Crypto Basics

How Does Blockchain Work? A Complete Guide for 2025

Learn how blockchain technology works in 2025. Explore its structure, components, applications, and why it powers the future of digital assets.
Token Metrics Team
5 min
MIN

Introduction to Blockchain Technology

Blockchain is the foundation of modern cryptocurrency and one of the most transformative technologies of the digital age. Initially created to support Bitcoin, blockchain has expanded into countless use cases, from decentralized finance (DeFi) to supply chain tracking, real-world asset tokenization, and artificial intelligence (AI) integration.

In 2025, understanding how blockchain works is essential—not just for crypto investors but for anyone navigating the evolving digital economy. This article explains the structure, components, and applications of blockchain in simple terms and explores how platforms like Token Metrics use blockchain data to help investors make smarter decisions.

What Is Blockchain?

At its core, blockchain is a distributed digital ledger that records transactions across a network of computers. Unlike traditional databases controlled by a single entity, blockchain operates on a decentralized network, making it secure, transparent, and tamper-resistant.

Each entry in this ledger is grouped into a “block,” and these blocks are linked (or chained) together in chronological order—hence the name blockchain.

Key Features of Blockchain

  1. Decentralization:
    No single entity controls the network. Instead, multiple participants (called nodes) maintain the ledger.

  2. Transparency:
    Transactions are visible to all participants, increasing accountability and reducing fraud.

  3. Immutability:
    Once data is recorded on a blockchain, it cannot be altered or deleted.

  4. Security:
    Blockchain uses cryptography to secure transactions and protect user identities.

How Blockchain Works: Step-by-Step

  1. Transaction Creation:
    A blockchain process begins when someone initiates a transaction, such as transferring cryptocurrency or executing a smart contract.

  2. Verification by Nodes:
    The transaction is broadcast to a network of computers (nodes). These nodes verify its validity using consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS).

  3. Block Creation:
    Once verified, the transaction is bundled with others into a block.

  4. Adding the Block to the Chain:
    The block is cryptographically linked to the previous one, creating an unbroken chain of data.

  5. Consensus & Finalization:
    The network reaches consensus, confirming the block as part of the permanent ledger.

Consensus Mechanisms: How the Network Agrees

Consensus mechanisms are protocols that ensure all nodes agree on the state of the blockchain.

  • Proof of Work (PoW):
    Used by Bitcoin, this method involves miners solving complex puzzles to validate transactions.

  • Proof of Stake (PoS):
    Used by Ethereum and many other blockchains in 2025, this energy-efficient model requires validators to stake tokens as collateral for transaction verification.

  • Other Models:
    Variants like Delegated Proof of Stake (DPoS) and Proof of Authority (PoA) aim to balance efficiency with security.

Components of a Blockchain

  1. Blocks:
    Contain transaction data, a timestamp, and a cryptographic hash.

  2. Nodes:
    Computers that maintain and validate the blockchain.

  3. Smart Contracts:
    Self-executing agreements coded directly onto the blockchain.

  4. Cryptographic Keys:
    Digital signatures that authenticate participants and secure transactions.

Public vs. Private Blockchains

  • Public Blockchains:
    Open networks like Bitcoin and Ethereum allow anyone to participate.

  • Private Blockchains:
    Restricted networks used by enterprises for applications like supply chain management.

In 2025, hybrid models combining public and private features are increasingly popular for balancing transparency with privacy.

Applications of Blockchain in 2025

  1. Cryptocurrencies:
    The primary use case remains facilitating peer-to-peer transactions with coins like Bitcoin, Ethereum, and Token Metrics AI (TMAI).

