Alan Wright - Blockchain: Uncovering Blockchain Technology, Cryptocurrencies, Bitcoin and the Future of Money

Blockchain:

Uncovering Blockchain Technology, Cryptocurrencies, Bitcoin and the Future of Money

Alan Wright

2017

COPYRIGHT

Blockchain : Learn Uncovering Blockchain Technology, Cryptocurrencies, Bitcoin and the Future of Money

By Alan Wright

Copyright @2017 By Alan Wright

All Rights Reserved.

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Chapter 1:

Htr f Blockchain

M n of th thnlg w nw tk for grntd were ut rvlutn n thr time. Jut thnk but hw much mrthn have changed the w w lv and wrk. It used t b tht whn l wr out f th ff, th wr gn because a tlhn w td t a l, nt t a person. Nw we have global nmd building nw bun trght frm their hn. And t thnk: Smrthn hv been rund fr mrl a dd.

Wr nw n th midst f nthr quiet rvlutn: blkhn, a dtrbutd dtb tht maintains a continuously growing lt of rdrd rrd, lld blk. Cndr wht hnd n just th t 10 years:

Th first mjr blockchain nnvtn w bitcoin, a digital urrn xrmnt. Th mrkt cap f btn nw hvr between $10$20 billion dollars nd is used by mlln f people for payments, including a lrg nd grwng rmttn mrkt.

Th nd innovation w lld blkhn, which w ntll th rlztn that th undrlng thnlg tht rtd bitcoin uld be separated frm the urrn nd ud fr all knd of other inter-organizational rtn. Almt vr mjr fnnl nttutn in th world doing blkhn rrh at th mmnt, and 15% of bnk r expected t be ung blkhn in 2017.

Th thrd innovation w called th smart contract, mbdd n a nd-gnrtn blkhn system called ethereum, whh bult lttl computer programs directly nt blockchain tht llwd fnnl ntrumnt, lk ln r bonds, t b represented, rather thn nl th cash-like tkn of th btn. Th thrum mrt ntrt ltfrm nw h a mrkt of rund a blln dollars, wth hundrd f rjt hdd twrd th market.

Th furth major innovation, th urrnt uttng dg f blkhn thinking, is lld proof f stake. Currnt generation blkhn r secured b rf f wrk, n whh th gru wth th largest ttl mutng wr makes the decisions. These groups are called mnr and rt vast dt centers t rvd th urt, in exchange fr rturrn mnt. Th nw tm do away wth these data ntr, rlng thm with mlx financial ntrumnt, fr a mlr or vn higher degree f urt. Prf-f-tk tm r xtd t g lv later this r.

The ffth mjr nnvtn n th hrzn called blkhn scaling. Right nw, in the blkhn world, vr computer in th ntwrk r every trntn. This slow. A ld blkhn lrt the process, without sacrificing urt, b figuring ut how mn computers r nr to validate h transaction nd dvdng u th wrk ffntl. T manage th without mrmng th lgndr security nd robustness of blkhn a dffult rblm, but nt n ntrtbl n. A ld blkhn xtd t b ft nugh t wr the ntrnt f thng nd go hd-t-hd wth the mjr payment mddlmn (VISA and SWIFT) f th bnkng wrld.

This innovation lnd rrnt just 10 years f wrk b an elite gru f computer scientists, cryptographers, nd mathematicians. As th full tntl f th breakthroughs ht t, thng r ur t gt a little weird. Slf-drvng cars nd drn will u blkhn t fr services lk charging ttn and landing pads. International urrn trnfr will g from tkng d t n hur, nd then t a fw mnut, with a hghr degree f reliability than th current system h been able t mng.

Th hng nd thr rrnt a pervasive lowering of trntn costs. Whn transaction t dr t nvbl thrhld, thr will be sudden, dramatic, hard-to-predict ggrgtn nd disaggregations f xtng business mdl. Fr example, utn ud t b nrrw nd ll, rather thn unvrl nd glbl, they r nw n sites lk B. As th costs f reaching people drd, there w a sudden hng n the tm. Th blkhn reasonably xtd t trggr mn f th d as -mmr h dn since t w invented, n the lt 1990.

Prdtng wht direction t wll ll take is hrd. Dd anybody see l md mng? Wh wuld hv rdtd tht lkng on our frnd f wuld rl time spent n frnt of the TV? Prdtr usually overestimate hw ft things will hn nd underestimate th long-term mt. But th sense of scale inside th blkhn industry tht th hng coming will b lrg as th rgnl nvntn f th ntrnt, and th m not b vrttd. Wht we can predict that blkhn matures nd mr l catch n to th new md of collaboration, t wll extend nt everything frm supply hn t rvbl fr ntrnt dating (eliminating the possibility f fake rfl nd thr undrhndd thnu). And gvn how fr blockchain come n 10 years, rh the future uld ndd rrv nr than n f u thnk.

Until th lt 1990s, it was impossible t r a credit card url n th ntrnt e-commerce ml dd not exist. Hw ft uld blkhn brng but nthr rvlutnr change? Consider tht Dub blkhn trtg t u all gvrnmnt documents n blkhn b 2020, with ubtntl ntl rjt jut nnund t g live this year. Th Intrnt f Agrmnt nt rntd t the Wrld Gvrnmnt Summt builds on th trtg to nvn a ubtntl trnfrmtn of global trd, ung blkhn t mth ut m f th bum ud b Brxt nd th recent U.S. withdrawal from th Trans-Pacific Partnership. Th mbtu gnd wll hv t b proven n rt, but the xttn n Dubai that t vng nd nnvtn bnft will mr thn jutf th t f experimentation. As Mrn Mazzucato th n Th Entrrnurl State, th uttng edge f nnvtn, particularly n nfrtrutur, ftn n th hnd f the tt, nd that seems destined to b true n th blockchain .