A Layer 1 protocol is the fundamental set of rules and technologies that make a blockchain network work. It handles how transactions are processed, how data is stored, and how computers in the network agree on what is true. Examples include Bitcoin, Ethereum, and Solana, which each have their own Layer 1 protocols. These protocols…
A consensus mechanism is a method used by computer networks to agree on a single source of truth, even when many participants are involved. It ensures that all records or transactions are accurate and trustworthy, preventing fraud or errors. This process is vital for systems like blockchains, where no central authority exists to oversee decisions.
Proof of Stake (PoS) is a method used by some blockchains to confirm transactions and add new blocks. Instead of relying on powerful computers to solve complex problems, PoS selects validators based on how many coins they own and are willing to lock up as a guarantee. This system is designed to use less energy…
Proof of Work (PoW) is a method used to confirm transactions and add new data to a digital record, like a blockchain. It requires computers to solve complex mathematical puzzles, making it difficult for anyone to tamper with the system. This process ensures that only those who put in computational effort can update the record,…
A smart contract is a computer program that runs on a blockchain and automatically carries out agreements when certain conditions are met. It removes the need for middlemen, as the contract’s rules are written directly into the code and cannot be changed once deployed. Smart contracts are transparent, so everyone can see the terms and…
A Decentralised Autonomous Organisation, or DAO, is an organisation managed by rules encoded as computer programs on a blockchain. It operates without a central leader or traditional management, instead relying on its members to make collective decisions. Members usually use digital tokens to vote on proposals, budgets, or changes to the organisation.