  2. Decentralized Finance (DeFi):
    Platforms for lending, borrowing, and trading without intermediaries.

  3. Real-World Assets (RWAs):
    Tokenizing physical assets like real estate or commodities.

  4. AI & Analytics:
    Platforms like Token Metrics use blockchain data to deliver AI-powered investment insights.

  5. Supply Chain Management:
    Tracking goods transparently from production to delivery.

  6. Identity Management:
    Blockchain secures personal identities and reduces fraud in digital interactions.

Benefits of Blockchain

  1. Enhanced Security:
    Blockchain’s cryptographic design makes it nearly impossible to hack or alter.

  2. Reduced Costs:
    Eliminates intermediaries, cutting transaction fees and operational expenses.

  3. Improved Efficiency:
    Enables faster transactions, especially with PoS blockchains.

  4. Global Accessibility:
    Anyone with an internet connection can participate in public blockchain networks.

Challenges Facing Blockchain

  1. Scalability:
    Handling large transaction volumes remains an issue for many networks.

  2. Regulatory Uncertainty:
    Governments are still determining how to regulate blockchain-based assets.

  3. Energy Consumption:
    Though PoS reduces energy use, PoW blockchains still face environmental concerns.

  4. Adoption Barriers:
    Enterprises and individuals need more education and tools for blockchain integration.

How Token Metrics Uses Blockchain Data

Platforms like Token Metrics take blockchain a step further by:

  • Analyzing On-Chain Data: Evaluating wallet activity, transaction volumes, and developer engagement.
  • AI-Driven Ratings: Scoring tokens based on over 80 data points, from technical performance to sentiment analysis.
  • Portfolio Optimization: Helping investors build and manage blockchain-based portfolios effectively.

By combining blockchain transparency with AI-powered analytics, Token Metrics provides a comprehensive view of crypto investments.

Practical Tips for Understanding Blockchain

  1. Experiment with Wallets:
    Set up a wallet to explore how transactions work firsthand.

  2. Use Blockchain Explorers:
    Platforms like Etherscan let you view transactions in real-time.

  3. Follow Blockchain Projects:
    Stay updated on leading networks like Ethereum, Polygon, and Token Metrics AI (TMAI).

  4. Leverage Analytics Tools:
    Use Token Metrics to interpret complex blockchain data in an investor-friendly way.

The Future of Blockchain

In 2025, blockchain continues to evolve beyond cryptocurrencies. With advances in scalability solutions, real-world asset tokenization, and AI integration, blockchain is shaping the next generation of financial systems, digital identity solutions, and decentralized applications.

As enterprises, governments, and investors adopt blockchain, its role in the digital economy will only grow.

Conclusion

Blockchain is more than a buzzword—it’s a transformative technology driving innovation across industries. By understanding how blockchain works—its structure, consensus mechanisms, and applications—you can better navigate the crypto market and the broader digital landscape.

Platforms like Token Metrics make blockchain analysis accessible and actionable, offering AI-driven insights to help investors capitalize on this rapidly expanding technology. In 2025, mastering blockchain fundamentals isn’t just helpful—it’s essential for participating in the future of finance and digital ownership.

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Token Metrics Team
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DeFi 3.0 and the Rise of Permissionless Lending – What's Changing in 2025?

Token Metrics Team
8 min
MIN

Introduction:
The DeFi landscape is evolving rapidly, and 2025 is shaping up to be a pivotal year. With innovations like permissionless lending, the ecosystem is transitioning into what many are calling DeFi 3.0. This blog explores what’s driving the shift, the platforms leading the charge, and what investors and developers need to know about this new wave.

What Is DeFi 3.0?

Decentralized finance (DeFi) has experienced two major innovation cycles:

  • DeFi 1.0 was defined by protocols like Uniswap, which revolutionized decentralized trading through automated market makers (AMMs).
  • DeFi 2.0 introduced concepts like protocol-owned liquidity, led by projects like OlympusDAO.

Now in DeFi 3.0, the focus has shifted to permissionless lending, advanced tokenomics, and integrated liquidity solutions.

The Core Drivers of DeFi 3.0

  1. Decentralization of Lending Access:
    Traditional DeFi lending platforms like AAVE require users to hold governance tokens or pass internal gatekeeping to create new markets. DeFi 3.0 protocols remove those barriers, allowing anyone to participate more freely.

