 "The layman's guide to Bitcoin")
This year, the bitcoin has turned 10. This year, the bitcoin also has a new sibling currency to contend with, the global crypto coin Libra, launched by social media giant Facebook. This year has also seen bitcoin breaking out of the grip of bears and entering the bull territory after almost 18 months of hibernation.
What better timing for the release of this exciting book, which tells the story of the genesis, growth and evolution of bitcoins and blockchain technology that powers cryptocurrencies.
The author, Rachna Singh, a senior Indian Revenue Service officer, has simplified the varied aspects of bitcoins for the untutored reader. She takes the lay reader on what she describes as a “Homeric journey to unravel the nuanced complexity” of a bitcoin. Despite writing about a subject that is predominantly technical and financial, she keeps the literary elan, characteristic of her writing, intact.
The bitcoin saga begins with the sub-prime crisis of 2008, which witnessed a loss of trust in financial institutions such as banks, and then narrates the rather compelling tale of the Cypherpunks, a group of privacy proponents, who did away with third-party institutions and created a decentralised system of electronic payment.
Then comes the rather absorbing story-within-a-story, “The Phantom of the Bitcoin Opera” — the tale of the founding father of bitcoins, a mysterious man called Satoshi Nakamoto whose identity even today is not known. The saga then segues into the story of Ross Ulbricht, the protagonist of the “The Silk Road,” who set up an anonymous market that allowed the sale of drugs, porn, guns and ammunition but was finally caught red-handed by the FBI and is now serving a double life sentence.
There are lots of such interesting little tales and sub-narratives hidden within the covers of the book — the Mt Gox heist, the story of the birth of dogecoin, launched as a spoof on the cryptocoin, the genesis of cryptokitties, a blockchain-based game where the cost of the kitties went up to as much as $1,70,000, et al. The use of stick figures and illustrations to explain the sub-prime crisis or technical aspects like Byzantine fault Tolerance adds an interesting facet to the book.
The bitcoin discourse also includes a detailed discussion on the global regulatory practices and taxation policies for cryptocurrencies. This becomes significant in the light of the fact that G20 countries declared their commitment to applying crypto standards set by the Financial Action Task force at the Osaka summit.
Most readers would find this section too academic as it deals with dry issues of taxation and regulation. The author admits that this was her “Scylla & Charybdis” section and that it was the most difficult section to pen. However, without clear-cut regulations and taxation policies, this new immutable currency will become a tool for money laundering and other illegal activities.
A somewhat unusual but welcome facet of the book is the section called “The Chat Room”. It includes illuminating quotes and comments on various aspects of bitcoins and blockchain technology by a cross-section of experts. The bitcoin tale, with all its interesting twists and turns, has been narrated in a simple and conversational tone and for the most part reads like a bestseller rather than an academic treatise.
Most of us regard bitcoins as a mode of payment or investment. But Ms Singh points the reader to new vistas of blockchain applications. The book details the salutary impact of blockchain technology in sectors like health, agriculture, elections, gaming, and record-keeping.
The potential and promise to improve and simplify the voting processes marred by allegations of ballot fixing, the ability to ensure that identity theft by hacking the Aadhaar portal is a thing of the past, the capacity to disburse money and tokens to Syrian refugees, a technology that enables front-row seats to an IPL match or a Coldplay concert — these are some of the inherent benefits that the blockchain offers.
The author, however, honestly admits that despite the great potential, implementation of this technology will be an uphill task. Scalability, internal strife among the coder community, government policies aimed at controlling a disruptive technology and, of course, ignorance are some of the factors that will be the death knell of a futuristic and promising technology.
The book leaves the reader to mull over the double-edged sword of blockchain technology: Whether it will be a benevolent Titan or a Frankenstein’s monster, only time can tell.
The Bitcoin Saga is a veritable Bible for cryptocurrency enthusiasts or newbie converts who want to understand all aspects of bitcoins. Those expecting a to-do manual on bitcoin trading would, however, be dismayed. The author offers no apology for this “deliberate oversight”.
The aim of the book, clearly, is to bring the subject of bitcoins with its technical, financial and social complexities to the table of the common reader. The book keeps its promise of doing just that.
