Decentralization occurs when individuals or nodes work collectively in a distributed manner to achieve an objective.
Decentralized Application (dApp)
A dApp is an application that runs on a P2P network of computers rather than a central computer, thus uncontrolled by any single entity.
Decentralized Autonomous Organization (DAO)
A DAO is an organization run by rules hard-coded in smart contracts, which define what actions the organization will take.
Decentralized Exchange (DEX)
An exchange which enables users to trade directly from their own wallets peer-to-peer, with no central intermediary.
Decentralized Finance (DeFi)
DeFi, or Open Finance, is the movement to decentralize financial services such as loans, trading, insurance, and more, via an ecosystem of decentralized financial applications built on blockchain networks.
A cryptocurrency or virtual asset, usually valued in coins or tokens.
A unique alphanumeric “code” that is generated for every transaction. Just like your signature provides the proof of ownership on a document, similarly, a digital signature provides the proof that the transaction is genuine. Unlike a handwritten signature, a digital signature is unique for every transaction.
In a double spend, an asset is spent more than once in conflicting transactions. Double spends are prevented by algorithms within the blockchain, but can occur in combination with a 51% attack, if the attacker controls more than half of the hashrate. See 51% attack.