Proof of Work (PoW) is the original blockchain consensus mechanism, made famous by Bitcoin. Miners compete to solve computationally expensive puzzles to validate transactions and add blocks to the chain. The difficulty automatically adjusts to maintain consistent block times.
DeFi refers to a suite of financial services — lending, borrowing, trading, yield generation — built on public blockchains, primarily Ethereum. It aims to replicate and disintermediate traditional finance without banks or intermediaries. At its peak in 2021, over $180 billion was locked in DeFi protocols.
An NFT is a unique digital token stored on a blockchain that proves ownership of a specific digital item — art, music, video, game items, or anything else. Unlike currencies, each NFT is distinct and cannot be directly exchanged 1:1 for another. The NFT boom of 2021 saw billions traded, before a sharp market correction.
Cardano is a proof-of-stake blockchain platform built on peer-reviewed academic research. Founded by Ethereum co-founder Charles Hoskinson, it takes a methodical, research-first approach to development. Its Ouroboros consensus mechanism was the first provably secure PoS protocol.
Solana is a high-performance Layer 1 blockchain capable of processing up to 65,000 transactions per second using a novel Proof of History consensus mechanism. It has become a major hub for DeFi, NFTs, and consumer crypto applications.
Polkadot is a Layer 0 multi-chain network that allows different blockchains to interoperate. Created by Ethereum co-founder Gavin Wood, it uses a relay chain and parachain architecture letting multiple specialised blockchains run in parallel and communicate securely.
Chainlink is the leading decentralised oracle network, providing smart contracts with secure access to real-world data, APIs, and external computation. It is the essential infrastructure layer connecting blockchains to off-chain information such as stock prices, weather data, and sports results.
Avalanche is a smart contract platform that achieves high throughput through a novel Avalanche consensus mechanism. It supports custom blockchains called Subnets, making it attractive for enterprise and gaming. Its C-Chain is EVM-compatible, allowing Ethereum dApps to deploy easily.
Proof of Stake (PoS) is a blockchain consensus mechanism where validators are selected to create new blocks based on the amount of cryptocurrency they stake as collateral, rather than through energy-intensive computation. It is significantly more energy-efficient than Proof of Work.
Smart contracts are self-executing programs stored on a blockchain that automatically enforce the terms of an agreement when predefined conditions are met. They are the foundation of DeFi, NFTs, and decentralised autonomous organisations.
Cosmos is a network of interconnected blockchains — the Internet of Blockchains. It provides a framework (Cosmos SDK) for building custom blockchains that can communicate via the Inter-Blockchain Communication (IBC) protocol. Dozens of major blockchain networks are built with the Cosmos SDK.
Layer 2 (L2) is a collective term for off-chain scaling solutions that inherit the security of a Layer 1 blockchain while processing transactions faster and cheaper. Major categories include Optimistic Rollups (Arbitrum, Optimism) and ZK Rollups (StarkNet, zkSync).
A blockchain is a distributed, append-only ledger of records (blocks) chained together cryptographically. Each block contains a cryptographic hash of the previous block, ensuring immutability. Bitcoin introduced the first practical implementation in 2008, solving the double-spend problem without a central authority.
Zero-knowledge proofs (ZKPs) are cryptographic methods that allow one party to prove they know something without revealing what that thing is. In blockchain, they enable both privacy and scaling — proving off-chain computation is correct without re-executing it on-chain.
Cryptocurrency mining is the process of validating blockchain transactions and adding new blocks by solving computationally intensive mathematical puzzles. Miners are rewarded with newly created cryptocurrency. Bitcoin mining has evolved from home CPUs to industrial ASIC farms consuming gigawatts of power.
The Lightning Network is a Layer 2 payment protocol built on top of Bitcoin. It enables near-instant, near-free Bitcoin transactions by creating off-chain payment channels between parties. Only the opening and closing of channels are recorded on the Bitcoin blockchain.
Web3 is a vision of a decentralised internet built on blockchain technology, where users own their data and digital assets rather than surrendering them to tech giants. It encompasses cryptocurrencies, NFTs, DAOs, and decentralised applications.