So many terms floating around lately in relation to #DecentralizedNetworks, protocols, staking, and mining. The following Twitter-Wiki is how I understand all of these closely-related, but subtly different concepts. . . 👇
#DecentralizedNetwork - In our #Blockchain context, a P2P network with a protocol that can trustlessly transfer value in the form of #DigitalAssets.
#GeneralizedMining - Extraction of on-protocol compensation from #DecentralizedNetworks through the provision of #SupplySideServices, liquidity, or alpha-generating activities. (cc @coinfund_io, @JoeLallouz)
#CryptoeconomicActor - A participant of a #CryptoeconomicMechanism.
#Keeper - A self-interested #CryptoeconomicActor engaging in #GeneralizedMining by providing #SupplySideServices that keep #DecentralizedNetworks operating. (cc @rzurrer)
#StaaS - Staking-as-a-Service, the service that #StakingCompanies provide; a service making use of #StakingNetworks as a business model.
#LucrativeProtocol - The protocol of a #DecentralizedNetwork that is able to compensate, or otherwise economically incentivize, #CryptoeconomicActors to maintain it.
#ActiveNetworkParticipation - How #CryptonativeFunds and #StakingCompanies engage #DecentralizedNetworks; may be as a #CryptoeconomicActor (general participant), #Keeper (network maintainer), or #GeneralizedMiner (general worker or extractor). (cc @ljxie)
#ProductiveCapital - The work or #SupplySideServices invested into #DecentralizedNetwork in exchange for a #NativeAsset. (cc @cburniske)
#SupplySideServices - Hardware or software based services, such as #ResourceProvision, #Validation, #TransactionProcessing, #ResourceCuration, #StorageProvision, #OffChainComputation, #Governance, and many others, provided by users & other participants of #DecentralizedNetworks.
#StakingNetwork - A #DecentralizedNetwork, whether a #BaseLayer or a #MiddlewareProtocol, wherein #CryptoeconomicActors stake tokens in order to effectuate a security or node selection algorithm in exchange for a rate of return denominated in the token.
#Delegation - A property of some #StakingNetworks, but not others, which allows the on-protocol lending of stake to a third-party who invests #ProductiveCapital into the network on behalf of the lender in exchange for commission; enables the #StakingCompany business model.
#HardwareMining - The kind of mining typically found in #ProofOfWorkNetworks or #ComputationalResourceNetworks, requiring a lot of commodity hardware and not too much proprietary software.
#SoftwareMining - The kind of mining typically found in a #CryptoeconomicMechanism, such as a #MerkleMine, which require a lot of proprietary software and not too much expensive hardware.
#LossLeading - A #CryptonativeFund strategy for #ActiveNetworkParticipation wherein they bootstrap the network through #ProductiveCapital at a loss short-term, in order to increase the probability of success of the network long-term. (cc @TusharJain_, @laurashin)
#ProprietaryAlgorithms - In #GeneralizedMining, a generalization of traditional quantitative trading strategies, wherein an algorithm exchanges transactions with a #DecentralizedNetwork or #LucrativeProtocol in a way that generates alpha.
#MerkleMine - A decentralized #Airdrop of a #NativeAsset orchestrated by third-party #GeneralizedMiners that uses #MerkleTrees to create computationally-intensive #ProofsOfWork for asset issuance; an example of #SoftwareMining. (cc @LivepeerOrg)
#NativeAsset - The asset native to a #DecentralizedNetwork in the sense of being required or playing a key role in its #Cryptoeconomics.
#TokenDenominatedReturn - The return on a #GeneralizedMining opportunity denominated in units of #DigitalAsset; useful for comparing opportunities, but vastly different from the #FiatDenominatedReturn of the same opportunity. (cc @danzuller)
#FiatDenominatedReturn - The return on a #GeneralizedMining opportunity denominated in units of #Fiat; useful for comparing the opportunity to other investments of #Fiat, but usually divorced from and more volatile than the #TokenDenominatedReturn.
#SlashingConditions - The conditions, typically protocol violations, under which a #StakingNetwork will part a #CryptoeconomicActor from their #Stake; a form of economic risk of a #StakingProtocol.
#CompetitiveAdvantage - The means by which a #GeneralizedMiner gains economic advantage. In #HardwareMining, via capital. In a #StakingNetwork, via efficiency, security, and brand equity. In #ProprietaryAlgorithms, via intellectual property. (cc @AriDavidPaul)
#AssetNeutralPosition - A portfolio construction which mitigates or removes the #FiatDenominatedRisk of holding a #DigitalAsset; for example, borrowing a #DigitalAsset from a #LendingProtocol in order to deploy it in its #StakingProtocol.
#LendingProtocol - A decentralized lending market, such as a #DeMoneyMarket, which allows the #LendingAndBorrowing of a #DigitalAsset in exchange for interest; a #FinancialPrimitive which enables borrowing, leverage, shorting, and estimation of interest rates. (cc @js_horne)
#DeFi - Decentralized Finance; an analog of #TraditionalFinancialServices implemented as services for #DigitalAssets on #DecentralizedNetworks.
