How To Learn More About Blockchain
Understanding how Blockchain works is certainly achievable, and yet the initial dive into cryptography, algorithms and transactional models might feel so over your head that you opt out. Don’t! That will keep you from taking part in something that could change your life and your family’s lives dramatically.
After years of helping non-techies (most of us!) understand the emergence of this new industry, we’ve found that it’s far more helpful to grasp the “why” of Blockchain rather than the “what.” That should spark enthusiasm that will gain momentum as you get all those digital details down. So, here’s a list of 25 Reasons to Learn More about Blockchain Technology and Cryptocurrency. Our recommendation: choose the 2-3 that resonate with you most, and explore more in that direction so that your learning process is organic. It takes time to wrap your mind around it, so give yourself patience and stay at it.Rather Watch In Video?
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1. Blockchain is a Revolutionary Technology
Bitcoin was designed to solve some of the world’s most complicated problems. Ultimately, it will provide a way for us to trade or transact with each other on a direct peer-to-peer basis.
Transact in this case simply means sharing information or data or assets directly from one person to another. Examples of this include: money, contracts, certificates, aspects of our identity, and many more. We want to be able to own our assets ourselves and pass them to others without any outside interference.
Blockchain Technology is essentially the digital infrastructure that will allow us to accomplish those transactions, to verify them and to record them. It keeps a comprehensive ledger of the transmission of all of these trades.
The ledger cannot be changed, only added to, which means no after-the-fact funny business like fudging records of recreating the past. What has happened is officially chronicled and is unchangeable. It has been verified by a collective group that all shares the same information, accomplishing trust.
This is an extremely simplified explanation of what Blockchain can do to get you started. Like the Internet revolutionized how we communicate globally, Blockchain technology is set to revolutionize how we share value.
With that understanding in mind, let’s delve into some other reasons you should learn more about this new technology.
2. Blockchain Provides a Verifiable Record that Achieves Trust
In our age, trust is exceedingly hard to come by. We have trouble believing information we receive, the outlets who send them, and ultimately each other. Resolving disputes and coming to terms is tough when we don’t know what to believe. Everything has the potential to be suspect. This lack of trust is the source of many of our societal ills.
Blockchain provides a fabric of transactional trust for people and institutions. Without getting too technical, Blockchain distributes the responsibility for chronicling transactions across a network of “nodes,” each of which has a copy of the blockchain and participates in logging. This is a solution for trust through verification.
We haven’t previously been able to accomplish this as a species. To delve deeper into this, check out our post on How Blockchain Achieves Trust.
3. A New, More Efficient Way to Transact & Record
One characteristic of Blockchain that we’ll get into more in a bit is that it is decentralized. Decentralization is a new concept for most of us, as we live in a society with normalized centralization.
Centralization means that an individual, small group or entity holds the decision-making power or authority over a larger community it represents through some relationship. A bank is a centralized entity that holds financial authority and can make decisions on behalf of its clients.
We just talked in Reason #2 about Blockchain’s network of nodes. That network is made up of regular people just like you who participate by becoming a “node,” or a point of verification on the network. The ledger uses cryptography across a network of nodes to verify and record these transactions.
There is a lot of work to do to bring everyone on grid, but the vision would be that a man in Nigeria and his cousin in Canada both would have cryptocurrency wallets that stored their wealth, and that they could send and receive value almost instantaneously for a tiny fraction of today’s costs. Imagine what that would do for the majority of the undeveloped world.
4. Built in Security for Data Transactions and Information
A friend who works for a major bank recently told us that they spend over $600,000 per year on cyber security. Hacks, scams and theft of information and currency are major issues for companies large and small.
As businesses begin to adopt Blockchain and develop new ways of using it, they will undoubtedly appreciate the security benefits inherent in the technology.
Because of its distributed network, trustless verification process and the cryptography permeating the design, Blockchain and the cryptocurrencies built upon it are impermeable to hacks. This is one of the key reasons for its development.
