Cryptography and network security aim to provide data integrity, data authentication, entity authentication, and nonrepudiation. Blockchain is built upon these principles.
Smart contracts are exactly the same as any type of contract you already know. The only difference is, they are completely digital. A smart contract is a computer program that runs on a blockchain.
ICO’s are initiated by companies in the tech industry to raise the funds to develop their technology. Before a platform is accessible to users, the platform building entity issues tokens with the aid of smart contracts during an ICO. The ICO is used to finance further development of the platform. During the ICO, the company sells utility tokens which are bought by investors and gives them access to future products or services.
A blockchain wallet (e-wallet) is a tool that you use to interact with a blockchain network. It is a digital wallet that allows users to store and manage their digital money (tokens or cryptocurrencies). A blockchain wallet allows the transfer of cryptocurrencies between users, and it has the ability to convert them back into a user’s local currency.
A DAO is like a well-built boat – made to conquer the unknown. DAO is a new organisation form where the management and operational rules of the organisation are typically encoded in the form of smart contracts on the Blockchain. It (the DAO) can operate autonomously with limited central authority or management hierarchy.
Decentralisation and decentralised networks can be compared to the ocean – it offers endless possibility and freedom of choice. Decentralisation puts the power in the hands of many; distributing the power among all the members of the community (or network).
Cryptography and network security aim to provide data integrity, data authentication, entity authentication, and nonrepudiation. Blockchain is built upon these principles.
A distributed ledger is simply a database that exists across several locations (scattered) and among multiple participants (called nodes) across a large network of computers at the same time.
Blockchain is part of a suite of DLTs that can be programmed to record and track anything of value. Blockchain is essentially a shared database filled with entries that must be confirmed (verified) and encrypted. Blockchain is built around cryptography, and cryptography enables the sharing of information in the presence of adversaries.
If we have consensus as a sailing crew, then we all agree on the route we will take, so consensus is agreement and mutual approval. The blockchain establishes an agreement between all the participants in the network to determine who in the network is allowed to append a block to the chain.
Blockchain structures generally fall into three categories [3]; public, private and consortium (hybrid) blockchain architectures. Before we get into the specifics of each category, there are two things to know.