Blockchain 101
Since its inception in 2008, blockchain has been a keen topic of interest for everyone in finance, technology, and other similar industries. Apart from bringing a new overview to record keeping and consensus, blockchain has enormous potential for disruption in most industries. Early adopters, enthusiasts, and now governments and organizations are exploring the uses of blockchain technology.
In this book, we will discuss the basics of financial transactions using fiat money to create our own cryptocurrency based on Ether tokens, and, in so doing, we will try to cover the majority of topics surrounding blockchain. We will be discussing Ethereum-based blockchains, Hyperledger projects, wallets, altcoins, and other exciting topics necessary to understand the functioning and potential of blockchain.
In this chapter, we will discuss the following:
- Financial transactions
- Financial ledger
- P2P networks
- General elements of a blockchain
- Uses and benefits of blockchain
- Various types of blockchain
- Introducing the consensus system
- Challenges faced by a blockchain network
Let's start by discussing each of the preceding listed topics and other important details surrounding them.