Blockchain 101: An Introduction to the Future

Abstract The blockchain has had to grow up rather quickly as financial firms, consultants, healthcare providers, and others have all sought ways to implement the technology into their stack. However, for many, the blockchain is still a nebulous concept. And even if they understand the “what”, understanding why it should be used and what problems it can solve remains unclear. This chapter answers these questions and more. What is a blockchain? How does it work? How does a blockchain handle trust in a distributed fashion? And when should a blockchain actually be used for a project? Ultimately, there are nine factors that comprise a blockchain that include: shifting trust from a middleman to the system; cryptography & public-key infrastructure; an immutable nature so the ledger can be completely trusted; and decentralization, so even if one node goes down, the data remains secure. Blockchain technology has the potential to revolutionize many industries and use cases, and we've only touched on the tip of this iceberg. The information in this chapter will provide the necessary introduction to guide you on your path to using the blockchain.