Blockchain Architecture

Definition ∞ Blockchain architecture describes the fundamental design and organizational structure of a distributed ledger system. It dictates how data is recorded, validated, and secured across a network of participants. Key components include consensus mechanisms, data structures, network topology, and the programming model for smart contracts.
Context ∞ The blockchain architecture is a focal point of discussion when evaluating the scalability, security, and decentralization of different digital asset networks. Variations in architecture, such as Proof-of-Work versus Proof-of-Stake, or the implementation of sharding and layer-2 solutions, significantly influence transaction throughput and operational costs. Understanding these architectural choices is vital for assessing the long-term viability and performance characteristics of emerging blockchain platforms and their associated cryptocurrencies.