FOUNDATIONAL TECHNOLOGY

Blockchain

A distributed, immutable ledger that records transactions across a network of computers in cryptographically linked blocks, providing a shared and tamper-resistant source of truth across multiple parties.

EXAMPLE

By settling trades on blockchain, two counterparties share an identical, real-time record without requiring a central reconciliation agent.

Relevant Roles and Functions

On-chain Role
Chief Blockchain Infrastructure Officer
Head of Blockchain Infrastructure
Function
Blockchain Network Integrations
Node Operations
Smart Contract Infrastructure
Validator Participation
TradFi Equivalent
Core Banking Architecture
Distributed Systems
Payments Infrastructure
Technology

Related Terms

Permissioned Blockchain

A blockchain network where participation—reading, writing, or validating—is restricted to pre-approved entities. Permissioned chains offer privacy and regulatory control suited to institutional and consortium use cases.

Example

JPM Coin operates on a permissioned blockchain, ensuring only verified institutional counterparties can initiate or receive transfers.

Permissionless Blockchain

An open blockchain network—such as Ethereum or Solana—where any participant can transact or validate without approval. These networks underpin most DeFi activity and public tokenization platforms.

Example

BlackRock chose to launch its BUIDL tokenized fund on the permissionless Ethereum network to maximize accessibility and composability with DeFi protocols.

Smart Contract

Self-executing code deployed on a blockchain that automatically enforces and carries out the terms of an agreement when predefined conditions are met—without requiring an intermediary to oversee performance.

Example

A smart contract can automatically release collateral when a loan is repaid, eliminating manual processing and reducing operational risk.

Immutability

The property of blockchain records that makes confirmed transactions permanently and tamper-evidently recorded. No party—including the network operator—can alter or delete settled transactions.

Example

Regulators can gain real-time, unalterable audit visibility into on-chain settlement activity without requesting reports from multiple counterparties.