Blockchain Terms Made Simple: A Look at Hashing, Mining, Nodes & More

Published by NBBT College – Delivering Technology and Business Training in New Brunswick

Blockchain is currently one of the most discussed technologies of the 21st century. All the way from cryptocurrency to smart contracts, it is improving the way industries operate. Before you can really grasp blockchain and what it can do for your career, you must first know the common terminology used. We believe that making things simple is important at NBBT College in New Brunswick, Canada. Here you'll find explanations of the main terms in blockchain so you know what to expect in this field.

What Does Blockchain Mean? (Quick Recap)

Let’s first understand what blockchain means before discussing its terminologies.

A blockchains is a decentralized digital ledger that store records of transactions on computers connected over a network. These transactions are collected in “blocks” and those blocks are joined in the order they happened—making a chain of blocks. The result? A clear, tamper-proof system suited for finance, supply chain, education and many other sectors.

Key Terminology that are Important for Blockchain

We will discuss the major and most commonly used blockchain terms:

1. Hashing

Hashing means turning any data you enter into a string that has the same length every time. Each block in the blockchain includes a hash, used as a sort of digital fingerprint.

• Why it matters: Even a small part of block is altered will cause the hash to change, so changes are simple to notice.
• Example: A document is hashed using SHA-256 (a hashing algorithm), and the result is a 64-character alphanumeric code.

Real-world analogy: If you imagine hashing, it’s like putting a special wax stamp over an envelope, so nobody else can open it. A broken seal means that someone has opened the letter before you got it.

2. Mining

Mining refers to the process in which transactions are verified by the users and are added to the blockchain (mainly in cryptocurrencies like Bitcoin).

• How it works: Individuals called as miners solve complex mathematical puzzles to validate transactions and are paid for their work in the form of cryptocurrency.
• Proof of Work: The process most cryptocurrencies use to maintain blockchain integrity.

In the context of business students: Mining is like auditors confirming and verifying transactions—but now, it happens in a digital and decentralized system.

3. Nodes

A node describes any computer that participates in the blockchain network.

• Full Node: Stores the entire blockchain history.
• Light Node: Stores only essential data.
• Validator Node: Verifies and validates transactions.

Why it matters: More nodes = more decentralization = more security.

NBBT College Tip: If you are pursuing careers like blockchain development, network architecture or cybersecurity, you must first learn about how nodes communicate/interact with each other.

Visit our NBBT College and participate in programs that focus on the technology which is driving major innovations across the world.

4. Blocks

A block consists of transaction data, the time at which the transaction occurred and a reference (hash) to the previous block.

• Once a block is full, a new block is created and linked.
• Every block strengthens the integrity of the entire chain.

Fun Fact: The Genesis Block is the name for the first block in any blockchain.

5. Ledger

All transaction data in a blockchain is kept in a special database called the ledger.

• It is shared, transparent, and updated across all nodes.
• Distributed Ledger Technology (DLT) is the broader term encompassing blockchain.

Business relevance: Blockchain ledgers support data security, improve audit procedures and boost transparency—all important in finance, logistics and healthcare.

6. Consensus Mechanism

Nodes check against each other to confirm a transaction is valid.

• Proof of Work (PoW) and Proof of Stake (PoS) are the most common mechanisms.
• These systems ensure trust in a trustless network.

Why it’s important: It lets users to manage transactions without a central authority like a bank or government.

7. Smart Contracts

Smart contracts are contracts that carry out the terms written directly into code.

• When the conditions are met, the transaction happens automatically by itself.
• Used in DeFi, real estate, supply chains, and more.

Analogy: Let’s keep the example of a vending machine—you put in a coin and it dispenses the item for you automatically. No human involvement was required.

Why It’s Important for NBBT College Students

Our goal at New Brunswick College of Healthcare, Business & Technology is to get you ready for the future digital world. Learning how blockchain works and the terms that are used for it is the first step toward:

• Careers in blockchain development, cryptocurrency, digital finance, and business analytics
• Contributing to blockchain-based projects and startups in New Brunswick and beyond
• Leveraging this technology for entrepreneurship, innovation, and social impact

Interested in Learning More?

At NBBT College, you can learn and earn certificates in blockchain by training on real-world cases and business content. If you’re new to Web3 and wanting a career in it or already a business student aiming for future prospects, we can show you the way.

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