Blockchain Lexicon - The Most Important Terms Topic Blockchain
Blockchain Lexicon - The Most Important Terms Topic Blockchain
Blockchain: A blockchain is a decentralized, transparent and unchangeable digital database that stores transactions or information in blocks. Each block is linked to the previous block, which enables a secure and tamper-proof record.
Cryptocurrency: Cryptocurrencies are digital currencies based on blockchain technology. They enable peer-to-peer transactions and use cryptographic methods to ensure the security and integrity of transactions. Examples of cryptocurrencies are Bitcoin, Ethereum, Ripple, etc.
Smart contracts: Smart contracts are self-executing contracts based on blockchain technology. They automate the execution of contracts and enable the parties to carry out transactions securely and trustworthily without intermediaries.
Decentralization: Decentralization refers to the aspect that blockchain networks have no central authority or control. The information and transactions are verified and validated by a large number of participants, creating trust and security.
Distributed ledger: A distributed ledger is a distributed database that stores information about transactions or digital assets in a blockchain network. Each participant in the network has a copy of the ledger, which leads to transparency and protection against forgery.
Mining: Mining is the process of creating new blocks in a blockchain and verifying transactions. Miners use their computing power to solve complex mathematical problems and are rewarded with cryptocurrency.
Tokenization: Tokenization refers to the conversion of real assets or rights into digital tokens that are represented on a blockchain. This enables easy transferability, tradability and management of assets.
Private/public blockchain: Private blockchains are blockchain networks that are operated by a single organization or a selected group of participants. Public blockchains, on the other hand, are open to everyone and can be used by any participant.
Consensus mechanisms: Consensus mechanisms are the rules and protocols according to which decisions are made about the validity of transactions in a blockchain network. Examples of consensus mechanisms are Proof of Work (PoW), Proof of Stake (PoS) and Delegated Proof of Stake (DPoS).
Blockchain applications: Blockchain technology is used in various areas such as finance, insurance, supply chain management, healthcare, identity management and more. Innovative solutions are being developed to improve efficiency, transparency and security in these areas.