Latest read: Beyond Bitcoin

Beyond Bitcoin: The Economics of Digital Currencies by Hanna Halaburda and Miklos Sarvary is a wonderful read to learn about digital currencies and the state of Bitcoin. The authors clearly defined the real world use of digital currencies.

Beyond BitcoinBeyond Bitcoin explores the emerging and dynamic universe of digital currencies, to understand how they developed and what the future holds for our economy.

The authors use an economic framework to explore platform-based digital currencies that are centrally managed by the businesses that introduced them. The book ends with a comparison between various cryptocurrencies.

The authors use an economic framework to explore platform-based digital currencies that are centrally managed by the businesses that introduced them. The book ends with a comparison between various cryptocurrencies.

The history of currencies is rather fascinating and the third chapter covers currencies we are familiar with including BerkShares, Food Stamps and Mortgages. Also addressed are gaming currencies including World of Warcraft, and Diablo; virtual worlds including Eve Online and SecondLife and social networks including Facebook Credits or Amazon Coins.

The interest surrounding Bitcoin elite miners provided a series challenge to the 51 percent attacks. Yet Bitcoin relies upon Blockchain by relying on a diffuse network of miners who effectively keep other miners honest. But as the authors point out if a group of miners was to plan an attack, they could take control of a ledger and prevent new transactions from being added to possibly double spending.

Basically, the authors note that Bitcoin cannot be counterfeited. While Bitcoins may be stolen, the transactions are not reversible — compared to credit cards. again the supply of Bitcoins cannot be manipulated by a person or institution as it is managed by an algorithm.

Beyond Bitcoin is a great read. I feel this is one book that should be considered for anyone interested in learning about Blockchain and cryptocurrencies.

What say you?