Blockchain technology

Blockchain technology is an open-source distributed ledger protocol first described in 2008 under the pseudonym Satoshi Nakamoto. The technology is best known for its decentralized nature thanks to its distributed consensus mechanism. In comparison to centralized databases, blockchain applications provide transparency and traceability without sacrificing data privacy.

cryptocurrency

Cryptocurrency is digital money designed to work as a medium of exchange using cryptography (most commonly encryption). Cryptocurrencies use peer-to-peer networks rather than banks or governments to facilitate transactions. A number of cryptocurrencies were created in recent years, including Bitcoin.

decentralization

Decentralization occurs when network users do not have any central control over the nodes; instead, each node is free to make decisions based on local conditions. Compared to traditional systems where a few powerful entities dictate terms, decentralized systems allow anyone to participate regardless of wealth or physical location.

smart contract

A smart contract is a computerized transaction protocol that executes the terms of a contract. Smart contracts are written into code - just like normal contracts, but they run on computers and can automatically execute their terms without needing a middleman service provider.

token

A token is a small amount of digital currency that uses cryptography to secure and verify transactions. Tokens are issued by companies that want to build loyalty programs, reward points, or donations. These tokens are often called crypto-tokens or simply “tokens”.

ICO

An Initial Coin Offering (ICO) is a type of capital crowdsale in which a company offers investors a share of the business in exchange for cash or cryptocurrency. Businesses conduct initial coin offerings when launching a start-up business or building out an existing company's product/services.