Explainer: how a layer 2 rollup lowers transaction fees
A layer 2 network processes transactions away from a base blockchain and then reports back to it. The most common design today…
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Explainer: what happens when a stablecoin loses its peg
A stablecoin is designed to hold a steady value, usually one US dollar. That target is called the peg. The mechanism that…
Explainer: proof of stake, validators and slashing
Proof of stake is a consensus mechanism in which validators lock tokens as collateral for the right to propose and confirm blocks.…
Explainer: how decentralized exchanges price trades
Many decentralized exchanges do not use an order book. Instead they use an automated market maker: a smart contract holding two tokens…
Explainer: seed phrases, hardware wallets and self-custody
A crypto wallet does not store coins; it stores the private keys that prove you may move them. Most wallets back those…
Explainer: reading market capitalization and fully diluted valuation
Market capitalization multiplies a token’s price by its circulating supply. It is the most common way to rank cryptocurrencies by size, but…
Explainer: why bridges are frequent targets of exploits
A bridge moves assets between blockchains. A typical design locks tokens on one chain and issues a wrapped token on the other.…
Explainer: what know-your-customer and anti-money-laundering rules mean for crypto users
Regulated crypto businesses such as centralized exchanges are usually required to verify who their customers are. These know your customer checks typically…