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)

Bitcoin hard forks and altcoins

A hard fork in Bitcoin is an update to the protocol that will not entertain the older protocol, thus requiring everyone to upgrade. Hard fork upgrades often include major changes such as changing the blockchain structure, transaction, or consensus rules. The major difference between a soft fork and hard fork is that the latter is not backward compatible, meaning that the older system will not function in the updated protocol.

There will be two different versions of blockchain after the blockchain hard fork. The multiple versions of blockchain are a result of disagreement among the blockchain nodes to follow a single protocol. Blockchain hard forks often result in protocol upgrades. Bitcoin has had several hard forks, which has resulted in the creation of Bitcoin forked cryptocurrencies. Bitcoin Cash was the first successfully hard-forked cryptocurrency...