Peer to Peer
By bijok_adam | Updated on Aug 12, 2021
Peer-to-peer (P2P) protocols are a type of communication architecture where each and every participations of the member are nodes of the network, without the need for central coordination by servers or stable hosts. One of the cetral tenets of designing a cryptocurrency protocol is that the network has to be peer-to-peer, making the network anti-fragile and without a central point of failure. Other P2P network includes Webtorrents, TOR, Mesh Networks and others.
Related Terms
Central Bank Digital Currency (CBDC)
It is a digital fiat currency issued by the central banks, contrary to cryptocurrency that issued by non-legislative party.
Derivatives
A financial instrument which derives its value from the performance of an underlying asset or index (eg. gold, crude oil)
Bagholder
A person who is holding a large quantity of cryptocurrency which is declining in value or becoming worthless
Proof of Work (PoW)
A consensus algorithm in which a block is validated via mathematical hashing
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