Blockchain for Beginners: Guide to Understanding the Foundation and Basics of the Revolutionary Blockchain Technology

By Scott Marks

"Blockchain is as significant now as the Internet was 25 years ago." - Blythe Masters, CEO of Digital Asset Holdings
 

Blockchain is arguably one of the greatest and most revolutionary innovations since the founding of the Internet!

Blockchain can be a difficult topic to comprehend, especially for beginners without much of a technical background. But it really doesn't have to be. All it takes is one person who is good at explaining things on a very basic and fundamental level, and that is where I excel. I have written this book with the extreme beginner in mind. 

Most introductory guides to Blockchain will begin their story in 2008, with the advent of Bitcoin. These accounts are quite accurate, but only paint half of the picture. The fundamental purpose of Blockchain technology and its uses goes back much further than 2008. 

In order to truly grasp Blockchain technology, we must reach back to the time before computers, paper currency, or even money itself. The answer to this question will take us on an adventure going back thousands of years, by first delving into the burning question of what money is, and from there, tracing it’s trajectory throughout history to the development of Blockchain technology. 

This brief history of money is necessary to understand present-day effects of Blockchain applications, such as Bitcoin and Ethereum, both of which will be introduced in this book.

Some of the topics that you are going to learn about in this book include:

- Understanding Blockchain and what exactly it is
- What a distributed ledger is (Simplified!)
- Blockchain's Effect on Money and Banking
- Bitcoin and its relationship with Blockchain
- Ethereum and what makes it so great
- FinTech's Impact on business startups
- Where will Blockchain be in 20 years?

The Impact that Blockchain technology is going to have on the world is inconceivable by people who are not well-informed on the topic. Purchase a copy of my hot release "Blockchain for Beginners" and learn everything you need to know about the future of Blockchain Technology.

• Language: English
• Publisher: Scott Marks
• Release date: Feb 9, 2018
• ISBN: 9781386747499

Book preview

BLOCKCHAIN FOR BEGINNERS

Understanding the Foundation and Basics of the Revolutionary Blockchain Technology

By Scott Marks

Table of Contents

Introduction to Understanding Blockchain

What is Blockchain Technology?!

Monetary Uses of Blockchain

7 Principles of Blockchain (How to Make Blockchain Mainstream)

Bitcoin

Other Cryptocurrencies

Ethereum

FinTech

The Future of Blockchain

Conclusion

Glossary

© Copyright 2017 By Scott Marks – All rights reserved.

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CHAPTER 1: Introduction to Understanding Blockchain

Most introductory guides to blockchain technology will begin their story in 2008, with the advent of Bitcoin. These accounts are quite accurate, but only paint half of the picture. The fundamental purpose of blockchain technology and its uses goes back much further than 2008. In order to truly grasp blockchain technology, we must reach back to the time before computers, paper currency, or even money itself. The answer to this question will take us on an adventure going back thousands of years, by first delving into the burning question of what money is, and from there, tracing it’s trajectory throughout history to the development of blockchain technology. This brief history of money is necessary to understand present-day corollaries with blockchain technology applications, such as Bitcoin and Ethereum, both of which will be introduced in the following chapter.

Money has had an incredible trajectory over the past five thousand years. In the beginning, what separated humans from animals was not the human capacity for strength, speed, or endurance. Rather, it was the human capacity for thought. Indeed, the name of our species, homo sapiens (literally, ‘wise man’), is a reference to the perceived wisdom of humanity. This initial spark has allowed the homo sapiens species to blossom from being a pale, naked ape-like animal to inhabiting all corners of the world and dominating other species to do its will. Not only do humans train other species to do their bidding in the way cavemen trained horses, they also have them as pets and breed them to their liking. So how did this ill-adapted primate evolve to reach these heights? The answer lies in their incredible capacity to adapt and conform to new situations and challenges. Particularly important to this development was how humans originally exchanged gifts and services. At one time, humans used the barter system; now we use money, and that’s where blockchain enters.

The barter system of yesteryear was a system of exchange without the medium of exchange (this will become important when we analyze Ethereum). Put in simple English, it was trading favors and products for one another. Unlike giving gifts, the barter system allowed for the fisherman to trade fish while the hunter provided his catch. For example, Caveman Grug would agree to pay five rabbits in exchange for three salmon from Caveman Urg. This system of exchange ruled human civilization for thousands of years. However, the barter system has significant challenges and drawbacks. On the one hand, exchanges could be made easily and efficiently. On the other hand, how many pounds of salt is a pig worth? Who knows? Their services also had a time stamp on them: eventually the fish would rot or the rain will wash the salt away and your exchange was worth nothing. (This concept of the timestamp will again become important when we examine blockchain more.)