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DeFi is short for decentralized financeand is used to refer to a financial ecosystem built on blockchain technology.

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A cryptocurrency is a digital asset that employs cryptographic encrcyption to guarantee ownership and ensure the integrity of transactions.

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Stablecoins are tokens issued on the blockchain whose value is linked to an external asset, such as national currencies or precious minerals.

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Liquidity pools are the formula that allow the exchange of cryptocurrencies on decentralized platforms, where intermediaries or professionals who adjust prices do not intervene.

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A cryptocurrency exchange is the platform on which cryptocurrencies are exchanged for fiat money or other cryptocurrencies.

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A cryptocurrency airdrop consist of distributing your native cryptocurrency to current or potential users for free.

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Metamask

DEFINITION

MetaMask is a browser extension to access the decentralized Ethereum network from where you can manage your cryptocurrencies and make secure transactions on the Ethereum network.

WHAT IS METAMASK FOR?

User interaction with blockchain dApps such as Ethereum require a bridge, and that is precisely what MetaMask does. MetaMask is a web browser extension or plugin that allows users to easily interact with dApps on the Ethereum blockchain. This is possible because MetaMask acts as a bridge between dApps and web browsers, facilitating their use and enjoyment.

Thanks to this, users are able to easily use these distributed applications and all in an integrated way from their favorite browser. With support for Firefox, Chrome, Opera, and Brave, MetaMask has brought the world of dApps closer to the general public.

HOW DOES METAMASK WORK?

The operation of MetaMask is thanks to the use of web3.js, a library that is part of the official development of Ethereum. web3.js was created in order to allow the creation of web applications that could interact with the Ethereum blockchain. Thanks to it, web pages and extensions can take advantage of the power of Ethereum and its features.

In this sense, MetaMask was created to be a wallet for Ethereum and a tool to interact with dApps. To achieve both goals, MetaMask establishes a communication channel between the extension and the dApp in question. Once the application recognizes that MetaMask is present, it is enabled and can be used by the user.

Once the dApp is enabled, the user can perform each and every one of the actions or events that it allows. From the purchase or sale of tokens, to access to resources or any service that it provides. Each and every one of these actions has a cost, one that must be paid in Ethereum or in the token indicated for it. In either case, MetaMask has the necessary tools to handle such interaction.

That is, MetaMask not only generates a cryptocurrency wallet, but also controls each user interaction with the dApp, and performs the necessary operations for said operations to be carried out. All this is carried out in a secure communication medium and with the use of strong cryptography. MetaMask has the ability to generate its own asymmetric keys, store them locally, and manage their access. Thanks to this, MetaMask is a highly secure extension.

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