Key Terms For Blockchain Newbies

Key Terms For Blockchain Newbies

Blockchain
August 8, 2019 Editor's Desk
338
One of the minute known challenges in the blockchain space is the necessityto communicate easily to a target audience which encircles bigger necessities. Along with developers, entrepreneurs and other initial adopters, who are mainly the louder voices that participate in the conversation about blockchain, there are also many individuals who add up to a wider majority
Mindtree Hyperledger Blockchain Constellation

One of the minute known challenges in the blockchain space is the necessityto communicate easily to a target audience which encircles bigger necessities. Along with developers, entrepreneurs and other initial adopters, who are mainly the louder voices that participate in the conversation about blockchain, there are also many individuals who add up to a wider majority of ‘blockchain curious’ beginners. They happen to require more introductory information about the same.

These groups of beginners have needs that must be looked after as well. This is one of the topics of debate among stakeholders and start-ups who are already active in the blockchain space. But at the same time, we had to keep in mind that there are many people who read our articles, including non-technical senior offices in enterprises and government, that might require help from us to contextualize this private/public debate.

Here are five important terms that we thought might help the beginners:

1) Distributed ledger technology: Software that uses a blockchain or similar data structure shared over a network of participants who distribute and verify information about transactions.

2) Cryptography: The methods of using mathematical cyphers (or codes) to protect or ‘encrypt’ transactions from third parties as the transactions are being stored or shared.

3) Token: A digital asset used in a blockchain transaction. A token can be native to the blockchain, such as a cryptocurrency, or it can be a digital representation of an off-chain asset (known as a tokenised asset), such as the title to a house.

4) Network nodes: Nodes represent agents or participants on a blockchain network, such as banks, government agencies, individuals, manufacturers or securities firms. Depending on the permissions set in the network, they may be able to approve, validate, send or receive transactions and data.

5) Consensus protocol: A set of rules and processes that determine how nodes on a blockchain network reachanagreement about a set of data and whether to approve, or validate, transactions in the network.

Why is it important?

The blockchain technology has a very crucial part in cryptocurrencies like Bitcoin, etc. The main reason why cryptos have become so powerful is because of the security, efficiency,and transparency offered by blockchain technology. This technology is rapidly being adopted by many industries like retail, manufacture, finance, and many more. It can also be used for recording data of public transactions in the government. 

Even though it is not widely adopted yet, it is gradually starting to. The open nature of the tech allows anyone to use it, even blockchain-curious beginners. Blockchain is developing fast and its use cases are being prevalent in many areas. You would want to adopt this technology for your own firm, if you are a B2C company and want to improvise on theuser experience or enhance transparency. 

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