Blockchain

Definitions of terms used throughout Building

Blockchain

Blockchain is a type of shared database that differs from a typical database in the way it stores information; blockchains store data in blocks linked together via cryptography. Different types of information can be stored on a blockchain, but the most common use for transactions has been as a ledger.

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Smart Contracts

Smart contracts are scripts that automate the actions between two parties. Smart contracts do not contain legal language, terms, or agreements—only code that executes actions when specified conditions are met.

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Tokenized Real Estate

Tokenized real estate is when a real-estate property or its cash flows are represented as a blockchain token (or tokens) to increase liquidity, streamline processes, and enable digital ownership. Tokenized real estate requires a firm link between the digital asset (token) and the underlying physical asset (property).

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Immutability

Once data has been written to a blockchain, no one can change it. This provides benefits for audit. Both the provider and recipient of data can ensure that the data hasn’t been altered. These benefits are useful for databases of financial transactions.

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