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Derivatives

Derivatives are a financial contract or instrument between two parties whose value is determined by the performance of underlying assets. Underlying assets may include bonds, currencies, stocks, interest rates among others.

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Trustless

This is a system of distributing trust among different actors in a system via an economic game that incentivizes participants in the system to cooperate with the rules defined by the protocol. The Bitcoin blockchain is an example.

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Transaction Pool

This is also known as a mempool, is a data structure that stores the set of unmined transactions that have been validated by miners.

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