This glossary unpacks various frequently used terms, tools and methods that have
been used by the industry to address trust issues.<\/p>\n\n\n\n
Proof of Reserves<\/strong><\/p>\n\n\n\n In the context of centralized cryptocurrency exchanges: a Safekeeping of User Assets<\/strong><\/p>\n\n\n\n A financial services provider, broker, or other custodian, Merkle Tree<\/strong><\/p>\n\n\n\n A cryptographic tool that consolidates large amounts of data into a single hash value. It is named after Ralph Merkle, who patented it in 1979. Merkle trees can verify that information blocks belonging to a given dataset have been undamaged and unaltered.<\/p>\n\n\n\n Merkle trees can be used as a tool to verify user balances held on a centralized cryptocurrency exchange by providing an anonymized, independently verifiable snapshot of all user balances at a given point in time.<\/p>\n\n\n\n Merkle Sum Tree<\/strong><\/p>\n\n\n\n A Merkle Sum Tree is a type of Merkle tree that verifies there is no change in the cumulative value or distribution of the leaves\u2019 of the tree – i.e. the blocks of information contained under it.<\/p>\n\n\n\n Merkle Tree Root<\/strong><\/p>\n\n\n\n The shared hash value of all nodes in a Merkle tree that acts as a cryptographic seal – essentially summarizing all the inputted data belonging to the tree. Any tampering with the data affects the Merkle root, making it obvious and easy to spot.<\/p>\n\n\n\n Merkle Tree Leaf<\/strong><\/p>\n\n\n\n A block of information contained under a Merkle Tree. In a zk-SNARKS<\/strong><\/p>\n\n\n\n Zero knowledge succinct non-interactive argument of Wrapped Tokens<\/strong><\/p>\n\n\n\n A cryptographic token issued in parallel to a particular The wrapped token issuer sets aside an amount of the Wrapped tokens thus offer a great interoperability solution allowing users to seamlessly move assets and make use of applications, projects, and opportunities on other blockchains.<\/p>\n\n\n\n Auto liquidation<\/strong><\/p>\n\n\n\n A risk mitigation measure in crypto margin trading. When the SAFU<\/strong><\/p>\n\n\n\n An emergency user protection reserve which offers protection Responsible Trading Program<\/strong><\/p>\n\n\n\n A set of policies and materials aiming to discourage and <\/p>\n","protected":false},"excerpt":{"rendered":" AND TRUST TERMS This glossary unpacks various frequently used terms, tools and methods that havebeen used by the industry to address trust issues. Transparency Proof of Reserves In the context of centralized cryptocurrency exchanges: astatement, tool, or report showing that assets held by theexchange are equal to or greater than […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-129","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=\/wp\/v2\/pages\/129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129"}],"version-history":[{"count":2,"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=\/wp\/v2\/pages\/129\/revisions"}],"predecessor-version":[{"id":132,"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=\/wp\/v2\/pages\/129\/revisions\/132"}],"wp:attachment":[{"href":"https:\/\/coinfield-exchange.us.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
statement, tool, or report showing that assets held by the
exchange are equal to or greater than their liabilities to
their customers.<\/p>\n\n\n\n
storing an asset on behalf of their customers. The
custodian is responsible for the safekeeping of the assets
and implementing the necessary security standards,
without expectation or authorization to use the assets in
any other manner without customer consent.<\/p>\n\n\n\n
PoR Merkle Tree, the leaves contain information about an
individual user\u2019s balance and account information that is
cryptographically stored.<\/p>\n\n\n\n
knowledge: a cryptographic proof of knowledge method
whereby one party (the prover) can show evidence to the
other party (the verifier) that they possess a certain piece of
information, without the verifier needing to have that
information or interact with it.<\/p>\n<\/div>\n<\/div>\n\n\n\nRisk Management<\/strong><\/h2>\n<\/div>\n\n\n\n
cryptocurrency (or other digital asset), that allows users to utilize the aforementioned cryptocurrency on a different
ecosystem other than its native blockchain.<\/p>\n\n\n\n
cryptocurrency as collateral, stores it safely, and then \u201cmints\u201dthe wrapped token at a 1:1 ratio based on the collateral.<\/p>\n\n\n\n
price of the crypto asset being traded falls below a certain threshold(s), a trader\u2019s leveraged position is forced to partially or fully close, due to the margin not being enough to cover the loss. If the trader is unable to meet the margin call,the exchange closes the position automatically.<\/p>\n\n\n\n
to Livecoin users in the event of a security breach.<\/p>\n\n\n\n
prevent risky behavior among users of a trading market for high-risk or volatile instruments, such as derivatives. You can see Livecoin\u2019s responsible trading program<\/p>\n<\/div>\n<\/div>\n\n\n\n