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.

Preface

Who this book is for

What this book covers

To get the most out of this book

Free Chapter

Introduction

What blockchain is

What blockchain isn't

Blockchain definitions

How are blockchains different from databases?

History of blockchain

The motivations behind blockchain

Characteristics of blockchain

Background of DLT

The different types of blockchain

Overview of blocks

Influence of Moore's law on blockchain technology

A Bit of Cryptography

A Bit of Cryptography

Cryptography in blockchain

Classical cryptography

Cryptographic primitives

Symmetric key cryptography

Asymmetric key cryptography

Cryptographic hashing

Encoding schemes

Cryptography in Blockchain

Cryptography in Blockchain

Hashing in blockchain

Digital signatures in blockchain

Networking in Blockchain

Networking in Blockchain

Peer-to-peer (P2P) networking

Network discovery

Block synchronization

Building a simple blockchain in a P2P network

Cryptocurrency

Keys and addresses

Mining and consensus

Blockchain networks

Bitcoin hard forks and altcoins

A simple cryptocurrency application

Diving into Blockchain - Proof of Existence

Diving into Blockchain - Proof of Existence

MultiChain blockchain platform

Setting up a blockchain environment

Getting started with MultiChain

Proof of Existence architecture

Building the Proof of Existence application

Diving into Blockchain - Proof of Ownership

Diving into Blockchain - Proof of Ownership

Digital assets and identity

Proof of ownership

Smart contracts

Choosing the smart contract platform

Ethereum blockchain

Blockchain Projects

Blockchain Projects

Categorizing the blockchain projects

Financial blockchain projects

Non-financial blockchain projects

Links for the projects

Blockchain Optimizations and Enhancements

Blockchain Optimizations and Enhancements

Blockchain optimizations

Blockchain enhancements

Blockchain Security

Blockchain Security

Transaction security model

Decentralized security model

Attacks on the blockchain

Threats of quantum computing

When Shouldn't We Use Blockchain?

When Shouldn't We Use Blockchain?

Distributed databases versus distributed ledger technology (DLT)

What can we store on a blockchain?

Centralized versus decentralized application architecture

Properties of blockchain

Decision models for blockchain

Blockchain Use Cases

Blockchain Use Cases

Tracking provenance in the supply chain

Financial system

Non-profit autonomous organizations

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Summary

In this chapter, we've analyzed a selection of blockchain use cases in detail, and saw how they suited being implemented using blockchain technology. We also successfully picked use cases such as provenance tracking for a supply chain, a payment system, crowdfunding, and DAOs.

By reading this chapter, we've explored how to approach and analyze a use case before selecting the right blockchain technology for its implementation. This chapter also helped to blend the essence from all the topics we have explored throughout this book about blockchain technology and quickly decide on the implementation of its use cases.

Now that we have concluded the final chapter in our journey of exploring the foundations of blockchain technology, we should be motivated enough to be a part of the continuously evolving, and intriguing, world of blockchain technology.

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