Blockchain oracles are third-party services that provide smart contracts with external information. They serve as bridges between blockchains and the outside world. Oracles provide a link between off-chain and on-chain data. Oracles are vital within the blockchain ecosystem because they broaden the scope in which smart contracts can operate. Without blockchain oracles, smart contracts would have very limited use as they would only have access to data from within their networks.
NFTs & Collectibles
A NFT (non-fungible token) is a special cryptographically-generated token that uses blockchain technology to link with a unique digital asset that cannot be replicated. Non-fungible tokens differ from popular cryptocurrencies such as Ether (ETH), Bitcoin (BTC) and Monero (XMR), which are fungible; for example, you can exchange one Bitcoin for any other Bitcoin. NFTs, or non-fungible tokens, have tons of use cases: gaming, art, even yield farming.
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index). Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes, and stocks.
Synthetic assets are designed to mimic the value of other assets, giving investors the leverage to trade digital and traditional assets, while staying in the crypto ecosystem. Investors can use crypto synthetics to gain exposure to a variety of assets without having to hold them. This includes fiat currencies, commodities, index funds, and other digital assets.
Welcome to gaming crypto coins and tokens.
DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries. DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.
Privacy coins are a class of cryptocurrencies that power private and anonymous blockchain transactions by obscuring their origin and destination. Some of the techniques used include hiding a user’s real wallet balance and address, and mixing multiple transactions with each other to elude chain analysis.
Yield Farming & Aggregator
Yield farming is a broad term — and in its simplest form, it involves trying to get the biggest return possible from cryptocurrency. Some decentralized finance protocols also issue governance tokens as a reward for participants — and these assets have become subject to wild speculation.
Decentralized storage systems share storage responsibilities among many independent operators forming a single storage network. Decentralization is understood as the transfer of authority from a central entity to a more localised and ‘liberal’ system.