Learning Resources

Beginner guides

These guides assume no prior knowledge of blockchain or distributed systems. Each one is written in plain English and follows a logical progression, starting with the most fundamental concepts and building gradually.

We recommend reading them in order if you are completely new to the subject, though each guide also works as a standalone reference.

Last updated: February 2026. Reviewed by Dr. Eleanor Marsh.

Guide 1

What is a blockchain? A beginner's explanation

A foundational overview covering what blockchains are, why they were created, and the basic principles that make them work. No technical jargon required.

8 min read

Guide 2

Understanding blocks, chains, and nodes

How individual transactions are grouped into blocks, linked together chronologically, and maintained by a network of independent computers called nodes.

10 min read

Guide 3

Public vs private blockchains: what is the difference?

A clear comparison of permissioned and permissionless networks, who uses each type, and the trade-offs involved in terms of access, transparency, and governance.

7 min read

Guide 4

Digital assets for beginners: types and terminology

An introductory guide to cryptocurrencies, tokens, stablecoins, and NFTs. Covers basic terminology and the functional differences between each category of digital asset.

9 min read

Blockchain glossary

Over 150 terms defined in plain English. Whether you encounter an unfamiliar word in an article or a technical document, this glossary is designed as a quick-reference companion.

A - D

Address: A unique alphanumeric identifier used to send and receive transactions on a blockchain network.
Block: A collection of transaction data bundled together and appended to the blockchain.
Consensus: The process by which network participants agree on the validity of transactions.
dApp: A decentralised application that runs on a blockchain rather than a centralised server.
DAO: Decentralised Autonomous Organisation; a governance structure encoded in smart contracts.

E - L

ERC-20: A token standard on Ethereum for creating fungible tokens.
Fork: A change in protocol rules; can be "hard" (incompatible) or "soft" (backward-compatible).
Gas: A unit measuring the computational effort needed to execute operations on Ethereum.
Hash: A fixed-length output from a cryptographic function used to verify data integrity.
Layer 2: A secondary protocol built on top of a base blockchain to improve scalability.

M - Z

Merkle tree: A data structure used to efficiently verify the integrity of large datasets.
Node: A computer that maintains a copy of the blockchain and validates transactions.
Oracle: A service that provides external data to smart contracts on-chain.
Seed phrase: A series of words used to recover a blockchain wallet.
Zero-knowledge proof: A cryptographic method that proves a statement is true without revealing underlying data.

This is a sample of the full glossary. All 150+ terms are available on the complete glossary page. Last reviewed: March 2026.

Security tips

Understanding security practices is essential for anyone interacting with blockchain technology. The following tips cover general best practices drawn from publicly available cybersecurity resources and blockchain security research.

1

Protect your private keys

A private key grants full access to the assets associated with a blockchain address. Store private keys offline where possible. Never share them with anyone, and be wary of any service or individual requesting your private key or seed phrase.

2

Recognise phishing attempts

Phishing is a common attack vector in the blockchain space. Fake websites, emails, and social media accounts impersonate legitimate services to trick users into revealing credentials. Always verify URLs carefully before entering sensitive information.

3

Use strong, unique passwords

For any account associated with blockchain services, use passwords that are long, unique, and not reused across platforms. Consider using a reputable password manager. Enable two-factor authentication (2FA) wherever available.

4

Evaluate smart contract risks

Smart contracts are only as secure as their code. Before interacting with any smart contract, check whether it has been audited by a reputable third-party security firm. Unaudited contracts carry a higher risk of vulnerabilities and exploits.

5

Be cautious with public Wi-Fi

Accessing blockchain wallets or accounts over unsecured public networks increases the risk of data interception. Use a virtual private network (VPN) if you must access sensitive services on shared networks.

