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What is decentralized token (What is a decentralized algorithm)?

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What is a decentralized token? In the world of blockchain, tokens refer to the

What is decentralized token (What is a decentralized algorithm)?

What is a decentralized token? In the world of blockchain, tokens refer to the tokens of a protocol circulating on the chain, which are also known as smart contracts. These tokens can be assets such as equities, bonds, or other types of investment contracts, or they can be a class or several classes of other digital currencies in a basket.

For example, if you own 1 BTC, you can buy 3 Ethereum and a bottle of mining machine worth 100 US dollars. However, this investment contract does not necessarily require users to provide any proof. Because these tokens are issued by issuers, they do not belong to the issuers themselves. This means that the value of your token will decrease over time. But if you want to create a specific ERC20Token to represent a specific project, its market value will decrease continuously. So, tokens are interchangeable tokens, and they cannot substitute for each other; instead, they are entirely different sets of solutions: the first solution is to use one token instead of another token; the second model is to use one token to do some extra transactions for a third party; the third design pattern allows for the use of one’s own token as collateral for loans and refinancing.

What is a decentralized algorithm?

Decentralized algorithms (DecentralizedAMMs) are a new application launched by the cryptocurrency exchange Sushiswap, which will use smart contract technology to power decentralized blockchains.

Decentralized algorithms are usually determined by one or more entities whether their parameters are accurate and effectively executed. For example, users can vote on any array with their own selected programs, without any individual being responsible for managing every part of the protocol. These controls belong to specific institutions and are completely transparent.

This approach allows data in smart contracts to be stored in decentralized servers in a verifiable manner and change data formats as needed, unlike traditional systems. It also allows smart contracts to be referred to as “chain transactions”, so they are not affected by external interference such as network disruptions and hacker attacks. In addition, smart contracts can also run as a programming language.

To address this issue, decentralized protocols must exist in the form of governance tokens. Token holders can create their own DAOs and sell their tokens to the community in exchange for protocol fees. Token owners can also gain additional rewards by purchasing proposals. (U.Today)

What is a decentralized algorithm?

Currently, there are two cryptography-based algorithms in the market: EVM (Ethereum Virtual Machine) and Plonk-STARK algorithm. Among them, EVM is one of the most commonly used programming languages for computing mathematics. However, because developers cannot understand the logic of the code on the blockchain, most algorithms work in a non-linear way.

First, when a user wants to join an algorithm, it automatically selects the correct function value and generates profits from it. Second, when a user wants to add a new function, they pay the miner a predefined price to ensure the algorithm’s correctness and reliability. Finally, when a user wants to increase the block size, they also try to introduce other more sophisticated functions.

If the algorithm is designed perfectly, it will gradually become more mature over time. On the contrary, if the algorithm is poorly designed or does not meet the requirements, it may cause system failures. However, this is very useful for those who are already familiar with the algorithms.

Why do we believe that only a few people know how to improve algorithms?

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