In the semantics of programming, nite data types such as finite lists, have traditionally been modelled by initial algebras. Later final coalgebras were used in order to deal with in finite data types. Coalgebras, which are the dual of algebras, turned out to be suited, moreover, as models for certain types of automata and more generally, for (transition and dynamical) systems. An important property of initial algebras is that they satisfy the familiar principle of induction. Such a principle was missing for coalgebras until the work of Aczel (Non-Well-Founded sets, CSLI Leethre Notes, Vol. 14, center for the study of Languages and information, Stanford, 1988) on a theory of non-wellfounded sets, in which he introduced a proof principle nowadays called coinduction. It was formulated in terms of bisimulation, a notion originally stemming from the world of concurrent programming languages. Using the notion of coalgebra homomorphism, the definition of bisimulation on coalgebras can be shown to be formally dual to that of congruence on algebras. Thus, the three basic notions of universal algebra: algebra, homomorphism of algebras, and congruence, turn out to correspond to coalgebra, homomorphism of coalgebras, and bisimulation, respectively. In this paper, the latter are taken

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The classical theory of deterministic automata is presented in terms of the notions of homomorphism and bisimulation, which are the cornerstones of the theory of (universal) coalgebra. This leads to a transparent and uniform presentation of automata theory and yields some new insights, amongst which coinduction proof methods for language equality and language inclusion. At the same time, the present treatment of automata theory may serve as an introduction to coalgebra.

Coalgebra is used to generalize notions and techniques from concurrency theory, in order to apply them to problems concerning the supervisory control of discrete event systems. The main ingredients of this approach are the characterization of controllability in terms of (a variant of) the notion of bisimulation, and the observation that the family of (partial) languages carries a final coalgebra structure. This allows for a pervasive use of coinductive definition and proof principles, leading to a conceptual unification and simplification and, in a number of cases, to more general and more efficient algorithms.