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Glossary

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IOHK

Olga Hryniuk
Input Output Hong Kong was founded in 2015 by Charles Hoskinson and Jeremy Wood to create Cardano. The company became Input Output Global in 2018.
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IPFS

Vcoincheck.io
IPFS stands for InterPlanetary File System. It is a decentralized and distributed peer-to-peer file storage system that aims to provide a more efficient and resilient way to store and access files on the internet. In IPFS, files are broken up into smaller pieces, which are distributed across the network and stored on multiple nodes. When a user requests a f...
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ISPO: initial stake pool offering

Olga Hryniuk
A way to raise funds for DApps or projects on Cardano. A project offers its users tokens usable within its DApp in exchange for these users delegating their stake to the project’s pool. This increases the pool’s margin and helps it gain more rewards. Users receive staking rewards and benefit by getting utility tokens. There is no risk of losing funds because...
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Incentive

Olga Hryniuk
A way to encourage participants in the system to engage in the network by rewarding them with a return that is proportional to their efforts. Incentives aim to ensure equality and fairness in a distributed network of participants by encouraging consistent, active, and strong participation. Cardano's incentives model uses game theory to calculate the incentiv...
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Interoperability

Olga Hryniuk
Aims to enable interconnection between blockchains. Cross-chain transfers and the ‘internet of blockchains’ will grant enhanced user experience and functionality. Sidechains and the AGIX ERC20 converter support Cardano's interoperability.
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Jormungandr

Ivan Irakoze
A Rust-coded node implementation with the goal of supporting Ouroboros-based consensus protocols.
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KEVM

Olga Hryniuk
K Ethereum Virtual Machine. It allows developers to experiment with any smart contract that can be run on the EVM, and offers improved security and performance.
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Key pair

Olga Hryniuk
A set of two keys: public verification key and private signing key. These keys are used to process and approve transactions within the blockchain.The public key is the address used as a sending or receiving address in a transaction. The private key is the secret that controls access to assets. Anyone can send assets to a public key address It is quick and ...
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Layer 1

Olga Hryniuk
The main blockchain ledger that operates on the underlying consensus protocol. This layer includes protocol parameters that control capabilities such as scalability and throughput.
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Layer 2

Olga Hryniuk
An additional, off-chain protocol that works on top of the layer 1 blockchain. Parties can securely transfer funds from the blockchain into an off-chain protocol, settle transactions in this protocol independently of the underlying chain, and safely transfer funds back to the underlying chain as needed. Layer 2 protocols improve overall throughput and scalab...
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Ledger

Olga Hryniuk
A database of blockchain records. On Cardano, more than 3,000 stake pools distributed worldwide operate and maintain this ledger.
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Light wallet

Olga Hryniuk
A cryptocurrency wallet that does not need to download the full history of blockchain records. Instead, the wallet links into a website where the full blockchain is accessed. This makes a light wallet faster and easier to use.
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Liquid democracy

Olga Hryniuk
A hybrid of direct and representative democracy to be used in Voltaire. Liquid democracy enables the treasury system to take advantage of expert knowledge in a voting process, as well as ensure that all ada holders are granted an opportunity to vote. For each project, a voter can either vote directly or delegate their voting power to a member of the communit...
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Liquid staking

Olga Hryniuk
Cardano’s delegation mechanism is based on liquid staking, meaning that staked funds are never locked and can be spent at any time. Other platforms use a third-party protocol to make staked tokens liquid, which has the potential to introduce security problems.
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Liquidity mining

Olga Hryniuk
The process of creating or adding new coins or tokens to support the demand for transactions on a DEX. Liquidity miners (providers) usually get rewards that incentivize them to support the user base and grow liquidity pools with deposited cryptocurrencies.
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Liquidity pool

Vcoincheck.io
A liquidity pool is a pool of funds contributed by users that are used to facilitate trades on a decentralized exchange (DEX). In a liquidity pool, users deposit equal amounts of two different cryptocurrencies, which are used to create a market for those tokens. The price of the tokens in the pool is determined by an algorithm that maintains a balance betwee...
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Local state

Ivan Irakoze
This represents immutable data that makes smart contract execution on the EUTXO model highly deterministic (predictable).
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Lovelace

Olga Hryniuk
The sub unit for ada. One ada = 1,000,000 lovelaces. The name comes from Ada Lovelace, the daughter of Lord Byron who became a mathematician and programmer with her work on Charles Babbage's Analytical Engine project.
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Mainnet

Olga Hryniuk
The live blockchain. Cardano upgrades are assessed on a testnet before being released on the mainnet.
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Market capitalization

Olga Hryniuk
A measure used by crypto exchanges to rank coins. The ‘market cap’ is calculated by multiplying the number of coins in circulation by the coin price on the day.
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