wp-block-image size-large">

Navigating the world of blockchain can feel like stepping into a realm of jargon and technical terms. But fear not – with ample research and a little guidance, you’ll be deciphering blockchain conversations.

Here are 20 essential blockchain terms to get you started:

Blockchain: A decentralized digital ledger that records transactions across multiple computers within a particular network, enhancing transparency and security. Blockchains store data in blocks linked together through cryptography.
Decentralization: Distributing control and decision-making across a network rather than relying on a central authority.
Cryptocurrency: A digital currency that is created, maintained and secured with cryptography. Bitcoin and Ethereum are well-known examples.
Bitcoin: The first and most famous cryptocurrency, introduced by an unknown person or group under the pseudonym Satoshi Nakamoto.
Ethereum: A blockchain platform that enables the creation of decentralized applications and smart contracts. It is the second most popular cryptocurrency after Bitcoin, founded by Vitalik Buterin and Gavin Wood in 2015.
Smart Contract: Self-executing contracts with terms directly written into code. They automatically execute and enforce agreements when conditions are met.
Node: A computer within a blockchain network that participates in validating and recording transactions.
Wallet: A digital tool to store, manage and interact with cryptocurrencies. Wallets can be software-based (online) or hardware devices.
Private Key: A cryptographic key that allows access to a wallet. It should be kept secure and private.
Public Key: A cryptographic key that is publicly shared and used to receive encrypted messages or transactions.
Hash: A unique alphanumeric string generated by applying a hash function to data. Used for verifying data integrity.
Mining: The process of validating and adding transactions to a blockchain using powerful computers. Miners are rewarded with new cryptocurrency.
Fork: A split in a blockchain’s protocol resulting in two separate chains, often due to disagreements in development direction.
Token: A unit of value issued on a blockchain, representing assets like digital art, ownership, or access rights.
ICO (Initial Coin Offering): a fundraising method in which new cryptocurrencies are sold to investors before they’re officially launched.
DApp (Decentralized Application): an application that runs on a blockchain network rather than a central server.
Consensus Mechanism: A protocol that validates transactions and maintains the integrity of the blockchain, like Proof of Work or Proof of Stake.
Gas: A unit that measures the amount of computational effort required to perform operations on the Ethereum network.
Immutable: Once data is added to a blockchain, it cannot be altered, making it tamper-proof.
DAO (Decentralized Autonomous Organization): An entity with no central leadership, governed by a community using code and rules enforced on a blockchain.