5 Key Concepts For Newcomers

Here are five key terms we thought newcomers might find particularly useful:

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 reach an agreement about a set of data and whether to approve, or validate, transactions in the network.

Read the article here: https://www.weforum.org/agenda/2019/08/5-key-concepts-for-blockchain-newbies/

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