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Blockchain Basics

Learn blockchain online at your own pace, from block structure to transactions. 

(BLOCKCHAIN.AU1) / ISBN : 978-1-64459-725-5
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About This Course

Our blockchain basics course breaks down this revolutionary technology into 25 bite-sized lessons. 

Discover why blockchain matters, how it secures transactions, and where it’s transforming industries. From hashing and digital signatures to decentralized ledgers and smart contracts, you’ll explore key pieces that make blockchain powerful…and set its limits as well. 

Skills You’ll Get

  • Blockchain Fundamentals: Grasp core concepts like blocks, decentralization, and distributed ledgers without technical jargon.
  • Industry Applications: Recognize how blockchain applies to finance, supply chains, and other industries.
  • Security & Integrity: Learn how hashing, digital signatures, and consensus mechanisms prevent fraud.
  • Limitations: Discover blockchain’s challenges (scalability, energy use) and real-world trade-offs.
  • Cryptocurrency Basics: Understand how Bitcoin and other digital currencies use blockchain technology.
  • Thinking Critically About Adoption: Assess where blockchain adds value…and where it doesn’t.
Download Course Outline

1

Introduction

  • Why Another course About the Blockchain?
  • What You Cannot Expect from This course
  • What You Can Expect from This course
  • How This course Is Organized
2

Thinking in Layers and Aspects

  • The Metaphor
  • Layers of a Software System
  • Considering Two Layers at the Same Time
  • Integrity
  • Outlook
  • Summary
3

Seeing the Big Picture

  • The Metaphor
  • A Payment System
  • Two Types of Software Architecture
  • The Advantages of Distributed Systems
  • The Disadvantages of Distributed Systems
  • Distributed Peer-to-Peer Systems
  • Mixing Centralized and Distributed Systems
  • Identifying Distributed Systems
  • The Purpose of the Blockchain
  • Outlook
  • Summary
4

Recognizing the Potential

  • The Metaphor
  • How a Peer-to-Peer System Changed a Whole Industry
  • The Potential of Peer-to-Peer Systems
  • Terminology and the Link to the Blockchain
  • The Potential of the Blockchain
  • Outlook
  • Summary
5

Discovering the Core Problem

  • The Metaphor
  • Trust and Integrity in Peer-to-Peer Systems
  • Integrity Threats in Peer-to-Peer Systems
  • The Core Problem to Be Solved by the Blockchain
  • Outlook
  • Summary
6

Disambiguating the Term

  • The Term
  • The Usage of the Term in This course
  • Provisional Definition
  • The Role of Managing Ownership
  • The Application Area of the Blockchain in This Course
  • Outlook
  • Summary
7

Understanding the Nature of Ownership

  • The Metaphor
  • Ownership and Witnesses
  • Foundations of Ownership
  • A Short Detour to Security
  • Purposes and Properties of a Ledger
  • Ownership and the Blockchain
  • Outlook
  • Summary
8

Spending Money Twice

  • The Metaphor
  • The Double Spending Problem
  • The Term
  • How to Solve the Double Spending Problem
  • The Usage of Double Spending in This course
  • Outlook
  • Summary
9

Planning the Blockchain

  • The Goal
  • Starting Point
  • The Path to Follow
  • Outlook
  • Summary
10

Documenting Ownership

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • A Short Detour to Inventory and Transaction Data
  • How It Works
  • Why It Works
  • Importance of Ordering
  • Integrity of the Transaction History
  • Outlook
  • Summary
11

Hashing Data

  • The Metaphor
  • The Goal
  • How It Works
  • Trying It Out Yourself
  • Patterns of Hashing Data
  • Outlook
  • Summary
12

Hashing in the Real World

  • Comparing Data
  • Detecting Changes in Data
  • Referring to Data in a Change-Sensitive Manner
  • Storing Data in a Change-Sensitive Manner
  • Causing Time-Consuming Computations
  • Usage of Hashing in the Blockchain
  • Outlook
  • Summary
13

Identifying and Protecting User Accounts

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • A Short Detour to Cryptography
  • Asymmetric Cryptography in the Real World
  • Asymmetric Cryptography in the Blockchain
  • Outlook
  • Summary
14

Authorizing Transactions

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • A Short Detour to Digital Signatures
  • How It Works
  • Why It Works
  • Outlook
  • Summary
15

