Blockchain basics: definitions, key concepts, and characteristics

Nir Kshetri

Chapter 1 in The Rise of Blockchains, 2026, pp 2-23 from Edward Elgar Publishing

Abstract: This chapter provides a comprehensive examination of blockchain technology, transitioning from its conceptual origins in the 2008 financial crisis to its 2026 status as a US$3.1 trillion global market. It defines blockchain as a decentralized, immutable ledger characterized by cryptography-based authentication and consensus mechanisms. Through a critical lens, the chapter analyzes the trajectory of digital assets, contrasting the foundational “trust machine” utility of Bitcoin and Ethereum with the speculative volatility of the non-fungible token market. By evaluating the structural differences between permissionless, permissioned, and hybrid systems—specifically focusing on Hyperledger Fabric and R3 Corda—the text illustrates how enterprise-grade solutions address commercial confidentiality and scalability. Furthermore, it details the technical evolution of consensus protocols, such as Ethereum's transition to Proof of Stake and the emergence of sharding. Ultimately, the chapter establishes blockchain not merely as a speculative tool, but as a critical institutional infrastructure for the modern, autonomous firm.

Keywords: Distributed Ledger Technology (DLT); Decentralized Governance; Proof Of Stake (POS); Enterprise Blockchain; Smart Contracts; Digital Asset Maturity (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035394333
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