A digital asset that derives its value from an external asset that can be traded. Usually, it represents stocks, bonds, or revenue participation notes. Security tokens are subject to federal law governing regulations.
A term used to indicate that a particular stake pool has more stake delegated to it than is ideal for the network. Saturation is displayed as a percentage. Once a stake pool reaches 100% saturation, it will offer diminishing rewards. The saturation mechanism was designed to prevent centralization by encouraging delegators to delegate to different stake pools...
A measure of the efficiency of a stake pool, given as a percentage, is measured by how many blocks the stake pool has produced (and that are recorded on the main chain) compared to how many it was nominated to produce. For example, if a pool only produces half the number of blocks that were nominated, its performance rating is 50%. This could happen because ...
A data structure used in blockchain applications to encode data in a secure and efficient way. The Merkle tree allows a block of transactions to be generated in a single hash, which is used to verify its validity to the original set of transactions. Using hashes is time efficient and does not require the validation of every transaction from the chain history...
A way to encourage participants in the system to engage in the network by rewarding them with a return that is proportional to their efforts. Incentives aim to ensure equality and fairness in a distributed network of participants by encouraging consistent, active, and strong participation. Cardano's incentives model uses game theory to calculate the incentiv...
A piece of information that can be associated with a UTXO and is used to carry the script state such as its owner or the timing details of when the UTXO can be spent.
A fixed fee, in ada, which the stake pool operator takes from the pool rewards every epoch to cover the costs of running a stake pool. The cost per epoch is subtracted from the total ada rewarded to a pool, before the operator takes their profit margin. Whatever remains is shared proportionally among the delegators.
The total amount of stake that a stake pool controls. It combines the stake that is owned by the pool operator with any stake that has been delegated to the pool by other ada holders. It can be measured as a total ada amount (e.g., 3 million ada), or as a percentage of the total supply of ada within the network (e.g., 5%).
Contract for difference. Part of a wider group of trading products known as derivatives, they are a popular method of trading stocks, bonds, and commodities.
Adrestia is a collection of products that simplify integration with Cardano. It is made of several application programming interfaces (APIs), command-line interfaces (CLIs), and software development kits (SDKs). Alternatively, Adrestia may also refer to the team working on the project itself.
A data structure used in transaction outputs to convey various pieces of information. All addresses carry a network-discriminant tag to distinguish between different networks (e.g., mainnet or testnet) and a proof of ownership (i.e., a proof of who owns the transaction output). Some addresses also carry delegation choices or script references.
A modification to the software protocol that renders previously valid transaction blocks invalid. A soft fork is backwards-compatible since old nodes will identify the new blocks as legitimate. In contrast to a hard fork, which needs all nodes to update and agree on the new version, this type of fork merely means a majority of miners to update in order to en...
On Cardano, stake pool operators earn rewards for running the nodes that support the network and produce blocks. Staking means committing funds to a pool to support these activities. Cardano has non-custodial staking, meaning that there are no locking periods, and ada owners can spend their staked funds at any time.
A measure of the level of activity on a blockchain. Because blockchain transactions differ from traditional payments (and between systems) by their functionality and volume, throughput is a better metric. Whereas Ethereum’s TPS only considers individual transactions, the EUTXO accounting model allows for multiple transactions to be included in a single one. ...