Glossary

Mining

Mining is the process of using powerful computers to solve complex mathematical puzzles that validate and secure transactions on the Bitcoin network. In return for this work, miners are rewarded with newly created Bitcoin and transaction fees. It’s the backbone of the Bitcoin system, ensuring its security and decentralized nature.

Hash/Hashrate

• Hash: Like a digital fingerprint, it’s a way to turn data into a unique code. In Bitcoin, hashes are used to secure information

• Hashrate: How fast a computer can create these digital fingerprints. The higher the hashrate, the faster it can solve puzzles to mine Bitcoin

TH (Terahash)

A unit of power for Bitcoin mining. 1 TH means a computer can make one trillion guesses per second to solve the Bitcoin puzzle and earn rewards

NFT (Non-Fungible Token)

A unique digital item, like a piece of art or a collectible, that you can buy, sell, or own. It’s special because no two NFTs are exactly the same

Bitcoin Wallet

A digital wallet where you keep your Bitcoin. It works like an online bank account but gives you full control. You can send, receive, and store Bitcoin securely

DCA (Dollar-Cost Averaging)

A strategy where you buy a small amount of Bitcoin regularly, like every month, instead of all at once. This helps you avoid the risks of buying when prices are high

TCA (Terahash Cost Averaging)

Instead of buying Bitcoin directly, TCA is about buying mining power (TH) regularly. This mining power works for you to generate Bitcoin every day, and over time, it gives you more Bitcoin than buying it outright

ERC-20

A type of token built on the Ethereum blockchain. Think of it as a digital coin used in apps or for trading, built to follow specific rules so it works everywhere on Ethereum

Staking

A way to earn rewards by locking up your cryptocurrency to help run a blockchain network. It’s like earning interest by putting money in a savings account

Lending/Borrowing

In crypto, you can lend your coins to earn interest, or borrow coins by using some of your own as a deposit. No need for a bank, everything is done automatically using blockchain technology

DeFi (Decentralized Finance)

A new way of doing financial activities like loans, savings, or trading without using banks. Everything is managed by smart software on the blockchain, giving you more control over your money

Mint

Minting refers to the process of creating new tokens or assets on a blockchain. In Fraxio, minting is used to convert your purchased TH into an ERC-20 token, allowing you to transfer it to your personal wallet or use it in other decentralized applications

Burn

Burning is the process of permanently removing tokens or assets from circulation on a blockchain. In Fraxio, burning occurs when users send their ERC-20 TH tokens back to the platform, reducing the total supply and linking the process to their Fraxio account