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1. Cross-Chain Bridge
🌉 A protocol that enables asset transfers between different blockchains.
> “A digital bridge that moves your funds from Ethereum to Avalanche.”
⚠️ Risk: If hacked, funds on both chains could vanish.
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2. Sidechain
🛤 A separate blockchain connected to the main chain but running with its own rules.
> “Like a side road with its own traffic lights, next to the main highway.”
Example: Polygon PoS Chain.
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3. State Channel
An off-chain channel for transactions between two parties. Only the opening and closing are recorded on-chain.
> “Having a long chat on WhatsApp, but only writing the final summary into the ledger.”
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4. Oracles
🔮 Services that bring external data into blockchains.
> “The eyes and ears of the chain.”
Examples: Chainlink, Pyth.
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5. Sharding
🧩 A method of splitting a blockchain into smaller parts to process transactions in parallel.
> “Instead of making one person write the entire ledger, you divide the pages among many.”
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6. Governance Token
🏛 A token that gives holders voting rights in a project’s decision-making.
> “The ballot paper of a DAO.”
Examples: UNI, AAVE.
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7. TVL (Total Value Locked)
📊 The total value of assets locked in a DeFi protocol.
> “The amount of money stored in a protocol’s vault.”
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8. Airdrop Farming
🚜 A strategy of actively using protocols to maximize chances of receiving future token rewards.
> “Planting seeds now to get free tokens later.”
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9. Token Burn
🔥 Permanently removing tokens from circulation to reduce supply.
> “Burning money so the remaining becomes more valuable.”
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10. Layer 0
🛠 The foundational layer that enables interoperability and infrastructure for multiple blockchains.
> “The blockchain of blockchains.”
Examples: Polkadot, Cosmos.
1. Cross-Chain Bridge
🌉 A protocol that enables asset transfers between different blockchains.
> “A digital bridge that moves your funds from Ethereum to Avalanche.”
⚠️ Risk: If hacked, funds on both chains could vanish.
---
2. Sidechain
🛤 A separate blockchain connected to the main chain but running with its own rules.
> “Like a side road with its own traffic lights, next to the main highway.”
Example: Polygon PoS Chain.
---
3. State Channel
An off-chain channel for transactions between two parties. Only the opening and closing are recorded on-chain.
> “Having a long chat on WhatsApp, but only writing the final summary into the ledger.”
---
4. Oracles
🔮 Services that bring external data into blockchains.
> “The eyes and ears of the chain.”
Examples: Chainlink, Pyth.
---
5. Sharding
🧩 A method of splitting a blockchain into smaller parts to process transactions in parallel.
> “Instead of making one person write the entire ledger, you divide the pages among many.”
---
6. Governance Token
🏛 A token that gives holders voting rights in a project’s decision-making.
> “The ballot paper of a DAO.”
Examples: UNI, AAVE.
---
7. TVL (Total Value Locked)
📊 The total value of assets locked in a DeFi protocol.
> “The amount of money stored in a protocol’s vault.”
---
8. Airdrop Farming
🚜 A strategy of actively using protocols to maximize chances of receiving future token rewards.
> “Planting seeds now to get free tokens later.”
---
9. Token Burn
🔥 Permanently removing tokens from circulation to reduce supply.
> “Burning money so the remaining becomes more valuable.”
---
10. Layer 0
🛠 The foundational layer that enables interoperability and infrastructure for multiple blockchains.
> “The blockchain of blockchains.”
Examples: Polkadot, Cosmos.
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