The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology that Powers Them by Antony Lewis - Review by Abhishek Desikan
As the book’s name suggests, it is an excellent introduction to bitcoin and blockchain technology basics. Although that is the book’s primary focus, it also gives the historical context for why bitcoin came into existence. The author, Antony Lewis, explains the various attempts at creating an instrument that was censorship-resistant and didn’t involve a third party. He then talks about the history of money itself, right from the barter system to the fiat money we use today.
The author starts with THE white paper written by the pseudonymous Satoshi Nakamoto, who described the original framework of how bitcoin would work. He explains how we can create a distributed trust network to exchange digital currency, eliminating fraud using the concept of “proof-of-work”. He describes the inner workings of bitcoin and ethereum and forks in cryptocurrencies. We also learn about various hacks and improvements which have been made in cryptocurrencies over the years. The author goes on to explain the different terminologies associated with tokens in the crypto universe. He explains the difference between asset tokens, utility tokens, etc.
A common challenge with cryptocurrencies is understanding what makes them valuable. The author dives deep to explain this with various examples and comparisons with fiat money, which doesn’t have any intrinsic value. In some sense, cryptocurrencies are like gold. They are intrinsically valuable and are not tokens that are “backed” by some asset.
Finally, we get an understanding of blockchain technology, the differences between private and public blockchains, and the various applications for which they’re being used today. We also learn about ICO’s (Initial Coin Offerings), how they are priced, the role of cryptocurrency exchanges, and how the future of blockchain can change the world.
As a cryptocurrency and technology enthusiast, this book hit the nail on the head. It is a thorough and yet accessible book for anyone interested in learning the basics of cryptocurrencies and blockchain.
Originally published here.