. Data Structures arising in programming are conveniently modeled by universal algebras. State based and object oriented systems may be described in the same way, but this requires that the state is explicitly modeled as a sort. From the viewpoint of the programmer, however, it is usually intended that the state should be "hidden" with only certain features accessible through attributes and methods. States should become equal, if no external observation may distinguish them. It has recently been discovered that state based systems such as transition systems, automata, lazy data structures and objects give rise to structures dual to universal algebra, which are called coalgebras. Equality is replaced by indistinguishability and co-induction replaces induction as proof principle. However, as it turns out, one has to look at universal algebra from a more general perspective (using elementary category theoretic notions) before the dual concept is able to capture the relevant ...