What’s that mean? Crypto Terminology Part II
If you have been doing more investigation into the crypto industry, you may have come across some terminology or acronyms you will want to get familiar with. We have put together a list of some common jargon you will want to know.
1) dApps: Decentralized Applications
Digital Applications that operate using Smart Contracts on the Blockchain. dApps originate from Ethereum and are able to operate autonomously. dApps like Apps, are applications with use cases that range from Finance, to Gaming, to Social Media and more.
2) DeFi: Decentralized Finance
Financial instruments (such as Banking & Lending, Exchange, Brokerage, Asset Management, Insurance, Derivatives) which operate without the need for intermediaries.
Financial functions traditionally served by banks and financial institutions, now being done by the Blockchain and Smart Contracts.
3) DEX: Decentralized Exchange
Decentralized Crypto Platforms where customers can exchange, buy and sell crypto.
Decentralized Exchanges provide complete anonymity, direct ownership and control of coins and Private Keys. Do not allow for fiat payments. Are more advanced and complex to use.
4) CEX: Centralized Exchange
Centralized Crypto Platforms where customers can exchange, buy and sell crypto.
Centralized Exchanges lack anonymity as they require identity verification, lack full ownership of coins (until/if you remove them from the exchange), and are less secure as they are centralized operations.
5) CBDC: Central Bank Digital Currencies
Digital Currencies issued by a Central Bank. The transition from traditional paper currencies to a digital currency. Similar to cryptocurrencies, however, they would not need to necessarily use Blockchain technology. They are controlled by the Government and thus can be interfered with at any time.
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