Book Image

Blockchain for Decision Makers

By : Romain Tormen
Book Image

Blockchain for Decision Makers

By: Romain Tormen

Overview of this book

In addition to cryptocurrencies, blockchain-based apps are being developed in different industries such as banking, supply chain, and healthcare to achieve digital transformation and enhance user experience. Blockchain is not only about Bitcoin or cryptocurrencies, but also about different technologies such as peer-to-peer networks, consensus mechanisms, and cryptography. These technologies together help sustain trustless environments in which digital value can be transferred between individuals without intermediaries. This book will help you understand the basics of blockchain such as consensus protocols, decentralized applications, and tokenization. You'll focus on how blockchain is used today in different industries and the technological challenges faced while implementing a blockchain strategy. The book also enables you, as a decision maker, to understand blockchain from a technical perspective and evaluate its applicability in your business. Finally, you'll get to grips with blockchain frameworks such as Hyperledger and Quorum and their usability. By the end of this book, you'll have learned about the current use cases of blockchain and be able to implement a blockchain strategy on your own.
Table of Contents (16 chapters)
Title Page

Comparing proof-of-work and proof-of-stake

Ethereum currently relies on the same consensus protocol as Bitcoin: proof-of-work. In order for the blocks and transactions to be validated, the miners of the network have to solve a mathematical problem, which, as of April 19, 2019, takes approximately 13 seconds.

When the result (hash) is found, it is spread to the network, which checks it and stores the blocks containing the transactions in the ledger. Then another mathematical problem rises to validate a new block and so on.

This consensus protocol proof-of-work has several downsides:

  • It is harmful for the environment because it requires an impressive amount of electricity for the computers to find the suitable hash that will validate the block.
  • It is expensive, non-inclusive, and reserved for experts because the mining process requires good chips, material...