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A collection of 27 posts

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Honeypot

Honeypot refers to a computer security mechanism that is often responsible for detecting unauthorized access to information systems. Honeypots are broadly classified into two categories based on the design and deployment of the smart contract. --------------------------------------------------------------------------------

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High-Frequency Trading (HFT)

High-Frequency Trading refers to a type of algorithmic trading where a large number of transactions are executed within a fraction of a second. HFTs make the best use of high-frequency financial data based on sophisticated software for market analysis and executing trades within a very short time frame. Traders using

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Hashed TimeLock Contract (HTLC)

Hashed TimeLock Contract (HTLC) is a special feature that is often used in smart contracts that allows modifying payment channels. HTLC facilitates the time-bound transactions between the users. During an HTLC transaction, the recipient needs to acknowledge the payment within a specific timeframe while submitting cryptographic proof. This timeframe is

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Hedging

Hedging refers to the investment strategy that is used to mitigate the risks during adverse price movements for a given asset. Predominantly hedging is done on the opposite position for any given security. One of the biggest setbacks for hedging is the risk-reward tradeoff that comes with it. With the

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Hyperinflation

Hyperinflation refers to the phenomenon where there is an unlimited increase in the prices of goods and services. Although, hyperinflation rarely occurs in a healthy economic model. In Layman’s terms, hyperinflation is rapid inflation, where prices can jump 50% and more within the same month. Oftentimes, hyperinflation is also

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Hybrid PoW/PoS

The hybrid PoW/PoS is a consensus model that facilitates both proof-of-work and proof-of-stake algorithms within the network. Through this hybrid approach, projects can bring forth the security of PoW consensus, while ensuring the energy efficiency and governance of PoS. With a hybrid consensus, the miners work on PoW while

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Howey Test

The Howey Test is organized by the US government to determine whether an asset can be classified as a security. If the Howey test determines a financial instrument or asset as a security, then it must comply with a certain set of rules and regulations. Every security needs to be

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Hot Wallet

Hot wallets are crypto wallet that is always connected to the internet and cryptocurrency network. You need to obtain a crypto wallet, to facilitate transactions. All your digital assets are associated with a unique private key and public key. The private key allows you to access your funds whereas, a

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Hot Storage

Hot storage often refers to crypto wallets that run via any internet-connected system. These hot wallets can run either on the cloud, desktop, and mobile devices. Based on the connected system, users may or may not be in control of their private keys. Either way, hot wallets offer one of

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Hosted Wallet

Hosted wallets can be termed crypto wallets that are often managed by third-party services. When a user creates an account with third-party exchanges, they create an entry on behalf of the user in their internal database. This allows the hosts to link the user’s account with key pairs for

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Honeyminer

Honeyminer is a popular cryptocurrency mining app. It is available to be downloaded on multiple devices including Windows and macOS devices. The application makes it easier for any individual who wants to mine crypto. It is becoming the tool of choice for many miners. Now mining is no longer unprofitable

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HODL

The term HODL is an abbreviation that has gained popularity among the crypto community. HODL stands for ‘Hold On for Dear Life.’ HODL predominantly originated from HOLD, referring to a passive investment strategy where the user needs to hold their investment for a longer duration of time regardless of the

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Hierarchical Deterministic Wallet (HD Wallet)

HD Wallets refer to crypto-currency wallets that use the Hierarchical Deterministic (HD) protocol. With HD Wallets, a single master seed requires 12 mnemonic phrases. These deterministic wallets are built on a particular algorithm and seed. One of the biggest advantages of using an HD wallet is that keys can only

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Hidden Cap

A hidden cap refers to the unknown limit imposed on the total amount of money that investors can offer during an initial coin offering (ICO.) Hidden caps are set on ICO to even out the total number of small investors, as compared to larger ones. This way, even the small

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Hedge Contract

A hedge contract acts as insurance that allows investors to hedge against any risk of financial losses. Hedge contracts are often designed to mitigate the risks of price fluctuations within the market. Oftentimes, hedging is done to strategize in the investment market that goes out of hand. Sharing similarities, hedge

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Hash Power / Hash Rate

The combined computational power of a specific cryptocurrency network is defined as hash power/hash rate. For any mineable cryptocurrency, the operation is performed via a network of miners. Those computational powers are often denoted in the form of cryptographic hashes. For a mining rig, the hash rate determines the

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Hash Function

The hash function is also commonly known as a cryptographic hash function where the arbitrary data strings are converted into fixed length and format. This particular string of data is known as the hash. Hash functions also play a crucial role in mining for proof-of-work. As for Bitcoin (BTC), they

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Hash

A hash is the output result you get after running a hashing algorithm. Each hash comprises a unique, fixed-length string that is encrypted and secured via arbitrary data. Hash functions play a crucial role in blockchain technology, ensuring quick processing of data in the distributed ledger. Hashes are essential while

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Hardware Wallet

The hardware wallet is a compact physical device that often resembles that of a USB stick. Hardware wallets are specially designed to store cryptocurrencies offline. Basically, hardware wallets create an isolated space that allows the user to store their public and private keys. In Layman's terms, the hardware wallet is

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Hardware Security Module

The hardware security module (HSM) is a computing device that comprises single/multi-core processors to secure digital keys. It is also used to encrypt data and enhance the overall security of cryptographic authentication. HSMs are often used by enterprises, where data verification and transactions take priority over anything else. Each

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Hard Peg

Hard peg refers to the exchange rate policy, where a crypto asset is set to a fixed rate against another asset. For instance, the Chinee Yuan is pegged to U.S Dollar at 8.28 per dollar. Due to the hard peg, the value of the set currency fluctuates in

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Hard Fork Combinator

First introduced by IOHK, the Hard Fork Combinator is a tool that is based on the Cardano blockchain. It combines all the protocols once a hard fork has occurred in the blockchain. The hard form combinatory is primarily used to merge all the pre and post-upgrade protocols once the hard

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Hard Fork (Blockchain)

A hard fork (Blockchain) refers to the changes to the protocols of the blockchain that leads to the separation of the main blockchain network. Like other systems, blockchain also requires updates to reduce vulnerabilities and to add improved, new features. But before moving forward with any update, the nodes have

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Hard Cap

Hard cap is the limit set on the blockchain’s code on the maximum supply of cryptocurrencies. The maximum amount of funds that is required in exchange can be referred to as a hard cap. Basically, a hard cap during an ICO (Initial Coin Offering) fundraising campaign means the tokens

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Halving

In Cryptocurrency, halving refers to an event when the tokens and rewards are distributed in halves. With halving, the rewards owned by the miners are significantly reduced so that new cryptocurrencies can be created. Halving ensures that the crypto is issued at a constant rate and their value would progressively