1. Blockchain:

    • A blockchain is a series of blocks containing transaction data, secured and linked using cryptographic techniques.
    • Each block is validated by the network using consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS).

  2. Wallets:

    • Users store their cryptocurrencies in digital wallets, which can be software-based (online or mobile) or hardware-based (offline devices).

  3. Transactions:

    • To send or receive crypto, users use public keys (addresses) and private keys (digital signatures) to verify ownership.

  4. Mining/Staking:

    • Mining: In PoW systems like Bitcoin, miners solve complex mathematical problems to validate transactions and add them to the blockchain, earning rewards.
    • Staking: In PoS systems like Ethereum, users lock up their tokens as collateral to validate transactions and earn rewards.