10.2 Blockchain & Decentralisation Concepts

Smart Contract – Self-executing code on a blockchain that automatically enforces agreed-upon rules without human intervention once deployed.

Wallet – Software or hardware that stores cryptographic keys, enabling users to send, receive, and sign blockchain transactions.

Gas – A network fee paid to validators to process or record a transaction; the cost fluctuates with network demand.

On-Chain – Data or activity that is permanently recorded on the blockchain.

Off-Chain – Data stored outside the blockchain—such as legal documents or large media files—but referenced by a hash or pointer inside an on-chain record.

Validator / Node – A participant that verifies and orders transactions according to the blockchain’s consensus rules, thereby maintaining network integrity.

Fork – A change to a blockchain’s rule set that creates a new branch in the ledger history; may be temporary (soft fork) or permanent (hard fork).

DeFi (Decentralised Finance) – Financial services, such as lending or trading, provided by autonomous smart contracts rather than centralised intermediaries.

Oracle – A service that supplies external information—like asset prices or compliance flags—to smart contracts so they can react to real-world events.

Snapshot – A point-in-time recording of token balances used to determine voting rights or distribution eligibility for a specific event.