Blockchain Glossary and Key Terms
We often hear a lot about blockchain, but many of us don’t quite know how to navigate this concept. This technology has gained global attention, and it is revolutionizing various industries indeed. It is important to familiarize ourselves with some key terms and concepts associated with it, and in this article, we will provide a short overview of such terms, to shed some light on the matter of blockchain.
What is Blockchain?
With the term blockchain, we define the decentralized and distributed digital ledger able to record transactions across multiple computers or nodes. As each transaction is recorded as a block, each one of them is then linked to the previous block, creating the proverbial chain. This makes it transparent, immutable, and secure.
To help you navigate this world, there are many useful resources, such as Crypto Wiki, but before diving deeper into this world, it is essential to understand the meaning of some core concepts. One of the main concepts is cryptocurrency, which refers to a digital or virtual form of currency that relies on cryptographic techniques to secure transactions. These currencies are, for example, bitcoins.
Smart Contract and Decentralization : Smart Contract
Another two important concepts are the ones of smart contract and decentralization. A smart contract is a self-executing digital contract that runs on blockchain. It enforces terms and conditions stipulated in a previous agreement between parties, and it eliminates the need for intermediaries. These contracts are immutable and transparent and are becoming very popular in the world of blockchain.
To help you dive deeper into the world of blockchain, you can use some useful online tools such as some comparison websites, a Web3 Comparison Site being a good example. These kinds of websites are beneficial as they help you compare different items to figure out the pros and cons of every single one of them. These tools can help you navigate the world of blockchain with the right set of skills and knowledge to make sure to get the best out of it without occurring in unnecessary risks and without having to ask for external help while discovering all the perks of the world of blockchain.
Decentralization
Decentralization is another very important concept, which refers to the distribution of power and control across multiple nodes or participants in a network, like a blockchain network. These networks eliminate the need for a central authority, and they increase independence and transparency.
