Blockchain Frameworks for Business Governance

This set of vocabulary flashcards covers the fundamental concepts, characteristics, types, and regulatory perspectives of blockchain and digital assets within the context of business governance and the Nepalese regulatory environment.

Blockchain

An incorruptible, distributed digital ledger that records transactions in cryptographically linked blocks, replicated and validated across a peer-to-peer network rather than held by a single intermediary.

Decentralisation

A characteristic where no single node controls the ledger and validation is shared across the network.

Immutability

A core feature where once appended, a block cannot be altered without redoing every later hash in the sequence.

Distributed Consensus

A process where nodes agree on transaction validity via mechanisms such as Proof-of-Work (PoW), Proof-of-Stake (PoS), or Practical Byzantine Fault Tolerance (PBFT).

Programmability

The feature of blockchain that allows smart contracts to self-execute once preset conditions are met.

Pseudonymity

A characteristic where participants transact via cryptographic addresses rather than having their identity disclosed.

Public Blockchain

A permissionless blockchain model that is open to anyone, such as Bitcoin.

Private Blockchain

A permissioned blockchain model that gives full traceability without sacrificing control, often used in enterprise environments like IBM Food Trust.

Hybrid / Consortium Blockchain

A blockchain model where a defined group jointly governs the network, balancing auditability with regulatory compliance.

Trust Protocol

A concept by Tapscott & Tapscott (2016) describing a system where parties trust mathematics and consensus incentives instead of a central intermediary.

Triple-Entry Accounting

A system where a transaction is independently and immutably recorded on a shared ledger alongside each party’s own internal books.

Digital Assets

Any asset existing in digital form carrying a claim to value, including cryptocurrencies, stablecoins, tokenised securities, NFTs, and CBDCs.

Central Bank Digital Currency (CBDC)

A digital form of sovereign currency, issued and guaranteed by a central bank, carrying full legal-tender status equivalent to physical cash.

Cryptocurrency

A decentralised, unbacked, and permissionless digital asset with no central issuer, such as Bitcoin.

Two-Tier CBDC Distribution Architecture

A framework where the Central Bank (Tier 1) issues CBDC to licensed institutions, which then distribute it to the public and businesses (Tier 2).

Markets in Crypto-Assets (MiCA)

The European Union's comprehensive crypto-asset licensing regulation scheduled for 2024.

NRB Cryptocurrency Directive

A regulatory stance under the Nepal Rastra Bank Act that prohibits private cryptocurrency transactions while remaining open to permissioned blockchain pilots.

Electronic Transactions Act (ETA), 2063

Nepal's principal cyber law enacted in 2006, which predates the development of blockchain technology.

Digital Nepal Framework 2.0

A policy framework that supports fintech and e-governance modernisation but does not endorse decentralised cryptocurrency.

Wholesale CBDC

The tier of Central Bank Digital Currency issued directly to licensed financial institutions and commercial banks.