Distributed ledger technologies, blockchain and smart contracts: technical foundations and key concepts

Abstract

This chapter focuses on introducing blockchain coupled with its associated smart contracts as a particular and prominent instance of distributed ledger technologies (DLT). The chapter begins with a recent definition of DLT. Next, it discusses blockchain technology while referring to its two prominent types (i.e. permissionless and permissioned). Subsequently, the notions of smart contracts and oracles are explained and the key benefits and capabilities of blockchain are presented. A section is devoted to a conceptual model of how a blockchain-based application can be justified, and examples from literature are analysed to pave a logical path towards the subsequent chapters.