Bitcoin & Blockchain: 2 Manuscripts - Understanding Bitcoin & Understanding Bitcoin

Bitcoin & Blockchain:

2 Manuscripts –

Bitcoin: Understanding Bitcoin, Mining, Investing & Trading for Beginners

&

Blockchain: A Guide to Understanding Blockchain

Sean Bennett

Bitcoin: Understanding Bitcoin, Mining, Investing & Trading for Beginners

Introduction Page

Bitcoin: Understanding Bitcoin, Mining, Investing & Trading for Beginners on the #1 cryptocurrency is intended for a complete novice. Written in a simple and easy-to-follow format, this is guaranteed to help you get your foothold in the complex world of the decentralized digital currency and set you ahead of the game.

Within the pages of this book, you will learn

What is Bitcoin (BTC) and how Bitcoin came about

What is blockchain technology

What is Bitcoin wallet

What is SegWit and the Lightning Network

What is Bitcoin mining, mining pool

What caused the Bitcoin Fork

A brief overview about Bitcoin Cash (BCH/BCC)

Bitcoin transactions for business

But that is not all! You will also learn

How to earn Bitcoin

How to secure your Bitcoins

Tips for Bitcoin investing and Bitcoin trading with risk management techniques

Various types of Bitcoin wallets as well as their Pros and Cons

The uses of Bitcoin currency

and much more!

Bitcoin has often be referred to as ‘digital gold’, as the blockchain technology allows to transfer value through software and software alone. Never before has it been possible to have trusted transactions directly between two or more parties that were authenticated by mass collaboration and powered by collective self-interests, instead of relying on large corporations motivated by profit.

Bitcoin continues to open new doors for anyone willing to invest and to do business, across the globe. Soon, Bitcoin may even become be the currency of every nation. We have tried to include the various aspects of Bitcoin in this book so that you can have a clear understanding about this huge societal breakthrough.

Contents

Bitcoin: Understanding Bitcoin, Mining, Investing & Trading for Beginners

Introduction Page

Chapter 1: Introduction and a Brief History of Bitcoin

Chapter 2: What is Blockchain Technology?

Chapter 3: Bitcoin Mining and Mining Pools

Chapter 4: What is SegWit and The Lightning Network?

Chapter 5: Bitcoin Wallet

Chapter 6: The Bitcoin Hard Fork

Chapter 7: Bitcoin Cash BCC/BCH

Chapter 8: Bitcoin Pricing from Launch to Now

Chapter 9: Investing in Bitcoin and Risk Management

Chapter 10: Bitcoin Trading

Chapter 11: The Security Aspect of Bitcoin

Chapter 12: Bitcoin Transactions for Business

Chapter 13: FOMO/FUD

Chapter 14: Dollar Cost Averaging

Chapter 15: Bitcoin Mutual Funds

Conclusion

Contents Blockchain

Introduction

Chapter 1: Blockchain Basics

Chapter 2: A Brief History Blockchain

Chapter 3: A Closer Look at How Blockchain Works

      Blockchain client

      Regulator

      Blockchain developer

      Blockchain network administrator

      Traditional processing platforms

      Traditional information sources

      Certificate specialist

      Transaction definition

      Transaction verification

      Block creation

      Block validation

      Block chaining

Proof of Work

Proof of Stake

Chapter 4: Practical Applications of Blockchain

Chapter 5: Blockchain and Your Business

Shared Ledger

Permissions

Consensus

Chapter 6: Understanding Cryptocurrency

Chapter 7: Blockchain in the Future

Conclusion

 Copyright 2017 by Sean Bennett - All rights reserved.

This document is geared towards providing exact and reliable information in regards to the topic and issue covered. The publication is sold with the idea that the publisher is not required to render accounting, officially permitted, or otherwise, qualified services. If advice is necessary, legal or professional, a practiced individual in the profession should be ordered.

- From a Declaration of Principles which was accepted and approved equally by a Committee of the American Bar Association and a Committee of Publishers and Associations.

