✨Glossary

Important terminology every BlackDragon community member should know.

A

Access Level

The access level represents the amount of BDT locked in the platform. Access level tiers are as follows, Level 0 (250+ BDT), Level 1 (1,000+ BDT), Level 2 (5,000+ BDT) and Level 3 (10,000+ BDT). Deals may be restricted to certain levels.

Address (Wallet Address)

An address is an alphanumeric character string, which can also be represented in the form of a scannable QR code. This public string allows the wallet owner to send and receive transactions on a blockchain network.

Airdrop

A token distribution method used to send cryptocurrency or tokens to wallet addresses. Sometimes airdrops are used for marketing purposes in exchange for simple tasks like reshares, referrals, or app downloads.

Altcoin

Any digital currency alternative to Bitcoin. Many altcoins are forks of Bitcoin with minor changes (e.g. Litecoin).

AML (Anti-Money Laundering)

Anti-Money Laundering. A set of international laws enacted to diminish the potential for criminal organisations or individuals to launder money through cryptocurrencies.

B

Blockchain

A consensus digital ledger comprised of unchangeable, digitally recorded data in packages called blocks. Each block is ‘chained’ to the next block using a cryptographic signature. This allows blockchains to act like a ledger, which can be shared with and accessed by anyone with the appropriate permissions.

BDT

BlackDragon token (BDT) is the backbone of BlackDragon's community-based fundraising platform and an integral part of the investing ecosystem. It will grant you access to our fundraising platform that will provide you exceptional user experience with no gas wars. Through the platform, we provide our users with a fair pro-rata allocation model, which is based on the percentage of tokens staked.

Bridge

A blockchain bridge is a connection that allows the transfer of tokens and/or arbitrary data from one chain to another. Both chains can have different protocols, rules and governance models, but the bridge provides a compatible way to interoperate securely on both sides.

C

Cliff (vesting)

Early investors in a project may be subject to vesting cliffs. A cliff designates a time period where tokens will not be received. The cliff typically begins at TGE and tokens may or may not be staked during this restricted period.

Coin

A coin or altcoin is a representation of digital asset value that is generated via its own independent blockchain.

Cold Wallet / Cold Storage

An offline wallet that is never connected to the internet. These wallets protect cryptocurrencies from getting hacked online.

Confirmation / Block Confirmation

A confirmation means that the network has verified the blockchain transaction. This happens through a process known as mining, in a Proof of Work system (e.g., Bitcoin). Once a transaction is successfully confirmed it theoretically cannot be reversed or double spent. The more confirmations a transaction has, the harder it becomes to perform a double-spend attack.

Cryptocurrency

A digital currency that is based on mathematics and uses encryption techniques to regulate the creation of units of currency as well as verifying the transfer of funds. Cryptocurrencies operate independently of a central bank.

Cryptography

A method for secure communication using code. Symmetric-key cryptography is used by various blockchain networks for the transfer of cryptocurrencies. Blockchain addresses generated for wallets are paired with private keys that allow the transfer of cryptocurrency. Paired public and private keys allow funds to be unlocked.

D

DAO (digital decentralised autonomous organisation)

Also known as the digital decentralised autonomous organisation (DAO). Alternatively, the first known example of a DAO was named The DAO. The DAO served as a form of investor-directed venture capital fund, which sought to provide enterprises with new decentralised business models. Ethereum-based, The DAO’s code was open source. The organisation set the record for the most crowdfunded project in 2016, however, those funds were partially stolen by hackers. The hack caused an Ethereum hard-fork which lead to the creation of Ethereum Classic.

Deal

Any early-stage project that is live for investing on the BlackDragon platform.

Decentralisation

The transfer of authority and responsibility from a centralised organisation, government, or party to a distributed network.

Decentralised Application (dapp)

An open-source, software application with backend code running on a decentralised peer-to-peer network rather than a centralised server.

Decentralised exchanges (DEX)

A DEX is a dapp cryptocurrency exchange that allows for peer-to-peer trading. Trading is facilitated without an intermediary maintaining cryptocurrency holders ownership over their cryptocurrency assets. The largest DEX is currently Uniswap, allowing ERC20 tokens to be freely traded in an open market.

Decentralised Finance (DeFi)

Decentralised finance—often called DeFi or open finance—refers to the economic paradigm shift enabled by decentralised technologies, particularly blockchain networks. DeFi represents a shift from a centralised and closed financial system to a universally accessible economy that is based on open protocols that are interoperable, programmable, and composable.

Deposit

Digital property put into a contract involving a different party such that if certain conditions are not satisfied that property is automatically forfeited to the identified counterparty.

Digital Asset

A digital commodity that is scarce, electronically transferable, and intangible with a market value.

Digital Identity

An online or networked identity adopted by an individual, organisation, or electronic device.

E

Encryption

A process used to combine a document (plaintext) with a shorter string of data referred to as “a key” in order to produce an output (ciphertext). This output can be “decrypted” back into the original plaintext by someone else who has the key.

