Decentralized financeDecentralized finance (often stylized as DeFi) provides financial instruments and services through smart contracts on a programmable, permissionless blockchain. This approach reduces the need for intermediaries such as brokerages, exchanges, or banks. DeFi platforms enable users to lend or borrow funds, speculate on asset price movements using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts.
BlockchainDistributed data store for digital transactionsA blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree, where data nodes are represented by leaves).
EthereumEthereum is a decentralized blockchain with smart contract functionality. Ether (abbreviation: ETH) is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software. Ethereum was conceived in 2013 by programmer Vitalik Buterin. Other founders include Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin.
BitcoinDecentralized digital cryptocurrency BitcoinCommonly used logo of bitcoinDenominationsPluralbitcoinsSymbol₿(Unicode: U+20BF ₿ BITCOIN SIGN)CodeBTCPrecision10−8Subunits 1⁄1000millibitcoin 1⁄1000000microbitcoin 1⁄100000000satoshiDevelopmentOriginal authorSatoshi NakamotoWhite paper"Bitcoin: A Peer-to-Peer Electronic Cash System"ImplementationBitcoin CoreInitial release0.1.0 / 9 January 2009 (17 years ago) (2009-01-09)Latest release31.1.0 / 7 July 2026 (2 months ago) (2026-07-07)Code repositorygithub.com/bitcoin/bitcoinDevelopment statusActiveWritten inC++Source modelFree and open-source softwareLicenseMIT LicenseLedgerLedger start3 January 2009 (17 years ago) (2009-01-03)Timestamping schemeProof of work (partial hash inversion)Hash functionSHA-256 (two rounds)Issuance scheduleDecentralized (block reward)Initially ₿50 per block, halved every 210,000 blocksBlock reward₿3.125 (as of 2026[update])Block time10 minutesCirculating supply₿20,057,778 (as of 12 June 2026[update])Supply limit₿21,000,000ValuationExchange rateFloatingWebsiteWebsitebitcoin.org Bitcoin (abbreviation: BTC; sign: ₿) is the first decentralized cryptocurrency.
Proof of workProof of work (also written as proof-of-work, and abbreviated PoW) is a form of cryptographicproof in which one party (the prover) proves to others (the verifiers) that a certain amount of a specific computational effort has been expended. Verifiers can subsequently confirm this expenditure with minimal effort on their part.
Smart contractA smart contract is a computer program or a transaction protocol that is intended to automatically execute, control or document events and actions according to the terms of a contract or an agreement. The objectives of smart contracts are the reduction of need for trusted intermediators, arbitration costs, and fraud losses, as well as the reduction of malicious and accidental exceptions.
Application softwareApplication software is software that is intended for end-user use – not operating, administering or programming a computer. It includes programs such as word processors, web browsers, media players, and mobile applications used in daily tasks. An application (app, application program, software application) is any program that can be categorized as application software.CryptocurrencyCryptocurrency is a type of digital asset that uses distributed ledger, or blockchain, technology to enable a secure transaction. Individual coin ownership records are stored in a digital ledger or blockchain, which is a computerized database that uses a consensus mechanism to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership. The two most common consensus mechanisms are proof of work and proof of stake.Proof of stakeProof-of-stake (PoS) protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof-of-work (PoW) schemes. The first functioning use of PoS for cryptocurrency was Peercoin in 2012, although its scheme, on the surface, still resembled a PoW.
DecentralizationOrganizational theoryA diagram comparing how commands are given and executed in a centralized organization and a decentralized organizationDecentralization is the process by which the activities of an organization, particularly those related to planning and decision-making, are distributed or delegated away from a central, authoritative location or group and given to smaller factions within it.Peer-to-peerPeer-to-peer (P2P) computing or networking is a distributed computing or networking architecture in which participants share part of their own resources, such as processing power, storage, or network capacity. These resources are made directly available to other peers without reliance on intermediary entities, and participants act as both resource provider and resource requesters.*As an Amazon Associate I earn from qualifying purchases.