BLOCKCHAIN

Blockchain for Beginners

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 Table of Contents

Introduction

Chapter 1: Blockchain History

Chapter 2: What is Blockchain, Exactly?

Chapter 3: Blockchain for Profit

Chapter 4: How to Use Blockchain

Chapter 5: Blockchain Revolution

Chapter 6: Common Myths

Chapter 7: Blockchain Risks

Conclusion
 INTRODUCTION

Blockchain was developed less than ten years ago, and it has already had a
massive impact on society. Many are even calling it a revolution. Despite the
major impact it has already had, blockchain is only at the beginning of its era.
The majority of people have no idea what blockchain actually is. If you are
new to the terminology, you are not alone. This program is a revolutionary
program that is taking over silently, much like the smartphone and the
internet did. One day they were hardly understood, and with the blink of an
eye, they became two of the most fundamental parts of modern society. It is
expected that blockchain will do the same.
“Blockchain: Blockchain for Beginners” is the perfect book to help you
understand exactly what blockchain is and why it is so revolutionary. You
will learn everything you need to know in order to understand exactly what
this phenomenal program is all about and what it means for society as a
whole. This book will cover several aspects of the program in-depth,
including its history, its many uses, how it can be used for profit, the
revolution behind it, common myths and risks society may face as a result of
blockchain. By the end of this book, you should feel completely confident in
your understanding of what blockchain is and why so many people are so
excited about this phenomenal program.
 CHAPTER 1

B L O C K C H A I N H I S TO RY

As you may have picked up on in the introduction, blockchain is being

considered a part of a silent revolution. What this means is that it is being
developed behind the scenes, and very few people are actually aware of its
very existence. Eventually, however, it is expected that blockchain will
emerge into society and everyday people will be interacting with it on a
regular basis, much like the smartphone or the internet. Around two decades
ago mobile phones and the internet weren’t even talked about. Now, we have
flown past flip phones and basic internet and into smartphones and the use of
the internet for virtually everything we do in this day and age. It is expected
that blockchain will be the same.

Where Did Blockchain Come from?

To put it simply: blockchain is a digital ledger that can record various pieces
of information. At this time, it primarily records transactions that are made
using cryptocurrencies such as Bitcoin. Bitcoin itself was the first major
innovation using blockchain. The two were also largely considered to be a
digital experiment that has since taken the world by storm. Despite being an
experimental project, Bitcoin itself is now worth between $10-$20 billion,
and millions of people invest in this currency. The market for this particular
cryptocurrency is massive, and the market for cryptocurrencies, in general, is
rapidly growing.
Blockchain was founded as a byproduct of Bitcoin. When the creators
realized that the two technologies could be separated, they realized that the
blockchain itself could be used for a massive number of different
organizational functions. Following this exciting discovery, nearly every
single major financial institution invested funds into researching blockchain
itself and how it might be used to benefit their institutions. They predict that
approximately 15% of banks are going to begin implementing the use of
blockchain by the year of 2017.

Smart Contracts

An exciting innovation that was discovered following the launch of Bitcoin

and blockchain is known as the “smart contract.” This innovation is
considered to be a second-generation variation of the blockchain system that
works directly with the blockchain to trigger certain situations. This second-
generation part of the blockchain system is known as the “Ethereum.”
Ultimately, smart contracts are small computer programs that programmers
can build directly into blockchain.
They are similar to contracts in that they represent loans and bonds as well as
various currencies, but they vary in one important way. While regular
contracts are devised to keep both parties accountable for withholding their
part of a legal agreement, smart contracts are actually programs that tell other
programs to act in a certain way based on the terms written into the contract.
For example, the contract may be programmed to release a certain number of
funds when a set “trigger” is pulled. That trigger may be a date, a specific
move in the stock market, or any other number of conditions that may take
place to trigger a contract into action.
Ethereum smart contracts started out as a third innovation and have since
expanded massively. It is now known to hold a market cap of approximately
one billion dollars. Developers are also claiming that there are hundreds of
additional projects that are being innovated alongside the smart contract that
will be heading towards the market with the smart contract itself.

Even More Innovation

In addition to Bitcoin, the blockchain, and Ethereum smart contracts, there

are several more innovations that have popped up since the discovery of
blockchain itself. One, in particular, is known as “proof of stake” which is
intended to be straight across a replacement for what we currently call “proof
of work.” Essentially what this means is that the groups that are responsible
for holding the largest computing power also have the ability to make all of
the decisions. Some of these groups are called “miners” because they operate
what is called a data mining center. These massive centers are responsible for
providing security in direct exchange for cryptocurrency payments. Since
proof of stake systems have been developed, these data mining groups are no
longer needed since the computerized system is considered to be capable of
providing much higher levels of security. At the very least, however, it can
offer the same level of security without as much work on the part of actual
humans.
Another major innovation that has been associated with the development and
discovery of blockchain is called “scaling.” At the time of writing this book,
every transaction in the blockchain technology is being processed by all
computers that are a part of the blockchain network. Due to the massive
numbers of computers that are involved in this process, it can be extremely
slow. When blockchain is scaled, however, it makes the process much
quicker without sacrificing any of the security that blockchain is known for.
Ultimately, they have found out exactly how many computers are actually
required to conduct a transaction on the blockchain and can, therefore, weed
out the unnecessary ones and keep the entire process much more efficient.

The Outlook

The sum of the last 10 years of blockchain history is ultimately represented

by these five major innovations: Bitcoin, blockchain, Ethereum smart
contracts, proof of stake and scaling. Hundreds, if not thousands of computer
scientists, cryptographers and mathematicians have been working on this
project to discover just what these innovations can do for society and how
they can be used as a regular part of daily life. As you may expect, there are
many powerful advances that are expected to take place in the coming years
in the fields of blockchain and the other four major innovations. Once these
primary researchers fully understand the way blockchain can truly impact
society, it is expected that they will hit the ground running and society will be
majorly impacted as a result.
Some of the changes we can expect to see with blockchain include things
such as self-driving cars, landing pads and charging stations for vehicles that
are paid for using blockchain, and much more. Based on the rapid speed of
the program’s development, it is believed that processes such as trading
currencies will be reduced from days to hours or even mere minutes. It is also
believed that the reliability and security of the programs run by blockchain
will be much higher than those that are already in place.
As a result of the many powerful changes that are being brought along by
blockchain, researchers and developers believe that present business models
may undergo massive and rapid changes. The structure will be changed
entirely due to the lowered cost of transactions, meaning that businesses will
be able to collect much greater profits from their sales. As well, companies
that were previously restricted to a single local area, such as auction houses,
will have the opportunity to experience universal expansion into the global
market. This will be a direct result of the reduced cost associated with
reaching new buyers.
It is believed that all of these changes will be rapid and that we can expect to
see some of them take root in the next decade. While it may seem like a long
period of time right now, it is actually minuscule in reality. Considering the
massive amount of expansions and changes that are intended to come with
blockchain, it is an impressively fast speed. If you can recall, just a decade
ago smart phones weren’t a part of a common household, and nowadays most
people cannot remember what life was like without their smartphone. Soon, it
will be the same with blockchain technologies and similar innovations.
 CHAPTER 2

W H AT I S B L O C K C H A I N , E X A C T LY ?

As you briefly read in the previous chapter, the very basic understanding of
blockchain is that it is a digital ledger used for recording various transactions
of information and data. Understanding the history of blockchain is
important, as it will help you understand exactly what blockchain is. Now
that you are clear on where blockchain comes from, it is time to understand
what it is, what it isn’t, and what people use it for.

