In our previous product walkthrough series, we had explained some fundamental crypto concepts under the “A” category. These blockchain concepts are interwoven and may be confusing if not properly understood. Here are some “B” concepts critically explained for your mastery.
Bag
In the crypto industry, the term ‘bag’ describes a significant number of given crypto in an investor’s portfolio. It’s a slang word used when an investor holds a higher quantity of an asset than the normal average. The concept is used to separate different coins or tokens present in an investor’s portfolio. A bag is tagged as an ‘heavy bag’ when the number of tokens in it is relatively high while the owner is called the ‘bag holder’.
Baiting
A kind of social media engineering targeted at exploiting unsuspected victims with fake promises of earning financial rewards. Mischievous bots, online ads, or actors bait their prey with swift payouts and wealth in exchange. But, the process of getting it will require them to download malware-infected software or provide their personal information.
Bakers (Tezos)
Bakers are members of the Tezos community with the least quantity of XTZ tokens and they possess good software as well as hardware skills to run a baking node in the Tezos Proof of stake. Bakers on the Tezos network are simply nodes responsible for developing new blocks while the network incentivizes them with rewards in XTZ for their efforts. Through the token-staked delegation process, Tezos bakers can earn rewards on behalf of non-backers by producing blocks within the network.
Baking
Baking refers to the entire act of attaching new blocks to the Tezos blockchain. The process involves signing, adding, verifying new blocks, and giving out a certain quantity of XTZ tokens as collateral. It is similar to the staking process in different Proof-of-Stake models and it ensures transparency.
Balancer
This is an Ethereum-built automated market maker (AMM) and a non-custodial portfolio manager which enables traders to trade up to eight tokens of various kinds. The balancer aids all Ethereum accounts to create their private pools or add tokens to existing public pools.
BandChain
This is the main network that enables the oracle system of the Band Protocol to operate. Bandchain source data externally, aggregates them in the required format for efficient use and verification across various blockchain types. It allows institutions to call up data from traditional web services like APIs (application programming interfaces).
Bear Market
This is the opposite of a bull market. A crypto market is bearish when there is a price slash, typically by 20% and above from the immediate highs.
Bear Trap
This is a kind of market manipulation done by a group of wealthy investors to manipulate an asset price. They cause a significant price drop by unanimously selling off their assets within the same period. This act causes further price drop by luring other market participants to sell their assets at the same period. The wealthy investors will buy the assets back at a lower rate, boost the price higher and then sell them again, but at higher rates for more profit.
BEP-2
A Binance Chain (BC) tokenization standard for facilitating ownership transfer of assets operating on the chain. All BC addresses start with ‘BnB’, to pay a tribute to BNB symbolizing Binance’s main asset or coin.
BEP-20 (Binance Smart Chain Tokenization Standard)
This is similar to BEP-2. It is a Binance Smart Chain tokenization standard for facilitating the exchange of ownership for assets operating on BSC. The Ethereum network and BSC are interoperable hence, all BSC addresses are the same as their corresponding Ethereum ERC-20 address. This implies that one can transfer data and tokenized assets between Ethereum, BSC, BC, and even other blockchains like Cardano.
Binance, Binance Chain, Binance Smart Chain and Binance DEX
Binance is a crypto exchange established in 2017 for staking, trading, lending, and borrowing. It supports non-fungible tokens (NFTs) and lots of derivative solutions among others. Binance has two main interoperable blockchains; Binance Chain (BC) and Binance Smart Chain (BSC).
Binance Chain (BC) is the first Binance Chain that adopts the BEP-2 tokenization standard and it allows for the transfer of its assets between BC addresses.
Binance Smart Chain (BSC) is another Binance blockchain network that runs parallel to Binance Chain (BC). It uses the Proof of Staked Authority (PoSA) consensus mechanism and BEP-20 BSC tokenization instead of BEP-2 tokenization standard. BSC is known to be extremely fast, secure and can operate with other major blockchain networks.
Binance DEX is a Decentralized Exchange designed by Binance. It gives investors and traders control over their private keys and investments, eliminating the need for a centralized intermediary. The DEX operates via the BC blockchain and has a limited available crypto and trading volume than the traditional Binance Exchange. To use the Binance DEX, the Binance Coin (BNB) is required as most trading pairs on the exchange are done with BNB.
Blockchain
This is a distributed database shared among the nodes of a computer network stored electronically or in a digital form. It is a public transaction ledger verified and maintained via decentralized peer-to-peer computer networks that follow a consensus data confirmation mechanism.
Bridge
A bridge enables communication between independent blockchains. It is used to attach the main Relay Chain and Parachains to other external blockchain networks like Bitcoin and Ethereum on the Polkadot Protocol.
BUIDL (Build)
BUIDL is a call soliciting the help of a blockchain and crypto community to aid the widespread adoption of the technology. They are expected to contribute to the continuous construction of the blockchain infrastructure. BUIDL is a slang term for ‘build’ which could be to develop a protocol or application, share blockchain information on social media and write blockchain-related articles. The mediums used are wallets, smart contracts, playing blockchain games, trading on exchanges, or any activity that guarantees blockchain promotion.
Bullish + Bull Market
Bullish is a term used to describe how optimistic someone feels about an asset. A person that is bullish on Ethereum believes its price will increase. He is referred to as an Ethereum ‘bull’ while a Bull Market describes an upward price movement for some period. It is the opposite of a bear market.
Final thoughts
Though it may require some level of commitment to gain mastery of these terms, it is believed that with the crypto space increasingly becoming the next global economic sphere, understanding these concepts will equip you theoretically and prepare you for the future, in general.
