Blockchain 101: From Whiteboard Theory to Real-Life Applications

One of the most important lessons I’ve learned while investing in cryptocurrency assets is the importance of understanding how this technology works and how it can be leveraged. It makes little sense to simply follow the herd when there are great online tools and learning courses available; some key questions I’ll try to address are how blockchain can be used in real life, how can projects successfully mature this technology, and why blockchain matters as a new system for trust.

But first things first: how can we define what is and what isn’t a blockchain?

I’ll borrow some knowledge from the awesome Bitcoin Developer Jimmy Song, who in my view explains these differences brilliantly.

“The main thing distinguishing a blockchain from a normal database is that there are specific rules about how to put data into the database. That is, it cannot conflict with some other data that’s already in the database (consistent), it’s append-only (immutable), and the data itself is locked to an owner (ownable), it’s replicable and available. Finally, everyone agrees on what the states of things in the database are (canonical) without a central party (decentralized).”

Now that the cat is out of the bag, and there is a clear distinction between standard databases and blockchain ledgers, I’ll base my explanatory arguments in the Linux’ foundation course Blockchain: Understanding Its Uses and Implications. For a more in-depth analysis, please complete the curriculum, as it’s free of charge and really helps developing solid knowledge on public blockchains and private ledgers.