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)

Decentralized consensus and game theory

In this section, we will see how game theory comes into the picture.

Game theory is the study of mathematical models of conflict and cooperation between intelligent rational decision makers. It is mainly used in economics, political science, and psychology, as well as in logic and computer science.

Sounds exciting, doesn't it? Let's see how it applies to Bitcoin's decentralized consensus.

First, we need to consider that Bitcoin mining is a capital-intensive business. This means that miners need to make a large capital investment in expensive mining computer hardware, also known as mining rigs. Bitcoin mining is so industrialized nowadays that most of the hash power comes from large data centers, also called mining pools.

Besides capital expenses in physical hardware, there are also substantial operating expenses to run a mining...