwork Everydays (2021) that sold for 69 million dollars.

What is Staking

May 27, 2022December 21, 2022 DeFiBook

In crypto, the meaning of staking describes the action of locking tokens with the expectation of earning returns.

DeFi Book - Staking — Multiple Uses for Staking Tokens in DeFi

There are two fundamentally different forms of staking tokens:

In one form, the tokens are put to work and are at risk (e.g., as collateral for a particular activity, such as Proof-of-Stake (PoS), lending, etc.).
In other forms, tokens are simply removed from circulation (e.g., to enable the token’s price to appreciate due to reduced supply).

What is an Oracle

September 21, 2023November 8, 2023 DeFiBook

In DeFi, an oracle can refer to a smart contract that stores real-world data, such as asset prices, exchange rates, sports scores, weather data, etc. Alternatively, an oracle can also refer to an entire ecosystem and associated services that bridge data between on-chain and off-chain.

DeFi Boo - Oracle. — Oracle bridging data from off-chain into on-chain.

Oracles are an important part of decentralized finance because they enable smart contracts and dApps to make informed decisions and execute actions based on real-world information.

What are Stablecoins

July 16, 2022December 21, 2022 DeFiBook

Stablecoins are tokens that are designed to keep their price parity with another asset. For example, a token pegged to the US Dollar at a 1:1 ratio should always be interchanged for the same amount in USD Dollars.

Stablecoins maintain their exchange rate constant.

In the crypto, the main advantage of stablecoins is the reduction of price volatility that is typical associated with crypto-currencies (e.g. Bitcoin, Ethereum, etc.). Keeping the price stable is especially important when establishing contracts that pay for services or/and goods at a future date. It is also important to be able to accurately perform accounting, budgeting, and paying taxes in a predictable manner.

Top 10 Crypto Misconceptions

June 28, 2022September 26, 2023 DeFiBook

This article debunks a number of common misconceptions that exist in relation to crypto and blockchain, including: