Throughout the series on “Blockchain in Supply Chain” we reference a number of important blockchain-related terms and concepts.  Below is an initial list of blockchain terms used in the articles.  We will add to this list as the series progresses.

Block  – A set of data.

Block Header – A summary of the data in the block.

Blockchain – A distributed ledger comprised of immutable blocks chained together to create an encrypted history of transactions.

Central Authority – An individual, organization or group which controls a permissioned blockchain.

Centralization (in blockchain) – A system in which control and decision-making is handled by a central authority, which may be an individual, organization or group.

Centralized (or Traditional) Database – A system in which data is stored in a single location.

Consortium Blockchain – A permissioned blockchain governed by a group of organizations.

Cryptocurrency  – A virtual, non-government currency that is transacted using blockchain.

Decentralization (in blockchain) – A system in which control and decision-making is handled by a distributed network instead of by a central authority.

Distributed Ledger – A system in which data is stored and shared across multiple sites, countries, or institutions.

Encryption – The encoding of information.

Full node – A node that contains a complete history of the blockchain and which is responsible for validating blocks.

Hash – The encrypted summary of the previous block’s header, which forms the link between blocks and acts as a shorthand way to impart the previous block’s information to the next block.

Hybrid Blockchain – A blockchain that controlled by a single organization, with a certain level of oversight performed by a public blockchain that is required to perform certain transaction validations.

Immutable – Unable to be altered.

Internet of Things (“IOT”) – Real world physical objects that are linked to the internet.

Light Node (or Lightweight Node) – A node that only stores block headers in order to validate transactions on the blockchain.  Light nodes are dependent on full nodes to function.

Miner (or Mining Node) – A node which creates a block on a permissionless blockchain.

Nodes – Computers, laptops, servers or other computer devices connected to the internet.

Non-fungible Token (“NFT”) – A digital asset with a unique identifying code, which represents real-world objects.

Permissioned Blockchain – A blockchain that requires permission from a central authority to join.

Permissionless Blockchain – A blockchain that does not require permission to join.

Private (or Managed) Blockchain  – Permissioned blockchains controlled by owners.

Pseudo-anonymity – Designation of a user by a pseudonym whereby no actual identity information is revealed.

Public Blockchains – Permissionless, completely decentralized blockchains.

Smart Contract  – A computer program that will perform a task when a pre-determined event is triggered.

Validating a Block (or Validating a Transaction) – The act of verifying that data in a block comports with the rules of the blockchain.

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