The Basics

When blockchain was released, no one actually knew what it was. Instead, it
was an unidentified part of the Bitcoin programming. However, following the
launch of the experimental Bitcoin, developers realized blockchain itself
could be isolated and used for a variety of different things beyond the
tracking of cryptocurrencies. Because of this history, most people believe that
blockchain and Bitcoin go hand-in-hand and therefore blockchain is the same
thing as Bitcoin. This is absolutely not true, however.
The truth is: Bitcoin is the actual cryptocurrency itself, whereas blockchain is
the platform that enables cryptocurrencies such as Bitcoin to exist. Without
the blockchain platform, there would be no basis for these currencies to exist
or be traded. Therefore, they would not be usable.
Basically, blockchain is a “decentralized database system that can store
transaction data distributed across many different nodes.” The reason why
this is such a revolutionary system is strongly based on the decentralized
basis of the system. You do not actually have to physically travel anywhere
in order to complete a transaction, as long as you have an electronic device
on your hands that is capable of accessing blockchain technologies.
Ultimately, any transaction can be completed at any location.
To get a greater understanding of what this means, exactly, take a moment to
imagine that you want to go to your bank to deposit money into your account.
In this day and age, you must travel to your local branch with the check or
money in order to deposit it into your account. When you do, the transaction
is recorded by the bank once they verify that the payment is authentic. After
they have verified the payment, your account will be updated to reflect the
payment of your account balance. The money can then be accessed
electronically from any device that can log into your banking.
Reading the previous paragraph likely sounded completely normal to you. It
has always been done that way, so what will change? Well, if you notice, all
bank transactions require you to visit the bank in one way or another. Even if
you attend a retail location to deposit your check, the bank itself is going to
become involved in the transaction at one point or another to authenticate the
deposit. This in and of itself can be a stressful part of depositing checks and
cash into your bank account.
In addition to actually having to travel to the bank in order to deposit checks,
there are further complications that can be involved from having banks
involved with all financial matters. For example, even though a significant
amount of effort goes into keeping banks secure and deposits safe, fraudulent
activity cannot be completely avoided with a bank. Due to many parts of the
process being performed manually, it leaves a lot of room for fraudulent
activities to take place by those who know how to do so. Additionally, the
actual process of ensuring fraudulent activities aren’t being completed
involves a significant amount of man hours in order to successfully complete
audits and be completely sure that no manipulation is taking place within’ the
bank’s systems. What this means is that the current procedures are extremely
slow and not always accurate. They leave a lot of room for error.
It is no secret that currency is a highly important commodity that must be
protected. The larger our societies grow, the more valuable that statement
becomes. Even if you choose to be an individual who lives in an off-grid
society, you are still going to have to rely on currency to acquire the
belongings you need for your off grid residency. There is no way to eliminate
the need for money in your life completely. Understandably, when currency
exists that means transactions exist, and since transactions directly involve
the trading of currency, you want to be sure that you are working with the
most accurate and safe programs available to you. Having secure and
accurate programs in place ensures that proper amounts are being traded and
that everyone’s currency is secure and safe from fraudulent activities such as
theft.

This is exactly where blockchain comes in. This program has revolutionized
the way that transactions are taking place, and the more it is enforced, the
greater the changes will be. The reason why blockchain is so valuable in this
process is that it eliminated third-party facilitators in transactions. In addition,
it can keep information completely safe and secure from others. That means
that your name and other confidential or potentially sensitive information will
not be accessible to those who are not a direct part of the transaction. This
type of security protects your transactions from any tampering or
manipulation that may affect the transaction itself or either party directly.
The way blockchain works are like this: a transaction is authenticated, then it
is validated, next it is approved and finally it takes place. Throughout the
entire process, a series of cryptographic data signals take place, making the
transaction permanently approved and “complete.” When the transaction is
completed, a “hash” is made onto the node which forms a chain of the
transactions. This means every single transaction is on record and cannot be
hidden.
The chain part of the blockchain provides a high layer of security on its own.
With every transaction being stored in a chain that cannot be deleted or
manipulated, any fraudulent or illegal activities can easily be tracked and can
be stopped before the transaction ever takes place, to begin with. It provides a
totally secure foundation for all transactions to take place and protects
everyone involved.

The Verification Process

An incredible part of blockchain is the fact that it provides a high level of

transparency with all transactions that take place on it. Every node in the
entire system is notified anytime one of them verifies a transaction and
hashes it. This means no single transaction can be kept secret, so everything
is available to be viewed. Every single node that is a part of the blockchain
system has its system updated to reflect every single transaction that takes
place, making it completely impossible to erase or hide the fact that the
transaction ever took place. Regardless of any attempted fraud or
manipulation, the transaction will forever be linked to that person’s code or
name. Every single node must be in agreeance with each other based on the
histories in transactions, which means that it is simply not possible to form
lies around transactions. They are very clearly maintained and visible for
anyone to see.
This factor is an important part of the process because it means that there is
absolutely no way to commit fraud using the blockchain system. There is no
way for it to be corrupted. Therefore, you cannot redirect payments to
alternative accounts, money launder, double-spend money, or otherwise,
manipulate the number of funds you are receiving or sending to others in any
way that may be deemed as fraudulent. It is not that the fraud will be caught,
but rather it will simply not be approved by the nodes in the first place,
therefore, making it impossible. From what researchers know right now,
fraudulent activity on the blockchain is completely impossible. There is no
way that you can possibly hack the system and commit any type of fraud
based on the fact that the system is completely decentralized. It is impossible
to change the histories of all nodes through a single node.
Due to the way blockchain functions, if you were able to hack a node and
alter the transaction that was stored in the history of the node, all of the
additional nodes in the system would recognize the discrepancy, and
therefore the transaction would be halted. In addition, the entire system is
available for public viewing, meaning that everyone can see the transaction
chains and what types of transactions have taken place.

The Benefit of Transactions with Transparency

As a result of how blockchain is designed, you can expect major transparency

between every transaction that takes place using the blockchain platform. The
way it works is that the blockchain is linked to a database that makes all of
the transactions available for public viewing. This means any time someone
attempts to manipulate funds or launder money they can easily be exposed
for their attempts. This means large corporations, governments, and even
overseas scam artists who were attempting to manipulate funds or launder
money would be stopped in their tracks. As a result of the transparent
database, their actions would be clearly exposed, therefore making it easier
for evidence to be held up against them and them to be justly exposed for
their actions.
By now, you should have a fairly strong understanding of what blockchain is.
Over the past decade, this complex computing program has been developed
and researched by computer scientists, cryptographers, and mathematicians.
Fortunately for you, there is no need to understand the vast complexity of
blockchain. Rather, you simply need to understand what it is, how it works,
and why it is so revolutionary for society. When you develop an
understanding of how revolutionary blockchain is and in how many different
ways it can impact society, then you can understand exactly why it is
important and why so many people are excited for this program itself.
 CHAPTER 3

BLOCKCHAIN FOR PROFIT

As with any revolution, there is some profit to be earned in the process of the
development. Blockchain is no different. Think about it: in the early 1990s,
the internet was launched to the general public after having been a silent
revolution for nearly a decade beforehand. When it was released to the
general public a massive amount of options opened up, and even more, are
continuing to open up as we explore the power and mass of the internet itself.
Anyone who initially invested in the internet has become billionaires by their
investments. In the beginning, the majority of people were skeptical and
failed to believe that anything of that nature could exist. Fast forward to now,
just two decades later, and the internet has completely changed the face of
our society. It has developed the basis for many new technologies, such as
smartphones, and it has become so integrated into our society that most
people don’t even know how they would function without it anymore.
Like the internet, blockchain is a revolution that the researchers, developers,
and many followers believe will be drastic as the internet has been. It is
expected that everyone who gets on board with the project now, prior to the
revolution heading towards mass size, will definitely earn back major profits
on their investment. There are a number of ways to get on board, but the most
important step at this time is to actually side with the blockchain revolution
and recognize the mass power behind it. That is where much of the profit will
come from at this time.

How to Invest in Blockchain

Presently there are five groups of society who are truly generating a profit
from blockchain right now. They include software developers and architects,
project and product managers, consultants, blockchain interns and fintech
content creators. Every one of these groups is unique in their own way, but
they all use the program similarly and are profiting off of the use. These are
the primary people who are actually able to use blockchain at this time, but
the number of groups is expected to expand rapidly once the program hits the
general market.

You may be wondering how these individuals are profiting directly from
blockchain. The answer is simple: there are three primary methods. They
include: actually being involved with developing the programs that are used
by blockchain, being a consultant to those who are wanting to learn how to
use the program, and then those who are actually using the program in their
business. Even once the program hits the mass public it is expected that these
will continue to be the three primary sources of income from it. However, it
is expected that each of these three profitability measures will scale
massively and become much more profitable once the program hits the
general market.

