An IOU (I owe you) is a signed document acknowledging a debt. In the world of finance, IOUs are often used as a simple form of debt instrument that outlines the amount of money or value owed by one party to another. IOUs can be created for various types of debts, including loans, personal debts, or as an informal agreement between two parties.

In the context of cryptocurrency, IOUs can refer to situations where an exchange issues a token or a credit note to represent an asset held by a user. This is usually done when the exchange does not have enough of the actual asset to cover all of the outstanding balances held by users. IOUs can be used as a way to trade or exchange assets without actually holding the underlying asset.

However, it is important to note that IOUs are not the same as the actual asset itself and are therefore subject to counterparty risk. This means that if the exchange or issuer of the IOU goes bankrupt or fails to honor the debt, the IOU holder may not be able to redeem the IOU for the underlying asset.

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Decentralized Applications (DApp) 
A decentralized application, also known as a DApp, is a type of software application that runs on a decentralized network, such as a blockchain. Unlike traditional applications that are run on a centralized server or network, DApps run on a distributed network of computers that are spread out across the globe.
Token Sale
A token sale, also known as an initial token offering (ITO), token generation event (TGE), or token crowdsale, refers to the process of offering and selling tokens to investors or the public in exchange for funds or other cryptocurrencies. It is a common method used by blockchain projects to raise capital and distribute their tokens.
Custody refers to the safekeeping and management of financial assets, including cryptocurrencies, by a third-party service provider. The provider, known as a custodian, holds the assets on behalf of its clients and is responsible for ensuring their security and proper handling.

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