Based on the definition of derivative:
(df)/dx = lim_(h->0) (f(x+h)-f(x))/h
For f(x) = (x+1)^(1/2) = sqrt(x+1) we have then:
d/dx ( sqrt(x+1) ) = lim_(h->0) ( sqrt(x+h+1)-sqrt(x+1))/h
Now multiply numerator and denominator by the quantity:
sqrt(x+h+1) + sqrt(x+1)
and use the algebraic identity:
(a-b)(a+b) = a^2-b^2:
d/dx ( sqrt(x+1) ) = lim_(h->0) (( sqrt(x+h+1)-sqrt(x+1))/h )((sqrt(x+h+1) + sqrt(x+1))/(sqrt(x+h+1) + sqrt(x+1)))
d/dx ( sqrt(x+1) ) = lim_(h->0) ( (x+h+1)-(x+1))/(h(sqrt(x+h+1) + sqrt(x+1))
d/dx ( sqrt(x+1) ) = lim_(h->0) cancel(h)/(cancel(h)(sqrt(x+h+1) + sqrt(x+1))
d/dx ( sqrt(x+1) ) = lim_(h->0) 1/(sqrt(x+h+1) + sqrt(x+1))
d/dx ( sqrt(x+1) ) = 1/(2sqrt(x+1))