What If You Don’t Fit in Those Categories?

Not all of us will fit into the aforementioned categories of people who are
presently profiting off of blockchain, but that doesn’t mean we can’t get on
board and earn our piece of the pie. If you will recall from the explanation of
the internet revolution, many people became billionaires simply by investing
funds into the project itself. This can be done for blockchain as well.
Investing money into blockchain to help those who are developing,
consulting, or using the program advance their own work will get you in on
the profits. While this method will not make you immediate profits, it is
almost guaranteed that you are going to make some form of profit in the
future, and it is expected that the profit you will make will be massive.
If you want to start investing money into blockchain so that you can profit,
later on, there are five amazing ways that you can do so. The first way that
many people have been making a lot of money through blockchain in a much
shorter time frame is through Bitcoin. Since bitcoin is already active on the
market and being traded for real cash, you can use Bitcoin as a way to start
profiting relatively quickly using blockchain. While this does not directly
involve blockchain itself, it does allow you to interact with the program and
develop an understanding of how it works. It also allows you to start earning
money much sooner than if you invest in the program itself and wait for it to
reach the general market.

Although bitcoin is not able to be held in the same way many commodities
are, such as gold, they still hold a great amount of rarity which increases the
value they hold and makes each one worth a significant amount of money.
While all of the bitcoins have been mined by now, meaning no more will be
created, you can still trade for the ones that already exist and use them as an
opportunity to generate massive amounts of profit.
The second method that you can get involved in investments with blockchain
is through what is known as penny stocks. While Bitcoin remains the most
recognized cryptocurrency, there are many others on the market. You can
turn to these options and start investing there as well, as an opportunity to get
involved in blockchain technologies and directly profit from their use. It is a
good idea to explore the world of cryptocurrencies before you decide where
you want to start investing because there are many different kinds, some of
which were created with unique intentions behind them. For example, some
were created to increase security, some were created to enable escrow
services, and others were created for similar functions. Therefore, they have a
specific purpose, and you may want to thoroughly understand that purpose
and why it is relevant to the market before you begin investing your funds
into any particular cryptocurrency.
The third way that you can get involved with blockchain is through a
program you have likely heard a lot about which is known as crowdfunding.
Crowdfunding is actually used through a cryptocurrency called altcoin. You
can get involved in investing this way through what is known as “seed
investing,” which means that you can use one of the blockchain-based
crowdfunding websites such as Bitshares. When you are involved on these,
you essentially gain your capital through cryptocurrencies, thus directly
involving you in blockchain technologies for profit. This is an excellent
opportunity to raise money for start-up endeavors.
The fourth method by which people are profiting from blockchain is through
angel funding. Angel funding means angel investors use their own capital to
help you through your business startup. If you are seeking to get investments
for blockchain, you can become an angel investor using blockchain
technology as your basis for investments. Instead of investing in a standard
currency, you invest with a cryptocurrency. This method is relatively new,
and it is a great way for you to familiarize yourself with blockchain while
also assisting others in their own start-up endeavors. You can also see how
cryptocurrencies work directly with business and how it can be used to
generate profits.
The fifth and final primary method for generating profit from blockchain is
through pure blockchain technology play. There are a wide variety of
companies who are actively marketing themselves as what is known to be
“pure play” technology companies. They base their entire company on
blockchain technology. The way their business model works is by them
working to secure the blockchain by using their own distinctive transaction
verification services. You can get on board with these business models to
generate your own profit, as well. The two methods you can use to get on
board with these methods is to either directly invest in someone else’s
company who is already doing this or start up your own company if you are
educated enough to do so. Alternatively, you may consider partnering with
someone else where you bring the financial aspect, and they bring the know-
how to the picture so that together you can generate a profitable pure play
blockchain business.

Which Method is for You?

After learning about the five primary methods for investing, you might be
wondering which method is the best for you. The true answer will depend on
your knowledge, your existing capital, and your desire to get involved. If you
are an average person who is simply wanting to get in on the profits, the best
opportunity will likely be for you to invest in blockchain stocks. You can
either do this by stockpiling Bitcoin like many others are already doing, or
you can get yourself involved in blockchain penny stocks. Which level you
get in on will depend on your desires and your existing capital for getting into
the business. Either way, both are an excellent opportunity to get invested
into a program that is likely going to bring massive profits towards anyone
who invests into it. While it isn’t necessarily the cheapest investment to
make, it is definitely the cheapest opportunity for anyone who is seeking to
get into blockchain itself.
For those who are looking to get into a more advanced type of investment for
the program, you will have to consider what your existing capital is and what
knowledge you already have. Consider the aforementioned profit methods
and which one would work best for you. Consider the knowledge you have,
the people you know, and the amount of money you would be willing to
invest into the blockchain programs. If you have enough to get in on a higher
level, it is most certainly advised as the more “in” you are, the more likely
you will turn higher profits.
Whether you are ready to admit it or not, blockchain isn’t going anywhere.
Based on what we have seen in the past with programs like this and the way
the program is being developed, it is likely that blockchain is going to
become massive. Because of this, you want to get on board sooner rather than
later. When it comes to technologies of this magnitude, it doesn’t take very
long before they take a hold in society and start spreading rapidly through the
marketplace. In the last ten years, alone blockchain has grown enormously.
Upon launch, Bitcoin rapidly skyrocketed in popularity which is ultimately
what launched blockchain into the spotlight. Because of this, anyone who has
been hoarding Bitcoin since their launch is now holding on to several
thousands of dollars’ worth of profit. It is estimated that some Bitcoin holders
may be holding millions of Bitcoin shares. It is certainly worth getting on
board.
 CHAPTER 4

H O W TO U S E B L O C K C H A I N

It is clear that blockchain has a massive impact on businesses and the

financial industry, but you may be wondering how or why this will affect you
at all. While it is very clear that it will do a lot behind the scenes, it may not
already be rather clear that a lot of what we know in everyday life is going to
change as well. Truly, there are several reasons as to why blockchain is so
popular and why people are so excited about it. After you understand these
reasons, you will likely start to realize exactly why blockchain can benefit
you as an individual, and your business. This program has the opportunity to
bring about massive and exciting changes in the world, and you are about to
learn how and why.
By now you are already very familiar with how blockchain and Bitcoin go
together, and you have learned why blockchain is so much more than just
Bitcoin itself. However, you may not be totally clear on everything that
blockchain is capable of adding to society. You have learned about several
valuable applications blockchain can add to business and finances, but you
may be surprised to learn that it goes even deeper than just that. If you really
want to maximize your use with blockchain and master the program, you
need to truly understand all that it is capable of. When you understand
blockchain on this more intimate level, you will be able to truly understand
why it is so exciting and how you can use it to generate massive profits in
your life and business.

Ten Primary Applications

There are ten primary applications that people are excited about when it
comes to using blockchain technology to advance various industries. These
applications mostly travel beyond business itself and are extremely exciting
for many different areas of society. They include:

Distributed Cloud Storage

 Digital Identity
Supply Chain Communications
Smart Contracts
Digital Voting
Blockchain Money
Blockchain Financial Services
Blockchain Property
Blockchain Music
Blockchain Real Estate

While some of these are still relevant to the financial industry itself, most of
them expand beyond that and explore how this technology can serve other
industries as well. In the following sections, we are further going to explore
each of these categories and how blockchain can serve in these industries.

Distributed Cloud Storage

In the present day, cloud storage is owned by various different companies.

That means you invest your trust in a specific company that they will
effectively store your online data without damaging or losing it. Most people
are familiar with popular cloud storage services like iCloud and Google
Drive. When you invest in these companies and store your online data with
them, you place your trust in them that they will store all of your digital
assets. It is an excellent opportunity to back up your system in case anything
ever went wrong with it.
If blockchain were involved in the cloud storage system, you would be able
to have a decentralized digital cloud storage space. This means that the
security of your online storage facility would be significantly improved and
you would be less dependent on any single provider to store and protect your
digital assets. Instead of worrying that their system fails and you lose all of
your digital assets, you can feel confident that the storage will be well
maintained and none of them will become compromised.
Additionally, if you were to purchase a massive amount of online digital
storage you could rent out excess space to other users. This opens up an
incredible new marketplace whereby average people can profit from the
blockchain technology. Anyone who has the internet will be able to store
digital assets on a pre-agreed upon price, and they can feel confident that
their assets have been backed up on multiple nodes, meaning that there is
very little chance that they will become compromised, destroyed, or
otherwise lost in the cloud.
Believe it or not, blockchain is already actively involved in a few different
digital cloud storage services. However, it is expected that these methods will
significantly increase in popularity and eventually take over cloud
technologies that are already existing. This is mostly based on the fact that
the blockchain cloud storage is significantly more secure and stable than pre-
existing ones.

