Blockchain

A wallet is the “purse” of the crypto world. Well-known wallets are MetaMask or the Trust Wallet. They are needed for tracking virtual assets, receiving and sending cryptocurrency and digital goods. Each wallet can store multiple wallet addresses. There are wallets that only interact with one blockchain and others that allow access to wallet addresses on different blockchains.

The "proof of stake" consensus process (staking for short) performs a function similar to mining in that it is a process by which a network participant is selected to add the most recent transaction packet to the blockchain in exchange for a reward in cryptocurrencies.

Cryptocurrencies, such as Bitcoin (BTC) and Ethereum 1.0 (ETH), use a consensus process called Proof of Work. The network solves so-called “problems” using enormous computing power. So it's about validating transactions between two people. A transaction is, for example, a payment in cryptocurrency or the conclusion of a smart contract.

Cryptocurrencies are typically decentralized, meaning there is no central authority making decisions. So the computers (nodes) in a decentralized network have to find the right answer to make the right decision without a central authority such as a bank or credit card company dictating it? They use a “consensus method” for this.

The common consensus methods are Proof of Work (PoW) and Proof of Stake (PoS).

It is the conversion - minting - of a digital file into a cryptographic (collective) object that is stored on a blockchain. Such an object can be a non-fungible token (NFT) or a coin, for example. Because it is stored on the blockchain, it is not possible to delete or alter the object.

With blockchain technology, ownership of digital assets can be regulated and secured more directly and efficiently, as it provides a complete and immutable record of data.

All data is simultaneously stored in encrypted form on different computers and servers worldwide. These computers are called nodes. Each transaction is thus stored decentrally. Even if several of the nodes fail, the data can be retrieved reliably.

Decentralized finance, or DeFi for short, offers financial instruments that, unlike the classic financial sector, are not subject to the management and control of a central middleman such as banks, stock exchanges or brokers.
In DeFi applications, this task is performed by the network of participants, which is based on the “rules of the game” of the respective blockchain protocol.