  2. Integrated Liquidity and Lending:
    New platforms are enabling liquidity provision and borrowing from the same pool—merging the utility of DEXs with money markets.

  3. Improved Capital Efficiency:
    DeFi 3.0 focuses on optimizing the use of locked capital. Through smart contract automation, platforms allow users to earn on idle funds, reduce slippage, and optimize collateral.

Leading Platforms in the DeFi 3.0 Movement

1. Euler Finance
Euler has grown to over $1B in total value locked (TVL) and is rolling out a key innovation: EulerSwap. This module lets protocols provide liquidity for both swaps and borrowing in a single pool.
Key features:

  • Dual-purpose liquidity (swap + lending)
  • “Just-in-time” borrowing mechanisms
  • Smart contract automation for optimized usage

2. Morpho
Morpho is another high-growth player. With support from Coinbase and over $4B in TVL, it's becoming a serious challenger to AAVE. Its permissionless lending architecture and novel liquidity provisioning model stand out.

3. Hyperliquid
While not a lender per se, Hyperliquid’s approach to perpetuals (perps) trading is noteworthy. It has captured 11% of Binance’s perp market share, signaling DeFi’s growing ability to challenge centralized platforms.

Why Permissionless Lending Matters

The benefits of removing centralized control over lending markets include:

  • Faster innovation and product launches
  • Greater financial inclusion for emerging projects
  • Risk-based pricing by the market, not centralized governance
  • Enhanced decentralization and resilience

However, challenges remain. The risk of undercollateralized positions and protocol exploits still exist. That’s why security—such as smart contract audits and on-chain firewalls—is critical.

The Role of Token Metrics in Tracking DeFi 3.0

During the webinar, the Token Metrics team highlighted how their platform tracks the performance of DeFi 3.0 projects using metrics like:

  • TVL growth rate
  • Trader grade and investor grade
  • Bullish or bearish signals based on 80+ data points

For example, Euler’s bullish signal flipped just before a 30% price rise, demonstrating the value of data-driven insight in volatile markets.

What's Next for DeFi?

As the cycle evolves, we expect:

  • A proliferation of permissionless lending protocols across L1s and L2s
  • Better capital efficiency tools
  • Greater interoperability across EVM chains and Solana
  • On-chain integrations with tokenized real-world assets

Final Thoughts

DeFi 3.0 is not just hype—it represents a fundamental shift in how decentralized finance operates. Permissionless lending, composable liquidity, and institutional-grade risk controls are turning DeFi into a more mature, scalable ecosystem.

As always, perform your own due diligence and keep an eye on platform fundamentals, smart contract risk, and ecosystem adoption.

Research

Top 5 AI Tokens in 2025: Revolutionizing Crypto with Artificial Intelligence

Token Metrics Team
8 min
MIN

Artificial intelligence has transformed every corner of the crypto industry—from trading and analytics to sentiment tracking and smart contract automation. In 2025, AI-powered crypto platforms have surged in popularity, delivering real-time insights, automation, and efficiency that were previously unimaginable.

In this article, we highlight the top 5 AI tokens in 2025: Token Metrics ($TMAI), Kaito AI ($KAITO), Cookie.fun ($COOKIE), Arkham Intelligence ($ARKM), and ChainGPT ($CGPT)—and show why Token Metrics stands out as the gold standard.

1. Token Metrics ($TMAI): The Smartest AI Trading Platform in Crypto

Token Metrics is leading the AI revolution in crypto investing. Known for its AI-powered analytics, signals, and portfolio tools, the platform is a go-to resource for retail and institutional traders alike.

