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)

Blockchain networks

The Bitcoin blockchain network is formed of decentralized nodes, and each node communicates with the others using the P2P networking protocol. Each node running the Bitcoin client contributes to the growth of the blockchain and the network. Surprisingly, the Bitcoin network consists of nodes that deal with multiple public blockchains. The main blockchain, which is used to hold transactions with actual value, is called mainnet. This is the longest blockchain, with the highest number of participating nodes. Besides mainnet, Bitcoin has several other blockchains for testing purposes. Currently, Bitcoin has the testnet, segnet, and regtest blockchain networks.

Testnet

Testnet is the Bitcoin blockchain version...