Merge pull request #59 from eigerco/feat/58/add-glossary-document-to-…

…the-project

Added glossary page

docs/glossary.md

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+# Glossary and Anti-Glossary
+
+This document provides definitions and explanations for terms used throughout the project, as well as a list of terms
+that should not be used.
+
+## Table of Contents
+
+- [Glossary](#glossary)
+    - [Actor](#actor)
+    - [Bond](#bond)
+    - [Collateral](#collateral)
+    - [Collator](#collator)
+    - [Committed Capacity](#committed-capacity)
+    - [Crowdloan](#crowdloan)
+    - [Full Node](#full-node)
+    - [Invulnerable](#invulnerable)
+    - [Node](#node)
+    - [Parachain](#parachain)
+    - [Polkadot](#polkadot)
+    - [Proofs](#proofs)
+        - [Proof-of-Replication (PoRep)](#porep)
+        - [Proof-of-Spacetime (PoSt)](#post)
+    - [Relay Chain](#relay-chain)
+    - [Session](#session)
+    - [Slashing](#slashing)
+    - [Slot Auction](#slot-auction)
+    - [Staking](#staking)
+        - [Nominators](#nominators)
+        - [Validators](#validators)
+    - [Storage Provider](#storage-provider)
+    - [Storage User](#storage-user)
+    - [System Parachain](#system-parachain)
+- [Anti-Glossary](#anti-glossary)
+    - [Miner](#term-to-avoid-miner)
+    - [Pledge](#term-to-avoid-pledge)
+
+## Glossary
+
+This section lists terms used throughout the project.
+
+### Actor
+
+In [Filecoin](https://spec.filecoin.io/#section-glossary.filecoin),
+an [actor](https://spec.filecoin.io/#section-glossary.actor) is an on-chain object with its own state and set of
+methods. [Actors](https://spec.filecoin.io/#section-glossary.actor) define how
+the [Filecoin](https://spec.filecoin.io/#section-glossary.filecoin) network manages and updates global state.
+
+### Bond
+
+This term used in:
+
+- Parachain [Slot Auction](#slot-auction). To bid in an auction, [parachain](#parachain) teams agree to lock up (or
+  bond) a portion of DOT tokens for the duration of the lease. While bonded for a lease, the DOT cannot be used for
+  other activities like staking or transfers.
+
+- [Collator](#collator) slot auction (selection mechanism). It is used as a deposit to become a collator. Candidates can
+  register by placing the minimum bond. Then, if an account wants to participate in the [collator](#collator) slot
+  auction, they have to replace an existing candidate by placing a greater deposit (bond).
+
+### Collateral
+
+[Collaterals](https://spec.filecoin.io/#section-glossary.collateral) are assets that are locked up or deposited as a
+form of security to mitigate risks and ensure the performance of certain actions. Collateral acts as a guarantee that an
+individual will fulfill their obligations. Failing to meet obligations or behaving maliciously can result in the loss of
+staked assets or collateral as a penalty for non-compliance or misconduct by [slashing](#slashing).
+
+### Collator
+
+[Collators](https://wiki.polkadot.network/docs/learn-collator) maintain [parachains](#parachain) by
+collecting [parachain](#parachain) transactions from users and producing state transition proofs
+for [Relay Chain](#relay-chain) validators. In other words, collators maintain [parachains](#parachain) by
+aggregating [parachain](#parachain) transactions into [parachain](#parachain) block candidates and producing state
+transition proofs (Proof-of-Validity, PoV) for validators. They need to provide a financial
+commitment ([collateral](#collateral)) to ensure they are incentivized to perform their duties correctly and
+to dissuade malicious behavior.
+
+### Committed Capacity
+
+The [Committed Capacity](https://spec.filecoin.io/#section-glossary.capacity-commitment) (CC) is one of three types of
+deals in which there is effectively no deal, and the [Storage Provider](#storage-provider) stores random data inside the
+sector instead of customer data.
+
+If a [storage provider](#storage-provider) doesn't find any available deal proposals appealing, they can alternatively
+make a capacity commitment, filling a sector with arbitrary data, rather than with client data. Maintaining this sector
+allows the [storage provider](#storage-provider) to provably demonstrate that they are reserving space on behalf of the
+network.
+
+### Crowdloan
+
+Projects can raise DOT tokens from the community
+through [crowdloans](https://wiki.polkadot.network/docs/learn-crowdloans). Participants pledge their DOT tokens to help
+the project win a parachain slot auction. If successful, the tokens are locked up for the duration of the parachain
+lease, and participants might receive rewards or tokens from the project in return.
+
+### Full Node
+
+A device (computer) that fully downloads and stores the entire blockchain of the parachain, validating and relaying
+transactions and blocks within the network. It is one of the [node](#node) types.
+
+### Invulnerable
+
+A status assigned to certain [collators](#collator) that makes them exempt from being removed from the active set of
+[collators](#collator).
+
+### Node
+
+A device (computer) that participates in running the protocol software of a decentralized network; in other words, a
+participant of the blockchain network who runs it locally.
+
+### Parachain
+
+A parachain is a specialized blockchain that runs in parallel to other parachains within a larger network, benefiting
+from shared security and interoperability, and can be validated by the validators of the [Relay Chain](#relay-chain).
+
+### Polkadot
+
+“Layer-0” blockchain platform designed to facilitate interoperability, scalability and security among different