Key Features:

  • AI Buy/Sell Signals: Trained on historical price, sentiment, and on-chain data, Token Metrics generates bullish and bearish calls across thousands of crypto assets.
  • Trader & Investor Grades: Each token receives real-time AI-based scores (0–100), offering a clear snapshot of short-term momentum and long-term strength.
  • AI Chatbot: A conversational interface that lets users ask natural-language queries about market trends, token grades, and price forecasts.
  • Trading Bot: Users can automate execution based on Token Metrics’ signals, either on centralized exchanges or via self-custody strategies.
  • MCP Server Integration: Connects with ChatGPT, Claude, Cursor IDE, and more—enabling developers and analysts to pull Token Metrics data across multiple tools.

$TMAI Token Utility:

  • Unlock premium analytics and signal tiers
  • Staking rewards and fee discounts
  • Governance and roadmap input
  • Developer API access and automation credits

Why $TMAI Is the Best AI Crypto Token:

Unlike other platforms focused on niche utilities, Token Metrics delivers a full-stack AI solution. Its analytics engine is transparent, quantifiable, and tested—used by hedge funds, crypto pros, and AI researchers. The $TMAI token ties everything together with utility, access, and community incentives. In a market full of hype, Token Metrics offers data-driven, AI-validated decisions—a must-have edge for serious traders.

2. Kaito AI ($KAITO): Web3’s Information Aggregator

Kaito AI is a specialized platform tackling one of crypto’s biggest problems: information overload. It uses a custom Large Language Model (LLM) to aggregate and analyze content from X (Twitter), news sites, blogs, and community forums.

Core Features:

  • Mindshare Tracking: Monitors which tokens dominate conversation and sentiment across platforms
  • Sentiment Analysis: Real-time mood scores derived from influencers, headlines, and user engagement
  • Yaps Program: Users earn points for sharing useful content, which may convert into $KAITO tokens

$KAITO Token Utility:

  • Platform access and insights
  • Governance voting
  • Community curation rewards

Strengths:

  • Early identification of narrative shifts
  • Deep focus on information flow and crowd psychology

Limitations:

While Kaito is excellent at detecting narrative momentum, it lacks predictive analytics or execution tools, making it more of a research layer than an active trading solution. Still, it’s an important piece for sentiment-aware investors.

3. Cookie.fun ($COOKIE): Gamified Trading Meets AI

Cookie.fun is a Gen-Z-targeted platform that fuses AI-powered trading insights with gamified investing experiences.

Notable Features:

  • Telegram AI Assistant: Provides user-specific trading signals and alerts
  • Gamified Leaderboards: Trade to climb ranks and win $COOKIE tokens
  • Social Trading Features: Users can mimic top traders or form groups to pool strategies

$COOKIE Token Utility:

  • In-app rewards and incentives
  • Staking for power-ups
  • Marketplace for NFT avatars and in-game tools

Who It’s For:

Cookie.fun’s lighthearted UX and AI-enhanced suggestions appeal to newer, casual investors. It doesn’t match Token Metrics’ analytical depth but makes crypto accessible and fun—an important factor for onboarding the next wave of retail users.

4. Arkham Intelligence ($ARKM): AI for On-Chain Forensics

Arkham Intelligence offers one of the most advanced AI-powered blockchain intelligence platforms, designed to uncover hidden relationships and wallet identities.

Core Capabilities:

  • ULTRA AI Engine: Links pseudonymous wallets to real-world identities
  • Intel Exchange: A decentralized data marketplace for buying/selling wallet intelligence
  • Dashboards & Alerts: Monitor whale wallets, smart money flows, and suspicious activity

$ARKM Token Utility:

  • Access to the Intel Exchange
  • Bounty rewards
  • Platform governance

Ideal Use Cases:

  • Whales tracking and forensic analysis
  • Scam detection and compliance reporting
  • Portfolio flow transparency

Trade-Offs:

Arkham is laser-focused on on-chain visibility, not market timing or trade execution. For users who want to know who’s moving money—and why—Arkham is unmatched. But it doesn’t replace a complete AI trading platform like Token Metrics.