Common scam patterns to be aware of

Impersonation: Scammers posing as well-known figures, companies, or support agents to request funds or credentials.
Fake airdrops: Messages claiming you have received free tokens, linking to phishing sites that harvest wallet credentials.
Rug pulls: Projects that attract users and then suddenly withdraw all funds, leaving participants with worthless tokens.
Ponzi schemes: Structures that pay earlier participants using funds from newer entrants, inevitably collapsing when recruitment slows.

This information is provided for educational purposes to help users recognise potential risks. It is not exhaustive. The UK's Financial Conduct Authority (FCA) maintains a public register and warning list for firms. Users should verify any service independently.

Wallet basics

A blockchain wallet is software (or hardware) that stores the cryptographic keys needed to interact with a blockchain network. Understanding how wallets work is fundamental to understanding blockchain itself.

Public and private keys

Every blockchain wallet uses a pair of cryptographic keys. The public key functions like an address that others can use to send assets to you. The private key is the secret that proves ownership and authorises outgoing transactions.

The mathematical relationship between these keys ensures that while the public key can be derived from the private key, the reverse is computationally infeasible. This is the foundation of blockchain security.

Custodial vs non-custodial

A custodial wallet means a third party (such as an exchange or platform) holds and manages your private keys. You rely on their security practices to protect your access.

A non-custodial wallet means you alone control your private keys. This provides greater autonomy but also greater responsibility; losing your private key or seed phrase typically means permanently losing access to associated assets.

Hot wallets vs cold wallets

Hot wallets are connected to the internet and are typically software applications on a computer or mobile device. They offer convenience but are more exposed to online threats.

Cold wallets are offline storage solutions, often hardware devices. They are considered more secure against remote attacks, but require physical access to authorise transactions.

Seed phrases explained

When you create a non-custodial wallet, you are typically given a seed phrase (also called a recovery phrase), a set of 12 or 24 randomly generated words. This phrase can regenerate your private keys and restore your wallet on a new device.

Seed phrases must be stored securely and privately. Anyone with access to your seed phrase has full control over the associated wallet. Write it down on paper and store it in a secure location; never save it digitally in an unencrypted format.

This content is educational. We do not recommend or endorse any specific wallet product or service.

Consensus mechanisms

Consensus mechanisms are the rules that allow distributed network participants to agree on the current state of the blockchain without a central authority. Different mechanisms prioritise different properties: some favour security, others favour speed or energy efficiency.

Below are the most widely studied consensus models. Each has strengths and limitations, and researchers continue to develop new approaches to address existing trade-offs.

Proof of Work (PoW)

Miners compete to solve a computationally intensive puzzle. The first to find a valid solution earns the right to add the next block. PoW is used by Bitcoin and is known for its high energy consumption but strong security record.

Proof of Stake (PoS)

Validators are selected to create new blocks based on the amount of cryptocurrency they have "staked" as collateral. PoS uses significantly less energy than PoW. Ethereum transitioned to PoS in September 2022.

Delegated Proof of Stake (DPoS)

Token holders vote to elect a fixed number of delegates who produce blocks on their behalf. DPoS can achieve faster block times but may result in more centralised governance depending on the number of delegates.

Byzantine Fault Tolerance (BFT)

BFT-based algorithms allow a network to reach agreement even if some nodes behave maliciously or fail. Practical Byzantine Fault Tolerance (pBFT) is commonly used in permissioned blockchain networks.

Proof of Authority (PoA)

A small number of pre-approved validators produce blocks based on their identity and reputation. PoA is efficient and fast but sacrifices decentralisation, making it suitable primarily for private or consortium blockchains.

Smart contracts

A smart contract is a programme stored on a blockchain that executes automatically when predefined conditions are met. The concept was first described by computer scientist Nick Szabo in 1994, but practical implementation became possible with the launch of Ethereum in 2015.

Smart contracts remove the need for a trusted intermediary in certain types of transactions. For example, a simple smart contract could be programmed to release funds from one address to another only after a specified date has passed and a condition has been verified on-chain.

How do smart contracts work?

