Build an Ethereum Blockchain Application
Blockchain learning path : LinkedIn Learning
What is blockchain?
Blockchain is a technology that essentially is all about Trust and determining and deciding who we want to trust. There are 3 problems we must understand.
- People like to exchange things of value
- Value exchange relies on trust
- Trust often depends on a third party, Such as
- Banks or brokers
- more expensive
- human error and corruption
Blockchain helps us solve these third-party trust issues, Blockchain was introduced in the year 2008 and Satoshi Nakamoto proposed first ever crypto currency through the same blockchain technology which bitcoin.
This technology allows people to conduct business without trade relations obstacles such as trusted 3rd party transactions without knowing the party by trusting the process.
In a quick summary of what we learn,
- Exchanging things of value usually relies on trusted third paties.
- Trusted third parties add extra cost, and can introduce human error or corruption
- The blockchain helps to exchange things of value without a trusted third party
Traditional currency exchange
- Exchange currency for something else
- requires trusted 3rd party
Blockchain technology vs Bitcoin
Blockchain: Is technology that helps to create crypto currencies. Kind of how we build something
Bitcoin: Is crypto currency built on blockchain technology.
Digital vs Fiat Currency
- Digital currency: Kind of like digital representaion of monet in your bank account
- Fiat currency: Real currency backed by regulatory/gov agency
Cryptocurrency
Uses cryptogray to ensure the integrity of the currencies
- It uses Hashes
- Cryptography is always not encryption