For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s...

According to CoinDesk, A flash loan is a relatively new type of uncollateralized lending that has become popular across a number of decentralized finance (DeFi) protocols based on the Ethereum network (Hertig, 2022) [1] .

Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset's listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms (Fernando, 2022) [1] .

What is Staking?

Decentralized cryptocurrency finance is based on the demand and premise of eliminating the need for banks (Centralized finance or CeFI) almost entirely. Centralized finance refers to any kind of financial service (especially in the crypto industry) that a centralized platform that manages and processes the transactions as well as accounts (Zare, 2021) [1] .

Since the recent surge of cryptocurrency vernacular, you will hear the term Peg, above Peg, or below Peg. For beginners in the cryptocurrency world, this might seem like a strange term or an even stranger concept. The term Peg is always synonymous with Stablecoins.

The crypto market is both unpredictable and volatile, and there are lots of ways that you can lose money. Constantly at the cooler at work, or during social gatherings, we hear about people becoming overnight millionaires.

The first DAO was created in 2016. It was created on the Ethereum blockchain , and it raised over $150 million in funding. The DAO was created to fund Ethereum projects.

Cryptocurrency investments are enticing. People from all around the globe are investing more in the crypto market with every passing day. People have high hopes of reaping massive returns from their investments in the market.

Back in the day, if you told someone never to leave your money in the bank, you would be met with strange looks, and labeled a crackpot. Now the skeptics are constantly looking for guidance and alternate means to increase their assets.

What Is a Decentralized Autonomous Organization (DAO)?

Before DeFi came into action, CeFi was the only solution for trading cryptocurrencies. Although it competes with DeFi to attract mainstream crypto traders, CeFi owns the bigger share of the trading market in the crypto industry (Zare, 2021).

In the simplest terms, decentralized finance (DeFi) is the umbrella term for financial applications that operate on a decentralized network. This could be something as simple as decentralized lending or borrowing, but can also include more complex products and services like decentralized exchanges, derivatives, and insurance products (Blockzeit, 2022).

A cryptocurrency wallet is what you need to buy, store and send cryptocurrencies. Unlike physical wallets, a cryptocurrency wallet doesn't hold any money; instead, it holds the keys needed to access and control cryptocurrencies on a blockchain.

A fiat currency is money that is not backed by a physical commodity like gold but instead backed by the government that issued it. Most modern currencies, such as the U.S. dollar, euro, pound, and yen, are fiat money.

The Invention : In 1994, Nick Szabo ( a cryptographer ), came up with the idea of being able to record contracts in the form of computer code. This contract would be activated automatically when certain conditions are met. This idea could potentially remove the need for trusted third-party companies [such as banks] (M, 2021).

Blockchain Validation

Through frustration and unchecked abuses from centralized financial institutions, the public mandate for fair and equal ground toward financial independence caused cryptocurrencies to emerge from the middle class. Cryptocurrencies are a needed alternative to fiat currencies ( Money that has indirect market value or is given legal tender ). The fundamental technology behind the crypto monetary innovation is the blockchain.

Cryptocurrencies like Bitcoin and Ethereum are powered by a technology called the blockchain. At its most basic, a blockchain is a list of transactions that anyone can view and verify. The Bitcoin blockchain, for example, contains a record of every time someone sent or received bitcoin . Cryptocurrencies and the blockchain technology that powers them make it possible to transfer value online without the need for a middleman like a bank or credit card company.

Coins and tokens aren’t just words that belong in the game's arcade. They are important terms in the crypto world as well. While the...