Digital Identity

It is not a secret that the present day and age does very little to protect your
digital security. While there are many structures in place, the word “hack” is
known all too well. Digital hackers can easily bypass most traditional
security systems in order to access your online information and digital assets.
There are many precautions you can take to avoid being hacked or having
your digital identity stolen, but there is very little you can do to protect
yourself completely.
If blockchain was completely involved in the digital identification process, it
would be much easier to track and manage all of the digital identities that
exist online. This means that you could easily sign on to any program or
server and not worry that your digital identity would be stolen and no
fraudulent activities would take place. It would be much more difficult for
there to be any types of breaches in corporations, companies, and even on an
individual basis. Because of this, the online space would be much safer for
virtually every user. You could confidently trust that national security,
banking, citizenship documentation, health care, online retailing, and identity
authentication, and authorization would be much easier for online users.
There would be little to no need to worry that engaging in these online
activities would negatively compromise your digital identity in any way.

This level of security rises because blockchain can identify and log
transactions or actions simply and they are unable to be hidden or erased
from the system. The chain that is developed based on online actions cannot
be manipulated or compromised. Therefore, it would be very clear on where
fraudulent activities were taking place online and who was attempting to
commit them. So, not only would they be incapable of completing the
activities but they would also be completely identifiable and locatable based
on their actions online.
Many people believe that because blockchain relies on digital signatures
instead of passwords, your personal identity is not kept private. This is
completely untrue, though it is an understood fear. The reality is that there is
actually still a very high level of anonymity when you use blockchain. While
there are unique signatures provided, there is no reason for the signature to be
attached to any particular identity. The only thing they care about is that the
signature matches the account being used. This means you also need not
worry about your digital identity being locatable in the online space, so your
personal and digital identity both remain completely secure using blockchain
technologies.

Supply Chain Communications

When you shop, whether it be online or offline, there are many entities
involved in the process to ensure your product is made and delivered to you.
This is called the supply chain. Even if you were to purchase directly from a
wholesale supplier, the product would still have come from elsewhere, and
each smaller element of the product comes from elsewhere as well. There are
many suppliers involved even in the simplest of products. This creates the
opportunity for failures in communications that can lead to difficulties
within’ businesses and frustration in customers who are ordering things that
may not be delivered effectively or on time. Even though it may have taken
place somewhere further up the supply chain, it is typically the seller
themselves who pays the price for the discrepancy.
If blockchain were involved in this process, every supplier involved would be
permanently recorded on digital records that would display exactly where the
issue was occurring. All of the stakeholders involved in the business would
be displayed here, which would mean that the responsibility for discrepancies
would be placed on the appropriate individual or stakeholder. This would
prevent brands and companies from taking the backlash from clients that was
actually being caused by someone further up the supply chain.
This information would work both ways, as well. In addition to shining a
light on the stakeholder responsible for discrepancies, it would also shine a
light on stakeholders and suppliers in a positive way. As it is, the brand takes
all of the recognition and responsibility for the success of the entire supply
chain line. Regardless of who is responsible for manufacturing or supplying
the products, the brand or retailer takes all of the praise. A blockchain
program integrated into the supply chain would allow for more positive light
to be shone on suppliers who were doing an excellent job. This would
provide an excellent opportunity for the positive and high-quality suppliers to
be recognized by other brands and startups and earn more business as a
result.

Smart Contracts

In a previous chapter, you learned a bit about smart contracts, but you may
not be totally clear on why these are such an incredible advancement in
blockchain technology. Ultimately, a smart contract is a legally binding
digitized contract that can provide ample security to both or all parties
involved in the contract. These contracts can be used for anything from
mortgages to employee payments, and they are incredible in how they work
and the security they provide.
The reason why a smart contract is dubbed “smart” is that they are capable of
self-executing, and they are completely automated. This means that there is
no manual work that needs to be accomplished in order for the contract to be
upheld. Both or all parties involved in the contract can use them as an
opportunity to produce any type of legal contract or statement that would
release funds using the Bitcoin network. This ultimately turns Bitcoin into the
“3rd party executor” instead of requiring an actual 3rd party. On its own, this
innovation is revolutionary as it reduces or even eliminates the need for you
to place your trust in a single, centralized authority. Instead, this trust is
decentralized and embodies all of the security that blockchain has to offer.

If you are not sure of how a smart contract might benefit you, take a moment
to explore this theoretical situation. Imagine you and another person agreed
that you would exchange $5000 on a predetermined date sometime in the
future, contingent on a certain set of conditions being met by both parties. A
smart contract would enable you to use these terms to program the smart
contract, and then both parties would provide their agreeance so the contract
would be put into effect. Then, once all of the conditions were met the smart
contract would automatically release the agreed funds to the receiving party.
If the conditions were not met, the transaction would not take place.
While this service is not actively being used yet, there are several companies
that are steadily working towards this type of contract becoming a true reality
in the financial industry. The reason why this innovation is being favored is
that of the amount of security that comes along with it. Due to the
decentralized nature of blockchain, there is virtually no way to tamper with or
manipulate contracts so that fraudulent activity can take place. This means
there is a significantly lower risk of being exposed to corruption or
compromised contracts that could result in one party being taken advantage
of by the other.

Digital Voting

Digital voting is not considered a legible voting method in most areas, and
therefore it is not actively used. The reason being is that there is no true way
to effectively secure the system and therefore the votes could easily be
tampered with, resulting in inaccurate results. If blockchain technologies
were employed, digital voting would be a possibility as voters could
confidently submit digital votes knowing that their answers or numbers
wouldn’t be tampered with. There would be no opportunities for them to be
manipulated or compromised because as soon as a vote was submitted all of
the blockchain nodes would have their histories updated respectively to
reflect the vote. If there were any attempted hacks into the system, the change
would immediately be shut down due to the nodes not being in agreeance
over the change.

This type of voting has actually been tested in Denmark back in 2014. They
used the blockchain program to conduct votes in a political party, which was
the first time that this practice had ever been used in the history of the
blockchain. They considered it a success. At the time of writing this book,
voter turnout for political campaigns in America and Canada are extremely
low. Very few people make it out to the polls, and a large reason may be
because it is difficult to access the voting stations for many individuals.
Issues that arise may include disability, lack of time, unwillingness to wait in
lengthy line ups, or illness. If North Americans were granted the opportunity
to vote online, it is expected that the turnout would be much higher as many
more people would be able to vote under the desirable conditions. This would
mean a significantly higher number of voices would be represented in their
local and national political parties.
Digital voting in this way would also amplify the security in these voting
situations significantly. Blockchain would also maintain the anonymity level,
meaning that there would be no way to manipulate or tamper with the results.
Without having anyone manually monitoring the voting stations, there would
be no way for votes to be manually compromised in favor of any particular
party. Since hacking would be virtually impossible, you could feel confident
that your online vote would be safe from compromise.
Ideally, digital voting would look like this: you could either log in from your
computer at home to a secured blockchain-based website to cast your vote, or
you would attend a voting station where they would have computers set up
for you to access the secured blockchain-based website to submit your vote.
All votes would go through the same funnel and could be digitally counted
using blockchain’s stored information to ensure that numbers were correct
and there was no tampering with the final count. This would ensure that all
votes were accurately represented and accounted for, and prevent the need for
voters to feel as though they must request for a “recount” in elections where
results were unfavorable.

