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What Are Nodes? Nodes are machines or users in the network whose machines are running the software which can communicate with each other, thus providing integrity to the network. It is easier to understand the concept of nodes through the original Bitcoin blockchain which has the following types of nodes: Full nodes - they provide security to the network by validating transactions. Users running full nodes don’t need to depend on another node to verify their transactions. Listening nodes (supernodes) - a public full node that runs 24x7 and provides transaction data to multiple nodes all over the world. Miners’ nodes - crunch data to mine bitcoins but also process transactions and thus act as validating nodes.
What Are Stablecoins? Stablecoins are volatility-proof and maintain a constant price pegged to the price of a currency or commodity. The most popular stablecoins like USDT (Tether) and USDC are pegged to the value of the U.S. Dollar ($) but some stablecoins are pegged to the price of gold and silver too. Stablecoins provide the value of fiat currencies but with faster transactions and lower fees. There are collateralized and non-collateralized stablecoins. The former keeps an amount of fiat currency in bank accounts equivalent to the number of their issued coins. Stablecoins can also be pegged to other cryptocurrencies’ prices.
What Are DEXes? When you trade digital assets on a Centralized Exchange like Binance, you transfer funds to their accounts, but with a Decentralized Exchange, you don’t need to trust an intermediary for your transaction. Just like exchanges provide you a cheaper way of transacting money compared to banks that require offices and staff, DEXes provide you an even cheaper way to do so, because they require even fewer machines and maintenance. They cut out the custodians and remove a single point of failure. DEXes are providing the most innovative products in the blockchain sphere by allowing derivatives, prediction markets, synthetic assets, and much more.
What Are DAOs? DAOs are an entirely new type of organizations that are powered by a blockchain and can run autonomously without the need for central coordination. DAO stands for Decentralized Autonomous Organization. It is an organization governed by computer code. It employs smart contracts that execute based on external information without human intervention. The rules are outlined transparently on the blockchain and are decided by stakeholder votes. It allows people to work together for a common purpose without even knowing or ever meeting each other.
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