4.1.4 Key Concepts and Definitions

Navigating the landscape of the DGT platform, specifically its GARANASKA financial subsystem, necessitates an understanding of a host of interrelated concepts and terminologies. This subsystem's core component is the DEC Transaction Family, a dedicated set of rules and protocols that manage the operations of DEC tokens within the ecosystem. This section outlines the integral concepts and definitions that underpin the operation and management of DEC transactions. Comprehension of these elements is vital for both users interacting with the DGT platform and developers aiming to build upon it. Here is an overview of the main concepts and definitions.

Term	Definition
Account	An entity on the blockchain, in this case the DGT network, that is identified by a unique address and capable of sending or receiving tokens. An account is associated with a pair of cryptographic keys (public and private). The public key allows for the identification of the account while the private key enables the signing of transactions. An account may represent a user or a smart contract in the DGT network.
Address System	Each transaction family in the DGT platform can have its unique address system, observing the Merkle-Radix tree's set dimensions.
Atomic Swap	A peer-to-peer exchange of cryptocurrencies from different blockchains.
Bridge	A bridge is a crucial component that facilitates the exchange of data or assets between two different blockchain networks. In the context of the DGT platform, an HTLC-type bridge is implemented for cross-chain compatibility.
Certificate Mechanism	Establishes a relationship between a physical object and a cryptographic key, with a digital signature certifying the compliance between an object (or its attributes) and a public key.
Coins and Tokens	Coins are a network's native currency, while tokens represent additional currencies issued on top of these native coins. Tokens depend on the native coin, enabling exchange operations or atomic swaps.
Consensus Mechanisms	These mechanisms underpin the process by which transactions are verified and added to the blockchain. The operations of the DEC token within the DGT network are governed by these consensus mechanisms.
Cryptographic Keys	Keys, composed of a private key and a public key pair, create digital signatures and authenticate transactions. In blockchain systems, addresses are associated with these keys.
DEC Address Space	The DEC address space is in sync with the Ethereum system, deriving the address from the public key. This makes the address deterministic, unique, and Ethereum-compatible. Users with Ethereum wallets automatically possess DEC wallets in DGT.
DEC Transaction Family	A set of operations on DEC tokens, such as issuance, transfer, and redemption, etc.
DGT Platform Address System	The DGT platform is structured to allow each transaction family to have its own address system, as long as it adheres to the dimensions set by the Merkle-Radix tree.
Digital Signatures	A cryptographic tool for validating the authenticity and integrity of digital messages or documents.
Emission	In the context of blockchain, emission refers to the process of producing new tokens or coins into the system.
Financial Transactions	In financial systems, transactions operate based on addresses, serving as identifiers for fund transfers between parties. Traditional financial institutions use an account-based system, while fully decentralized networks utilize the UTXO approach.
Know Your Customer (KYC)	A standard banking policy practice that assesses and monitors customer risk and is also a legal requirement to comply with Anti-Money Laundering (AML) laws. In the context of blockchain and cryptocurrencies, it involves procedures to verify the identities of individuals carrying out transactions.
Minting	The process of creating new tokens, the digital equivalent of printing new money. The token supply mechanics of DEC tokens are determined by the minting process.
Multisignature (Multisig)	An authorization method that requires the approval of multiple parties to execute a transaction. In blockchain, a multisignature address is associated with more than one private key.
NFT (Non-Fungible Token)	A type of cryptographic token on a blockchain that represents a unique item or asset.
Payments	The transfer of value from one party to another in exchange for goods, services, or both.
Private Transactions	Transactions that are obscured to maintain the privacy of the transaction details. In blockchain, techniques like zero-knowledge proofs may be used to maintain the privacy of transaction information.
Security Tokens	Crypto tokens that derive their value from an external, tradable asset and are subject to federal securities regulations.
Smart Contracts	Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. They play a pivotal role in automating and managing operations within the blockchain network.
SBT (Soulbound Tokens)	Unique tokens that are permanently attached to an account.
Stable Tokens	A type of cryptocurrency that attempts to offer price stability by being pegged to a reserve of assets.
Sub-Tokens	Additional tokens that are created on top of a primary/native blockchain token.
Tokenomics	A system or framework that defines the economic structure of a token ecosystem, including the rules of token distribution, usage, and governance. The tokenomics of DEC would outline how the DEC tokens are distributed, their use cases, how they gain value, and how their supply is managed.
Tokenization Process (RWA tokenization)	The process of converting real-world assets (RWAs) into digital tokens on a blockchain.
Transaction Fee	A fee that is charged to users when they make a transaction on the blockchain. In the DGT network, transaction fees are designed to prevent network abuse by requiring a fee for each transaction. This fee compensates the network nodes that validate and record transactions on the blockchain.
Transaction Family	In the DGT platform, a transaction family is a group of operations or transactions that are handled as a single unit. The DEC token operates within the DEC transaction family, which follows a specific set of rules for processing and verifying token transactions.
Transaction Tip	In the DGT network, a transaction tip refers to an optional, additional token amount offered by a user, over and above the standard transaction fee. This tip serves as an incentive for nodes to prioritize the user's transaction during periods of high network traffic. It's an adjustable parameter set by the Node as a potential extra income for processing complex transactions.
Utility Tokens	Tokens that provide digital access to an application or service.
UTXO (Unspent Transaction Output)	The output of a blockchain transaction that can be spent as input in a new transaction.
Volatility (in context of crypto)	The rate at which the price of a cryptocurrency increases or decreases for a set of returns. Cryptocurrency prices are notoriously volatile compared to traditional fiat currencies. This makes it potentially profitable, but also risky.
Wallets	In the blockchain domain, a wallet usually refers to an external client program that provides advanced account or address management.