Each entity will surely have its own security needs and considerations, but the primary threats that plague our current system will be dramatically reduced or eliminated because of the upgrades native to a distributed ecosystem. The ledger itself will be a public reference that steadily holds accountability.
5. A Proving of Cryptocurrency with Bitcoin & Alt-Coins
Cryptocurrencies like Bitcoin, Ethereum, Cardano, and thousands of others were established because of the technology that Blockchain provides. They are now becoming part of our tradeable assets, grouped among other classes like fiat currency, real estate, socks, bonds and commodities.
Cryptocurrencies are assets representative of a blockchain project, protocol or entity. For example, Cardano is a Layer 1 solution. It has built a blockchain, and the Cardano cryptocurrency is called ADA. If you purchase Cardano cryptocurrency, you’ll own ADA coins that both have real world value and open you up to opportunities for participating within the Cardano ecosystem.
They are an opportunity for investment, and you should do your due diligence researching prior to making any financial decisions of your own. We cover this in depth in our Cryptofluency Investing and Trading Courses.
Beyond the asset value, coins and tokens serve a critical purpose on the blockchain. They are necessary for the functioning of the technology and allow the exchanging of value on the network.
6. Blockchain is an Immutable Write-Only Ledger
Immutable means that the record cannot be changed, only added to. That’s the “write-only” part. Let’s say you have a friend who’d like a small loan to start a business venture. As it stands, you’d use third party services to help you manage this agreement, specifically your bank, your friend’s bank and potentially an attorney or a legal website to create the contract.
If anything went south, you’d need to re-enlist third party support to enforce the contract and you’d need to have records to prove your case.
With Blockchain, you could skip the middlemen and create a “smart contract” to manage the transaction. Smart Contracts have extensive capabilities, but for this example we’ll say you used it to outline the terms of the agreement and automatically manage the transactions, logging them across time. There could be no confusion in the future about what was lent, paid back or expected because the technology processes these occasions.
If things went well and you decided to support your friend again, you could “write” new terms into the contract, but – for both of your benefits – you wouldn’t be able to change what was already there. It is immutable.
7. An Evolution of Business Tools & Practices
By now you may be imagining all kinds of different applications that would make sense for you personally or perhaps your industry.
Think about how the Internet changed communication and commerce across the past twenty years. A small business vendor at a flea market can take credit card payments via wireless on a cell phone.
YouTube Influencers out-earn highly paid professionals of fields previously at the top of the financial food chain.
Adoption takes time, and so does the building of the tools required to make this transition. But, integration of blockchain is already happening. Like with the internet, some businesses will get started early, like those who were first to have websites. Others resisted, waiting to see what evolved.
It is exciting to think about the developments of the future. Each industry will have its own entrepreneurial leaders and trailblazers re-envisioning how we do business with this new tool set.
8. Blockchain is an Unprecedented Investing Opportunity
True to its decentralized structure and capacity to improve global conditions, Blockchain Technology is an accessible investment opportunity for the everyday person. It is possible for both the new and seasoned investor to acquire cryptocurrency relatively easily.
Historically, the ability to share in investment opportunities at the ground floor has been reserved for Accredited Investors, those who fit the criteria of a $1M net worth or three consecutive years of $250,000+ income. Those without that criteria are first able to invest once a company goes public on the stock market, which is long after the dramatic gains have already been made.
With cryptocurrency and decentralized exchanges, the average person can make reasonable and responsible investments in projects that are currently in their early stages.
It should also be noted that the cryptocurrency market is highly volatile, and many projects are yet to prove their worth. It is important to take time to develop your investing mindset, avoid get-rich-quick hype and do your due diligence exploring these opportunities prior to investing any of your money. We cover how to conduct Fundamental and Technical Analysis in our Inner Circle Group.
Beyond investing money, you could also consider investing your time or energy. Many projects offer rewards for participation in various initiatives like governance and growth.
9. A Distributed Network with Distributed Ownership
Cardano Founder Charles Hoskinson often talks about how Cardano doesn’t belong to him or to his company, Input Output Global (IOG) rather it belongs to the Cardano community.
