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)

Digital assets and identity

Digital assets are programmable assets that exist in digital format. These assets can have their own value (digital tokens) or could virtually represent existing physical assets (ownership of vehicle). Digital assets have been used since the beginning of the digital age, but until now they have always existed in an environment where management was centralized. The invention of blockchain has allowed digital assets to exist in a decentralized network, where no trusted intermediary is needed to register or trade an asset. Removing the intermediaries means users don't have to pay any additional charges while trading assets.

Digital identity is essential to digital assets when dealing with asset ownership. It represents the identity of any individual or organization in a digital format. Digital identity is based on the public key infrastructure (PKI...