+“Layer-1” blockchains, called [parachains](#parachain).
+
+## Proofs
+
+Cryptographic evidence used to verify that storage providers have received, are storing, and are continuously
+maintaining data as promised.
+
+There are two main types of proofs:
+
+- <a name="porep"></a> **Proof-of-Replication (PoRep):** In order to register a sector with the network, the
+  sector has to be sealed. Sealing is a computation-heavy process that produces a unique representation of the data in
+  the form of a proof, called Proof-of-Replication or PoRep.
+
+- <a name="post"></a> **Proof-of-Spacetime (PoSt):** Used to verify that the storage provider continues to store the
+  data over time. [Storage providers](#storage-provider) must periodically generate and submit proofs to show that they
+  are still maintaining the stored data as promised.
+
+### Relay Chain
+
+The Relay Chain in [Polkadot](#polkadot) is the central chain (blockchain) responsible for the network's shared
+security, consensus, and cross-chain interoperability.
+
+### Session
+
+A predefined period during which a set of [collators](#collator) remains constant.
+
+### Slashing
+
+The process of penalizing network participants, including [validators](#validators), [nominators](#nominators),
+and [collators](#collator), for various protocol violations. These violations could include producing invalid blocks,
+equivocation (double signing), inability of the [Storage Provider](#storage-provider) to [prove](#proofs) that the data
+is stored and maintained as promised, or other malicious activities. As a result of slashing, participants may face a
+reduction in their [staked](#staking) funds or other penalties depending on the severity of the violation.
+
+### Slot Auction
+
+To secure a [parachain](#parachain) slot, a project must win an auction by [pledging](#term-to-avoid-pledge) (locking
+up) a significant amount of DOT tokens. These tokens are used as [collateral](#collateral) to secure the slot for a
+specified period. Once the slot is secured, the project can launch and operate its [parachain](#parachain).
+
+### Staking
+
+Staking is the process where DOT holders lock up their tokens to support the network's security and operations. In
+return, they can earn rewards. There are two main roles involved in staking:
+
+- <a name="validators"></a>**Validators**
+  : Validators are responsible for producing new blocks, validating transactions, and securing the
+  network. They are selected based on their stake and performance. Validators need to run a [node](#node) and have the
+  technical capability to maintain it.
+
+- <a name="nominators"></a>**Nominators**: Nominators support the network by backing (nominating) validators they trust
+  with their DOT tokens. Nominators share in the rewards earned by the validators they support. This allows DOT holders
+  who don't want to run a validator node to still participate in the network's security and earn rewards.
+
+Our parachain will use staking to back up the [collators](#collator) in a similar way as "Nominators" do.
+In this regard, the role of "Nominators" will fall to [Storage Providers](#storage-provider), while the role of "
+Validators" will be assigned to [Collators](#collator) accordingly.
+
+### Storage Provider
+
+The user who offers storage space on their devices to store data for others.
+
+### Storage User
+
+**_Aka Client:_** The user who initiates storage deals by providing data to be stored on the network by the [Storage
+Provider](#storage-provider).
+
+### System Parachain
+
+[System-level chains](https://wiki.polkadot.network/docs/learn-system-chains) move functionality from
+the [Relay Chain](#relay-chain) into [parachains](#parachain), minimizing the administrative use of
+the [Relay Chain](#relay-chain). For example, a governance [parachain](#parachain) could move all
+the [Polkadot](#polkadot) governance processes from the [Relay Chain](#relay-chain) into a [parachain](#parachain).
+
+## Anti-Glossary
+
+This section lists terms that should not be used within the project, along with preferred alternatives.
+
+### Term to Avoid: Miner
+
+In [Filecoin](https://spec.filecoin.io/#section-glossary.filecoin), a "Lotus Miner" is responsible for storage-related
+operations, such as sealing
+sectors ([PoRep (Proof-of-Replication)](https://spec.filecoin.io/#section-algorithms.pos.porep)), proving storage
+([PoSt (Proof-of-Spacetime)](https://spec.filecoin.io/#section-algorithms.pos.post)), and participating in
+the [Filecoin](https://spec.filecoin.io/#section-glossary.filecoin) network as a storage miner.
+
+**Reason**: In the [Filecoin](https://spec.filecoin.io/#section-glossary.filecoin) network, the miner plays the roles of
+both [storage provider](#storage-provider) and block producer simultaneously. However, in the [Polkadot](#polkadot)
+ecosystem, this term cannot be used because there are no block producers in [parachains](#parachain);
+the [Relay Chain](#relay-chain) is responsible for block production. [Parachains](#parachain) can only prepare block
+candidates via the [Collator](#collator) node and pass them to the [Relay Chain](#relay-chain).
+
+### Term to Avoid: Pledge
+
+It's better to apply this term within its proper context rather than avoiding it altogether. It's easy to confuse it
+with [staking](#staking), but they have distinct meanings.
+
+**Reason**: Pledging generally refers to locking up tokens as [collateral](#collateral) to participate in certain
+network activities or services like: [Parachain Slot Auctions](#slot-auction) and [Crowdloans](#crowdloan).