Glossary of Key Terms

Welcome to the glossary for key terms related to Pandora Finance's ERC404 Marketplace & DEX This resource is designed to provide clear definitions and explanations for terminology commonly used within our platform and the industry. Whether you're a seasoned trader or new to the world of NFTs and blockchain technology, this glossary will help you understand the key concepts and terms.

  • Blockchain: A decentralized, distributed ledger technology that records transactions across multiple computers in a way that ensures security, transparency, and immutability.

  • ERC20: A standard for creating fungible tokens on the Ethereum blockchain. These tokens are interchangeable and can represent any asset with a value, such as currencies or points.

  • ERC721: A standard for creating non-fungible tokens (NFTs) on the Ethereum blockchain. Each ERC721 token is unique and can represent ownership of a specific item or asset, such as digital art or collectibles.

  • ERC404: An innovative token standard that combines the fungibility of ERC20 tokens with the uniqueness of ERC721 NFTs. It allows for the creation of tokens that can serve dual purposes: as fungible tokens for trading and staking, and as unique NFTs to denote exclusive ownership rights.

  • Fungible Tokens: Tokens that are identical to each other and can be exchanged on a one-to-one basis. They are often used as a medium of exchange or as a representation of value.

  • Non-Fungible Tokens (NFTs): Unique digital assets that represent ownership or proof of authenticity of a specific item or piece of content. Unlike fungible tokens, each NFT has distinct characteristics and value.

  • Smart Contracts: Self-executing contracts with the terms of the agreement directly written into code. They automatically execute transactions when predetermined conditions are met, without the need for intermediaries.

  • InterPlanetary File System (IPFS): A decentralized protocol and network designed to create a content-addressable, peer-to-peer method of storing and sharing hypermedia in a distributed file system.

  • Liquidity: The ability to quickly buy or sell an asset without causing a significant change in its price. In the context of digital assets, liquidity refers to the ease with which tokens or NFTs can be traded in the market.

  • Minting: The process of creating new tokens or NFTs on the blockchain. Minting involves recording the digital asset's information on the blockchain, making it a permanent part of the ledger.

  • Burning: The process of permanently removing tokens or NFTs from circulation by sending them to an irrecoverable address. This is often done to reduce supply and can affect the asset's value.

  • Multi-Chain Functionality: The ability of a platform or protocol to operate across multiple blockchain networks, enhancing interoperability and accessibility for users.

  • Gas Fees: Transaction fees paid to miners or validators on a blockchain network for processing and validating transactions. Gas fees can vary based on network congestion and transaction complexity.

This glossary is an evolving resource intended to support your journey through the ERC404 Marketplace & DEX. If there are additional terms you'd like to see included or have questions about, please reach out to our support team.

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