© 2017

Blockchain Basics

A Non-Technical Introduction in 25 Steps


Table of contents

  1. Front Matter
    Pages i-xv
  2. Terminology and Technical Foundations

    1. Front Matter
      Pages 1-1
    2. Daniel Drescher
      Pages 3-7
    3. Daniel Drescher
      Pages 9-17
    4. Daniel Drescher
      Pages 19-25
  3. Why the Blockchain Is Needed

    1. Front Matter
      Pages 27-27
    2. Daniel Drescher
      Pages 29-32
    3. Daniel Drescher
      Pages 33-37
    4. Daniel Drescher
      Pages 39-47
    5. Daniel Drescher
      Pages 49-54
  4. How the Blockchain Works

    1. Front Matter
      Pages 55-55
    2. Daniel Drescher
      Pages 57-62
    3. Daniel Drescher
      Pages 63-69
    4. Daniel Drescher
      Pages 71-79
    5. Daniel Drescher
      Pages 81-92
    6. Daniel Drescher
      Pages 93-101
    7. Daniel Drescher
      Pages 103-109
    8. Daniel Drescher
      Pages 111-122
    9. Daniel Drescher
      Pages 123-134
    10. Daniel Drescher
      Pages 135-143

About this book


In 25 concise steps, you will learn the basics of blockchain technology. No mathematical formulas, program code, or computer science jargon are used.No previous knowledge in computer science, mathematics, programming, or cryptography is required. Terminology is explained through pictures, analogies, and metaphors..

This book bridges the gap that exists between purely technical books about the blockchain and purely business-focused books. It does so by explaining both the technical concepts that make up the blockchain and their role in business-relevant applications.

What You Will Learn:

  • What the blockchain is
  • Why it is needed and what problem it solves
  • Why there is so much excitement about the blockchain and its potential
  • Major components and their purpose
  • How components work and interact
  • Limitations, why they exist, and what has been done to overcome them
  • Major application scenarios


blockchain distributed systems peer-to-peer systems distributed ledger technologies distributed consensus consentaneous Raft Paxos hash puzzle proof of work proof of ownership immutable ledger Sybil attack cryptography asymmetric cryptography private public key cryptography cryptographic hash function hash pointers cryptographic currencies double spending

Authors and affiliations

  1. 1.Frankfurt am MainGermany

About the authors

Daniel Drescher is an experienced banking professional who has held positions in electronic security trading in a range of banks. His recent activities have focused on automation, machine learning and big data in the context of security trading. Amongst others, Daniel holds a Doctorate in Econometrics from the Technical University of Berlin and an MSc in Software Engineering from the University of Oxford.

Bibliographic information


“The book is really what is says to be – it introduces the “Blockchain Basics” without formulas or programming. And still, does it in a serious way, which allows you to “take home” the knowledge after reading it.” ( , May, 2018)

“The book could be used as a textbook or simply to help structure a presentation on blockchain. … I think that the book achieves its objectives: to explain to a nontechnical audience what the blockchain is, how it works, and where it can be applied. It should also allow the reader to understand a lot of the hype that surrounds blockchain and to differentiate the ways in which the term is used.” (Computing Reviews, October, 2017)

“This book presents a very intuitive and comprehensive introduction to the blockchain technology. It is useful to understand the concept and to find analogies to explain blockchain to people that are not familiar with it. The book is concisely written and well structured, so that the reader can easily follow and understand the presented concepts.” (Nicolas Kube, Financial Markets and Portfolio Management, Vol. 32, 2018)