Blockchain and Cryptocurrency

A decentralized, distributed digital ledger that records transactions across many computers in a way that makes the registered transactions virtually impossible to alter retroactively. Each block contains a cryptographic hash of the previous block, creating an immutable chain of records.

A protocol used by blockchain networks to achieve agreement among distributed nodes on the current state of the ledger. Different mechanisms balance security, decentralization, and scalability in various ways, determining who gets to add the next block.

Self-executing programs stored on a blockchain that automatically enforce and execute the terms of an agreement when predetermined conditions are met. They eliminate the need for intermediaries and run exactly as programmed without possibility of censorship or downtime.

A financial ecosystem built on blockchain technology that recreates and improves upon traditional financial services such as lending, borrowing, trading, and insurance without centralized intermediaries like banks. DeFi protocols operate through smart contracts and are accessible to anyone with an internet connection.

A mathematical function that converts input data of any size into a fixed-length string of characters, which acts as a unique digital fingerprint. In blockchain, hashing ensures data integrity because even a tiny change to the input produces a completely different hash output.

Two primary methods for validating transactions and creating new blocks on a blockchain. Mining (Proof of Work) requires computational power to solve complex puzzles, while staking (Proof of Stake) requires validators to lock up cryptocurrency as collateral to participate in block validation.

A pair of cryptographic keys used to secure cryptocurrency transactions. The public key serves as an address that others can use to send funds, while the private key is a secret code that proves ownership and authorizes transactions. Losing a private key means permanently losing access to associated funds.

The process of converting rights to a real-world or digital asset into a digital token on a blockchain. Tokens can represent ownership of physical assets, access rights, voting power, or utility within a specific platform, enabling fractional ownership and easier transferability.

Protocols built on top of an existing blockchain (Layer 1) designed to increase transaction throughput and reduce fees without compromising the security of the underlying network. They process transactions off the main chain and periodically settle the results back to it.

A unique digital token on a blockchain that represents ownership of a specific item such as digital art, music, collectibles, or virtual real estate. Unlike cryptocurrencies, NFTs are not interchangeable because each one has distinct properties and metadata that make it one-of-a-kind.