Cryptocurrencies Flashcards
What is the difference between deterministic and non-deterministic wallets?
https://www.1daydude.com/deterministic-and-non-deterministic-wallets/
What is the difference between custodian and non-custodian wallets?
With a non-custodial wallet, you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours. With a custodial wallet, another party controls your private keys.
What is a liquidity pool?
Liquidity pools are pools of tokens locked in smart contracts that provide liquidity in decentralized exchanges in an attempt to attenuate the problems caused by the illiquidity typical of such systems. Liquidity pools are also the name given to the intersection of orders which create price levels that — once reached — see the asset decide whether to continue to move in uptrend or downtrend.
What is a liquidity pool?
Liquidity pools are pools of tokens locked in smart contracts that provide liquidity in decentralized exchanges in an attempt to attenuate the problems caused by the illiquidity typical of such systems. Liquidity pools are also the name given to the intersection of orders which create price levels that — once reached — see the asset decide whether to continue to move in uptrend or downtrend.
What is the problem that liquidity pool fix?
the advantage of using liquidity pools is that it does not require a buyer and a seller to decide to exchange two assets for a given price, and instead leverages a pre-funded liquidity pool.
What are non-deterministic wallets?
Are wallets that store private keys and has the ability to generate more private keys on the go. The problem is that you must back-up all the private keys regularly or you can lost them.
What are deterministic wallets?
Deterministic wallets generate the key from a seed and a derivation process (Like BIP0032 and BIP0044)
What type of deterministic wallets types do we have?
Sequential deterministic wallets and
What are Sequential deterministic wallets?
Are wallets that use a hash function to derivate a seed + a counter sha256(seed||number).
What are hierarchical deterministic wallets?
Are similar to deterministic but you can re-build a herarchical structure from that initial seed.
What are BIP32, BIP39or BIP40?
Are proposals from the bitcoin project for hierarchical deterministic wallets. They tend to be standards for you to change vendors.
What is BIP32 specifically?
Gives a protocol to build a deterministic wallet from a mnemonic set of words.
What are the most common languages in smart contracts?
solidity, viper, LLL.
What is etherium?
From a more practical perspective, Ethereum is an open source, globally decentralized computing infrastructure that executes programs called smart contracts. It uses a blockchain to synchronize and store the system’s state changes, along with a cryptocurrency called ether to meter and constrain execution resource costs. The most extensive singleton.
What is a escrow service?
This service involves the creation of a guarantee deposit contract, where the funds or assets are in a reserve phase through the intervention of a third party. After guaranteeing and verifying compliance with the agreements between the parties involved, the funds are released. That is to say, a third party or intermediary is appointed an amount of money to safeguard it until the verification of certain conditions.
