GLOSSARY


Alphabetical: A-Z
Transactions that take place off a specific blockchain network and are subsequently consolidated or reported in groups before being added to the main chain are often referred to as "off-chain transactions" or "off-chain processing."
Permissionless blockchains are open and inclusive networks that enable any individual to partake in the consensus process without necessitating approval, permission, or authorization from any central authority.
A preliminary investment round intended for strategic investors who possess a substantial amount of investable funds is commonly known as a "seed round" or "seed funding."
The blockchain consensus mechanism you're describing is called "Delegated Proof of Stake" (DPoS). In DPoS, network participants stake a specific amount of native tokens as collateral, which grants them voting power. This voting power is subsequently utilized to propose blocks, validate transactions on the blockchain, and receive blockchain rewards in return for their contributions.
The blockchain consensus mechanism you're describing is often referred to as "Proof of Stake" (PoS) with a Delegated aspect. In this system, network participants (validators) stake a specific amount of native tokens as collateral, granting them voting power. This voting power is then used to propose blocks, validate transactions on the blockchain, and earn blockchain rewards for their contributions. Additionally, a validator's voting power can be further augmented by their activity, which is measured by the gas usage of a smart contract deployed by the validator. In simpler terms, if a validator hosts a decentralized app, the more that app is used, the more rewards the validator can accrue from the blockchain.
ROI is a valuable metric for evaluating the effectiveness of an investment. It represents the ratio of net profit to net cost, providing a measure of how well an investment has performed.
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