🔑Glossary

Glossary: The glossary, also called a glossary, is an alphabetical list of all concepts in your thesis that are not immediately clear to the average reader.

Glossary

INSCRIPTIONS: In the blockchain space, the term inscription refers to metadata attached to individual units of cryptocurrency. Inscriptions became popular when the crypto community started attaching pieces of data to satoshis, the smallest units of bitcoin (BTC). They are essentially pieces of information, such as text, images, or code, appended to the transaction outputs on the Bitcoin blockchain.When a user makes a Bitcoin transaction, they can include additional data in the form of inscriptions. This metadata becomes a permanent and immutable part of the transaction, stored on the decentralized and public ledger of the Bitcoin blockchain. The process of inscribing satoshis allows for the creation of unique, non-fungible “digital artifacts”. This is achieved through a numbering system known as the Ordinal Theory. The emergence of blockchain inscriptions is closely related to the Bitcoin Ordinals protocol, which uses Ordinal Theory to assign numbers to each satoshi based on the order in which they were mined.

ORDINALS: Bitcoin Ordinals, also known as Bitcoin NFTs, allow for the inscription of digital content like art, text, or video directly onto the Bitcoin blockchain. Data embedding has been part of the Bitcoin protocol for some time, but its popularity increased with the advent of Ordinals in late 2022. This protocol, created by Casey Rodarmor, allows unique digital arts to be directly embedded into Bitcoin transactions, similar to Ethereum’s nonfungible tokens (NFTs).

STAMPS: The Bitcoin STAMPS protocol embeds images into the Bitcoin blockchain, enabling the integrity and immutability of digital art. Compared to Bitcoin Ordinals, the Bitcoin STAMPS protocol offers a safer approach to data storage and allow for more flexibility.Over time, Bitcoin has evolved to support various applications beyond its initial purpose, including embedding additional data within transactions. The Bitcoin STAMPS protocol enables data embedding, building on the capabilities introduced by previous technologies like the Ordinals protocol.

(SRC-20) TOKEN: SRC-20 tokens are tokens that utilize the Bitcoin Stamps technology to attach data to Bitcoin. The SRC-20 token standard expands the utility of the Bitcoin network, enabling the creation of fungible assets. It’s likened to the BRC-20 token standard, but the two have several distinct differences. Now, let’s take a look at how SRC-20 tokens work.

(SRC-721) TOKEN: The SRC-721 standard makes it cheaper to create detailed NFTs. It uses the Bitcoin STAMPS protocol to store pictures in layers, cutting down on file size with methods such as indexed color palettes for each layer. The layers can be pulled together into a single NFT, allowing for the creation of high-quality images without incurring high costs.

DAO: DAO stands for Decentralized Autonomous Organization. It is precisely this decentralized aspect that makes Web3. A DAO has the function of a company but has no staff or manager - and the community of users is a co-owner. It is a smart contract: a piece of programming code. The DAO allows users to vote on proposals via the UXTO dapp

CRYPTO WALLETS: Crypto wallets are designed to safely store your private key, keeping your crypto accessible at al time. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum etc.

MULTI-SIG WALLET: A multisig wallet (also known as multisignature wallet or shared wallet) is a cryptocurrency wallet that requires two or more signatures to confirm and send a transaction. It can be used by multiple keyholders or one user across multiple devices. Overall, multisig wallets offer an additional layer of security since transactions need to be signed by more than one copayer. This feature can be useful in a number of situations where one private key isn’t sufficient.

CRYPTO LAUNCHPAD: Crypto launchpads, also known as crypto incubators, are platforms that allow blockchain-based projects to raise capital while giving access to early-stage token sales for their group of investors. Access to early-stage deals means a bargain price for the investors before the public launch on the market. Also, because the cost of launching in a crypto launchpad is low (or insignificant), increasingly more projects are heading towards launchpads for fundraising. In this way UTXO want to create an UTXO ecystem via the launchpad to attract more teams and dapps to build on top of the SRC20 protocol.

