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    Ethereum: Your Guide To Understanding Ethereum, Blockchain,and Cryptocurrency: Ethereum
    Ethereum: Your Guide To Understanding Ethereum, Blockchain,and Cryptocurrency: Ethereum
    Ethereum: Your Guide To Understanding Ethereum, Blockchain,and Cryptocurrency: Ethereum
    Ebook82 pages1 hour

    Ethereum: Your Guide To Understanding Ethereum, Blockchain,and Cryptocurrency: Ethereum

    By Tim Mathis

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    About this ebook

    Have you ever heard of bitcoin? Well, Ethereum is going to be similar to bitcoin and it is going to be a platform where you can mine coins known as ether. 

    Ethereum is a new platform that is going to continue to develop and all of the users of Ethereum are going to be a part of history as it continues to grow. 

    Ethereum will allow you to mine much like bitcoin, however, the sad thing is that it is still a digital currency that is not accepted everywhere. Although, when it is accepted, you are going to have the digital currency built up and will not have to worry about jumping on the bandwagon because you were already on it! 

    LanguageEnglish
    PublisherBrendan Gallagher
    Release dateFeb 27, 2018
    ISBN9781386833161
    Ethereum: Your Guide To Understanding Ethereum, Blockchain,and Cryptocurrency: Ethereum

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    • 5/5
      Very recommendable introduction to Bitcoin and Ethereum blockchains. A very complete guide, giving explanation about almost any concept involved. In only 80 pages I've found a very fresh, clear and summarized introduction. Excellent review.

    Book preview

    Ethereum - Tim Mathis

    A Guide to the Blockchain

    What is this blockchain we keep hearing so much about? Before I go into too many details, let’s look at a brief example:

    Imagine a Google spreadsheet, one that every computer in the world shares and a spreadsheet that is connected to the internet. Each time something happens, a transaction, it will be recorded on a separate row on the spreadsheet.

    Anyone who has a computer or a mobile device can log on to the internet and can see the spreadsheet. They can see every transaction that happens on the spreadsheet and they can add another transaction if they want. The only thing they cannot do is make any changes to the transactions that are already on there.

    That is, in essence, the blockchain. Nice and easy, isn’t it? Where the spreadsheet has the rows, a blockchain has blocks. Each block is a collection of data and each bit of data is added by the connection of one block to the next and so on in chronological order, pretty much the same as a spreadsheet is made up rows that follow one another. These connected blocks make a chain.

    Therefore, the blockchain is a global database, online, that anyone who has an internet connection can view and use. Because this database exists on the net, it is classed as decentralized – the ledger or database is shared between every computer in the world, not just stored in one specific location with limited access.

    This is what makes cryptocurrencies like Bitcoin and Ethereum so unique.

    Bitcoin and the Blockchain

    The first application for the blockchain and perhaps the most famous is Bitcoin, a P2P digital currency. The Bitcoin is created through mining and is stored on the blockchain. Unlike the physical money we use today, Bitcoin can be sent to anyone and to anywhere without the need to go through a bank or a government or any other agency that might want to interfere and take their cut from you.

    The blockchain really doesn’t care whether you are a machine, a human, even a dog. The security in the blockchain comes from the verification of each transaction by all the nodes, or computers, that are on the blockchain network and that eliminates the need for all those expensive intermediaries.

    How Does the Blockchain Work and Why Can’t Anyone Hack Into it?

    We know what the blockchain is now so let’s look at how they work. I will stick with using Bitcoin for this because it is one of the easiest and better-known examples.

    In the Bitcoin blockchain, there are a series of 1 MB blocks, each of which contains P2P transactions. The block is added to the chain every 10 minutes, following verification by the Bitcoin miner network and a consensus mechanism that is built-into the system. Each of the entries within a block is fully secured using cryptographic math, making the transaction irreversible. The blocks in the chain have the following features:

    ●  Each one is time-stamped, with the date and time 

    ●  Each one is decentralized and distributed – there are multiple copies of each block stored in multiple locations

    ●  Each one is transparent, which means anyone can see what is on it

    Irreversible

    When a transaction takes place on the Bitcoin blockchain, it is sent to a pool that contains transactions not yet verified. These transactions will then be grouped together in one block, every 10 minutes, and Bitcoin miners will then work at solving a computational Math problem, very difficult; when the problem is solved the transactions are verified and the block is added to the chain.

    Because blocks are added regularly, it gets more difficult to reverse any transaction or to double-spend the Bitcoin used in a transaction. At the same time, the Bitcoin blockchain is used by many millions of users, each of which runs the ledger on their own computers – akin to having millions of copies of the Bitcoin ledger, right from the very first block ever mined.

    These copies all contain the history of every block since Bitcoin started and this is what makes it so difficult to hack. If that weren’t enough, each of the transactions is fully secured with cryptographic math. If anyone were to attempt to change the ledger they would need to be able to hack into 51% of the network – that means having to hack 51% of the total computers on the network running that ledger at the same time. This would require an amount of capital that is eye watering, not to mention the electric energy required and this is what makes it unlikely that anyone will ever hack the blockchain or attempt to tamper with it. Not only that, in a situation like this, the value of the Bitcoin would significantly plummet, making it unworthwhile to hold them.

    Bitcoin is just one example of a blockchain but the blockchain can be implemented across any number of industries and used to solve various problems.

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