Bridge (Crypto)

Layer 2

A secondary protocol or framework built on top of an existing blockchain (Layer 1) to improve its scalability and transaction speed. Layer 2 solutions process transactions off the main chain and then settle the results back on Layer 1, reducing congestion and lowering fees. Popular examples include Polygon and Arbitrum for Ethereum, and the Lightning Network for Bitcoin.

Blockchain

A distributed digital ledger that records transactions across a network of computers in a way that makes the data nearly impossible to alter retroactively. Each block contains a set of transactions and is cryptographically linked to the previous block, forming a chain. This technology provides transparency, security, and decentralization without requiring a central authority.

DeFi (Decentralized Finance)

A broad category of financial applications and services built on blockchain networks that operate without traditional intermediaries like banks or brokerages. DeFi platforms allow users to lend, borrow, trade, and earn interest on their crypto assets through smart contracts. This ecosystem aims to make financial services more accessible, transparent, and open to anyone with an internet connection.

Smart Contract

A self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predetermined conditions are met. Smart contracts eliminate the need for intermediaries by running code that is transparent and cannot be altered once deployed. They are the foundation of DeFi applications, NFTs, and many other blockchain-based services.