A super brief summary of the chapter
Why is Blockchain So Popular?
Benefits of blockchain technology: Highly secure, Decentralized system, Automation capability
Blockchain disruption in five key industries: Banking, Cyber security, Supply chain management, Healthcare, Government
Introduction to Blockchain
Brief history of blockchain
The key components of blockchain technology: Distributed ledger technology, Smart contracts, Public key cryptography
How blockchain works
Blockchain vs Bitcoin, Database, Cloud
The differences between Bitcoin and blockchain
The difference between a database and a blockchain
The difference between blockchain and the cloud
Consensus Mechanism
Consensus mechanisms maintain trust and security in a blockchain
Proof of Work relies on code, Proof of Stake relies on validators
Public and Private Keys
Private keys are only visible to the owner
Public keys are visible to everyone
Private keys give control over assets, public keys prove ownership and are used in transactions
Hash functions and Cryptography
Ensure integrity
Secure against unauthorized modifications
Enable you to verify and securely store passwords
Operate at different speeds, suiting different purposes
Helps to scale blockchains
Achieves scaling through blockchain nodes, hortizontal partitioning, and shard sharing
Types of Blockchains: PoW, PoS and Private
Public blockchain networks are free to anyone
Private blockchain networks grant interaction to certain entities
Permissioned blockchain networks requires an invitation to join
Understanding Cryptocurrency
A cryptocurrency is a digital or virtual currency that is secured by cryptography
Cryptocurrencies have many advantages as well as disadvantages
Coins vs Tokens
Coins are base layer blockchain currencies
Tokens are built on blockchains with smart contract functionality
Blockchain Trilemma
Blockchains face a tradeoff between being decentralized, scalable and secure
Crypto legality varies based on national jurisdiction
Some cryptocurrencies are considered securities while other are not