Block Chain Vocabulary

A decentralized, distributed, and immutable digital ledger used to record transactions across many computers so that the record cannot be altered retroactively.

The broader category of technology of which blockchain is a specific type. It refers to any database that is shared and synchronized across multiple sites or institutions.

The core principle of blockchain, meaning control and decision-making are transferred from a centralized entity (like a bank or government) to a distributed network.

The characteristic of a blockchain that ensures transactions, once recorded, cannot be changed or deleted, providing a permanent and unalterable record.

A self-executing contract with the terms of the agreement written directly into code. It automatically executes actions when predefined conditions are met.

The set of rules used by a blockchain network to achieve agreement on the validity of transactions, ensuring the ledger is consistent across all nodes.

A common consensus mechanism that requires participants (miners) to solve complex mathematical problems to validate transactions and create new blocks.

An alternative consensus mechanism where participants are chosen to validate transactions based on the number of coins they hold or "stake."

A computer or server that participates in a blockchain network, holding a full or partial copy of the ledger and helping to validate and relay transactions.

A unique, fixed-length string of characters generated by a cryptographic function that represents a block of data. It ensures the integrity of the data.

The process of converting rights to a physical or digital asset into a digital token on a blockchain, enabling easier trade and fractional ownership.

A unique cryptographic token on a blockchain that represents ownership of a specific, one-of-a-kind asset, such as digital art or a collectible.

An application that runs on a decentralized peer-to-peer network (the blockchain) rather than on a single, central server.

A permissionless blockchain that anyone can join, read, and write to. Transactions are transparent to all participants (e.g., Bitcoin).

A permissioned blockchain controlled by a single organization. The central authority determines who can join the network and what rights they have.

A semi-private blockchain governed by a group of organizations rather than one entity, often used for industry collaborations.

A change in a blockchain's protocol. A "soft fork" is a backward-compatible update, while a "hard fork" creates a permanent split into a new, separate blockchain.

A software application or hardware device that stores public and private keys, allowing users to send, receive, and manage their crypto assets.

The ability to trace the origin and history of an asset. Blockchain is used to create a secure and transparent record of provenance, especially in supply chain.

A key business use case for blockchain, used for tracking goods from origin to final destination, increasing transparency, and reducing fraud.

Third-party services that provide smart contracts with external, real-world information (e.g., weather data, price information) needed to execute agreements.

Transaction fees paid by users to compensate for the computing energy required to process and validate transactions on a blockchain, most notably Ethereum.

The ability of different blockchain networks to exchange information and value with each other seamlessly.

The use of blockchain to create a secure, self-sovereign identity that individuals can control and share without relying on a central authority.