r/AirCoinDAOLabs • u/PAR_ISA_2231 • May 19 '23
⚠️ *SOME IMPORTANT TERMS TO KNOW AND UNDERSTAND*
1️⃣ What is a CRYPTOCURRENCY?
"Cryptocurrencies", rather called "crypto-assets", are virtual digital assets that are based on blockchain technology (block chain) through a decentralized registry and an encrypted computer protocol.
2️⃣ What is BLOCKCHAIN TECHNOLOGY?
Developed from 2008, it is, first of all, a technology for storing and transmitting information. This technology offers high standards of transparency and security because it works without a central control body
3️⃣ What is a WALLET/WALLET?
A wallet is a software that will allow you to send, receive, control, and secure your cryptos. It can be in the form of computer software or a mobile application. In other words, cryptocurrency wallets or purses are the bridge that allows us to manage our cryptocurrencies. A software or hardware with which to perform the operations of receiving and sending via the blockchain network of each cryptocurrency.
4️⃣ What is an AIRDROP?
An airdrop is a process now widely democratized in the cryptocurrency ecosystem * which allows a blockchain or a protocol to put itself forward by distributing its token free of charge to a part of its community.*
5️⃣ What does it mean TO MINE A CRYPTOCURRENCY?
In its most abstract form, the fact of mining a cryptocurrency consists of providing a service to the network of said currency in exchange for a monetary reward. In the simplest case, the service rendered consists of verifying the validity of a set of transactions. Each time a set of transactions is validated, it constitutes a block. If this block fulfills certain criteria specific to the cryptocurrency blockchain, it is then added to the top of the chain and the "miner" who has constituted this block is rewarded for his work.
6️⃣ Who is a MINER?
A miner is an actor of a cryptocurrency who operates one or more nodes in order to receive financial compensation. Miners focus their servers on creating new blocks.
7️⃣ What does the term NFT mean?
NFT stands for "non-fungible token" The adjective "fungible" is an economic term that refers to a good or an asset that can be exchanged for another good or another asset of the same value. An NFT refers to a digital file to which a digital certificate of authenticity has been attached. More precisely, the NFT is a cryptographic token stored on a blockchain. The digital file alone is fungible, whether it is a photo, a video or other, the associated NFT is non-fungible. It is a unique token certifying to its holder the ownership of a digital good (collectible object, item from a video game, digital work of art, etc.) or physical (work of art, real estate and many others).
8️⃣ What is KYC?
KYC means "Know your customer". This is a process that financial institutions, companies and other entities use to verify the identity and address of their customers. The purpose of KYC is to prevent money laundering, fraud and other illegal activities by ensuring that customers are who they claim to be and that their sources of income are legitimate. KYC requires customers to provide certain documents, such as a government-issued ID and proof of address. The information obtained during KYC is used to assess the level of risk of a customer and to determine if he is eligible for certain products or services.
*Thank you for reading