Storing Transaction Data

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • Transforming a Book into a Blockchain-Data-Structure
  • The Blockchain-Data-Structure
  • Storing Transactions in the Blockchain-DataStructure
  • Outlook
  • Summary
16

Using the Data Store

  • The Metaphor
  • Adding New Transactions
  • Detecting Changes
  • Changing Data Orderly
  • Intended vs. Unintended Changes
  • Outlook
  • Summary
17

Protecting the Data Store

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • A Short Detour to Immutability
  • How It Works: The Big Picture
  • How It Works: The Details
  • Why It Works
  • The Costs of Manipulating the BlockchainData-Structure
  • The Immutable Data Store in the Real World
  • Outlook
  • Summary
18

Distributing the Data Store Among Peers

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • How It Works: The Overview1 
  • How It Works: The Details
  • Why It Works
  • Outlook
  • Summary
19

Verifying and Adding Transactions

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • How It Works: The Building Blocks
  • How It Works: The Skeleton
  • How It Works: The Details
  • Why It Works
  • Dealing with Dishonest Behavior
  • Outlook
  • Summary
20

Choosing a Transaction History

  • The Metaphor
  • The Goal
  • The Challenge
  • The Idea
  • How It Works
  • Consequences of Selecting One Chain
  • Threats to the Voting Schema
  • The Role of the Hash Puzzle
  • Why It Works
  • Outlook
  • Summary
21

Paying for Integrity

  • The Metaphor
  • The Role of Fees Within the Blockchain
  • Desirable Properties of an Instrument of Payment for Compensating Peers
  • A Detour to the Emergence of Cryptographic Currencies
  • Outlook
  • Summary
22

Bringing the Pieces Together

  • Reviewing Concepts and Technologies
  • What Is the Blockchain?
  • Gaining Abstraction
  • Outlook
  • Summary
23

Seeing the Limitations

  • The Challenge
  • Technical Limitations of the Blockchain
  • Nontechnical Limitations of the Blockchain
  • Overcoming the Limitations
  • Outlook
  • Summary
24

Reinventing the Blockchain

  • The Metaphor
  • Conflicting Goals of the Blockchain
  • The Roots of the Conflicts
  • Solving the Conflicts
  • Four Versions of the Blockchain
  • Consequences
  • Reviewing the Purpose of the Blockchain
  • The Usage of the Term Blockchain in the Remainder of This course
  • Outlook
  • Summary
25

Using the Blockchain

  • The Metaphor
  • Characteristics of the Blockchain
  • Generic Application Patterns
  • Specific Use Cases
  • Analyzing Blockchain Applications
  • Outlook
  • Summary
26

Summarizing and Going Further

  • The Metaphor
  • Further Developments and Alternatives
  • Major Accomplishments of the Blockchain
  • Possible Disadvantages
  • The Future
  • Outlook
  • Summary

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Blockchain is a decentralized digital ledger that securely records transactions across a network of computers. The basics include:

  • Blocks & Chains: Data is stored in blocks linked together in a tamper-proof chain.
  • Decentralization: No single authority controls the network; it’s maintained by multiple participants (nodes).
  • Cryptography: Uses hashing and digital signatures to ensure security and ownership.
  • Consensus Mechanisms: Methods like Proof of Work (PoW) or Proof of Stake (PoS) validate transactions.
  • Smart Contracts: Self-executing agreements (in advanced blockchains like Ethereum).

This course explains all these concepts without complex math or coding, using simple analogies and visuals.

Start with a non-technical foundation before diving into coding or advanced topics:

  • Take this course: It breaks down blockchain in 25 beginner-friendly steps, using plain language and real-world examples.
  • Understand key terms: Learn what decentralization, mining, wallets, and NFTs mean at a high level.
  • Follow industry news: Read about Bitcoin, Ethereum, and real-world blockchain applications.
  • Experiment with wallets: Try sending/receiving crypto (e.g., Bitcoin or Ethereum) to see blockchain in action.
  • Explore no-code tools: Platforms like Ethereum’s MetaMask or Blockchain Demo help visualize how transactions work.

This blockchain course for beginners requires no prior tech or finance knowledge.

Not always! It depends on your role:

  • For basics → This blockchain for beginners course is code-free. You’ll learn concepts, use cases, and how blockchain works without programming.
  • For blockchain development → Yes, coding is required (e.g., Solidity for Ethereum, Rust for Solana, or Python for blockchain tools).
  • For non-tech roles (business, marketing, legal) → Understanding blockchain does not require coding, just core principles (covered here).

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