Developers write smart contract logic in a programming language (Solidity is the most common for Ethereum). The compiled code is deployed to the blockchain, where it receives its own address. Users or other contracts can then interact with it by sending transactions to that address.

Once deployed, the contract's code is typically immutable, meaning it cannot be changed. This is both a feature and a risk: the code is transparent and tamper-proof, but any bugs or vulnerabilities present at deployment remain permanently unless the contract includes an upgrade mechanism.

Limitations and risks

Smart contracts cannot access data from outside the blockchain without an oracle service.
Code vulnerabilities can be exploited, potentially resulting in the loss of funds locked in the contract.
The legal enforceability of smart contracts varies by jurisdiction and is still being tested in courts.
Complex smart contracts require thorough third-party auditing to identify potential security flaws.

Sources: Szabo, N. (1994). "Smart Contracts." Ethereum Foundation documentation. Reviewed by James Thornton, March 2026.

NFT overview

A non-fungible token (NFT) is a unique digital identifier stored on a blockchain that represents ownership of a specific item, whether digital or physical. Unlike fungible tokens (where each unit is interchangeable), each NFT is distinct and cannot be exchanged on a one-to-one basis with another NFT.

NFTs are most commonly created using the ERC-721 or ERC-1155 standards on Ethereum, though other blockchains also support non-fungible token standards. The token itself does not usually contain the digital file it represents; instead, it points to metadata that includes a link to the file stored elsewhere, often on a decentralised storage network.

Notable use cases

Digital art and collectibles
Music and media licensing
Gaming items and virtual land
Event tickets and proof of attendance
Supply chain provenance certificates

Criticisms and considerations

NFTs have faced criticism regarding environmental impact (particularly on PoW networks), questions about the durability of off-chain metadata links, copyright enforcement difficulties, and concerns about speculative behaviour in NFT markets. As with all digital asset topics, we present these discussions factually rather than advocating for or against participation.

Key terms

ERC-721: The most common Ethereum standard for creating unique, non-fungible tokens.
ERC-1155: A multi-token standard that supports both fungible and non-fungible tokens within a single contract.
Metadata: Information associated with an NFT, typically including the name, description, and a link to the media file.
Minting: The process of creating a new NFT by writing a token record to the blockchain.
Royalties: Some NFT standards allow creators to receive a percentage of future sales, though enforcement depends on the marketplace.

Stablecoins

Stablecoins are a category of digital asset designed to maintain a relatively stable value by pegging to a reference asset, most commonly a fiat currency such as the US dollar or the British pound. They are widely used within blockchain ecosystems as a medium of exchange and a unit of account.

Types of stablecoins

Fiat-collateralised

Backed by reserves of fiat currency (or equivalent assets) held by a central issuer. For every token in circulation, an equivalent amount of fiat is held in reserve. Transparency of reserves is a frequent topic of discussion.

Crypto-collateralised

Backed by other digital assets locked in smart contracts, typically over-collateralised to absorb price fluctuations. If the collateral value drops below a threshold, the position may be liquidated automatically.

Algorithmic

Maintains its peg through algorithms that automatically adjust the token supply in response to demand changes. This model has faced significant criticism following high-profile de-pegging events, most notably the collapse of TerraUSD (UST) in May 2022.

Risks and regulatory landscape

Stablecoins carry risks that differ by type. Fiat-collateralised stablecoins depend on the solvency and transparency of their issuer. Crypto-collateralised models are exposed to the volatility of their underlying collateral. Algorithmic models face the risk of reflexive de-pegging spirals.

Regulators worldwide are developing frameworks for stablecoin oversight. In the United Kingdom, HM Treasury has proposed bringing stablecoins used for payment within the regulatory perimeter. The Bank of England has also published discussion papers on the systemic risks posed by large stablecoin arrangements.

This section is educational. We do not recommend or endorse any specific stablecoin. All digital assets carry risk.