8 most common Blockchain terms explained
In this article I will discuss and explain most commonly used blockchain terminologies that will help you understand and grow as a Blockchain developer.
Note: Please read from start to end because each term is related to one another and are explained in a sequential way.
1. Smart Contracts
A smart contract consists of code written in Solidity which holds the power to interact with blockchain just like JavaScript code has power to interact with JS compilers.
They are also immutable — once deployed, the code cannot be changed.
2. Networks or Chains
Blockchain networks offer decentralised infrastructure for building and deploying decentralised applications (dApps) and smart contracts.
Think of a blockchain like the world 🌍 and its countries as networks. You can open a Mr.Beast Burger shop in Canada, and then another in Pakistan — same brand, different environments.
Similarly, the same smart contract can be deployed on different blockchain networks (Ethereum, Polygon, etc.).
3. Mainnet and Testnet
Mainnet = production environment (real transactions).
Testnet = development environment (fake coins, for testing).
Examples:
- Ethereum testnet → Goerli
- Polygon testnet → Mumbai
4. Faucets
A faucet is a service that gives you free testnet crypto to experiment with.
5. Wallet
A Web3 wallet is required to hold cryptocurrencies or process blockchain transactions (similar to payment gateways in Web2).
6. Coins
Each network has its own currency (like CAD in Canada, PKR in Pakistan).
Example: Ethereum uses ETH, Polygon uses MATIC.
7. Gas Fees
Every blockchain transaction needs a fee for computation, called Gas Fee.
Gas depends on network traffic. Write transactions cost gas, read transactions are free.
8. Scans
Scans let you view your blockchain transactions by entering a transaction hash, wallet address, or contract address.
Each network has:
- Mainnet Scan (real transactions)
- Testnet Scan (test transactions)
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