Initially, crypto programmes were based on the Proof of Work(PoW) or Proof of Stake (PoS). PoW is a system of transactions which are verified without depending on a third party. PoW requires substantial computing power to solve cryptographic algorithms to verify transactions within a block. It is done to verify obviating the need for a third party. The solving of the algorithm is called PoW.

Proof of Stake (PoS) is a process of validation of block transactions as per the number of coins held by a person. It means that the mining power of individuals corresponds to the number of coins they possess. Ethereum is the second most popular cryptocurrency after Bitcoin on which most crypto platforms are based. It aims to turn to PoS platforms. The apps used here are called decentralised apps or dApps. These use blockchain for data storage and smart contracts. These contracts are self-executing in consonance with the terms of transactions of the agreement which is codified. The code and agreement exist within the decentralised blockchain. The code governs the execution of contracts. The transactions are trackable.