Blockchain Money
When you hear the phrase “blockchain money” you may immediately
consider Bitcoin, but recall we had mentioned there are many
cryptocurrencies available on the digital market at this time. If you have
heard this phrase on a regular basis, you may be starting to wonder exactly
what it means.
Blockchain money, or cryptocurrency, essentially means a type of online
currency. You have probably already figured out the definition by now. But,
what does it actually mean? Or, in other words, what are the possibilities that
are carried with using cryptocurrencies?
Cryptocurrencies, or blockchain money, actually carry a significant number
of benefits that cannot be held by standard tangible currencies. Bitcoin tends
to be the most recognized cryptocurrency, but it actually doesn’t carry as
many benefits as most cryptocurrencies do. In fact, it doesn’t even carry as
many benefits as standard currency does.
Additional types of cryptocurrencies have been created that are capable of
carrying an incredible amount of freedoms that standard currency simply
cannot. For example, they can be created for unique transactional
circumstances. Some may be relevant only in mortgages, whereas others may
be more beneficial in retail shopping. In other words, some may be
programmed to carry unique benefits that would be amplified in the mortgage
industry, whereas others would carry unique benefits that would make them
more productive in a standard retail environment. Because of the
programming attached to the currencies, it would ultimately make them
capable of being used for unique purposes and carry unique abilities that we
may not necessarily understand at this time in development.
A further benefit to using cryptocurrencies is their ability to be significantly
more secure than standard currencies. When you conduct a peer-to-peer or
person-to-person transaction using a cryptocurrency, you can be sure that
there will be no fraud conducted alongside that transaction. Neither party
within’ the transaction (or outside of it) will be capable of stealing money or
stealing your personal or digital identity. This means individuals and
businesses can confidently exchange currency without fear of fraudulent
activities taking place and negatively affecting either party.
Blockchain Financial Services

It is no secret that blockchain will have a massive positive impact on the

financial services industry. From cryptocurrencies to smart contracts and the
ability to prevent fraudulent activities, blockchain carries a number of
positive benefits for the financial industry.
Blockchain is already being used in many financial services businesses as
you can tell by the existence and value of cryptocurrencies, as well as the
blockchain penny stocks. At this time, the financial services industry is
perhaps the one benefiting most from the blockchain industry. Wherever you
seek to find information about blockchain, you will almost certainly read
primarily about how it is a benefit to the financial industry and why banks are
investing in this innovative technology.
Perhaps the largest reason why blockchain is starting in the financial services
industry is that of its original attachment to Bitcoin. When the experimental
currency turned into a massive success, many in the financial industry
became aware of how blockchain directly contributed to the success and
wanted to explore how blockchain could positively benefit their own
businesses. As a result, it is being researched heavily by most major financial
institutions so that they can learn more about how they can effectively
integrate the program within’ their own businesses.

Blockchain Property

An interesting theory that has been established around the blockchain

program is known as “blockchain property.” These blockchain properties are
more formally known as smart properties, and they are used to reflect the
ownership of both nonphysical and physical properties. The programming of
smart properties allows for properties to be verified, programmable and
tradable using the blockchain programs. You can use smart property for
vehicles, phones, houses, and other major technologies or tangible assets. The
program can be used to activate or deactivate the properties, as well as to
maintain them or track them using blockchain technology. There are a wide
number of possibilities that are associated with using the blockchain system
for smart properties.
Because of the entire works being done online in a highly secure manner,
blockchain and smart properties can be used together to trade or sell
properties confidently and without fear of fraudulent activity taking place.
The properties can easily be activated, which will allow you to perform
virtually any activity with the property. While this may be fascinating for cars
and cell phones, it is most incredible for the sales and trades of homes. When
you use these blockchain technologies, you can manage and maintain your
home regardless of where you are situated in the world at any given time.
You can use it to manipulate temperature, lock doors and windows, turn
lights on and off, and control many other variables within’ your home. When
it comes to items like smart phones or vehicles, blockchain allows you to
complete incredible tasks such as tracking the items and potentially
conducting other basic activities such as remotely starting your vehicle. It
also ensures that if they are ever stolen or lost, you can easily discover where
they are and retrieve them.

Blockchain Music

While this may seem out there, blockchain can actually have an extremely
positive impact on the music industry. You may be aware of an illegal
activity known as “pirating” which ultimately means that people steal music
and videos and keep a digital copy without ever having paid for it. This is
actually an incredibly standard practice, but it can have a highly negative
effect on the artists and the industry itself.

If blockchain were integrated with the musical industry, individuals would

have the ability to verify and maintain their ownership rights, effortlessly
receive royalty payments from sales, and receive and maintain their first
edition rights. This program would allow for artists to be empowered,
maintain and affirm their ownership over their own products, and receive
secure payments for their work.

Blockchain Real Estate

Between smart contracts, smart properties and cryptocurrencies, the entire

face of the real estate industry could be changed using blockchain. When
used together, these innovations could facilitate flawless and effortless
transactions between realtors and home buyers or sellers, meaning that the
entire real estate industry would become much more secure and extremely
efficient. There would be significantly fewer instances of fraudulent activity
in the real estate market, and transactions would become significantly faster.
It would also make real estate sales across international markets much easier
as the sophisticated technologies would be able to facilitate the transactions
flawlessly.
Blockchain can enhance and change the face of society in a significant
number of ways. It has the ability to directly impact individuals, as well as
businesses, corporations, government, and international trade markets. Even
though we have listed the ten primary functions that this program could
change life as we know it, there are much more. Blockchain truly is a
revolutionary technology that carries the ability to completely change the way
we live our lives on a day to day basis.
 CHAPTER 5

B L O C K C H A I N R E VO L U T I O N

Throughout this entire book, you have been learning about the blockchain
revolution and what it means for society. Despite learning so much about the
program already and the ways it can impact society, you may be wondering
why it is revolutionary. At this point, it may seem like it is merely an
innovation that could make existing functions more efficient. The reality is, it
has the potential to be so much more than just that.
In just one decade, blockchain has managed to leave incredible changes in its
path, and it is anticipated that there will be much more in its future.
Eventually, you will likely see blockchain technology being involved in
every aspect of life, from selling art to managing finances and even making
retail purchases. There are so many incredible ways that blockchain has the
ability to have a massive impact on the future of our society.

Blockchain Security

One of the most incredible features of blockchain is its ability to bring about
a massive amount of security into virtually every system it is integrated with.
Due to the decentralized nature of the system and the irremovable and
unchangeable hashes made into the nodes, there is absolutely no known way
to tamper with anything that is programmed into blockchain. Once it’s there,
it is there for good. This means that there are significantly fewer risks
associated with being involved in the online space. As you have already
learned, digital identity can be secured much easier, which in turn means that
personal identity will also be much more secured. Additionally, if anyone is
attempting to commit fraudulent activities, they will be able to be identified
and penalized for their attempts based on the information maintained within’
the system.
Self-Sustaining Items

Another incredible feature of blockchain would be the ability to have self-

sustaining items. Everyday objects such as fridges, ovens, and other items
could be managed and maintained by the blockchain programs. You could
attach a piece of property into the blockchain and use it to self-sustain said
item or property. For example, if you had a fridge that was equipped with
sensors and attached to blockchain you would be able to have that fridge
order and pay for its own food as needed. It could also arrange its own
software upgrades to ensure it stays up to date and functional, as well as track
and manage its own warranty and make a claim for appropriate servicing
when needed. Nothing would need to be managed by the property owner as
the piece of property would be able to conduct all of these functions on its
own with the assistance of blockchain technology.
Another cool function would be vehicles on the blockchain technology. Cars
could be hybridized, and then you would simply park them on a specific
parking pad. On that pad, the car would automatically charge itself and pay
for its own charge, you would not be required to facilitate the payment
transaction. Between blockchain, sensors, and internet connections a massive
number of items could be transformed into self-sustaining items that no
longer required manual maintenance. It would significantly reduce the
amount of time invested in maintaining our property as they would be able to
complete these processes on their own.