5. ChainGPT ($CGPT): AI Tools for Smart Contract Automation

ChainGPT offers a suite of AI-powered tools for developers, traders, and researchers in the crypto space.

Highlight Features:

  • AI Chat Assistant: Similar to ChatGPT but trained on blockchain topics
  • Smart Contract Generator: Auto-generates and audits Solidity code
  • Trading Assistant: Analyzes charts and on-chain data to produce trade suggestions
  • News Aggregator: AI-summarized crypto headlines

$CGPT Token Utility:

  • Access to tools and premium models
  • Developer credits
  • Ecosystem governance

Audience:

ChainGPT is ideal for technical users, developers, and power traders looking for coding help, risk management support, and project analysis. While useful, its trading tools aren’t as focused or optimized for performance as Token Metrics’ core offerings.

Why Token Metrics Dominates the AI Crypto Landscape

Token Metrics combines AI-grade analytics, execution, automation, and alerts, all under one unified system. It supports custom index building, signals, dashboards, rebalancing agents, and integrations with every major AI tool in the developer ecosystem.

🏁 Final Thoughts

The AI crypto boom is well underway in 2025. Each of the platforms covered—Kaito AI, Cookie.fun, Arkham, ChainGPT—offers specialized tools and insights. But for investors and traders seeking a complete, AI-first trading stack, Token Metrics ($TMAI) is the undisputed leader.

Whether you're a seasoned investor or a crypto newcomer, $TMAI gives you the intelligence, precision, and automation needed to thrive in today’s volatile markets.

Research

Top 5 Crypto Trading Platforms in the UK in 2025 – AI Tools for Crypto Traders

Token Metrics Team
8 min
MIN

In 2025, the UK’s cryptocurrency market continues to grow as retail investors, institutions, and tech-savvy traders turn to digital assets as a way to build wealth and diversify their portfolios. With more platforms than ever offering crypto access, the challenge is no longer just buying Bitcoin—it’s choosing the best crypto trading platform to help you make intelligent decisions.

This guide highlights the top 5 crypto trading platforms in the UK in 2025, with a special focus on the emergence of AI crypto trading tools that are transforming the way smart investors trade. At the top of our list is Token Metrics, a platform that’s redefining crypto trading through artificial intelligence and cutting-edge analytics.

What Makes a Great Crypto Trading Platform?

Before diving into the list, let’s clarify what qualifies a platform as one of the best in 2025. A top-tier crypto trading platform should:

  • Be compliant with UK financial regulations
  • Offer intuitive tools for trading, research, and portfolio management
  • Include advanced features such as charting, automated insights, or AI analytics
  • Provide real-time data, alerts, and security
  • Empower both beginners and professional traders

Now let’s explore the platforms setting the standard in the UK’s crypto landscape.

1. Token Metrics – The Best AI Crypto Trading Platform in the UK (2025)

Website: www.tokenmetrics.com

Token Metrics is not a centralized exchange, but it’s hands-down the best crypto trading platform in the UK for traders who want to level up their strategy with AI, data, and deep insights. It helps you decide what to trade, when to trade, and why—before the rest of the market catches up.

🔍 Why It’s #1:

  • AI-Powered Ratings: Each token is evaluated using machine learning models across multiple dimensions—technical indicators, fundamentals, sentiment, and on-chain data.
  • Bullish & Bearish Alerts: Real-time AI signals notify you of trending opportunities before prices explode or dump.
  • Smart Indices & Portfolios: Build or follow crypto index strategies based on sector (AI, DeFi, Gaming), risk tolerance, or momentum.
  • Moonshot Reports: Weekly research uncovering low-cap gems with 10x–100x potential.
  • Custom Alerts: Get notifications on token movements, volume spikes, social mentions, and AI rating changes.

✅ Best For:

  • UK crypto traders who want to trade smarter, not harder
  • Investors looking to combine on-chain data, AI signals, and narrative trends
  • Institutions or power users seeking actionable research

Bonus:

Token Metrics integrates with most top UK exchanges, allowing you to use its insights and then place your trades on Coinbase, Binance, Kraken, or others.

