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)

Cryptographic primitives

Cryptographic primitives are low-level cryptographic algorithms that are used to construct cryptographic protocols used by applications. These are the building blocks of designing a cryptographic system. A designer planning to implement a cryptographic protocol in a system doesn't have to worry about the low-level abstraction of the primitives and can concentrate entirely on building the application:

Figure 2.2: Taxonomy of cryptographic primitives

Figure 2.2 shows a detailed classification of cryptographic primitives. Blockchain technology makes use of most of these cryptographic primitives to achieve basic blockchain functionalities and secure data on the decentralized network: asymmetric cryptography for managing keys; digital signatures for transactions; and, most importantly, hashing, which is the backbone of the blockchain, are some of the...