Book Image

Blockchain for Business 2019

By : Peter Lipovyanov
Book Image

Blockchain for Business 2019

By: Peter Lipovyanov

Overview of this book

Blockchain for Business 2019 is a comprehensive guide that enables you to bring in various blockchain functionalities to extend your existing business models and make correct fully-informed decisions. You will learn how decentralized applications are transforming numerous business sectors that are expected to play a huge role in the future. You will see how large corporations are already implementing blockchain technology now. You will then learn about the various blockchain services, such as Bitcoin, Ethereum, Hyperledger, and others to understand their use cases in a variety of business domains. You will develop a solid fundamental understanding of blockchain architecture. Moving ahead, you will get to grips with the inner workings of blockchain, with detailed explanations of mining, decentralized consensus, cryptography, smart contracts, and many other important concepts. You will delve into a realistic view of the current state of blockchain technology, along with its issues, limitations, and potential solutions that can take it to the next level. By the end of this book, you will all be well versed in the latest innovations and developments in the emerging blockchain space.
Table of Contents (17 chapters)

An introduction to blockchain

What, exactly, is blockchain? Blockchain is a rapidly increasing list of records that are linked to each other via cryptography. In simple terms, a blockchain is a record of a particular transaction that is encrypted, secured, and linked to other transactions.

When blockchain started out, it didn't gain much ground. However, by 2017, it was hard not to pay attention to a market that had increased in value by around 50 times over the course of 12 months, from around 15 billion US dollars in January, 2017, to over 830 billion US dollars on 7 January, 2018.

These are eye-watering numbers, but they only represent the value of publicly traded cryptoassets (meaning the currencies that are in circulation), and not the entire supply! A lot of the supply is still locked away and kept by the founding teams, which helps to make Bitcoin as secure as it is now. You will learn more about this in later chapters of this book.

The rise of blockchain

Just like with the internet stocks in 2000 (and pretty much every single asset that has ever existed), blockchain has gone through the boom and bust cycle of markets driven by greed and fear.

Every market participant has probably heard the following terms thousands of times:

  • FOMO: Fear of missing out
  • FUD: Fear, uncertainty, and doubt

These terms correctly describe the psychology of the crowds that drive the roller coaster situation in the markets. This is especially amplified in markets dealing in new technologies, where people speculate on the future of such new technologies and startups, especially when these markets are public and global, which means that anyone, from anywhere in the world, can take part 24/7! That's the main reason for the incredible volatility that we have seen in cryptoassets.

Some fun facts are as follows:
  • In December, 2017, Satoshi Nakamoto, the publicly unknown founder of Bitcoin, became one of the 50 richest people in the world, with a net worth estimated at around $20 billion, all based on his or her Bitcoin holdings.
  • In January, 2018, the cofounder, executive chairman, and former CEO of Ripple, Chris Larsen, made an even bigger jump, becoming the fifth richest person in the world! His holdings in Ripple's cryptocurrency, XRP, were valued at approximately $60 billion. This catapulted him ahead of people like the founders of Google, Larry Page and Sergey Brin, and the founder of Oracle, Larry Ellison. Only Amazon's Jeff Bezos, Microsoft founder Bill Gates, Berkshire Hathaway's Warren Buffett, and Facebook's Mark Zuckerberg were ahead of him at the time.

Since its peak in January 2018, the market capitalization has gone down to the 100-200 billion USD range. While such a fall may be disappointing for some, we should still be reminded of the 15 billion market cap in January 2017. This is still amazing growth in a very short period of time, which has hardly been observed in other industries throughout history.