Quick guide to Blockchain

I will start writing about blockchain and what it can be used for. Therefore, I will start with the most simple article, Quick Guide to Blockchain, and try to teach you why this technology is so revolutionary. Please send me your questions if you have any.

Blockchain explained in one sentence:

Blockchain is a continuously updated record of who holds what.

Didn’t understand? Here is a picture for you how transactions go on a blockchain using Bitcoin as an example: 

You still don’t get it? No problem. This new technology is quite advanced and not super easy to understand. But to give you a picture on how it works, imagine a spreadsheet that is duplicated on thousands of computers in a network. This network is designed to constantly update this spreadsheet, so everybody verifies that the same type/amount of transactions has been made. In this way, the transactions is not stored on one location (like a bank or financial institution) and therefore its safe and public at the same time. 

But why is it called blockchain? This is because all the computers in the network confirms that one block of transaction is verified. When it is, then they can move on to verify the next, and the next. In this way, transactions can not be changed afterwards by just one single entity, because then all the other computers in the network will say: “this is not what we have in our books”. In this case, the changes will not be approved. Thats the beauty and security of a blockchain.

Why is this so revolutionary then as everybody sais? This is because finally, since the very beginning of the internet, things on the computer can be unique and only exist in one copy. Before, when someone had, for example a song, lets say Don’t Stop Beliving with Journey (personal KTV favorite). Then I could send that to my friend, who send it to two other friends. Now we have four versions of this song, so which one is the original? With blockchain this can not happen. When I have, for example one bitcoin, and I send it to my friend Jeff, then all computers in the network verifies that I don’t have a bitcoin, and that Jeff has one. If I later try to send a bitcoin to Anna, then the network sais: Hey, you only had one Bitcoin and Jeff got that one now. You can not send more bitcoin, sorry. In this way, you can create value on the internet in a totally different way then ever before.

Futhermore, these transactions doesn’t need a middle man, like a bank. All the transactions are verified by the computers in the network. In this case, you don’t need a middle man, and still the transaction is super safe, fast and reliable. This is why blockchain is revolutionary.

Blockchain was first widley known by the public with the release of Bitcoin 2009, and many currencies has been developed since then. Now the blockchain technology is developing in many different areas, such as smart contracts, apps, chatbots, voting systems, supply chain and more. This I will write more about in the future. 

Some funfacts about Blockchain:

FIVE biggest cryptocyrrencies (Aug 2018):

1.     Bitcoin - $120 billion (more worth than Goldman Sachs)

2.     Ethereum - $40 billion

3.     Ripple - $16 billion

4.     Bitcoin Cash - $12 billion

5.     Eos - $5,6 billion

FIVE biggest exchanges:

1.     Binance - (higher profit than Deutsche Bank)

2.     OKEx

3.     Huobi

4.     ZB.com

5.     Bitfinex

People to know:

Satoshi Nakamoto - Creator of Bitcoin. He disappeared in early 2010

Vitalic Buterin - Creator of Ethereum

Chalee Lee - Creator of litecoin

Brian armstrong - co-founder and CEO of Coinbase.

Roger Ver - Worlds first investor in Bitcoin Startup

Abbreviations to know:

ICO - Initial Coin offering - The cryptocurrency equivalent to IPO

OTC – Over the Counter – Be able to by bitcoin with money at an exchange

Standards to know:

ERC 20 - ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens

ERC 721 - ERC-721 is a free, open standard that describes how to build non-fungible or unique tokens on the Ethereum blockchain.

MST - Digital assets (Metaverse Smart Token) on Metaverse blockchain are trust-free, traceable and immutable decentralized smart properties that can be freely registered, transferred, issued, deposited, used as collateral and burnt. Metaverse equivalent to ERC 20, but safer and easier to use.

MIT - Metaverse Identity Token - is a set of token standards that allow everyone to register asset from off-chain. MIT is different with MST, which is a light token for tracking/verification for real-world asset.

Metaverse Identity Token is very much like ERC721 tokens. You can operate it via a visual interface without any programming basics. You can even issue a Token in the SPV Light Wallet and these tokens can be safely transferred as Bitcoin. Metaverse equivalent to ERC 721, but safer and easier to use.

Expressions thats good to know:

Hodl – a joke expression which means just hold on to Bitcoin and you will become rich eventually.

Airdrop – when exchanges/crypto currencies give you more coins in a cyrrency for already holidng it. 

Good sites to know more about cryptocurrency and blockchain:

coinmarketcap.com- listing site to se currency value, which one thats the biggest one

Cointelegraph.com  - news about cryptocyrrencies

CCN.com - news about cryptocyrrencies

https://bitcoinist.com

Podcasts to listen to for more info:

Coin Mastery

Crypto Bobby – personal favorite

CCN Podcast

LTB NETWORK

UnChained

Videos to learn more:

https://www.youtube.com/watch?v=r43LhSUUGTQ

https://youtu.be/SSo_EIwHSd4

https://www.youtube.com/watch?v=Pl8OlkkwRpc&t=741s

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Thank you for reading my article! My name is Magnus Dettmar and I work as Account Manager for ViewFin, which is one of the biggest blockchain service providers in China. Throw me a message if you have any questions regarding blockchain, what services we provide, China, or my youtube channel. I am more than happy to discuss with you!

Enjoy!

Magnus Dettmar