Glossary of Terms

Blockchain: A distributed ledger technology that records transactions across a network of computers in a secure, transparent, and immutable manner. Each block contains a list of transactions and is linked to the previous block, forming a chain.

CRX Token: The native cryptocurrency of the Cortux ecosystem, used for transactions, staking, and accessing various services within the platform.

Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central bank.

Decentralized Finance (DeFi): A financial system built on blockchain technology that enables peer-to-peer transactions without intermediaries, offering services like lending, borrowing, and trading in a decentralized manner.

Smart Contract: A self-executing contract with the terms of the agreement directly written into code. Smart contracts automatically execute and enforce agreements when predefined conditions are met.

Initial Coin Offering (ICO): A fundraising method where a new cryptocurrency project sells its underlying crypto tokens in exchange for fiat currency or other cryptocurrencies to raise capital.

Staking: The process of holding and locking up cryptocurrency tokens to support the operations of a blockchain network. In return, stakers earn rewards for their contribution to network security and stability.

Yield Farming: A DeFi strategy where users lend or stake their cryptocurrency assets to generate high returns or rewards in the form of additional cryptocurrency.

Consensus Mechanism: A method used in blockchain systems to achieve agreement on a single data value among distributed processes or systems. It ensures the reliability and security of the blockchain. Examples include Proof of Stake (PoS) and Proof of Work (PoW).

Proof of Stake (PoS): A consensus mechanism where validators are chosen to create new blocks and validate transactions based on the number of tokens they hold and are willing to "stake" as collateral.

Decentralized Application (DApp): An application that runs on a decentralized network, utilizing blockchain technology to ensure transparency, security, and autonomy from centralized authorities.

API (Application Programming Interface): A set of protocols and tools that allow different software applications to communicate with each other seamlessly.

KYC (Know Your Customer): A process by which a business verifies the identity of its clients to comply with legal and regulatory requirements, typically used in financial services to prevent fraud and money laundering.

AML (Anti-Money Laundering): A set of laws and regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income.

Liquidity Pool: A pool of tokens locked in a smart contract that provides liquidity for decentralized exchanges and lending protocols, enabling smoother and more efficient transactions.

DAO (Decentralized Autonomous Organization): An organization represented by rules encoded as a computer program, controlled by the members of the organization and not influenced by a central authority.

Encryption: The process of converting information or data into a code to prevent unauthorized access.

Private Key: A secret key used in cryptography, allowing users to access and manage their cryptocurrency funds. It should be kept confidential and secure.

Fiat Currency: Government-issued currency that is not backed by a physical commodity but by the government that issued it, such as USD, EUR, or GBP.

Two-Factor Authentication (2FA): An additional layer of security requiring users to provide two different authentication factors to verify their identity.