ERC20 Token Standard

ERC is the abbreviation for Ethereum Request for Comment and is followed by the assignment number of the standard. ERC20 is a technical standard for smart contracts the majority of Ethereum tokens follow. This list of rules states the requirements that a token must fulfil to be compliant and function within the Ethereum network.

ERC721 Token Standard

A non-fungible Ethereum token standard. This token standard is used to represent a unique digital asset that is not interchangeable.

Ether (ETH)

Ether is the native currency of the Ethereum blockchain network. Ether—also referred to as ETH—functions as a fuel of the Ethereum ecosystem by acting as a medium of incentive and form of payment for network participants to execute essential operations.

Ethereum

A public blockchain network and decentralised software platform upon which developers build and run applications.

EVM (Ethereum Virtual Machine)

The Ethereum Virtual Machine (EVM) is Turing complete and allows anyone, anywhere to execute arbitrary EVM Byte Code. All Ethereum nodes run on the EVM. The project is designed to prevent denial-of-service attacks. It is home to smart contracts based on the Ethereum blockchain.

Exchange

A place to trade cryptocurrency. Centralised exchanges, operated by companies like Coinbase and Gemini, function as intermediaries, while decentralised exchanges do not have a central authority.

F

Fiat Currency

Government-issued currency. For example US Dollars (USD), Euros (EUR), Yuan (CNY), and Yen (JPY)

G

Gas

A measure of the computational steps required for a transaction on the Ethereum network that then equates to a fee for network users paid in small units of ETH specified as Gwei.

Gwei

A minuscule and common denomination of ETH, and the unit in which gas prices are often specified.

H

Hardware Wallet

A physical device—like the famed Ledger Wallet—that can be connected to the web and interact with online exchanges, but can also be used as cold storage (not connected to the internet).

Hot Wallet / Hard Storage

A wallet that is directly connected to the internet at all times, for example, one that is held on a centralised exchange. Hot wallets are considered to have lower security than cold storage systems or hardware wallets.

I

Initial Coin Offering (ICO)

An Initial Coin Offering (also called ICO) occurs when a new cryptocurrency sells advance tokens in exchange for upfront capital.

IDO

An initial DEX offering.

InterPlanetary File System (IPFS)

Decentralised file storage and referencing system for the Ethereum blockchain. IFPS is an open-source protocol that enables storing and sharing hypermedia (text, audio, visual) in a distributed manner without relying on a single point of failure. This distributed file system enables applications to run faster, safer, and more transparently.

K

Know Your Customer (KYC)

A process in which a business must verify the identity and background information (address, financials, etc) of their customers. For example, current regulations and laws require banks and other financial institutions to keep and report customers’ personal information and transactions.

L

Liquidity

The availability of liquid assets to a company or market. An asset is considered more liquid if it can easily be converted into cash. The harder the ability to turn an asset into cash the more illiquid the asset. For example, stocks are considered relatively liquid assets as they can be easily converted to cash while real estate is considered an illiquid asset. The liquidity of an asset affects its risk potential and market price.

Moreover, liquidity may refer to funds utilised in a liquidity providing contract. and the price slippage/rugs you may receive.

Lock-up

EXPLAIN - *WIP

M

Mainnet

The primary network where actual transactions take place on a specific distributed ledger. For example, The Ethereum main-net is the public blockchain where network validation and transactions take place.

Market Cap

Short for Market Capitalisation, this term refers to the total value held in a particular industry, market, company, or asset. For a publicly traded company, the market cap is the total dollar market value of a company’s outstanding shares. For Bitcoin or Ethereum, the total market cap is a reflection of the current existing supply times the market price.

Merkle Tree

Similar to the concept of a family tree, where a parent branch splits into children branches, which then extrapolated into grandchildren branches. A Merkle Tree is a data structure in which a single hash code function(cryptographic code) splits into smaller branches. In the diagram Hash becomes “Hash 0” and “Hash 1,” which then splits again and is represented on the blockchain. This type of data structure enables faster verification on a blockchain network.

Mining

The process by which “blocks” or transactions are verified and added to a blockchain. In order to verify a block, a miner must use a computer to solve a cryptographic problem. Once the computer has solved the problem, the block is considered “mined” or verified. In the Bitcoin or Ethereum blockchain, the first computer to mine or verify the block receives bitcoin or ether, respectively.

Multi-Signature (MultiSig)

A crypto-asset wallet that requires multiple keys to access. Typically, a specified number of individuals are required to approve or “sign” a transaction before they are able to access the wallet. This is different from most wallets which only require one signature to approve a transaction.

N

Node (Full Node)

Any computer connected to the blockchain network is referred to as a node. A full node is a computer that can fully validate transactions and download the entire data of a specific blockchain. In contrast, a “lightweight” or “light” node does not download all pieces of a blockchain’s data and uses a different validation process.

Non-Fungible Token (NFT)

Fungibility refers to an object’s ability to be exchanged for another. For example, an individual dollar is considered fungible as we can trade dollars with one another. Artwork is usually deemed non-fungible as paintings, sculptures, or masterpieces are likely to be unequal in quality or value. A non-fungible token is a type of token that is a unique digital asset and has no equal token. This is in contrast to cryptocurrencies like ether that are fungible in nature.

