Book Image

Mastering Blockchain

Book Image

Mastering Blockchain

Overview of this book

Blockchain is a distributed database that enables permanent, transparent, and secure storage of data. The blockchain technology is the backbone of cryptocurrency – in fact, it’s the shared public ledger upon which the entire Bitcoin network relies – and it’s gaining popularity with people who work in finance, government, and the arts. Blockhchain technology uses cryptography to keep data secure. This book gives a detailed description of this leading technology and its implementation in the real world. This book begins with the technical foundations of blockchain, teaching you the fundamentals of cryptography and how it keeps data secure. You will learn about the mechanisms behind cryptocurrencies and how to develop applications using Ethereum, a decentralized virtual machine. You will explore different blockchain solutions and get an exclusive preview into Hyperledger, an upcoming blockchain solution from IBM and the Linux Foundation. You will also be shown how to implement blockchain beyond currencies, scability with blockchain, and the future scope of this fascinating and powerful technology.
Table of Contents (20 chapters)
Mastering Blockchain
Credits
About the Author
About the Reviewer
www.PacktPub.com
Customer Feedback
Preface

Bitcoin


In 2008, a paper on bitcoin, Bitcoin: A Peer-to-Peer Electronic Cash System was written by Satoshi Nakamoto. The first key idea introduced in the paper was that purely peer-to-peer electronic cash that does need an intermediary bank to transfer payments between peers.

Bitcoin is built on decades of cryptographic research such as the research in Merkle trees, hash functions, public key cryptography, and digital signatures. Moreover, ideas such as BitGold, b-money, hashcash, and cryptographic time stamping provided the foundations for bitcoin invention. All these technologies are cleverly combined in bitcoin to create the world's first decentralized currency. The key issue that has been addressed in bitcoin is an elegant solution to the Byzantine Generals problem along with a practical solution of the double-spend problem.

The value of bitcoin has increased significantly since 2011, as shown in the following graph:

Bitcoin price and volume since 2012 (on logarithmic scale)

The regulation...