Blockchain in 2018: Beyond Cryptocurrencies

Core Concepts

Consensus

Mechanisms: The process of achieving agreement among nodes in the network on the state of the blockchain. This includes algorithms such as Proof of Work (PoW), Proof of Stake (PoS), and Byzantine Fault Tolerance (BFT).
Validation: The process of verifying the integrity of transactions and ensuring they are valid. This involves checking the sender’s identity, the transaction’s syntax, and the availability of funds.
Finality: The guarantee that once a transaction is confirmed, it cannot be reversed or altered. This provides a level of trust and certainty in the blockchain’s state.

Smart Contracts

Execution: The process of running smart contract code on the blockchain. This involves executing the contract’s logic, which can include tasks such as transferring assets or triggering events.
Deployment: The process of uploading and initializing a smart contract on the blockchain. This involves setting up the contract’s environment, including its storage and execution parameters.
Security: The measures taken to ensure the integrity and confidentiality of smart contracts. This includes protecting against unauthorized access, data breaches, and malicious attacks.

Networking

Peer-to-Peer (P2P): The decentralized network architecture that allows nodes to communicate directly with each other without the need for intermediaries. This enables the distribution of data and the coordination of actions across the network.
Discovery: The process of finding and connecting to other nodes in the network. This involves broadcasting one’s own presence and listening for announcements from other nodes.
Propagation: The process of disseminating information across the network. This includes broadcasting transactions, blocks, and other data to ensure all nodes have a consistent view of the blockchain’s state.