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)

Properties of blockchain

So far, we've discussed a few of the properties of blockchain while comparing DLTs with databases. But due to its decentralized nature, blockchain has a number of inherent properties that will greatly benefit some use cases while not adding value to others. In this section, we'll discuss these properties so that you are able to properly evaluate whether blockchain would be suitable in your own use case.

Immutability

Blockchain is a ledger that doesn't allow you to update or delete existing records. The data recorded on the blockchain is supposed to remain for eternity. This makes a blockchain an immutable data structure. Unlike with traditional record-keeping technologies, a record cannot...