This introduction to blockchain is the perfect place to start your crypto journey. Blockchain basics include blockchain vocabulary, an intro to money & crypto, the history of blockchain, a description of core blockchain concepts and practical tips and tricks when to use blockchain and how to use cryptocurrency.
What is Blockchain?
Definition: A blockchain is a growing list of records, collected in blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. A blockchain is resistant to modification of data.
Result: This distributed, cryptographically secured database enables a decentralized Web, a token economy, and the exchange of data & values. You can trust in blockchain records, processes are becoming more transparent, and new business models and efficiencies are possible by cutting out middlemen.
In layman’s terms: Bitcoin is digital cash which runs on a computer network – and does not depend on a bank. The Bitcoin technology is also called blockchain. The technology and decentralized network make it impossible to change transactions (data) once they have been transferred (saved) on the blockchain. Since the blockchain is not controlled by any central authority such as a bank, there’s no single group of people that can cheat, print money, decide anonymously changes to the system or exclude people. Applications building on blockchain make use of this immutability of data and of creating new digital currencies (also called tokens or coins). In the past, people always had to trust third parties such as banks, notaries, doctors or IT providers which always took a significant cut. Especially online platform providers such as Facebook & Airbnb benefited from user data, monetized it and misused the trust. Now, You don’t depend on third parties such as banks and notaries anymore. You do not need to trust third parties but rather maths and computer protocols. With blockchain, You can regain control over your digital identity and data and you can consciously decide to share your data and monetize it.
Basically, Bitcoin (blockchain) is a ledger that records who owns what. This ledger is replicated across lots of different computers all over the world, and all of these ledgers stay in sync through the internet. They’re all updating each other whenever a transaction occurs from Bob to Alice. That’s really all it is.
All of it’s just this ledger, and it says Bob has a Bitcoin and then Bob sends it to Alice, Alice has it, and the whole ledger updates itself. No one, no particular point in that ledger is critical. Any point can drop out or add on and the things stays in sync with itself. No one can turn it off. As long as you follow the rules of the system, you can participate in it.
That’s really all you need to understand what Bitcoin is. Anything more technical than that is an interesting detail, but not necessary for understanding it.
Many Blockchain terms are specific. These 30 terms will help you to understand blockchain technology.
It is best practice to look into these blockchain terms and browse for affiliated terms that remain unclear. Blockchain experts must also agree on the meaning of “new blockchain words” and not get lost in tech jargon since it’s preventing people from joining.
Blockchain is a chronological chain of blocks – a list of data sets linked via cryptography.
Money & Crypto
The features of money are discussed and a comparison of Bitcoin, Gold, stablecoins & FIAT currency is given.
Looking at the history of money, development of social systems and evolvement from ancient barter systems to different monetary systems helps to understand the value of money and what makes a good currency.
Blockchain has naturally evolved and allows people all over the world to directly exchange values today.
Blockchain is based on long-term existing technologies and enables now peer-to-peer electronic cash and other use cases. Since Bitcoin’s launch in 2008, many more blockchain protocols and applications have emerged.
Cryptographically secured chain of blocks and smart contract concepts were published, and a number of digital currencies.
Nick Szabo conceptualized Bit Gold, Hal Finney introduced Reusable Proof-of-Work and Bitcoin was created in 2008.
Understand what blockchain technology is and how it works.
It is good to get the overall picture and understand how components such as cryptography, economics and decentralization work together if you consider working with blockchain or building a blockchain project.
How is blockchain related to economics, governance and privacy? You’ll get a brief intro to the various blockchain topics before jumping into Deep Dives.
A copy is sent whenever you share a digital file. In digital cash this would have caused double-spending without a trusted third party. Bitcoin solved this with its proof-of-work consensus.
A blockchain is a chain of blocks. Each block is linked to the previous block and contains its hash, a timestamp and transaction data.
Yes or No?
It’s good to know how blockchain will impact our society and businesses.
Blockchain technology comes with advantages and disadvantages. You don’t need to move your existing business on blockchain tomorrow but we expect a strong use of blockchain technology in the next 5 years.
We believe everyone should be in a position to control finance and data proactively.
How to crypto?
It’s easy to get started with cryptocurrency today.
Blockchain technology surrounds some mystery but it’s easy to download a wallet, buy a bit of cryptocurrency, save it or use it to pay for goods at shops or to pay back your friends.
You can purchase cryptocurrency from others, on exchanges, and in wallets. You can also get it from an airdrop for free or as a reward for contributing to a project.
You can use an exchange, bank or agent or take care of storing your holdings yourself instead of using a trusted third party. Please consider security measures.
What’s currently going on?
We provide insights to blockchain, research, protocols and solutions and share great updates from experts.
Blockchain is one type of data base system. More distributed ledger technologies, 100s of protocols and 1000s of applications and tools have emerged in the past 11 years. Here’s an insight into the current blockchain industry.
The core technology of Bitcoin and other protocols has significantly advanced in all areas.
Tooling depends highly on the ecosystem but lots of tooling is open source and can be used by anyone.
There are use cases in all industries but few of them have gained significant traction so far.
Many protocols of the “middleware stack” have been enabled and teams started building the Web 3.