This is because Cardano was the first blockchain to achieve true decentralization, and the community itself is stewarding the growth and change of the platform.
This means that participants have chosen to take part, have acquired some amount of ADA and are actively considering the best way to encourage the growth of the entity. Quite a different experience than the centralized companies where decisions come from the top down – often from one person or a board – and involve the constituents but little.
The distribution of ownership made possible by the distributed network of blockchain does require that questions of governance and process be achieved.
An interesting project to explore is Project Catalyst, which is working to achieve governance among that community. Sustainable funding is available via the transaction fees of the chain, proposers can apply for funding according to community-voted critera, and the community selects which projects should move forward.
Many other protocols are doing the same experiments in governance.
10. Bitcoin Establishes a Decentralized Model
It all sounds good in theory, but the action speaks for itself. Bitcoin recently celebrated its 14th birthday, and has expanded dramatically from its inception. The proving of a strong resistance to attack coupled with a global rise in adoption are promising. The model has been deployed and grown with a resilient track record.
Many other blockchains have formed using the same model, with still others developing their own models of varying degrees of success. Thousands of projects are listed on Coin Market Cap, a site that overviews Crypto prices, charts and market cap.
Each of these projects is building on the established Bitcoin blockchain model, adding confidence to the emergence of this new technology.
11. Blockchain Inspires Collaborative Minds & Partnerships
Some of the first to recognize the potential of the technology were the world’s best mathematicians and cryptographers. These minds have come together over the past 15 years, often collaborating, sometimes competing and certainly captivating.
The complexity of the work often requires a genius mind, and the nature of this build draws enthusiastic thinkers together.
Many of the projects’ founders and team members have active YouTube channels, where they are consistently updating on progress and vision. These are some of the most engaging excerpts, as they explain concepts in depth, address current issues and respond to the questions of the greater community. Collaborative projects also abound, as the blockchains themselves are the foundation on which many other initiatives form.
As an imperfect comparison, consider that Facebook is an app that runs on the Internet. Facebook didn’t make an internet, it made an application on the internet. The same thing is happening now as new projects, like the social dapp Smart Places, for example, build on the blockchain.
12. The Emergence of a New Industry and Field of Work
A social media manager didn’t exist in 1990. Neither did an online banking teller. The emergence of a new industry is here with blockchain. Even existing careers have a wide-open space to evolve. Computer coders who previously wrote with languages like java script and HTML are now learning Haskell and Solidity.
Partnerships of all kinds are being created in other countries that will begin to educate citizens there about crypto, and prepare them to take part in careers like coding and connectivity. World Mobile Token is one example of an initiative designed to bring connectivity to everyone through the sharing economy.
13. Blockchain is a Disruptive Innovation
A disruptive innovation dramatically changes the way we do things. Uber and Lyft disrupted the way we are transported from one place to another, completely changing the taxi industry. Credit cards disrupted the way people exchanged money. Of course, the internet disrupted the way we communicate and share information.
Blockchain technology is a disruption on a global scale and is already affecting the majority of countries around the world. It will change everything about how we transact, and usher in a new era of tools and services previously inconceivable.
Disruptive innovations always have an impact. The more people reached and affected by the innovation, the more disruptive it becomes.
14. Blockchain has a Honey Badger Effect
Human Approval will encourage a concept. The Uber innovation was so welcome that it became popular despite the push-back from cab companies, the perceived liabilities, and the location-by-location legal disputes.
When such an adoption occurs, it can be said to be behaving like a honey badger, as that animal is fierce and feisty and willing to take on opponents of a much larger size.
Behind the effect, there must be real value, or the momentum can be easily swayed. Bitcoin’s adoption since its inception has been so consistent and expansive that the industry informally adopted the honey badger as a sort of mascot.
Despite governments trying to ban or control it, the limitations of current technology, negative speculation, fear, uncertainty, and doubt, Bitcoin has prevailed. Why is Bitcoin valuable? It’s always important to keep your eye on a honey badger.