O

Oracle

Typically, an oracle is any entity or person that is relied on to report the outcome of an event. In a blockchain network, an oracle (human or machine) helps communicate data to a smart contract which can then be used to verify an event or specific outcome.

P

P2P (Peer-to-peer)

Peer-to-peer (P2P) refers to interactions that happen between two parties, usually two separate individuals. A P2P network can be any number of individuals. In regards to a blockchain network, individuals are able to transact or interact with each other without relying on an intermediary or single point of failure.

Private Key

A private key is an alphanumeric string of data that corresponds to a single specific wallet or “public address”. Private keys can be thought of as a password that enables an individual to access their crypto wallet/account. Never reveal your private key to anyone, as whoever controls the private key controls the account funds. If you lose your private key, then you lose access to your wallet.

Proof of Authority

A consensus mechanism used in private blockchains to grant a single private key the authority to generate all of the blocks or validate transactions.

Proof of Stake (PoS)

An alternative consensus protocol, in which an individual or “validator” uses their own cryptocurrency to validate transactions or blocks. Validators “stake” their cryptocurrency, such as ether, on whichever transactions they choose to validate. If the individual validates a block (group of transactions) correctly then the individual receives a reward. Typically, if a validator verifies an incorrect transaction then they lose the cryptocurrency that they staked. Proof of Stake requires a negligible amount of computing power compared to Proof of Work consensus (see also Hybrid ConsenSys Model).

Proof of Work (PoW)

A protocol for establishing consensus across a system that ties mining capability to computational power. Hashing a block, which is in itself an easy computational process, now requires each miner to solve for a set, difficult variable. In effect, the process of hashing each block becomes a competition. This addition of solving for a target increases the difficulty of successfully hashing each block. For each hashed block, the overall process of hashing will have taken some time and computational effort. Thus, a hashed block is considered Proof of Work (see also Hybrid ConsenSys Model).

Protocol

A set of rules that dictate how data is exchanged and transmitted. This pertains to cryptocurrency in blockchain when referring to the formal rules that outline how these actions are performed across a specific network.

Pro-Rata Amount

BlackDragon pro-rata based system guarantees the right to an allocation in each deal proportional to the amount of BD tokens you have locked versus circulating supply. You can see your assigned pro-rata amount for each deal on the platform as your "Personal Max".

Public Blockchain

A globally open network where anyone can participate in transactions, execute consensus protocol to help determine which blocks get added to the chain, and maintain the shared ledger.

Public Key

Obtained and used by anyone to encrypt messages before they are sent to a known recipient with a matching private key for decryption. By pairing a public key with a private key, transactions not dependent on trusting involved parties or intermediaries are possible. The public key encrypts a message into an unreadable format and the corresponding private key makes it readable again for the intended party.

R

Risk

Risk is defined in financial terms as the chance that an outcome or investment's actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment.

S

Satoshi Nakamoto

A pseudonymous individual or entity who created the Bitcoin protocol, solving the digital currency issue of the “double spend.” Nakamoto first published their white paper describing the project in 2008 and the first Bitcoin software was released one year later.

Slashing condition

A condition that causes the validator’s deposit to be destroyed when they trigger it.

Smart Contracts

Smart contracts are programs whose terms are recorded in a computer language instead of legal language. Smart contracts are automated actions that can be coded and executed once a set of conditions is met.

Self-executing

Functioning by itself, not controlled by any other party other than itself. Self-executing smart contracts cut costs/overhead by removing the need for an arbitrator and trust toward a third party.

Solidity

The programming language developers use to write smart contracts on the Ethereum network.

Stablecoin

Any cryptocurrency pegged to a stable asset, like fiat or gold. It theoretically remains stable in price as it is measured against a known amount of an asset not subject to fluctuation. Example: USDT

State

The set of data that a blockchain network strictly needs to keep track of, and that represents data currently relevant to applications on the chain.

T

Testnet

An alternative blockchain used by developers to test applications in a near-live environment.

Token

A Token represents an asset built on an existing blockchain (different from a coin). Tokens are designed to be unique, liquid, secure, instantly transferable, and digitally scarce.

Token Generation Event (TGE)

A Token Generation Event is the creation of tokens on the blockchain. The TGE typically accompanies a token sale, where newly created tokens are issued to stakeholders of the cryptocurrency.

Transaction Block

A collection of transactions on a blockchain network gathered into a set or a block that can then be hashed and added to the blockchain.

Transaction Fee

A small fee imposed on some transactions sent across a blockchain network. The transaction fee is awarded to the miner that successfully hashes the block containing the relevant transaction.

V

Validator

A participant in Proof of Stake consensus. Validators need to submit a security deposit in order to get included in the validator set.

Vesting

Early rounds in token launches typically follow vesting structures. In exchange for early backing of projects, tokens may be locked and slowly released to investors on a continual or periodic basis. This prevents market price dumping on token launch.

W

Wallet

A designated storage location for digital assets (cryptocurrency) that has an address for sending and receiving funds. The wallet can be online, offline, or on a physical device.