. Blockchain networks like bitcoin and Ethereum are referred to as "Layer 1" networks. As these L1 networks grow more popular, they can’t handle increasing demand as they can only process around 20 transactions per second (tps). They’re the base layers where transactions happen.
The Substrate instance can then be deployed to Polkadot either as a system-level parachain (native extension to the core Polkadot software) or as a community-operated parachain. Receiving messages on Polkadot from an external, non-parachain blockchain can be possible through a Substrate pallet.
An increasingly popular macroeconomic theory that sees money as a public monopoly and unemployment as evidence that the supply of that money is overly restricted. MMT expands the money supply to grow the economy and taxes to rein it in if inflation increases.
By doing the "heavy work" off-chain, ZK-Rollups can generate a new block every minute, being capable of processing around 2,000 tps ("zero-knowledge" comes from zero-knowledge proofs, a method whereby you can prove data is true without having to actually reveal it).
It has been doing a pretty good job of fulfilling those functions but its use so far as a more general-purpose computing platform (like we’re building) is mostly an accident. Bitcoin is the original "programmable money" or "digital gold". Essentially, developers saw they could hack together some basic programs on top of the limited functionality that Bitcoin provided and they began using Bitcoin as the base for some of these new applications because it’s now highly trusted and secure.
A marketing approach that incentivises anyone with a source of potential customers - such as a website or btc social media channel - to act as an Affiliate and refer visitors to a website in return for an agreed level of commission or fixed acquisition fee.
Sidechains connect to Layer 1 networks like Ethereum through a two-way bridge. Unlike ZK-Rollups which depend directly on Layer 1 networks, sidechains are separate blockchains of a smaller size. They operate independently and employ their own consensus algorithms.
It is one of the most common ways new cryptocurrencies are created. It is just one of many standards for interacting with the Ethereum Network. ERC stands for Ethereum Request for Comment. ERC-20 is the technical standard for smart contracts, token issuance and management on the Ethereum blockchain.
The idea that you can only truly own cryptocurrency by proving that you hold the Private Keys. The main proponent is Trace Mayer who advocates cryptocurrency investors withdraw their crypto from exchanges and hold them in hardware wallets. Celebrated on Proof Of Keys day, January 3rd.
 Bitcoin StackExchange: "What is the Difference between On-chain Scaling and Off-chain Scaling?" [online]. Date accessed: 2019‑06‑10. Available: https://bitcoin.stackexchange.com/questions/63375/what-is-the-difference-between-on-chain-scaling-and-off-chain-scaling
The Parity bridge is a combination of two smart contracts, one deployed on each chain, that allow for cross-chain transfers of value. Ether deposited into the contract on main generates a balance denominated in ERC-20 tokens on side . Conversely, ERC-20 tokens deposited back into the contract on side can free up Ether on main . Those who are already familiar with Ethereum may know of the now archived Parity Bridge and the efforts being made to connect PoA sidechains to the Ethereum mainnet. As an example of usage, the initial Parity Bridge proof of concept connects two Ethereum chains, main and side .
Every bitcoin transaction originates from a UTXO, essentially balances of bitcoin capable of being spent. Abbreviation for bitcoin unspent transaction output. When spent a UTXO becomes two new separate UTXOs - one sent to the recipient address and one to the sending address containing any change that is left.
crypto-economic consensus). Decentralized Layer 2 protocols run on top of the main blockchain (off-chain), while preserving the attributes of the main blockchain (e.g. Instead of each transaction, only the resultant of a number of transactions is embedded on-chain . From Tari Labs : Analogous to the OSI layers for communication, in blockchain technology decentralized Layer 2 protocols, also commonly referred to as Layer 2 scaling, refers to transaction throughput scaling solutions.
However, in the literal sense of the term, it should refer to any sort of protocol change that improves the network’s capacity at the blockchain layer. These approaches tend to provide at most a linear capacity increase, although some are also scalability improvements . From Bitcoin StackExchange : The term "on-chain scaling" is frequently used to exclusively refer to increasing the blockchain capacity by means of bigger blocks.
Offers new crypto-based financial products in a totally decentralised way. There is no bank or business, no formal account creation, just a protocol managed by smart contract, so all interaction is essentially dictated by code.