Who owns the most Bitcoin?
Who owns the most Bitcoin?
With more than 1,000,000 BTC, Nakamoto — who may be an individual or a group — owns more Bitcoin than any other entity.
AMM: Automated Market Maker (AMM)
CEX: Centralized Exchange (CEX)
CFMM: Constant-Function Market Maker (CFMM)
dApp: Decentralized Application (dApp)
DCA: Dollar-Cost Averaging (DCA)
DDoS: Distributed Denial of Service attack (DDoS)
DeFi: Decentralized Finance (DeFi)
DEX: Decentralized Exchange (DEX)
DSL: Domain-Specific Language (DSL)
EMH: Efficient Market Hypothesis (EMH)
TradFi: Traditional Finance (TradFi)
TVL: Total Value Locked (TVL)
EUTxO: Extended Unspent Transaction Output Model (EUTxO)
FPGA: Field-Programmable Gate Array (FPGA)
HFT: Hight Frequency Trading (HFT)
ISPO: Initial Stake Pool Offering (ISPO)
MEV: Miner Extractable Value (MEV)
NFT: Non-Fungible Token (NFT)
P&L: Profit & Loss (P&L, PnL)
PAB: Plutus Application Backend (PAB)
PM: Portfolio Manager (PM)
QuantFi: Quantitative Finance (QuantFi)
SPO: Stake Pool Operation (SPO)
What is a blockchain?
A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.
One key difference between a typical database and a blockchain is how the data is structured. A blockchain collects information together in groups, known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled.
A database usually structures its data into tables, whereas a blockchain, like its name implies, structures its data into chunks (blocks) that are strung together. This data structure inherently makes an irreversible time line of data when implemented in a decentralized nature. When a block is filled, it is set in stone and becomes a part of this time line. Each block in the chain is given an exact time stamp when it is added to the chain.
money ≡ energy when modeling financial systems you can think of money as a unit of energy, same as in physics, we can think of kinetic, potential, and other energies, energy is potential to perform a certain amount of work; we can think of money in the same way. Money has potential to be applied in the market, from lending to businesses developing novel ideas, increasing market efficiency by providing liquidity to exchanges, creating information flow via arbitrage, financial analysis and research, to utilizing available information to maximise returns given a specified risk appetite. Energy can be applied in many ways. If we choose a very inefficient way to do something e.g., growing tomatoes in a completely dark underground bunker, we will expend a lot of energy. In contrast, we can put them in a greenhouse or even on a balcony and make much more efficient energy use. Same in the capital markets, efficient models lead to high money utility (energy well spent towards productive work), and productive work is the work that is usually associated with rewards (e.g., business borrowing money will pay it with interest). Therefore, an efficiently allocated liquidity will work very well even with low total value locked and respond quickly to the changing market dynamics, bringing higher rewards per unit of capital.
Non-Fungible Token (NFT)
Is a unique and non-interchangeable unit of data (most often JSON) stored on the blockchain. NFTs are most often used to store images, and do so via 721 standard defining the JSON template. However, NFTs have many uses, such as storing wallet handles, and even such as in the case of Maladex the actual code of programmable swaps.
Everything that is not on-chain, most often implies off-chain code of dApp smart contracts.
Cardano introduces the concept of Turing-complete off-chain code, that computes the necessary state update for the user taken action, and provides it to Cardano wallet for submission onto the ledger. In contrast to blockchains without safe off-chain component, it provides the ability to write off-chain code in any existing programming language (as long as bindings to Plutus exist, e.g., via an SDK), and provide any functionality without outsourcing the high execution cost on the users (e.g., via fee mechanism).
Action executed by the validator nodes or an asset stored on the ledger.
A part of smart contract code stored on Cardano ledger and used to validate submitted transactions. In contrast to other blockchains where all smart contract actions are performed on-chain, in the case of Cardano, a transaction is prepared by off-chain code and validated if it is spendable and meets all spending conditions, by block producing nodes, on layer
The act of splitting a task into smaller, independent, subtasks, all of which can be executed independently of each other, implying that there is no communication required between agents executing the subtasks.
Plutus Application Backend (PAB)
An off-chain dev tool allowing for the interaction with smart contracts. PAB allows for interaction with external clients, such as wallet front-ends, and acts as the intermediary between Plutus application, the node, the wallet back-end, and end users. The purpose of PAB is to provide a standardised environment to run Plutus applications, with disciplined state management, discoverable interfaces by external clients (primarily wallets), track onchain information that smart contract uses, and deal with requests such as running contract instances, forwarding user input to those instances, and notifying these instances of ledger state change events.