In no way is it legal to reproduce, duplicate, or transmit any part of this document in either electronic means or in printed format. Recording of this publication is strictly prohibited and any storage of this document is not allowed unless with written permission from the publisher. All rights reserved.

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Chapter 1: Introduction and a Brief History of Bitcoin

Right now, Bitcoin feels like the internet before the browser – Wenses Casares

Cryptocurrency, especially Bitcoin, has been clearly dominating the headlines in recent times. This comes as no surprise, as the returns from Bitcoin in the past year amounted to an unbelievable 668%!

According to the survey conducted by Lend Edu, the popularity of Bitcoin is growing steadily, especially among millennials. Nearly 87% of youngsters have heard about Bitcoin and are open to the concept of Bitcoin currency. While many wants to earn Bitcoin through Bitcoin mining, others prefer to make money via Bitcoin trading and Bitcoin investing.

If you are a complete newbie to Bitcoin and wish to gain an end-to-end knowledge about it in a simplified and easy-to-understand manner, I’ve got some great news. By reading this book, you are guaranteed to understand all the important aspects of Bitcoin, be it about Bitcoin wallet, Bitcoin trading, Bitcoin mining, Bitcoin investing, tips on how to earn Bitcoin (referred to as BTC), and more! This book is, quite simply, a one-stop reference for everything you want to know about Bitcoin.

However, be warned that Bitcoin is a complex topic that encompasses software engineering, cryptography, and economics. So, it may be tough for a non-technical person to grasp its intrinsic workings and programming aspects. Which is why I have covered the technical aspects of Bitcoin in a superficial manner in this book, without going too much into coding and programming details.

Now, let’s get started with mastering Bitcoin!

Imagine that you have a bank account from which you send some money to another person, say, John. This is called a transaction wherein you send a fiat currency (Dollar) to another person. This transaction is authenticated and tracked by your bank and its record is maintained.

Note: Euro, Dollar, etc. are called fiat currencies due to a government decree (fiat) declaring the currency to be legal tender.

But Bitcoin is a completely different ball game. Let’s see why.

Understanding Bitcoin

Bitcoin is a peer-to-peer virtual currency without any central authority. This means that no bank, government, or official entity can issue or have control over Bitcoin. Whenever you send Bitcoin to someone else, it goes directly to them without any middlemen or banks.

Bitcoin is an open source code and exists through a cloud network known as the blockchain. The blockchain is basically a transparent ledger of all the transactions that ever happen on the Bitcoin network. Each and every transaction on Bitcoin network is authenticated by a collective network of the Bitcoin user’s computers.

Bitcoin is pseudonymous. This means that Bitcoin can be used anonymously to an extent, as the sender and receiver are identified only by a string of numbers and alphabets. For example, 1pckXknnEd4SPkC27PnFH8dsY2gdGh26Y

Bitcoin payments are done using peer-to-peer technology. It happens instantly anywhere across the world for a very nominal cost.

Just like a web browser is a common user interface for the HTTP protocol, the common user interface to the Bitcoin system is called the ‘Bitcoin wallet’. There are many Bitcoin wallets available, which is covered in detail in the upcoming pages. The transfer of value between Bitcoin wallets is called a transaction.

Bitcoin transactions are quite secure as it uses strong cryptography, making it impossible to be accessed without proper permission. The transactions of Bitcoin are irreversible. This helps in protecting users from fraudulent chargebacks.

The final monetary base of Bitcoin is fixed at 21 million Bitcoins. This scarcity provides the Bitcoins with value. The value of Bitcoin fluctuates based on the demand and supply.

Bitcoin ownership

The ownership of Bitcoin is established through Bitcoin addresses, digital keys, and digital signatures.

Keys come in pairs. There would be a private (secret) key and a public key. The digital keys are stored in the wallet.

The Bitcoin address is usually generated from and corresponds to the user’s public key. Whenever Bitcoin transaction happens, the recipient’s address would be the public key. Thus, public keys are used for receiving funds.

A valid digital signature is necessary for most Bitcoin transactions. It can only be generated with the secret key. The digital signature used to spend funds is also called a