The DDD has its basis on the following foundational concepts:

• Context: The settings applied to word(s) or sentence(s), which determine its meanings. Context specification dictates the domain object's behavior and interaction as well as other factors like what business rules to apply. This means that the same domain object under a different context would have to process different business rules.
• Domain: Domain is the body of knowledge (the ontology), influence, or the business activity. The particular environment, which a software solution addresses, is the domain of the software.
• Model: A model is an abstract representation, which describes the aspects of the domain, and it can be used to define the solution to the problems related to that domain. The model helps in communication between the domain experts and technical experts. It becomes the conceptual foundation for the software design. In order for the model to be effective, it has to have zero contradictions, ambiguities, and inconsistencies.
• Ubiquitous language: Ubiquitous language is the usage language in DDD between domain experts, technical experts, developers, and users of the system. The language is based on the defined model, and should be rigorous, leaving no ambiguity; otherwise, the defined software solution would not be perfect for the domain.