Glossary of Blockchain terms
A
Address
A unique string of characters that represents a destination on the blockchain where cryptocurrency can be sent or received.
B
Block
A collection of transactions that are bundled together, verified, and added to the blockchain.
Blockchain
A decentralized and distributed digital ledger that records data (like transactions) in blocks linked together in chronological order.
C
Consensus Mechanism
The process by which a blockchain network agrees on the validity of transactions and maintains security (e.g., Proof of Work, Proof of Stake).
Cryptography
The practice of using secure algorithms and encryption techniques to protect data and communications on the blockchain.
D
Decentralization
A system where control and decision-making are distributed across a network, rather than being centralized in a single authority.
Distributed Ledger
A type of database that is shared, replicated, and synchronized across multiple participants and locations.
E
F
Fork
A change in the rules of a blockchain network, resulting in a split into two separate blockchains (e.g., Bitcoin and Bitcoin Cash).
G
Genesis Block
The very first block in a blockchain, from which all subsequent blocks originate.
H
Hash
A fixed-length string generated from data using a cryptographic function; used to secure data and create links between blocks.
I
Immutability
Once data is recorded on the blockchain, it cannot be altered or deleted, ensuring transparency and trust.
J
K
L
Ledger
A record-keeping system that logs transactions or data entries, either centralized or decentralized.
M
Node
Any computer that participates in a blockchain network, maintaining a copy of the ledger and helping validate transactions.
N
O
P
Permissionless Blockchain
A public blockchain where anyone can join, validate transactions, and participate (e.g., Bitcoin, Ethereum).
Permissioned Blockchain
A blockchain where only approved participants can access or contribute to the network (often used in enterprises).
Proof of Stake (PoS)
A consensus mechanism where validators are chosen based on the number of tokens they “stake” as collateral.
Proof of Work (PoW)
A consensus mechanism where miners solve complex mathematical problems to validate transactions and create new blocks.
Q
R
S
Smart Contract
A self-executing contract with code that automatically performs actions when predefined conditions are met.
T
Tokenization
The process of converting real-world assets (like real estate or art) into digital tokens on a blockchain.
U
V
Validator
A participant in a blockchain network that verifies transactions and ensures they are correctly added to the blockchain.
W
X
Y
Z
