# Glossary


Decentralized autonomous organization in which each shareholder is a leader. In the real world, a DAO can be compared to a joint-stock company, but the DAO is decentralized and has no person in charge of preserving the assets of investors.

Wikipedia (opens new window), Bitcoinwiki (opens new window)

# Fair DPoS

Fair DPoS is a subset of DPoS algorithms in which the power of a voter's vote is distributed equally among all the witnesses he voted for. That is, if a participant voted for 4 witnesses, then each will get 25% of the strength of his vote.


# DPoS

DPoS (Delegated proof-of-stake) is a consensus-building algorithm in a decentralized environment in which the voting participants (usually coin holders in the system) choose the participants who will form the blocks (witnesses). Thus, voters may not keep special equipment to support the operation of the network and manage its parameters, but elect witnesses whom they trust.

The peculiarity of DPoS is that the network works only due to the trust of voters in the witnesses, in contrast to PoW or PoS, in which any user who has installed special equipment can form blocks (and therefore support the operation of the network).

Voting takes place in such a way that the owner of a larger stake in the network (more coins) has a greater influence on the outcome of the election. In other words, the voter votes with his coins.

# Bandwidth, gas, bandwidth

A mechanism that combats network abuse, i.e. spam.


# Liquid tokens

Liquid tokens (viz) are blockchain tokens that the owner can freely move between accounts and convert into money, cryptocurrency, and share tokens of the VIZ network. It makes sense to keep liquid tokens only for trading on the exchange or for transfers between accounts.


# Share Token

Equity tokens (shares) give their owner the right to choose witnesses, vote in the Committee and distribute the issue among VIZ members. The influence of their holder on the processes in the DAO depends on the number of share tokens: the more shares, the higher the influence.


# Teal Organization

A community, which in its structure is similar to a living organism, in which the participants themselves decide what will be useful for it.

Reinventing Organizations Wiki (opens new window)

# Witnesses

These are the network members to whom the DAO VIZ members entrusted its support: the creation and signing of blocks, the management of economic and other parameters, including the adoption of hard forks.


# Custom transaction

A transaction containing text data that does not affect the behavior of the blockchain in any way. This transaction, like any other, uses the bandwidth of the account, depending on the size of the data in it.