A method used to obtain user support for projects during a parachain slot auction on PolkaDot or Kusama.

Crowdloans are a novel method for projects to gather the funds (in DOT or KSM tokens) needed to pay for a parachain slot lease. Fans of the project collectively "loan" the project their tokens which the project uses to bid for a parachain slot. If the bid is successful, the "loaned" tokens are locked for a period of time (usually two years) in an account overseen by the blockchain. The participants in a crowdloan typically earn rewards in form of the project's native token.

Polkadot Crowdloan is a novel method to earn rewards on the Polkadot ecosystem. Moreover, the risks are low since the tokens loaned are not actually accessible to the project. If a project's bid is unsuccessful, the tokens loaned are returned back to the contributors.

A digital currency that aids in the verification of transactions in a blockchain.

Cryptocurrency is a digital currency or cash that aids in verifying transactions in a blockchain. It is often not issued by a central body, and doesn't exist in tangible form like paper money. As opposed to a digital currency issued by a central bank, cryptocurrency often operates under decentralized governance.

Every cryptocurrency, in general, operates on top of a blockchain that follows a set of rules; the protocol specifies how the system and blockchain should function. Depending on the network configuration and the distribution of the nodes, some cryptocurrencies will be regarded as being more decentralized than the others.

Documents that feature the information, and qualifications of a person.

Credentials are documents that contain, and highlight the information, and qualifications of a person, issued by a referee to a person. Credentials are used in cryptocurrency to establish a user’s ownership before access. Authentication and the skill acquired as a digital badge are examples of credentials.

The implication of this is that the details— password, email address, phone number, e.t.c— of a user can not be accessible by any other person— a third party. Hence, a user can be sure of his information not being leaked or violated in one way or the other.

Crowdloan

Previous term

Next term