Glossary

This glossary provides definitions for key terms and concepts associated with the Phoenix Gold Network and the broader blockchain and cryptocurrency landscape, aiding in the understanding and navigation of the digital gold ecosystem.

Blockchain: A decentralized, distributed ledger technology that records transactions across multiple computers in a way that ensures security, transparency, and immutability.

Smart Contracts: Self-executing contracts with the terms of the agreement directly written into lines of code. They automatically enforce and execute the terms of a contract when predetermined conditions are met.

Non-Fungible Tokens (NFTs): Unique digital tokens that represent ownership or proof of authenticity of a specific item or asset, leveraging blockchain technology for security and verifiability. Unlike cryptocurrencies, NFTs are not interchangeable.

Cyphers: Specialized NFTs within the Phoenix Gold Network representing a specific quantity of .999 purity physical gold, allowing for the digital ownership and transaction of gold.

Phoenix Gold Coins (PGC): The native cryptocurrency of the Phoenix Gold Network, used for transactions, governance voting, and rewards within the ecosystem.

Decentralized Autonomous Organization (DAO): A governance model that relies on blockchain technology to enable organizational decisions to be made through consensus of its members, rather than a central authority.

Polygon: A protocol and a framework for building and connecting Ethereum-compatible blockchain networks, designed to address scalability and efficiency issues on the Ethereum blockchain.

Staking: The process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. It often rewards participants with additional cryptocurrency.

Liquidity: The ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Nodes: In the context of the Phoenix Gold Network, small gold shops that participate in the ecosystem, facilitating the redemption of Cyphers for physical gold and engaging in transactions.

Custodians: Larger entities within the Phoenix Gold Network trusted with the secure storage of large quantities of physical gold, backed by a substantial, slashable stake or community vote.

KYC (Know Your Customer): A process by which businesses verify the identity of their clients in order to prevent fraud, money laundering, and terrorism financing.

Phoenix Web3 App: The application platform of the Phoenix Gold Network, providing users with access to its services, including the purchase, sale, and management of Cyphers, as well as participation in the network’s governance.

Slashable Stake: In cryptocurrency and blockchain governance, a deposit of tokens that can be partially or wholly taken away (slashed) as a penalty for malicious behavior or failure to comply with network rules.