Chapter 03: Blockchain Basics & Terminology
Many use the term "blockchain" for technologies and applications that are not really blockchains, in a way that is meant to mislead investors and users. This chapter is a boot camp in blockchain terminology, from soup to nuts, as well as an explanation of what decentralization really is and why it is so critical to real blockchains. Further, this chapter dives into the different phylums and schools of thought involved in blockchains, from orthodox and tested Proof of Work (PoW) systems to more heterodox, untested, and insecure architectures. This chapter also delineates decentralized, global networks from those running on a handful of centrally controlled servers, and
Chapter Key Points
- What is decentralization and why is it important?
- What is a blockchain? What is necessary for a blockchain to call itself by that name?
- What pieces must be involved in a decentralized chain?
- What are the key terms and principles the user should understand about a blockchain?