Glossary

The following is a glossary of key terms and definitions used in the AuctionX Gitbook.

Altcoin | An altcoin is a cryptocurrency that is not Bitcoin (an alternative cryptocurrency to Bitcoin).

Auction | An auction is a live event where one can buy goods or services through a bidding process led by an auctioneer. Online auctions have gained popularity because of their convenience and access. More recently, blockchain-based online auctions have materialised redress some of the limitations of conventional online auctions, including increased transparency, privacy, and security.

Bidbot | A bid bot is a computer software-generated bidding 'robot' used to automatically execute bids in online auctions. Blockchain-based auctions eliminate rigged or fake bidding by bid bots as the blockchain provides an unchangeable record of all aspects of the auction.

Bitcoin | Bitcoin was the first cryptocurrency created by the pseudonymous developer(s) Satoshi Nakamoto and was initially known as a 'peer-to-peer e-cash'.

Black Swan event | A Black Swan event comes as a total surprise and has a significant impact or ramifications. Juvenal, a 2nd-century Roman poet, originally postured the Black Swan theory, and later developed by Nassim Nicholas Taleb, a statistician and trader, in his 2007 book, The Black Swan.

Blockchain | Blockchain is essentially a network of computers (nodes) all with the same history of transactions so that the information is spread across the whole network rather than residing with a single entity.

Cliff | Cliff refers to the timespan after which an employer is fully vested on a specified date rather than becoming partially granted incrementally over some time; for example, a one-year cliff means that the employer will be fully vested after one year of the distribution event of the ICO.

Cryptocurrency | Cryptocurrency is a digital currency secured by mathematical theories and computation (cryptography) used as a medium of exchange within a peer-to-peer economic system.in typing here.

Deal | A deal is when buyers/sellers believe they get good value for their investment (competitive bids) in assets or services.

Decentralised application | A decentralised application is a blockchain-based, decentralised computing application that can operate autonomously through smart contracts to its users with some function or utility.

Decentralised finance | Decentralised finance is an emerging digital financial infrastructure that theoretically eliminates the need for a central bank or government agency to approve financial transactions, thereby ensuring that no single entity can control or alter that ledger of transactions.

Fiat money | Fiat money is a government-issued currency not backed by a physical commodity such as gold or silver, but rather by the government that issued it. Most of the currencies today are fiat in nature.

Hodlers & hodl | Hodlers are crypto investors who buy and hold their positions regardless of price. The term was created in 2013 in a Bitcoin chat forum by an investor who was watching Bitcoin's price fall sharply but decided not to sell. He wrote a post titled, 'I am HODLing', meaning to write 'HOLDing'. The act of Hodling is called 'To Hodl'. Some people also say it stands for 'Hold On for Dear Life'.

Immutable | All records on a blockchain are permanent entries that cannot be deleted or altered by anyone in the world. Hence it is called that blockchains are immutable in nature.

Internet of things | Popularly known as IoT, the Internet of things describes physical objects (or groups of such entities) embedded with sensors, processing ability, software, and other technologies that connect and exchange data with other devices and systems over the Internet.

Liquidity provider | Liquidity providers are market participants who provide liquidity to an exchange by using their own crypto assets. In the decentralised finance (DeFi) market, anyone can be a liquidity provider by depositing into a crypto liquidity pool.

MarketPlace | On Internet-based websites/portals, a marketplace model is where the platform allows third party individuals or companies to list their products or services to serve the customers of the portal. Amazon is a classic marketplace that will enable anyone to list their goods on its platform.

Metaverse | Metaverse is a network of 3D virtual worlds where people can enter the digital world through virtual identity. In metaverse, people can hang out, shop, meet friends and more. Metaverse combines several technologies such as augmented reality, virtual reality, machine learning, blockchain technology, and artificial intelligence.

Mine | Crypto mining involves validating cryptocurrency transactions on a blockchain network and adding them to a distributed ledger. Crypto mining prevents the double-spending of digital currency. Crypto mining is somewhat like mining precious metals. While miners of precious metals will unearth gold, silver, or diamonds, crypto miners will trigger the release of new coins into circulation.

Shill bidding | Shill bidding is intentionally fake bidding by a seller on their own auction to inflate the final price. This is accomplished either by the seller or by someone colluding with the seller to place fake bids on their behalf.

BASE | Base is a secure, low-cost, builder-friendly Ethereum L2 built to bring the next billion users onchain. Coinbase’s Layer-2 blockchain, Base, has garnered quite some hype within the Web3 community, thanks to its easy-to-use ecosystem, and partnerships with prominent global brands.

Stake & Stakers | Staking is essentially allocating some tokens to a staking pool that the pool can utilise for any purpose. If the token you hold allows staking, you can stake some cryptos and earn a passive income. It happens via a staking pool which can be compared to an interest-bearing savings account. Stakers are people who stake coins.

Token | Every blockchain has a native token called its coin. For example, the native token of the Ethereum Blockchain is Ether. All other secondary tokens on a blockchain are called its tokens.

Token burn | Token burning is a mechanism to destroy digital tokens to render them inaccessible. This is done by transferring the tokens to a wallet address whose private key has been lost or destroyed, making the tokens unrecoverable and unusable.

Vesting | A vesting period or token lockup period refers to when the tokens sold in the pre-sale of the ICO stage are prevented from being sold for a specific period.

Auctioneer | The person who conducts the auction, calling out bids and managing the bidding process. At AuctionX - it is the house who is the auctioneer.

Bidder | An individual or entity that makes offers to purchase items at an auction.

Winner | The successful bidder who wins the auction and purchases the item.

Consignor | At AuctionX - for certain type of auctions the asset under auction can be brought in by an external entity (not the house). In this case the auctioneer is called a consignor.

Appraiser |A professional who assesses and assigns value to the items being auctioned.

Auction House | The company or entity that organizes and conducts the auction.

Auction Cataloger | A person who compiles and describes the items to be sold in the auction catalog.

Reserve | A term indicating the minimum price that the seller (auctioneer/consignor) will accept for an item.