Vocabulary
Understanding Blockchain Terminology
Blockchain technology introduces many new concepts and technical terms. This vocabulary section helps you understand the key terms used within the Sahyadri ecosystem and the broader blockchain industry.
Whether you are a beginner or an experienced user, this guide will help you better understand how the network works.
Blockchain
A blockchain is a distributed digital ledger that records transactions across many computers in a secure and transparent manner. Each transaction is grouped into blocks, which are linked together to form a continuous chain.
Block
A block is a collection of verified transactions that are recorded on the blockchain. Each block contains a reference to the previous block, creating a secure chain of records.
Node
A node is a computer that participates in the blockchain network by maintaining a copy of the blockchain and validating transactions and blocks.
Full Node
A full node stores the entire blockchain and independently verifies every transaction and block according to the network's protocol rules.
Miner
A miner is a participant who uses computational power to validate transactions and create new blocks on the blockchain. Miners help secure the network and maintain consensus.
Consensus
Consensus is the process by which network participants agree on the validity of transactions and the state of the blockchain.
Wallet
A wallet is a digital tool used to store, send, and receive cryptocurrency. It manages private and public keys that allow users to access their funds on the blockchain.
Public Key
A public key is a cryptographic address that can be shared with others to receive cryptocurrency.
Private Key
A private key is a secret cryptographic key that allows a user to access and control their funds. It must always be kept secure and never shared.
Transaction
A transaction is the transfer of cryptocurrency from one address to another, recorded permanently on the blockchain.
Decentralization
Decentralization means that control of the network is distributed among many participants instead of being controlled by a single authority.
Smart Contract
A smart contract is a self-executing digital agreement written in code that automatically executes when predefined conditions are met.
Transparency
Blockchain networks provide transparency by allowing anyone to verify transactions and blocks recorded on the public ledger.