Yesterday I wrote "What is Blockchain (And Why Should You Care)?". Today, I write part 2, based on what I've gleaned from the rather brief Blockchain for Beginners by the Blockchain Council. Why do I do this? Simple: So that you get the facts and pertinent information without having to download and wade through it yourself. Also, I do this because I have an ulterior motive: Posts about blockchain technology and cryptocurrency tend to earn better than other posts here on Pub0x. Got to get that cheddar, you know?

Anywho, let's have a look see at the book, why don't we?

Blockchain for Beginners

This one's even shorter than Blockchain for Dummies, at 21 pages and feels a bit like a PowerPoint presentation. Here's what I got from it:

• Many people confuse blockchain technology with cryptocurrencies (Bitcoin in particular).
• Blockchain isn't a cryptocurrency, but the technology behind it.
• Each block on the network contains the proof (hash) of the previous block. This is done in order to link together the blocks on the chain.
• A digital currency or asset token is nothing but a number (piece of data) in a block on a blockchain. It can be/represent anything, provided that it has value to two or more parties.
• In a blockchain, the initial block (block 0) is known as the genesis block.
• The hash of one block is stored towards the top/beginning of the next block, so that blocks are linked in a chain, hence the term "blockchain".
• Due to the way that blocks are signed, it's obvious if any block is tampered with: The signature/digest will not match.
• Different blockchains use different hashing algorithms. The SHA 256 algorithm is used by some of them, while others prefer blake2/3.
• A hash cannot be reversed to give the original data used to compute it.
• For a decentralised and public blockchain to function and maintain its integrity, it needs to have a lot of nodes from around the world. In a private blockchain (such as used by a business), there is often a central authority whom controls the permissions of nodes.
• Anyone can set up a computer to run as a node; it just requires the right software and an always-on Internet connection.

Benefits of Using Blockchain Technology

• Blockchain has the potential to disrupt/revolutionise many industries, including the financial world and healthcare, but ultimately any centrally-controlled hierarchical network.
• Blockchain technologies are intended to help in creating a fairer world, without middlemen and centralised authorities.
• Blockchains typically run as decentralised, peer-to-peer networks, in which the users' systems are nodes thereon. As long as the majority of those nodes is active, the system won't go down/crash.
• All transactions on a blockchain are cryptographically secured, using industry standard hashing algorithms (such as SHA 256).
• Transaction records are verifiable by anyone, using a "block explorer" (a Web service that provides data about/on transaction records). This might not be true for privacy coins, which hide the details of how much was sent and from whom.

Public vs Private Blockchain

• In a public blockchain (also known as a permissionless blockchain), anyone with access to the chain can write data to it and read from it.
• A public blockchain has more complex consensus algorithms than a private (permissioned) blockchain. That's because a private blockchain is limited to a small group of people.
• Nobody owns a public blockchain; it has no central authority or single person holding sway over it (at least in theory), provided that there are many nodes.
• Private blockchains are for personal or business use. They provide more fine-grained control regarding who has permission to do what.
• Existing business applications and functions can be adapted to work with a private blockchain.

Use Cases

• As mentioned before, supply chain management and medical records could benefit greatly from the use of blockchain.
• Maintaining records on-site is at risk of data corruption and loss. Since blockchain technologies (such as Arweave, Filecoin and Storj) are cloud-based, they can be leveraged to safely store records.
• Financial markets have many issues related to timing, middlemen and complex trades. Using blockchain technology would help greatly for trading assets quickly and easily. Using smart contracts that trigger certain sale/purchase events or act upon them can help to reliably automate the process.

That's all for now. Next, I'll take a look at Blockchain Basics — A Non-Technical Introduction in 25 Steps, by Daniel Drescher.