While Bitcoin (BTC) is the first blockchain network, the technology has evolved far past a simple financial transaction. When Vitalik Buterin and his colleagues proposed Ethereum (ETH) in 2013, they set their sights on something much broader — a decentralized way of life.

Buterin envisioned a blockchain-based internet, one where users had control instead of corporations. To do so, Ethereum would power what are essentially automated if-then statements called smart contracts. These contracts are immutable, as rules and limitations were baked into their code. This means any party can transact without an intermediary, removing the need for centralized platforms.

Interestingly, 2014 saw the release of a report defining the DApp, named “The General Theory of Decentralized Applications, Dapps.” It was written by various authors with experience in the space such as David Johnston and Shawn Wilkinson.


Decentralized finance (DeFi) is a successful implementation of blockchain technology that serves as a promising alternative to traditional finance. As the name suggests, DeFi is a blanket term used for a variety of financial products and services that run on decentralized blockchains.

DeFi applications (DApps) are built to eliminate the middleman in financial transactions, historically championed by the traditional financial institutions such as banks. The technology does this by implementing a blockchain-based trust mechanism that allows secure peer-to-peer (P2P) transactions without paying a commission to the bank.

Growing use cases around decentralized finance have opened up new avenues for earning passive income for DeFi investors. To generate passive income, investors need to commit their DeFi assets as resources to confirm transactions and execute processes over the proof-of-stake (PoS) consensus mechanism.


Genaro Network (GNX)

First smart data ecosystem with a Dual-Strata Architecture. See full blog at Smart Data Ecosystem Publication or https://medium.com/genaro-network

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store