decentralized exchange platforms (DEXs)</strong></strong></a> and raise capital for projects by investing in their native tokens. DEX teams carefully vet all potential participants and present a list with project proposals for the investors’ convenience.</p>\n<p>The tokens acquired via an IFO campaign are in no way more advantageous than the ones raised using other fundraising models. Although the exchange platforms carefully audit each project, the token value may be affected by fluctuating market conditions.</p>\n<p>Most IFO campaigns are hosted on PancakeSwap. The users of this platform are able to receive rewards from the fundraising campaigns. Project owners can benefit from the platform’s liquidity pool. Most of the tokens presented during IFOs are community-driven and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralization/">decentralized./nThere are two types of IFO campaigns:</p>\n<ul>\n<li><strong>Basic sale</strong>: investors can stake a limited number of tokens without paying a participation fee;</li>\n<li>Unlimited sale: investors pay a predetermined fee and stake as many tokens are they are able to.</li>\n</ul>\n<p>Users that wish to participate in an IFO campaign must first register on a DEX platform that hosts such projects. They then <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-staking/">stake their tokens to participate in the IFO. Users are required to provide <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-liquidity/">liquidity for the farming process and are rewarded with tokens at the end.</p>\n<p>Some of the benefits to an IFO campaign include:</p>\n<ul>\n<li>There is no intermediary involved in the process. <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-peer-to-peer-p2p/">Peer-to-peer (P2P)</strong></a> transactions are enabled, which saves money;</li>\n<li>IFO helps users maximize the benefits of using a DEX platform to trade and invest;</li>\n<li>All transactions are transparent thanks to the decentralization;</li>\n<li>Users are guaranteed access to instant liquidity.</li>\n</ul>\n<p>Investors are recommended to do their own research regarding the projects in the fundraising events. IFO campaigns are common among crypto newcomers who are looking into ways to quickly make profit. They can also serve as an opportunity to build a crypto portfolio and generate extra income.</p>\n<p>ICOs and other fundraising models that were developed prior to IFOs relied heavily on investments from venture capitals. Such project fundings take longer and the gains cannot be reliably determined. The increasing amount of DeFi projects submitted for funding may lead to IFOs growing in popularity.</p>","level":"medium","meta_title":"What is Initial Farm Offering (IFO)? Definition & Meaning | Crypto Wiki","meta_description":"Initial Farm Offering (IFO) meaning: Initial Farm Offering (IFO) - a decentralized finance fundraising model of raising capital via the farming feature.","meta_keywords":null,"language":"en","created_at":"2022-03-18T07:25:45.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-initial-farm-offering-ifo"},"prevSection":{"id":417,"original_id":null,"author_id":42,"translator_id":null,"title":"What is Interoperability?","slug":"what-is-interoperability","section":"I","keyword":"Interoperability","status":"published","definition":"the capability to see and share data from several blockchains.","content":"<p><strong>Blockchain interoperability</strong>, also known as <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain or <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cross-chain/">cross-chain interoperability, is the capability to see and share data from several blockchains. It’s beneficial because you can trade assets across multiple blockchains without the need for a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralized-exchange-dex/">decentralized, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-custodial/">custodial exchange. Interoperability allows users to <strong>transact across different platforms</strong> thus it helps with the development of a blockchain. </p>\n<p>Even though there are several blockchain interoperability solutions on the market, more are needed to connect different blockchains like <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin and <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum. One of the well-known solutions is wrapped tokens (or proxy tokens). The most popular wrapped token at the moment is <strong>Wrapped Bitcoin (WBTC)</strong>. However, with wrapped tokens, you’ll need to have a trusted <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-custodian/">custodian to hold your funds or develop a safe mint/burn protocol to assure a stable supply of your <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-crypto-asset/">crypto assets</strong></a>.</p>\n<p>One of the projects working on a native blockchain interoperability solution is Komodo. They developed <strong>a decentralized exchange</strong> that is compatible with 99% of cryptocurrencies called <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-atomicdex/">AtomicDEX. In this decentralized exchange, interoperability is created through <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-atomic-swap/">atomic swaps</strong></a> that are safe exchanges of digital assets between individuals using non-custodial wallets. AtomicDEX offers native cross-chain trading, which eliminates the need for wrapped tokens.</p>","level":"easy","meta_title":"What is Interoperability? Definition & Meaning | Crypto Wiki","meta_description":"Interoperability meaning: Interoperability - the capability to see and share data from several blockchains.","meta_keywords":null,"language":"en","created_at":"2022-03-18T06:56:04.000000Z","updated_at":"2022-09-14T07:53:11.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-interoperability"},"currentChapter":"I","currentSection":"what-is-immutable","chapterTitle":"I","readingLevel":"medium"},"url":"/crypto/learn/crypto-terms/what-is-immutable","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0"> Crypto Terms: Letter I
What is Immutable?
Immutable MEANING:
Immutable -
unable to be changed over time.
Let's find out Immutable meaning, definition in crypto,
what is Immutable,
and all other detailed facts.
Immutability is one of the key features of blockchain technologies. Immutable data cannot be altered in any way by anyone after it was created.
Blockchain technology is based on the principles of immutability. All network nodes must agree on the data validity before it moves forward. Blockchain functions as a distributed ledger technology to ensure that no one can change the data records once they are part of the blockchain.
Blockchain was developed in a way that once all transactions, like contracts, purchases, and sales, are recorded and added to the chain, the data cannot be retroactively altered in the particular block without having to modify all other blocks. Each block contains data tied to the previous block, so the entire chain would have to be changed with the altered data.
Blockchain is immutable thanks to cryptographic hashing, the encryption method that uses plaintext as an input and creates a unique hash value as the output. The length of hashes is always fixed, regardless of the input properties.
The hashing algorithm is incredibly difficult to reverse. If a user were to apply the SHA-256 hashing algorithm to a word or a sentence, they would receive a 256-bit hexadecimal code in return. The length of the hexadecimal code is 32 characters. Attempts to apply the SHA-256 algorithm to any data always return a 32-character output.
Hashes can be used as digital signatures to maintain data integrity. When data is transferred over the network, its hash value can serve as a digital fingerprint. If the sender receives the same data back, the hash can be calculated to determine whether it matches the initial fingerprint. If there is a mismatch, it means that the data was tampered with during the transmission.
Immutability is not a guarantee that the data will not be tampered with at all. However, it serves to ensure that any alterations to the data have notable consequences.
There are numerous benefits to immutability:
- Unlike in traditional database systems, where the data can be corrupted or destroyed, blockchain requires all changes to be adopted by the network nodes. This reduces the risk of data loss;
- Immutability ensures data integrity. Users can re-calculate the hash value to verify the integrity of the chain;
- Immutability allows organizations to produce indisputable ledgers which can make the auditing process simpler.
