Book Image

Foundations of Blockchain

By : Koshik Raj
Book Image

Foundations of Blockchain

By: Koshik Raj

Overview of this book

Blockchain technology is a combination of three popular concepts: cryptography, peer-to-peer networking, and game theory. This book is for anyone who wants to dive into blockchain from first principles and learn how decentralized applications and cryptocurrencies really work. This book begins with an overview of blockchain technology, including key definitions, its purposes and characteristics, so you can assess the full potential of blockchain. All essential aspects of cryptography are then presented, as the backbone of blockchain. For readers who want to study the underlying algorithms of blockchain, you’ll see Python implementations throughout. You’ll then learn how blockchain architecture can create decentralized applications. You’ll see how blockchain achieves decentralization through peer-to-peer networking, and how a simple blockchain can be built in a P2P network. You’ll learn how these elements can implement a cryptocurrency such as Bitcoin, and the wider applications of blockchain work through smart contracts. Blockchain optimization techniques, and blockchain security strategies are then presented. To complete this foundation, we consider blockchain applications in the financial and non-financial sectors, and also analyze the future of blockchain. A study of blockchain use cases includes supply chains, payment systems, crowdfunding, and DAOs, which rounds out your foundation in blockchain technology.
Table of Contents (14 chapters)

Tracking provenance in the supply chain

A supply chain is a system of entities that are involved in the process of creating a product and distributing it to consumers. This supply chain often involves suppliers, manufacturers, wholesalers, retailers, and consumers, where the product moves in the direction shown in Figure 12.1. The actors involved in the supply chain are often spread across several locations, which can make it challenging to keep track of the goods in the supply chain:

Figure 12.1: Process flow diagram of a typical supply chain

Every finished product moves along the supply chain due to the involvement of multiple entities during its production and distribution. But due to the complex nature of a supply chain, it's hard to keep track of provenance. Most existing provenance tracking is performed with the help of trusted third parties because none of the entities...