Understanding blockchain?

Started by juicebrenner, Apr 04, 2023, 03:17 AM

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juicebrennerTopic starter

Hello there! The blockchain has captured my interest, not just in relation to cryptocurrencies, but also its broader applications like Web3.0, metaverses, NFTs, and more. Naturally, I turned to Google to learn more. It became clear that the blockchain is essentially a chain of blocks, and these blocks are distributed across various computers. However, when it comes to the specifics and what lies beneath the surface, there seems to be a scarcity of information. Moreover, the information available on different resources appears to vary, making it difficult to grasp the concept.

In light of this, I have made the decision to delve deeper into this movement and gain a comprehensive understanding of how the blockchain truly operates. Therefore, I would like to reach out to those who possess knowledge on the inner workings of the blockchain.


The key aspect to comprehend, which holds significance and makes sense, is the consensus mechanism. It enables a regular blockchain, essentially a sequential chain of data, to be indisputably immutable without the need for a central trusted authority.

From this very foundation, various possibilities emerge, such as the creation of cryptocurrencies (specifically Bitcoin), where transactions are transparently recorded on a blockchain using a reliable Proof-of-Work (PoW) consensus. This creates a "ledger" of sorts, documenting who transferred coins to whom, and instills trust through consensus restrictions. These restrictions include guarding against a 50%+1 attack and ensuring a sufficient number of confirmations to render such an attack negligible.

While this is not the only application, the potential to function without a central authority has led to the invention of numerous tasks, albeit with limited practical usefulness. Notable examples include the function of money, collective management based on multi-signatures, and voting systems.

Given that the concept of decentralization is challenging for the majority to grasp, it is often used to distract or mislead. Initially, cryptocurrencies were created, both as copies of Bitcoin and as unique implementations, experimenting with alternative consensus mechanisms. These experiments revealed that consensus alone is insufficient for ensuring reliable system functionality. Factors like a well-distributed initial value and independent developers, among other considerations, play critical roles in sustaining these systems. The requirement for independent developers is particularly philosophical, as past examples showcase the vulnerability of projects when core developers and major stakeholders become interconnected/codependent, ultimately leading to the downfall of valuable initiatives (e.g., the fate of BitShares demonstrated the vulnerability of Proof-of-Stake consensus).

Subsequently, recognizing that technical and philosophical concepts hold little importance, developers began creating projects on existing blockchains (such as Ethereum) that revolved around icons, names, and partnerships with exchanges willing to list these projects (a form of revenue generation for exchanges). This trio of elements led to the emergence of contracts, specifically Non-Fungible Tokens (NFTs), which essentially represent icons (artwork), names, and exchanges. NFT contracts successfully operate across multiple blockchains.


It appears to be a mere trend, similar to the hype surrounding "clouds." Initially, there was an enthusiastic rush, with uninspired attempts and varying levels of success. Some managed to secure funding, while others fizzled out. However, once the initial hype subsided and the true extent of its applications became apparent, the buzz surrounding it quieted down significantly. This silence can be attributed to the realization that the range of applications is quite limited and highly specific.

It is essential to approach such trends critically, considering their long-term viability and practicality. While some may fade away as the hype wanes, others may find niches where they can truly thrive. As observers, we should remain skeptical yet open-minded, keeping an eye on how these trends evolve and whether they can truly deliver value in the long run.


I see that you're interested. That's excellent! If you're serious about diving into this subject (although I'm still unsure what you mean by "movement" here), it is advisable to steer away from relying solely on various online resources, such as videos or websites where self-proclaimed experts explain their own interpretations of the topic. Instead, I recommend turning to books authored by reputable individuals and reviewed by experts. These sources will provide a clearer understanding and serve as a solid foundation for exploring the intricacies of the subject matter.

To get started, you can refer to the following books:

1. "Blockchain For Dummies" by Tiana Laurence
   - Amazon link: [https://www.amazon.com/Blockchain-Dummies-Computers-Tiana-Laurence/dp/1119365597](https://www.amazon.com/Blockchain-Dummies-Computers-Tiana-Laurence/dp/1119365597)

2. "Mastering Blockchain: Unlocking the Power of Distributed Consensus in Cryptocurrencies" by Imran Bashir
   - Amazon link: [https://www.amazon.com/Mastering-Blockchain-distributed-consensus-cryptocurrencies/dp/1839213191](https://www.amazon.com/Mastering-Blockchain-distributed-consensus-cryptocurrencies/dp/1839213191)

By studying these resources, you will gain a solid foundation and a comprehensive understanding of the subject matter. From there, you can explore further and determine which areas to delve into based on your specific interests.

Best of luck on your journey of exploration and learning!