Glossary

Glossary

• Fiat currency: Traditional centralized currencies such as USD or EUR

• Proof-of-Stake (PoS): Type of algorithm by which a blockchain aims to achieve consensus. The generator of the next block is determined by the size of his stake. The bigger his stake, the higher his chance.

• Proof-of-Work (PoW): Type of algorithm by which a blockchain aims to achieve consensus. The algorithm rewards network participants who solve cryptographical puzzles in order to submit & validate transactions and create new blocks. Also referred to as mining.

• Cryptocurrency Exchanges: Online cryptocurrency exchanges are websites where you can buy, sell or exchange cryptocurrencies for another digital currency or fiat money (USD, EUR, BTC, CLOAK, etc).