15. Blockchain is Open Source, Shareable and Usable
Unlike proprietary technology that is closed to outside use and kept close to the chest by its creators, Blockchain technology is open source.
Open source means that its code is designed to be shareable and usable by others for creating further. It is accessible to anyone who wants to build with it. This further encourages the collaborative use of the code to build and modify. This has resulted in a wealth of new protocols making new tools and resources.
As growth happens, so does learning. Open source contributes to openness and transparency. The development of new open source software and the sharing of the knowledge gained along the way serve to further communal progress.
16. Bitcoin’s UTXO Model Provides Standardization
Bitcoin was the first cryptocurrency created, and it uses the UTXO Model. This means the “Unspent Transaction Output” Model.
Without getting too technical, a UTXO model allows both transparency and the ability to track ownership of all of the parts of currency. This is key, because anonymity is a central to the blockchain’s accomplishment.
Individual wallets or accounts are known only by their public address, and the ecosystem needs to be able to keep track of all cryptocurrencies in circulation. An entire blog could be written about UTXO, but this will get you started.
Because Blockchain is open source and because model is replicable, other blockchains and protocols have adopted or chosen to adventure another route. Ethereum uses an account model.
Cardano modified the UTXO and created an Extended UTXO model (EUTXO), and still others are in development. The accomplishment of a model that works and can be developed reinforces the industry.
17. Blockchain is A New & Exciting Topic to Learn About
In 2012, Derek was in a Saxby’s coffee house outside Philadelphia doing some online research. He was presented with an ad about Bitcoin, which captivated him for the duration of the video.
At that time, Bitcoin was about $100 per coin, which he felt was pretty expensive. In retrospect, it would have been a monumental time to get in.
It wasn’t until 2017 that he was re-introduced to Blockchain technology at a mastermind for entrepreneurs in Los Angeles. The value per coin had risen to $20,000 at the peak of that bull market. Although it was disappointing to have missed out on that opportunity, his new awareness sparked a new and disciplined learning adventure.
Since then, we’ve explored all corners of this industry, from mining to investing to participating, from alt-coins to NFTs to decentralized exchanges. There is a wealth of exciting topics to learn about, and they all build on a greater understanding.
We recommend starting with what draws you, and creating your own process of involvement.
18. Crypto Charts Provide a Historical Track Record for Context & Reference
A skill to begin developing is the ability to read and understand cryptocurrency market charts. It’s much more exciting than it sounds.
Crypto charts are a running log in graph form of a cryptocurrency’s performance, price and volume at any given time across time. Charts show how price rose and fell, the market patterns that took place, and fluctuation through bull and bear markets.
You can use charts to analyze what happened as well as what might happen. Using technical analysis can inform how a market might respond in the coming terms.
Becoming comfortable with how to read a crypto chart, review past changes and navigate volatility will encourage stability in times of dramatic fluctuation. It will also help you begin to invest and trade, if those are your goals. TradingView is an online resource for viewing charts.
19. A Community of Like-Missioned Contributors
Besides serving as a solid base of loyal investors, many participants in the cryptocurrency world share a similar mission.
Blockchain inspires a strong sense of empowerment among community members, many of whom are dedicated to creating a better world by helping to bank the un-banked, bring underserved populations on grid, and return ownership of data to people. Blockchain projects draw people from all over the world with both local and global perspectives on how the technology can serve communities.
The ability to connect over a distance allows for new relationships, both in friendship and in business. Solutions that work in one place can be modified and replicated in other places.
While no collection of people is homogeneously good-willed, the thinking done in these arenas is largely focused on improving and furthering the technology in order to improve and further global good, and to prosper in the process.
20. Investing in Crypto is Accessible for Both New & Seasoned Investors
While you should always do your due diligence and research before making investment decisions, your ability to make cryptocurrency investments is solid. Curiosity about investing may be the interest that drives the initial march into the industry.
While cryptocurrencies are perceived to be all the rage when prices are up and doomed to fail when prices are down, it is the long-term mindset and the readiness to evaluate opportunities that can make investing truly meaningful. Avoid the get-rich-quick approach. Learning about investing overall and developing a plan guide a more wholesome experience.
