By bridging monetary economics, computer science, and engineering, Phillip G. Bradford’s Chains That Bind Us is a groundbreaking book that answers questions about blockchain technology.
This is a comprehensive guide and hands-on learning experience that caters to readers ranging from tech enthusiasts to economists. With its practical approach to understanding blockchain, the book combines theoretical insights with hands-on experimentation using Raspberry Pi and its emphasis on experiential learning.
The book begins with foundational economic principles and explores the monetary theories that underpin blockchain technology. Then, it transitions into technical aspects. This includes cryptography, proof-of-work systems, and distributed consensus before culminating in practical implementations using physical and virtual Raspberry Pis. This hands-on approach allows readers to build and experiment with their blockchain networks, gaining a tangible understanding of complex systems.
For instance, Bradford explains message digest hash functions as critical to blockchains as deterministic functions that map large inputs to smaller outputs. He explains how these hashes are used to ensure data integrity and demonstrates their use in cryptographic systems with a hashing exercise using English letters that shows how close domain values can be uniformly scattered to avoid collisions.
A notable aspect of Chains That Bind Us is its emphasis on how blockchain technology intersects with economics. Bradford introduces the concept of seigniorage. This is traditionally defined as the difference between the cost of minting money and its purchasing power. In the context of blockchain, this concept is redefined as miners who earn seigniorage by solving computational puzzles and receiving cryptocurrency as a block reward. This decentralized seigniorage model supports the blockchain network and demonstrates how traditional monetary policies can be transformed through technology.
Bradford also explores the dual mandates of central banks, such as the U.S. Federal Reserve—maximizing employment and maintaining price stability—and contrasts them with blockchain’s decentralized model. He discusses how cryptocurrencies, which lack central control, offer a new way of achieving consensus and financial autonomy—for years to come.
The book’s practical exercises are its most valuable components. For example, readers can learn how to set up blockchain implementations using Raspberry Pi, a low-cost computing device. This approach makes blockchain education accessible, especially for hobbyists, students, and small labs. Bradford also introduces virtual Raspberry Pi setups for those who lack physical hardware. For example, by guiding readers through creating a basic blockchain using Python on a Raspberry Pi, this book explains how to implement cryptographic synchronization and probabilistic distributed consensus to have transparency and security in blockchain systems.
Bradford does not limit his discussion to technical details. Instead, he examines the broader implications of this technology, exploring how blockchain can create new markets, manage public ledgers, and facilitate international transactions. The book also touches on the challenges of scalability, volatility, and regulatory uncertainty, offering a balanced perspective on blockchain’s potential and limitations.
In conclusion, Phillip G. Bradford’s Chains That Bind Us is a good resource for anyone seeking to understand blockchain technology. By combining economic theory, cryptographic principles, and hands-on experimentation, this practical book provides a holistic view of this technology that can significantly influence how we deal and interact with money.
Get your copy on Amazon: https://www.amazon.com/dp/1917007884.