Business Revolutions

Blockchain could have a massive impact on business, as we have already

seen in a number of businesses who have begun adapting to this new
technology. One amazing way that blockchain could revolutionize the way
business is run is with small businesses in particular. Small businesses that
were previously forced to limit their business size and operations based on
the expenses related to expanding their market and their volume would be
able to access global markets and scale their businesses exponentially. As a
result, large corporations would no longer be the only ones capable of being
involved in the corporate trade industry. Virtually any business would be able
to access the industry and get involved as they saw fit.
Blockchain within’ business would also expand the transparency within’
businesses and aid consumers in making educated decisions based on their
sales. One great example is within’ the cruelty-free industry. Many
individuals prefer to shop for items that are cruelty-free, but it can be difficult
to ensure that any given business is entirely cruelty-free completely. If they
had access to the public ledgers, then they would be able to audit the
suppliers and confirm which businesses actually aligned with their morals
and shop with a more educated approach.

Payment Speeds

The speed at which payments would be conducted would be incredible

compared to what we experience now. In this present day and age, many
different types of transactions can take days or even weeks to finalize.
However, if the blockchain technology was involve they would be able to
make payments instantly. There would be no need to hold funds or manually
authenticate them to ensure they are not fraudulent attempts. This would
mean the business could be conducted much quicker and people would no
longer have to wait for various transactional functions to take place.

Transaction Process

The transaction process would be completely changed if blockchain were

involved. Every aspect of the transaction process would be moved from
manual processes to automatic processes. This is ultimately why the
transaction speed or payment speed would be heightened significantly.
Instead of manual processes, blockchain would be able to automatically
recognize, authenticate, authorize and complete transactions so that the funds
were released immediately. Rather than individuals having to manually
complete this process, which ultimately opens up the risk exposure, this
would be automated, and transactions would be much more efficient and
secure.

Invisible Boundaries
Because of blockchain’s ability to open businesses and individuals up to the
global market, boundaries on the marketplace would become virtually
irrelevant. There would be no more need to concern ourselves with
international currencies and values, nor would we need to concern ourselves
with accessing businesses that were beyond our own boundaries. Instead, we
would be able to access them from virtually anywhere and conduct business
with anyone, regardless of their location or the size of their business. This
means that our global boundaries would essentially become invisible and the
space between our countries would metaphorically shrink.

Government

Blockchain has the ability to have a massive impact on government. The

primary way that blockchain would affect government would be through
elections, as we have already explored in the last chapter. However,
blockchain would also have the ability to make transactions between the
government and other individuals and organizations transparent so the public
would be able to actually see where funds are going. This information may or
may not contribute to the voting decisions by many if the financial records
were transparent, and the public could develop a clear understanding of how
funds were being expanded.

Medical Industry

Blockchain could have a massive impact on the medical industry, in more

ways than one. The modern medical industry is extremely disorganized.
Medical records are rarely able to be accessed between different medical
facilities and institutions unless the transaction is requested, which can make
it hard to access your medical history. Additionally, many medical programs
will not keep records past a set age so if a medical concern took place before
a certain time that may or may not be relevant to a current medical ailment,
doctors may not be able to access this information. If it happened before the
patient could remember, then it would not be on record and therefore could
have a negative impact on the medical treatment of an individual.
If blockchain was improvised in the system, it would be much more
organized. Each individual could have an account of sorts logged with their
personal health number, and this account could carry the entire medical
history and record of said person. There would be no guessing, no missing
information, and no need to request information from other institutions prior
to conducting medical work. This would make it much easier for doctors and
patients alike in the treatment of ailments.
Another great way that blockchain can assist with the medical industry is by
logging medicines. If it were fully integrated, national drug companies would
be required to log each time a batch was made and that batch could be
tracked. This would prevent drug smuggling, theft, and much more. It could
also help people track the quality of drugs made by various corporations,
ensuring that they are always getting access to the highest quality medicines
available to them.

Reducing Crime

Blockchain clearly has a high level of security when it comes to the online
space, but it actually has the ability to protect people in general, as well. With
more and more processes being tied into the internet in one way or another,
crimes would be much easier to reduce. If they were successfully carried out,
it would be much easier for prosecutors to find the criminals and convict
them due to the transparent evidence made available by blockchain.
Essentially, anytime someone attempted to commit fraud or other illegal
activities that involved the internet and blockchain programs in any way,
shape, or form, they would be able to be located. The transaction or action
would be hashed in the node, and it would be attached to their unique user
identity. While the average person may not be able to identify the individual
user, the government or authority would certainly have the ability to which
would mean that they could identify and locate these individuals. Nothing
any criminal did online would be “secret” or go hidden.
Additionally, if smart property was enacted and people started managing their
expensive or precious belongings through blockchain, it would be trackable.
If anyone ever stole it, they would be able to track where the belonging had
gone and locate it instantaneously. There would be no need to rely on tips and
society to help locate missing goods as they would be readily available to
locate through blockchain.

Blockchain can truly be integrated into almost every part of society as we

know it. Essentially anything that can be connected to the internet has the
ability to be impacted by blockchain. The revolution is considered to be
mostly positive, especially based on the amount of security and protection it
can provide to users. This means that life with the internet would be much
safer and we would significantly reduce our risk of exposure to criminal
activities online. We would have protected identities, protected transactions,
effortless and flawless transactions, and a virtually unchangeable history of
records that would protect everyone from criminal activity. The amount of
security and protection as well as value and efficiency that blockchain can
provide to society is incredible. It is ultimately like the “answer” to many of
our troubles we have faced since the internet was released approximately
three decades ago.
 CHAPTER 6

COMMON MYTHS

Because blockchain is operating as a part of a silent revolution, many myths

have begun circulating about it. Whenever there is something that isn’t talked
about widely in the mass media, there are almost always myths that arise that
are spread and rarely addressed because the topic is seemingly “unpopular.”
As you have learned, blockchain is an incredible opportunity for society as a
whole, and therefore it is important for you to understand common myths and
the truths that run behind them. This will help you further understand
blockchain, and its abilities and limitations.

Blockchain is Not Bitcoin or Cloud Storage

Despite common belief, blockchain is not Bitcoin, nor it is cloud storage.

Many people believe blockchain is a “thing” when actually it is a technology
or a system. The reality is, blockchain is merely a digital ledger that hashes
information into a decentralized system of nodes. The hashes are incapable of
being erased or changed, so once they are hashed, they are there forever.
They are hashed based on triggers that are enacted as a result of certain
conditions being met. Blockchain is not Bitcoin, any type of cryptocurrency,
or cloud storage. Rather, it is a system that can be used to elevate the benefit
of those programs, as well as many others.

Blockchain is for More Than Just Computing Experts

When the internet was initially developed, it was primarily used by

computing experts and later large businesses. Still, computing experts were
employed to run the internet and the computers that were used to access the
internet. Over time, the internet became accessible to virtually everyone, and
it is now a massive part of our day to day life in modern society.
Blockchain is the same. It started out as something that was only important to
those directly involved in bitcoin and other cryptocurrency businesses.
Originally it was only understood by computing experts. Later,
mathematicians, cryptographers, and computer scientists all got in on it and
started researching it to understand further what it was and how it could be
used. Nowadays it is being used by many individuals in the financial sector,
and it is spreading out into other areas of society.
As you can see, blockchain is not strictly for those who are experts in
computing. Just like with the internet, it is rapidly expanding into everyday
society, and soon it will have benefits for everyone, everywhere. The more
this technology grows, the less and less this statement becomes true.

Blockchain is Here to Stay

Whether you like it or not, blockchain is here to stay. There is no foreseeable

future where blockchain will not exist. Even if it were to stop growing
tomorrow, it would continue to exist in the way that it presently exists.
Blockchain is a fact of the future, and it will not be going anywhere anytime
soon. This technology has proven to have such a massive amount of value for
a variety of industries that virtually no one is willing to let it fade into the
background.
At this point the question of “where is it going” is less about whether it will
stay or not and more about how massive it will grow and what exactly it will
do in our society. There are many ways blockchain can impact society, and it
is inevitable that researchers are going to continue to discover new ways.
Over time, we can expect to see blockchain integrating into many business
industries and even day to day life activities.

Blockchain is for More Than Just Finances

Many people believe that because blockchain emerged as a result of Bitcoin

that it is strictly used for financial purposes. As you learned in previous
chapters, blockchain has a significant number of benefits that stretch far
beyond finances. While it is still primarily used and researched by the
financial sector, there are many others who are recognizing its benefits and
who are preparing to find ways to use it to enhance and advance their own
businesses and lives.