THE BITCOIN SAGA: A MIXED MONTAGE
Rachna Singh
Bloomsbury, 228 pages; Rs 499
What better timing for the release of this exciting book, which tells the story of the genesis, growth and evolution of bitcoins and blockchain technology that powers cryptocurrencies.
The author, Rachna Singh, a senior Indian Revenue Service officer, has simplified the varied aspects of bitcoins for the untutored reader. She takes the lay reader on what she describes as a “Homeric journey to unravel the nuanced complexity” of a bitcoin. Despite writing about a subject that is predominantly technical and financial, she keeps the literary elan, characteristic of her writing, intact.
The bitcoin saga begins with the sub-prime crisis of 2008, which witnessed a loss of trust in financial institutions such as banks, and then narrates the rather compelling tale of the Cypherpunks, a group of privacy proponents, who did away with third-party institutions and created a decentralised system of electronic payment.
Then comes the rather absorbing story-within-a-story, “The Phantom of the Bitcoin Opera” — the tale of the founding father of bitcoins, a mysterious man called Satoshi Nakamoto whose identity even today is not known. The saga then segues into the story of Ross Ulbricht, the protagonist of the “The Silk Road,” who set up an anonymous market that allowed the sale of drugs, porn, guns and ammunition but was finally caught red-handed by the FBI and is now serving a double life sentence.
There are lots of such interesting little tales and sub-narratives hidden within the covers of the book — the Mt Gox heist, the story of the birth of dogecoin, launched as a spoof on the cryptocoin, the genesis of cryptokitties, a blockchain-based game where the cost of the kitties went up to as much as $1,70,000, et al. The use of stick figures and illustrations to explain the sub-prime crisis or technical aspects like Byzantine fault Tolerance adds an interesting facet to the book.
The bitcoin discourse also includes a detailed discussion on the global regulatory practices and taxation policies for cryptocurrencies. This becomes significant in the light of the fact that G20 countries declared their commitment to applying crypto standards set by the Financial Action Task force at the Osaka summit.
Most readers would find this section too academic as it deals with dry issues of taxation and regulation. The author admits that this was her “Scylla & Charybdis” section and that it was the most difficult section to pen. However, without clear-cut regulations and taxation policies, this new immutable currency will become a tool for money laundering and other illegal activities.
A somewhat unusual but welcome facet of the book is the section called “The Chat Room”. It includes illuminating quotes and comments on various aspects of bitcoins and blockchain technology by a cross-section of experts. The bitcoin tale, with all its interesting twists and turns, has been narrated in a simple and conversational tone and for the most part reads like a bestseller rather than an academic treatise.
Most of us regard bitcoins as a mode of payment or investment. But Ms Singh points the reader to new vistas of blockchain applications. The book details the salutary impact of blockchain technology in sectors like health, agriculture, elections, gaming, and record-keeping.
The potential and promise to improve and simplify the voting processes marred by allegations of ballot fixing, the ability to ensure that identity theft by hacking the Aadhaar portal is a thing of the past, the capacity to disburse money and tokens to Syrian refugees, a technology that enables front-row seats to an IPL match or a Coldplay concert — these are some of the inherent benefits that the blockchain offers.
The author, however, honestly admits that despite the great potential, implementation of this technology will be an uphill task. Scalability, internal strife among the coder community, government policies aimed at controlling a disruptive technology and, of course, ignorance are some of the factors that will be the death knell of a futuristic and promising technology.
The book leaves the reader to mull over the double-edged sword of blockchain technology: Whether it will be a benevolent Titan or a Frankenstein’s monster, only time can tell.
The Bitcoin Saga is a veritable Bible for cryptocurrency enthusiasts or newbie converts who want to understand all aspects of bitcoins. Those expecting a to-do manual on bitcoin trading would, however, be dismayed. The author offers no apology for this “deliberate oversight”.
The aim of the book, clearly, is to bring the subject of bitcoins with its technical, financial and social complexities to the table of the common reader. The book keeps its promise of doing just that.
THE BITCOIN SAGA: A MIXED MONTAGE
Rachna Singh
Bloomsbury, 228 pages; Rs 499
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%