Blockchain and cryptocurrencyCryptocurrency is defined as a group of binary data that acts as a medium of exchange, or currency. Cryptocurrencies are usually fiat currencies, as they are not backed by, or convertible into, a commodity like gold. Cryptocurrency transactions are verified and recorded by a decentralized system that uses cryptography, rather than by a centralized authority like a bank.
Most cryptocurrencies are built to run on blockchains. Blockchains are records of cryptocurrency transactions made up of individual "blocks" that are formed with each transaction and linked together with cryptography. Blocks are all tied to and built off of the previous blocks behind it, which reinforces the chain it creates. Each block is made up of a cryptographic hash of the last block, a date and timestamp, and other data related to the transaction the block is referencing. Blocks and blockchains are very difficult, but not impossible, to modify due to each block's ties to the next: any data alteration affects every other subsequent block in the chain.
Base layer protocols are the peer-to-peer networks which form the basis of the Decentralized application (dApp) web. These base protocols are typically blockchains with an associated cryptocurrency coin secured by a consensus protocol where participants in the network decide collectively on the addition of new blocks to the blockchain ledger.
Fundamental concepts related to blockchains.
Properties of blockchains and cryptocurrency systems.