Proof of Stake [PoS]: Defined in CryptoCurrency

Proof of Stake [PoS]: Defined in CryptoCurrency

 

Proof of Stake, or PoS for short, is defined as a computer process for maintaining and building on the digital record known as the blockchain.

Imagine the blockchain as a digital book of records. Every page in that book can only store X amount of information. So we create new pages to store more information. 

Those pages are blocks in the blockchain. The process of creating new blocks, recording and verifying information is all a part of mining.

With Proof of Stake, users can participate after depositing and risking a certain amount of their crypto. 

This is known as a “stake”. Users cannot spend or move their stake. If they are caught recording false information or doing something against the rules, they risk forfeiting their entire stake. People who provide a stake are known as “validators”.

Validators are willing to endure the cost and risks of staking for the chance to earn transaction fees paid by users of the system. Validators earn these fees whenever they are selected to record and verify information.

Validators are selected at random but can increase their chances and their reward size by staking a larger amount.

Proof of Stake systems are used for cryptocurrencies that have all of their coins released in the beginning unlike in Proof of Work systems, where new coins are regularly created and rewarded.

Portfolio: Defined in CryptoCurrency

Portfolio: Defined in CryptoCurrency

Portfolio is defined as group of different investments made by a person or organization.

A portfolio can include any type of investment including stocks, currency, art, and real estate. Portfolios are often designed with a purpose in mind. 

For example, you might have a portfolio for that you intend to hold for the long term. You might have another portfolio with a high risk but great reward potential.

Ponzi Scheme: Defined in CryptoCurrency

Ponzi Scheme: Defined in CryptoCurrency

A Ponzi scheme is defined as an illegal scam where investors are promised large profits with very little risk. A Ponzi scheme never provides a valuable product or service to customers.

Named after Charles Ponzi, a man who became famous and wealthy for creating such a scam in the US in the 1920s. While he was not the first to come up with this idea, Charles became so famous for scamming over $1 million every day (in today’s dollars) that this scam became identified with him.

Charles built a fake business, and promised investors 50% of their money back in 45 days, or 100% of their money in 90 days. Rather than using the money to build a real business, money from new investors was used to pay back original investors, and he kept a portion of everything for himself.

Poloniex.com: Defined in CryptoCurrency

Poloniex.com: Defined in CryptoCurrency

 

 Poloniex or Polo is a digital cryptocurrency exchange company that allows people to trade their various coins with each other.

Proof of Developer [PoD]: Defined in CryptoCurrency

Proof of Developer [PoD]: Defined in CryptoCurrency

 

Proof of Developer or PoD is any verification that provides evidence of a real, living software developer who created a cryptocurrency. 

PoD are used when launching new cryptocurrencies to prevent an anonymous developer from collecting and stealing money without actually providing a workable cryptocurrency.

Proof of Burn [PoB]: Defined in CryptoCurrency

Proof of Burn [PoB]: Defined in CryptoCurrency

Proof of Burn is a method of investing in brand new cryptocurrencies where, in order to get 1 of the new currency, you must burn/destroy another currency like bitcoin. 

That would in theory make, make each new cryptocurrency worth the value of the destroyed coin. Because you can’t actually destroy digital coins, the systems requires you to send it to a location where it can never be spent reducing the total supply of that coin.

Platform: Defined in CryptoCurrency

Platform: Defined in CryptoCurrency

A platform is defined as an environment where software can be developed and run. Most platforms allow users to connect with other users through things like the Internet.

A platform is computer technology (hardware and/or software) used as a base upon which applications and other software can be built. In other words, a platform is the foundation and the application is built on top of it.

Your phone is both a hardware and software platform whereas ethereum is a software platform.