Even though we are already well aware of many areas of life that blockchain
can enhance, we are regularly learning about new ones. You can expect that
by the time blockchain fully integrates into society, there will be hundreds if
not thousands of new ways that it is used to enhance society as a whole.

Blockchain is Extremely Secure

Blockchain offers a significant amount of security over traditional methods

such as manual processes and centralized servers. However, it is important
that you do not believe that blockchain is completely secure to the point of no
errors are capable of being made. Since blockchain has not been tested on a
massive level, it is hard to know if anyone would ever be able to hack the
system and change or manipulate the ledgers. While there are currently no
known ways to hack the system, it is important to realize that it is virtually
impossible to know for sure until it is tested on a massive level.
That being said, it is important that you continue to take safety precautions
whenever you interact with a blockchain-based system. Until we know for
sure, you should always exercise caution and ensure that you take care of
your information to prevent it from being hacked or stolen.

Blockchain is not just a Business to Business (B2B) Program

Because blockchain is extremely popular in the business industries right now,

many believe that it is only for business to business interactions and that it
will not affect or impact them directly. This is completely false. Blockchain
can be used and interacted with by anyone, whether you run a business or
not.
The reason why businesses are the primary researchers at this point is that
they are the ones that are making the most profit from blockchain right now.
Additionally, they are the ones who have enough money to get involved on a
mass level. Finally, most average individuals are completely unaware of this
program and what it has the ability to do. As a result, most of the society
doesn’t fully understand the program or the fact that it is fully functional and
usable by everyday people. They believe that it will strictly be used in
business to business interactions and fail to realize that it can be used in
direct trades with other individuals on a retail level, or otherwise.

Blockchain Will Not Exploit Your Privacy Rights

Many people believe that just because blockchain keeps public ledgers that
their information will be made public. This is false. As we briefly discussed
in a previous chapter, blockchain will likely keep a “key” or “code” for each
individual, and this is what will be kept in the public ledgers. Actual sensitive
information will remain private and inaccessible by anyone who has not been
granted the rights to view the information.
If you remember, we discussed each account is having a digital signature that
would be associated with the account. Each account would also essentially
have a “code name” that would be used when tracking the account itself.
While government officials and authority figures may have access to personal
information so that they can locate criminals, no one else would have access
to this information. Your information would not be publicly exploited, and it
would not leave you at risk of having your information stolen or known by
average individuals.

Blockchain is not Always Public

There are actually three levels of blockchain. While it is primarily known as

being a public digital ledger, there are three ways that hashes can be stored.
The three levels are called: public, consortium, and private. Public
transactions are the ones that are primarily recognized through blockchain.
These transactions are viewable by virtually anyone, and any transaction
completed on a public blockchain system will be visible to anyone who
desires to look up the information.
Consortium blockchain transactions are ones that can be viewed by anyone
who is granted permission to access the information. A limited number of
nodes have been made eligible to host consortium blockchain transactions,
and at least all or most of them have to be in agreeance with an action that
takes place on the system in order for them to be legible. This information is
only made available to those who are allowed to see it. Sometimes it may be
public, other times you may have to be directly participating in the ledger in
order to see it.
The third and final type of blockchain is known as a private blockchain.
These are limited to use within’ businesses or organizations, and they are
only viewable by predetermined individuals who have access to the
blockchain. Of those members, only a select few are actually allowed to
conduct transactions on the system. With these transactions, they are not
capable of being viewed by the public, and they can be kept private from
other people.
These three types of blockchain transactions discuss how the system actually
works and what it means for anyone who seeks to use blockchain. As you can
see, your personal information is never made public, and sometimes the
transaction information itself would never be made public. However, those
who have the ability to turn their transaction into a consortium or private
transaction must have special permission and systems to facilitate the
transactions.

Blockchain Could Disrupt Health Care

In the previous chapter you learned about the benefit of blockchain on the
healthcare system, and now you are going to learn about how it could
potentially disrupt the health care system. For those who don’t believe that it
can be disrupted: they are wrong. The healthcare system would absolutely be
affected by the integration of blockchain, and that is why it will likely take a
long time for the transition to take over entirely.
Having the blockchain made available to the health care system would mean
more accurate and effective health care would be put into place. Medical
errors are actually the third leading cause of death in the entire country of the
United States. As a result, you can assume that many would be eager to have
a more effective system in place. However, we must consider the fact that
blockchain would completely disrupt the existing systems. Even if they are
not entirely accurate or reliable, they work. Integrating blockchain would
require for the existing system to be entirely abandoned and for the medical
industry to have to redo it all completely. You can likely imagine how this
would disrupt the health care system in general and cause difficulties overall.
Another reason why many health care providers are unwilling to switch is
that they have already invested massive amounts of money into their existing
formats. This means that they would literally abandon hundreds of thousands
of dollars, as well as a somewhat usable structure in order to implement a
new one. Regardless, there is still hope that this system will eventually be
integrated into the health care system so that we can reap in all of the benefits
of blockchain and how it can assist the system.
The best way for blockchain to be integrated into the health care system
would be for it to be integrated slowly. Ideally, it would start with something
like drug tracking. This would ensure that no counterfeit ones would be
created and all drugs that were made were accounted for. Especially recently,
we can recognize that the lack of tracking drugs has led to many
pharmaceuticals being slipped into the street drug trade and this has resulted
in a massive number of overdoses and fatalities as a result. If drugs were
tracked, this would not be as easy.
As you can see, blockchain comes with a high amount of myths. Many
people have heard things that may have been true in the earliest stages of
blockchain, but are no longer true. Other myths were created as a result of a
lack of education of this program and all it can offer us as a society. That is
why we are seeking to educate everyday people, and business owners on the
incredible value this technology have to offer and how it can completely
transform the face of society. By debunking the myths and spreading
awareness of what blockchain actually is, how it works, and its capabilities
and limitations, we can educate people on exactly what it is and why it is
worth being so excited about.
 CHAPTER 7

BLOCKCHAIN RISKS

Even though this program seems magical and amazing, it certainly comes
with risks and concerns. Nothing can ever be perfect, not even this
phenomenal technology that can seemingly give society an entire facelift.
Even though it has the ability to upgrade every system we have in place and
add security and transparency to society, as well as efficiency and advanced
technologies, it still has drawbacks. In order to make sure you thoroughly
understand blockchain and its abilities and limitations, you should be fully
educated about the risks that come along with blockchain technology.
Some of the drawbacks we will discuss are ones that will need to be worked
through before blockchain can be used on a mass level. Others are ones that
we will likely have to experience on a global level before we can actually
work through them. Furthermore, some may never actually be entirely
worked through. Nothing can be perfect, right? The following risks are ones
you should consider whenever you are thinking about blockchain technology
and what it can and can’t do.

Slow Speed

Before blockchain will ever be released on a global level to the average

consumer, developers are going to need to discover a way to make the system
faster. While it is already able to be faster than many technologies, it is still
fairly slow. If we cannot quicken it to the point of it being significantly faster
than existing technologies, then most institutions, industries, and individuals
will not feel the need to make the expensive switch, and therefore we will be
unlikely to see it fully integrated into society at any point in the near future.
At this point transactions, data limits and verification processes all require a
fair amount of time, and that makes its abilities somewhat restricted. The
primary reason why blockchain is so slow at this point is that of how many
nodes are involved in the entire system. This means that every single
transaction requires every single node to be updated. Developers are
attempting to discover exactly how many nodes are actually required to
conduct a transaction securely, and this information is expected to increase
the speed of the process significantly. It is believed that they will soon find a
way to quicken the pace entirely to make it completely worthwhile for society
to make the switch.

Regulatory Status

At this time, traditional currencies that are used in society are regulated by
the government. If we eliminated these currencies, they would no longer be
controlled by the government. A new regulatory system would be required in
order to ensure that currencies maintained their value and they weren’t being
overproduced or manipulated in anyone’s favor. If the regulatory system
cannot be agreed upon, blockchain will face a major hurdle in its ability to
access the global market on an everyday basis. At this time, bitcoin and other
cryptocurrencies that are used online are not actually regulated by any
particular governing body. Instead, they are regulated and monitored by
algorithms. While we can hope this algorithm is strong enough to regulate it
effectively, there is no way to be certain. If this issue cannot be settled
effectively, then blockchain will never be able to access the global market by
taking over existing currencies and replacing them with cryptocurrencies.

