Decentralised Finance

Blockchain

A distributed, immutable digital ledger that records transactions across a network of computers without a central authority.

Distributed Ledger Technology

A digital system for recording, sharing, and synchronising data across multiple sites without a central administrator.

Consensus Mechanism

The method by which a distributed network agrees on the current state of the ledger and validates transactions.

Proof of Work

A consensus mechanism requiring computational effort to validate transactions and create new blocks, used by Bitcoin.

Proof of Stake

A consensus mechanism where validators are selected based on the amount of cryptocurrency they hold and stake.

Delegated Proof of Stake

A consensus mechanism where token holders vote for delegates who validate transactions on their behalf.

Byzantine Fault Tolerance

The ability of a distributed system to reach consensus despite some nodes acting maliciously or failing.

Merkle Tree

A hash-based data structure that efficiently verifies the integrity and consistency of large sets of data.

Hash Function

A mathematical function that converts input data of any size into a fixed-size output, used extensively in blockchain security.

Cryptographic Hash

A one-way function producing a fixed-length output that is computationally infeasible to reverse or find collisions for.

Public Key Cryptography

An encryption system using mathematically linked key pairs — a public key for encryption and a private key for decryption.

Digital Signature

A cryptographic mechanism that verifies the authenticity and integrity of digital messages or documents.

A service that provides external real-world data to blockchain smart contracts that cannot access off-chain information directly.

A self-sovereign identity framework where individuals control their own digital identity credentials without centralised authorities.

A mechanism that allows users to stake cryptocurrency while receiving a liquid derivative token representing their staked position, maintaining capital flexibility during the lock-up period.

Bank deposits represented as digital tokens on a blockchain, enabling programmable settlement, interbank transfers, and integration with decentralised financial infrastructure.

A decentralised oracle network that connects smart contracts with external data sources, APIs, and payment systems.

A digital form of fiat currency issued and regulated by a country's central bank on blockchain infrastructure.

Converting rights to real-world assets into digital tokens on a blockchain for fractional ownership and trading.

The ability of different blockchain networks to communicate, share data, and transfer assets seamlessly, enabling cross-chain applications and unified digital asset ecosystems.