Top 15 Blockchain terms that you should be aware of

Written by Sushanth Kumar Reddy Kura | Published a month ago | 5 min read

   


Blockchain is a consensus-based secure decentralized public/private database which stores information immutably over a peer-to-peer network. Whatever you store in the blockchain it is referred to as a transaction. Once the information or transaction gets stored in the blockchain it becomes immutable which means no one can change it, which brings more trust and integrity to the data.

Below are some of the important terms related to the blockchain that you need to be aware of.


1. Nodes

Computers distributed across the network are called nodes. Each node maintains an entire copy of the blockchain. As the new nodes enter into the blockchain network an entire copy of the blockchain and access to the blockchain are distributed to them.


2. Consensus

The consensus is a mechanism through which various nodes in the blockchain come to a common agreement regarding the current state of the network.


3. Double Spending

Double spending is a kind of an attack that occurs in the crypto space which basically refers to spending a digital currency twice.


4. Genesis Block

Genesis block basically refers to the first block of the blockchain. It is taken as a base and the rest of the blocks are built on it forming a chain of blocks which will usually refer to as a blockchain.


5. Block Height

It is the total number of blocks present in the blockchain. It is basically the measure of the amount of data present in the blockchain.


6. DAO (Decentralized Autonomous Organization)

It is a decentralized organization that is not controlled by any central authority. The rules are basically written in code inside a DAO and it is controlled by the token holders (shareholders)


7. Sharding

It refers to the dividing of the entire network into small pieces called “shards”. Each shard will contain its own smart contract and account balances.


8. Difficulty

It refers to the difficulty with which a new block of transactions can be added to the blockchain. In Bitcoin, the difficulty is adjusted for every 2016 blocks to adjust the time of mining a new block at about 10 mins


9. Consortium

It is basically a private blockchain that is run by a company or group of companies. It is a blockchain that is suitable for dealing with information that is inappropriate for public release. It is used to send information privately and immutably between two parties.


10. Block Explorer

It is used to read and analyze the data that is present on the public blockchain. By entering a wallet address the whole history of the blocks that a particular wallet has dealt with can be revealed.


11. Byzantine Fault Tolerance

It is a consensus mechanism in which the network is said to reach consensus only if no more than 1/3 of its actors are malicious.


12. Hyperledger

It is a set of tools offered by IBM and hosted by the Linux foundation which are used to create private blockchains at the enterprise level.


13. Oracle

Oracles in the blockchain space refer to the applications that connect and provide real-world data to the blockchain applications. They are used to provide inputs like price feeds, temperatures, etc


14. Immutability

It is basically the property of the data to be unalterable. It is one of the important features of blockchain technology that ensures the privacy and security of the data


15. Stale Block

Stale blocks are the blocks that are no longer a part of the main blockchain because they were overridden by a longer chain.


To know about Blockchain briefly Click Here.

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