DAO PROPOSALS: A DAO proposal is an idea that a community or DAO member wants the DAO to consider. It’s typically a document describing an idea, how it will be implemented, and the funding requirements for executing the idea. Proposals should be fully-formed ideas that have exited the brainstorming phase and are ready for the community to evaluate. An example of a proposal would be “Create a Treasury management core team” or “Develop a new onboarding process for new members.” Proposals typically have a funding request, meaning they’re pulling funds from the DAO’s treasury. However, some DAOs have categories for proposals that don’t include a funding ask. These non-funded proposals might include changes to things such as the governance structure, the DeFi protocol the DAO is maintaining, or elements of the DAO that don’t require funding a team to implement.

WEB3: Web3 is a decentralized version of the internet where ultimate control lies not with large technology companies, but with internet users. It is an idea that lives worldwide. It is a vision of the future that is currently attracting a lot of interest and is being actively worked on. In Web3, protocols, internet infrastructure, platforms and apps are built from a decentralized mindset. Blockchain technology, crypto tokens and NFTs play an important role in Web3.

TOKENOMICS: A combination of “token” and “economy,” tokenomics is a collective term for the elements that make a particular digital asset valuable and interesting to investors. From the offering of a token and how it is issued to things like what use case the token has. Tokenomics is an important concept to consider and explore when making an investment decision, because ultimately a project that has smart and well-designed economics is more likely to perform better than one that is not present. A well-developed platform often translates into increased demand over time as new investors flock to the project, which in turn increases the asset's prices. When launching a project, founders and developers must carefully consider the tokenomics of their original digital asset if their project is to attract investment.

AIRDROP: A cryptocurrency airdrop is a free distribution of a new or existing cryptocurrency to a group of people. The purpose of this distribution is to create more awareness of the cryptocurrency and to reward people for their support or active participation in the project. Airdrops come from the world of blockchain and cryptocurrency. It is a way to spread and increase ownership of tokens or coins. This promotes the growth of the number of cryptocurrency owners and thus strengthens the network effect.

CRYPTO WHALES: What are crypto whales? Whales are investors who own a large number of crypto coins or tokens. This number is so large that they can influence the market by selling these coins at once and then buying them back.

VALUE: The price at which at a given time at least two parties, one who offers a product and another who wants that product, want to sell or buy that product respectively.

SWAP: Getting something and giving something else in return. Indirect barter of goods and services using money. Direct barter of goods for goods.

FLOORPRICE: A minimum price for which an item (NFT) will be auctioned.

EXCHANGE OF CRYPTO EXCHANGE: Exchange or cryptocurrency exchange is the crypto exchange that acts as an intermediary between buyers and sellers of cryptocurrency. These exchanges can be managed centrally or decentrally.

MIDDLE MAN: An intermediary or middleman (a person or company that buys goods from the company that produced them and makes a profit by selling them to a store or a user.

PEER TO PEER: Refers to the decentralized interactions between two or more parties in a highly interconnected network.

WALLET: Cryptocurrencies or NFTs are stored in a custodial wallet. Also called 'wallet' in English. A custodial wallet consists of two parts; a public key and a private key. The public key looks a bit like an account number. The public key is public and is used to receive payments. The private key, on the other hand, can be seen as the PIN code that authorizes payments from a public key.

DEFI (DECENTRALIZED FINANCE): Decentralized Finance (DeFi) is the movement focused on decentralizing financial products. Whether it concerns loans, savings, insurance, trade or making payments. The idea behind DeFi is very simple: cut the 'middle party' from the transaction and everything becomes safer, faster and cheaper. The intermediary is generally the traditional bank and/or insurer that you know from advertisements or your bank cards.

API (application programming interface): An API (Application Programming Interface) is a software interface that allows two applications to communicate with each other. How do APIs work? Imagine a waiter in a restaurant. You sit at the table with a menu ready to order and the kitchen is the supplier that makes your order. You need a connection to submit your order to the kitchen and then receive the food back to your table. This can't be the cook, because he is cooking. You need something to connect the customer ordering food and the chef preparing it. This is where the waiter – or in this case the API – comes into the picture. The waiter takes your order, takes it to the kitchen and tells the kitchen what to do. He then brings the answer, in this case the food, back to you. And if the API is well designed, your order will not disappoint!

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