Book Image

Building Blockchain Projects

By : Narayan Prusty
Book Image

Building Blockchain Projects

By: Narayan Prusty

Overview of this book

Blockchain is a decentralized ledger that maintains a continuously growing list of data records that are secured from tampering and revision. Every user is allowed to connect to the network, send new transactions to it, verify transactions, and create new blocks, making it permission-less. This book will teach you what blockchain is, how it maintains data integrity, and how to create real-world blockchain projects using Ethereum. With interesting real-world projects, you will learn how to write smart contracts which run exactly as programmed without any chance of fraud, censorship, or third-party interference, and build end-to-e applications for blockchain. You will learn about concepts such as cryptography in cryptocurrencies, ether security, mining, smart contracts, solidity, and more. You will also learn about web sockets, various API services for Ethereum, and much more. The blockchain is the main technical innovation of bitcoin, where it serves as the public ledger for bitcoin transactions.
Table of Contents (16 chapters)
Title Page
Credits
About the Author
About the Reviewers
www.PacktPub.com
Customer Feedback
Preface

What is a hierarchical deterministic wallet?


A hierarchical deterministic wallet is a system of deriving addresses and keys from a single starting point called a seed. Deterministic indicates that for the same seed, the same addresses and keys will be generated, and hierarchical indicates that the addresses and keys will be generated in the same order. This makes it easier to back up and store multiple accounts, as you just have to store the seed, not the individual keys and addresses.

Note

Why will users need multiple accounts? You must be wondering why users will need multiple accounts. The reason is to hide their wealth. The balance of accounts is available publicly in the blockchain. So, if user A shares an address with user B to receive some ether, then user B can check how much ether is present in that address. Therefore, users usually distribute their wealth across various accounts.

There are various types of HD wallets, which differ in terms of seed format and the algorithm to generate...