Glossary

If you're new here, use Free TON's glossary as a comprehensive guide to the world of cryptocurrency. 

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51% Attack 

A type of attack on a decentralized network where a group gains control of the majority of the nodes. This allows them to defraud the blockchain by reversing transactions, spending others' TON Crystals and wreaking havoc. 

B

BFTG

The Byzantine Fault Tolerant Governance is a system for organizing jury and judging activities in contests based on the Byzantine Fault Tolerance principle. 

C

Cold Wallet

A wallet used to store tokens that does not have permanent access to the internet. Designed for long-term and secure storage of cryptocurrency. Is less vulnerable to an attack by hackers. The owners has access to private keys. The service providing cold wallets does not remember the keys - loss of the key means the funds are lost forever.  

Combot 

A paid service for analytics, moderation and configuration of the distribution of messages in Telegram. Allows administrators to manage chats and channels, and collect user opinion data. Comes with anti-spam settings and automatic responses to FAQs. 

Consensus 

A common opinion on which version of the blockchain is considered correct. 

Cosmos 

Cosmos.network is a decentralized network of independent parallel blockchains, each based on BFT consensus algorithms. The Cosmos architecture applies classic BFT algorithms and uses Proof-of-Work instead of Proof-of-Stake. Cosmos has the ability to interact with many other cryptocurrencies and applications, which is not possible by other blockchains. You can connect any blockchain system to the Cosmos Hub by creating a new zone and transferring tokens back and forth between the zones without any intermediaries. 

D

Decentralized Loans

A type of financial transaction with cryptocurrency where transfer of tokens take place under the obligation to return.  

DeNS 

DeNS (Decentralized Naming Service) is a distributed naming system for smart contracts in Free TON. The service should make it much easier to work with smart contracts, because their names are not a set of numbers, but a phrase similar to the name of a site in an address bar. 

Double-spending 

The characteristic of digital currency where the same asset can be spent more than once. A cryptocurrency asset exists as information that can be copied and duplicated in more than one payment. Decentralized systems solve the problem of double-spending by storing identical copies of the transaction ledger in the blockchain. If two different transactions attempt to spend the same token, only the transaction that was written to the block first will count. The presence of a time range between the spending of an asset and the recording of it by all members of the network carries a potential threat of fraud for double-spending. 

F

Freeland 

A virtual state with its own cryptocurrency MFCoin, governance and ideology. Freeland is integrating into Free TON and taking advantage of blockchain scaling to socialize its project. 

Freeriding 

A speculative fraud where an asset is declared purchased but is resold at a higher price before the payment for its purchase is received. The organizer holds some of the securities in order to sell them later at an increased price. 

Flash Loan 

A loan without collateral for a single transaction on the DeFI platform, used by traders to earn on the floating exchange rate. A trader takes a loan, buys cryptocurrency, sells it at a higher rate, and returns the loan. The trader’s profit is the exchange rate difference minus the commission to the exchange. 

Full Nodes 

Nodes that fully download all blockchain network data are called full nodes. They download every generated block and every transaction, check them against blockchain consensus rules and store the complete blockchain. They form the foundation of blockchain security. For the platform to function in a stable manner, there needs to be a network full of nodes that ensure that work is done constantly without interruption. 

G

Gas Fees 

The commission for transactions in the blockchain, varying depending on various criteria, sometimes exceeding the amount of transaction itself. In most blockchains, gas fees are spent on paying validators for their work on forming a block. 

H

Hedging

Hedging is a method of insuring the risks of a transaction in one market, based on the conclusion of a transaction with the opposite position in another market. Hedging involves buying features, options and forwards. This creates a balance of obligations in the cash and future markets, but at the same time, causes a drop in profits. If the buyer is afraid of an increase in the price of an asset in the future, he buys futures for this asset - buying hedge. Selling hedge involves the seller being afraid of a decrease in price, therefore selling it. 

Hot Wallet 

An internet service that lets you store cryptocurrency in your wallet account. Stores all the private keys of wallet owners and interacts with the blockchain on behalf of the user. Vulnerable to attacks by hackers, but has the advantage of always having an up-to-date balance and the availability of transactions at any time. 

I

IPFS 

The IPFS (InterPlanetary File System) is a communication protocol designed to connect computing devices in order to exchange data between them. It was designed by Protocol Labs, an open source project. IPFS is a peer to peer system that has a single file system and all devices connected to it have access to those files. To make a new file available to users, it simply needs to be added to the IPFS. IPFS Is built around the decentralized exchange of blocks without any points of failure. The system is built so that it will work even when there is a disagreement between nodes. 

Node 

Any computer integrated into the blockchain network is a node.

P

Proof-of-Work 

An algorithm to protect distributed systems from malicious activity (spam-mailing, DoS-attacks). The computer solves PoW tasks since their solution requires a vast amount of computing power. And a key feature is the asymmetry of time costs: verification of the solution requires much less time and resources than it takes to locate it. 

S

Stake

A stake is a certain number of tokens in the user’s possession. The user can leave part of this amount (or the full amount) as a pledge — as a guarantee of the fulfillment of his obligations. The staking mechanism allows block producers (validators and their delegates) to ensure consensus on transactions and receive incentives for fair block production. The stake is not needed for day-to-day onchain transactions or users, but only for consensus participants. 

T

TIP-3 

A Free TON token standard that describes the basic principles of building smart token contracts - the smart contracts of user wallets have the right to deploy only the root smart contract from their address, and should have the same code as the root smart contract but contain different user data. 

TIP-4 

A mechanism for rewarding developers of free software and smart contracts in Free TON. An algorithm for redistributing gas fees, depending on which the developer will get his part of the commission for the performed transactions. The closest equivalent is rewards or royalties as a fee for each use of the work. 

V

Validator

Validators are node operators who each store a copy of the blockchain and must perform certain functions to keep the system secure. Once each transaction is verified, they get added to the distributed ledger. 

W

Wallet

A cryptocurrency wallet allows you to store and transact TON crystals and other crypto, and gives you an address to operate with.