Summary of the book "What is blockchain?"

Sun, 27 Feb 2022 22:45:45 +0700

Here is my summary of the book What is blockchain?

Blockchain principles
- Start with the story of Changpeng Zhao - a blockchain billionaire in less than a year.
- He created Binance in 2017 a flatform to transfer bitcoin and altcoins.
- Network Effects
  
  For every user who joins a blockchain, the more valuable that blockchain becomes.
  
  … networks that are more open are generally more successful.
  - The sweet spot between permissioned and permissionless.
- Eliminate the Intermediaries
  - Story of apple juice supplement. The more middleman in the process, the more price customers will pay.
  - Where do we have inefficient intermediaries? Who can we eliminate from our supply chain? “Going direct to the customer” has always been a way to save money for both producers and consumers.
  - where can we eliminate steps in our supply chain? Where can we replace a centralized record keeper with a decentralized ledger? Where can we eliminate an intermediary? That’s where a blockchain solution is often hiding.
- Code, Not Contracts
  - A contract is paperwork that records a transaction between two or more parties.
  - A smart contract is computer code that establishes agreements between parties and then executes the transaction when certain conditions are met, without the need for a third party.
  - Still don’t understand the idea of it???
- Forking bitcoin should be avoidable for 2 main reasons
  - You lose users
  - You are more likely to fork again
- Four simple principles of a blockchain project: Free, Instant, Scalable, and Trusted.
- The story of blockchain in 2017-2018 periods: Evolution vs Revolution

finance on The Writer At Heart

Summary of the book "What is blockchain?"