A theory that states that information is a critical determinant for financial markets and the price of assets.

The efficient market hypothesis (EMH) is a simple theory that states that information about the price dynamics of assets determines the direction that a financial market takes. The hypothesis plays a vital role in advanced trading circles as it emphasizes the usefulness of historical data and analysis in decision-making. Thus, the theory highlights the difficulty in beating the market without paying attention to available information on asset prices and other market characteristics.

In the world of blockchain networks and crypto exchanges, EMH serves as a motivating factor for traders to use information efficiently and make decisions based on this analysis.

The process of encoding data to make it more secure and protect it from authorized access.

Encryption is the encoding computational process used to convert readable information into complex forms. This is especially useful where databases are open to different users who have access to means to breach networks. The process is typically technical and involves the use of software to enable protocols for high security and data protection.

Encryption is a critical requirement in the blockchain revolution. This is why crypto wallets, for example, are guarded by private and public keys. These keys allow authorized access to wallets and trading accounts, so users can rest easy knowing that their assets are protected from data breaches and theft.

A form of cyberattack where a node in a peer-to-peer network is isolated from its neighbors, redirected to an attacker-controlled environment, and deployed for malicious network activity.

Attackers who gain control of a node through an eclipse attack can redirect neighboring nodes to compromise transactions and fault the system. Because of the decentralized nature of most blockchains, this type of attack is relatively rare.

Efficient Market Hypothesis (EMH)

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