2. Coinbase UK – Beginner-Friendly and FCA-Compliant

Coinbase is one of the most recognized crypto platforms globally and remains a popular option in the UK due to its FCA registration, simple interface, and strong security practices.

🔍 Key Features:

  • Supports GBP deposits and withdrawals via bank transfers
  • Easy onboarding process for first-time users
  • Insurance-backed custody
  • Advanced charting available via Coinbase Advanced Trade

✅ Best For:

  • Beginners and casual investors
  • Users looking for a trusted, regulated brand

While it lacks advanced AI crypto trading tools, Coinbase can be easily paired with Token Metrics to enhance your trading decisions.

3. Kraken – Advanced Trading with Institutional-Grade Tools

Kraken is well-known for its security, reliability, and robust trading tools. It’s a favorite among professional traders in the UK who require advanced options like futures and margin trading.

🔍 Key Features:

  • Deep liquidity across many trading pairs
  • Futures, options, margin trading, and staking
  • Strong security reputation
  • Free educational materials and market analysis

✅ Best For:

  • Intermediate to professional traders
  • Users who want advanced order types and charting tools

Kraken users can enhance their strategies by combining the exchange with Token Metrics’ AI trading indicators and portfolio grading tools.

4. eToro UK – Social and Copy Trading Made Easy

eToro is a multi-asset platform with a strong UK presence. It allows users to trade crypto, stocks, commodities, and ETFs—all in one place. Its social trading model sets it apart.

🔍 Key Features:

  • Copy Trading: Follow successful traders and replicate their trades
  • FCA-regulated in the UK
  • Crypto wallet included
  • Simple, mobile-first interface

✅ Best For:

  • Beginners who prefer passive strategies
  • Investors looking to diversify beyond crypto

While not known for deep analytics or on-chain insights, eToro pairs well with Token Metrics’ AI crypto trading research for smarter trade discovery and risk management.

5. Binance UK – Advanced Trading, Low Fees, Massive Token Selection

Despite regulatory scrutiny in prior years, Binance UK has adapted to meet local compliance standards and continues to be a dominant force in the trading ecosystem. It offers the widest variety of crypto pairs with the lowest fees among major exchanges.

🔍 Key Features:

  • GBP support with fast bank transfers
  • Deep liquidity and tight spreads
  • Futures, margin, and spot trading
  • Earn tools for staking, lending, and liquidity farming

✅ Best For:

  • Active traders
  • Altcoin hunters
  • Yield-seeking investors

Binance users can plug their trading into Token Metrics’ AI-powered coin ratings and signals to make data-backed decisions on entry and exit points.

Why Token Metrics + Your Favorite Exchange = Smart Trading

Each of the above platforms allows UK users to trade crypto, but none of them combine artificial intelligence, deep analytics, and actionable signals like Token Metrics does.

Pairing Token Metrics with your favorite UK exchange gives you the ultimate edge:

  • Discover moonshots before they trend
  • Use AI grades to filter coins based on fundamentals and momentum
  • Track social sentiment and on-chain spikes in real time
  • Set up custom alerts for your portfolio

Final Thoughts: Trade Smarter in the UK with AI in 2025

The UK crypto market is one of the most regulated and promising globally, with platforms like Coinbase, Kraken, and Binance making access seamless. But in 2025, it’s no longer enough to just buy and hold—you need smart tools, AI insights, and real-time data to stay competitive.

That’s why Token Metrics is the best crypto trading platform in the UK for traders who want an edge. Whether you're building a long-term portfolio or swing trading altcoins, the combination of AI, predictive analytics, and narrative tracking makes Token Metrics an indispensable part of any smart trader’s stack.

✅ Ready to level up your crypto trading?

Start your AI crypto trading journey today at www.tokenmetrics.com

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