That said, cryptocurrencies can be purchased via centralized or decentralized exchanges, and are best kept in secure wallets, which are often an extension on your browser. Each protocol handles cryptocurrencies and wallets differently, or join us at an upcoming Cryptofluency event, where we cover getting started in depth.
21. Crypto Wallets & New Tools to Exchange Money
When credit cards emerged, we had a new way to exchange money and needed new technology to process the cards. Bank cards had a similar effect. Money was held by the bank, and the card could be used to access and spend it. The credit card as a tool was an added convenience, but money was still centralized in a bank.
In decentralization, there is no bank. You are the holder of your money, and you’ll need a cryptocurrency wallet. What is a cryptocurrency wallet? A wallet is the secure storehouse for crypto assets, like cryptocurrencies, smart contracts, non-fungible tokens (NFTS), tokens, and even certificates.
Many kinds of crypto wallets exist with different capabilities, and learning more before you choose one is always a good idea.
22. Blockchain is Intimidating at First, but Learnable for Everyone
Cryptocurrency and Blockchain Technology are new to all of us. We all face a learning curve. In starting out, terms and concepts will seem foreign to you. Like learning a foreign language, a musical instrument or an athletic discipline, certain things come quickly, other things slowly and sometimes it feels like no progress is being made at all.
Here is a Tip on Mindset:
Here are a few tips: start with what interests you, take your time, be consistent, leave out the highly technical stuff.
When something is new, the tendency is to try to figure out exactly how things work. A more valuable understanding is of the need and potential. We use many tools throughout the day that would be a challenge to explain.
For example, you’ve likely sent a text today … do you know exactly what happened to get that tiny bit of data to another person’s phone instantaneously across a great distance?
The people who could see the need for the Internet and the potential for its use were in a great position to evaluate and choose. Imagine being in at the beginning of Apple. It may be that some of us – hopefully you! – are standing at that same opportunity horizon right now.
23. Blockchain is an Inspiring Source of World-Improving Projects
In addition to the technology being developed, many groups are working on impact projects that will engage communities in need or transform particular problems. The focus on world issues permeates developing platforms.
There are projects that focus on climate change, on development in Africa and crypto education for Seniors. The ability to tokenize involvement and to use the technology for good works draws thought leaders solving local and regional issues to a larger stage. A Google search of crypto impact projects in your field will produce inspiring results.
Or, perhaps you’ll be the next to start one?
24. Blockchain Encourages Caution & Discernment
For all the positive and encouraging developments Blockchain brings, it is wise also to acknowledge that this is an ecosystem that requires caution and focused consideration. The recent FTX debacle is proof of that.
It’s worth mentioning that the FTX exchange was a centralized entity with similar tendencies to non-blockchain companies, and that a deeper look into its fundamentals may have avoided catastrophe for many of its victims. Still, nothing is perfect and this is a comparably early stage in Blockchain’s development.
Be aware of rug pulls and scams. They do exist. Often, they are disguised as unbelievable quick-pick opportunities.
Take your time, do a strong fundamental analysis and consider things from multiple angles. Scrutinize the team behind a project. Choose the highest quality tech available. Follow along with a project’s progress, once you’ve joined on. Invest in companies that take the long-term seriously rather than those intent on making money quickly.
25. Blockchain Can Be a Personal Source of Abundance and Prosperity
Whether you’re considering cryptocurrency as an Investment or Trading opportunity, looking for a new career path or just hoping to learn more, starting out by learning can lead to wealth in many ways.
Whatever has brought you to consider Blockchain’s future impact, let what you discover keep you on the road to life-changing connections.
Like planting a small seed, the tree that grows may bear much fruit with your continued effort, influence and patience.
Should you want help getting going or fast-tracking your progress, we invite you to join us in our OG Membership or Inner Circle Group.
Have a reason for learning more we missed, or a suggestion for a future blog topic? Leave it in the comments below. Stay strong.