Required Computing Power

In order to run blockchain technology, a massive amount of computing power

is required. This actually contributes to why the program is so slow overall.
In addition to making the process slow, it also requires a massive amount of
energy to keep the system running. At this point, the existing network’s
miners attempt 450 thousand trillion solutions per second to ensure that all
transactions are validated. If the technology were opened up to the entire
world, this energy consumption would grow massively. It may not even be
sustainable based on the amount it would grow. It would be extremely
expensive to keep these computers running, and it could contribute to various
countries not wanting to get on board. Developers will have to discover a
way to reduce the energy consumption of this technology prior to attempting
to release it on a global level if there will be any traction in the marketplace
with it.

Complete Privacy and Security

As we discussed in the last chapter, privacy and security cannot be

completely guaranteed on blockchain. While it has the ability to provide a
higher level of privacy and security than existing measures, it is not entirely
guaranteed. Whenever you enter a scenario where you have highly sensitive
data being entered into the online space, you always want to exercise caution
to ensure that it is not potentially leaked into the wrong hands.
Theoretically, blockchain is completely incapable of being hacked by
individuals. If anyone attempted to hack the system, they would be
identifiable and locatable. However, until something is released on a mass
level, there is no way to know for sure that the program is completely secure
and private. If it were launched and there were ways to breach the security
and privacy, it could be a major disaster for many businesses and individuals
who are using the system.

Initial Investment

One major fallback of blockchain is the massive investment it will take to get
the program useable by the entire globe. As you can see, there are many
things that would need to be sorted out prior to the technology being
completely launched on a global scale. This means that a large amount of
investment is still required in order to get the program functional enough to
actually have it capable of being launched to the global market.
Another way that this program would be expensive is getting it actually set
up within’ your business, institution, or industry. Many businesses,
institutions, and industries have already invested hundreds of thousands in
their existing structures. Abandoning them would have to be justified by the
new system being guaranteed to be completely effective to the point that it
was an extreme improvement over existing systems. If the improvements
were not grand enough, no one would be willing to put forth the major
investment to integrate it into their business.

Like most things, however, it is likely that blockchain would become less
expensive over time. Once the technology has been fine-tuned and developers
and researchers have discovered opportunities to make it more efficient and
effective than it presently is, it would likely be much less expensive for
individuals to acquire. Additionally, once it reaches a global market, it is
likely that thousands if not hundreds of thousands of more computing
researchers and developers would get on board with the development process
which would open up a large opportunity for more efficient and effective
developmental processes to be discovered.

Other Potential Risks

Since blockchain has not been used on a massive scale outside of Bitcoin, it
is hard to identify all of the risks that may be associated with the program.
While we can identify many that are rather obvious or that have already been
located by those who are actively using the technology, there is no way to
know for sure what all of the risks would be. Again, this is something that we
would not learn until the program was launched on a massive level. In most
programs, it is hard to know exactly what will happen until the entire world
tests the program out. Because of this, there may be many other potentially
massive risks or side effects caused by blockchain that we are not already
aware of merely based on the fact that it hasn’t been used on a mass level,
yet.
As with anything, blockchain carries its own unique set of risks and concerns.
Virtually nothing is free of concern or risk, so it would be naive to believe or
hope that blockchain would be. Many of these risks and concerns are going to
need to be addressed before the technology ever reaches the global market,
and this is why it is likely that the revolution will continue to be slow and
silent for another few years at least. However, once developers and
researchers discover answers to these concerns, blockchain will likely
develop rapidly and take the world by storm. This incredible technology has
the ability to offer a massive amount of benefit to virtually every industry and
business, as well as individuals on a personal level. Like the internet and
computers, themselves, it is not a matter of if it will take over, but a matter of
when.
 CONCLUSION

It has only been a single decade since blockchain was developed, yet still it
has already proven that it is a revolutionary technology that is going to
change our lives. Even though it has already grown so much in the past
decade, it still has a long way to go before it is usable by society as a whole.
First, blockchain will have to be developed further to make it more effective
and efficient for society to use. Second, many areas and applications within’
blockchain have not yet been explored. However, we can trust that these will
be explored in due time. When they are, it is likely that we will learn much
more about this program than ever before.
As you can tell, blockchain is what we call a “silent revolution.” That means
it is slowly integrating into various areas of society, commonly behind the
scenes without anyone realizing it is actually there. At one time, people
believed that blockchain was only important to geeks and computing
geniuses. Nowadays, however, people are beginning to realize the massive
impact this program can have on everyday society. And the potential results
are absolutely amazing and definitely exciting.
When you began reading this book, you likely had no idea what blockchain
truly was or how it could impact or society as a whole. By now, I hope you
are clear on all of the incredible possibilities it opens up to us. Aside from
being considered to be completely secure, protected, and transparent, it also
has the ability to add efficiency and effectiveness to everyday life. It also has
the ability to add a sophisticated level of advancement to technology as we
know it, potentially leading us into a futuristic version of society where
hybrid cars and charging pads are a normality, and fuel-driven cars are a
thing of the past.
“Blockchain: Blockchain for Beginners” is intended to help you explore the
incredible reality of this technology and all of the fascinating opportunities it
opens up to us as a society. This book was developed to assist those who are
seeking to learn more about this program understand exactly what blockchain
is and why it is such a revolutionary program.
While you may not hear about it in an average conversation, blockchain is
definitely something worth talking about. This incredible program has
expanded rapidly from its modest roots, and it is now clear that it won’t be
going anywhere anytime soon. The more we are educated on this technology
and what it represents for us as a society, the larger this program will grow
and the more likely we will see it in everyday society in the very near future.
The reality is, blockchain is just like the internet or the smartphone. In fact, it
may even be the answer to many of the issues that we have experienced as a
result of these two technologies. It is not going anywhere, and it is
worthwhile to educate yourself on it and stay relevant on the incredible
advancements developers are making each day.
After reading this book, you may feel eager to get involved with this program
so that you can be a part of the blockchain revolution, too! As with any
investment, you should continue educating yourself on this technology as it
continues to expand. You will want to be sure that you stay up to date with
the incredible advancements that developers are making, and watch as the
technology unfolds. Then, you should also identify what method would be
best for you to get involved. You may wish to get involved directly, such as
with development efforts or research. Or, you may wish to get involved in
investing capital, purchasing Bitcoin, or otherwise investing in blockchain
penny stocks.
Alternatively, you may not wish to get involved with the blockchain
revolution at all. Instead, you may prefer to simply learn more about what it
is and watch as this incredible future unfolds before us. If this is true for you,
I hope that you enjoyed this book and it was able to teach you enough
information to help you feel confident in your knowledge about blockchain!
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BOOK DESCRIPTION

Blockchain is a revolutionary technology that represents the future of society.

Everything sci-fi fans have ever dreamed about can be made a reality using
this sophisticated technology. Despite being a decade old, blockchain is
relatively young, and it is still in developmental stages. Still, we have already
seen its powerful impact on many areas of society. In fact, it is these
incredible advancements that brought blockchain into the limelight for many
industries and individuals and that is why it is so important to educate
yourself on it.
In “Blockchain: Blockchain for Beginners” you are going to learn virtually
everything you need to know about this revolutionary technology. This book
is for anyone who is looking to educate themselves on this incredible
program so that they can learn just how much of an impact it will have on
everyday society. It will also help you get involved or understand how you
can invest in the program, should you desire to do so.
Some of the topics we are going to cover in this book include:

Blockchain’s modest roots

Blockchain’s capabilities
Blockchain’s limitations
Common myths
Risks to consider
Blockchain’s revolutionary impact
How to invest in blockchain
Why you need to be educated on this technology
You will also learn so much more!

This book is the perfect guide for anyone who wants to learn more about
blockchain technology and what it means for society. If you are ready to see
what the future can look like, and bring all of your childhood dreams to a
reality, then you are going to want to learn more about blockchain! If you are
ready to learn all about this and so much more, then “Blockchain: Blockchain
for Beginners” is the perfect book for you! Look inside to learn more!