Book Image

Blockchain Developer's Guide

By : Brenn Hill, Samanyu Chopra, Paul Valencourt, Narayan Prusty
Book Image

Blockchain Developer's Guide

By: Brenn Hill, Samanyu Chopra, Paul Valencourt, Narayan Prusty

Overview of this book

Blockchain applications provide a single-shared ledger to eliminate trust issues involving multiple stakeholders. It is the main technical innovation of Bitcoin, where it serves as the public ledger for Bitcoin transactions. Blockchain Developer's Guide takes you through the electrifying world of blockchain technology. It begins with the basic design of a blockchain and elaborates concepts, such as Initial Coin Offerings (ICOs), tokens, smart contracts, and other related terminologies. You will then explore the components of Ethereum, such as Ether tokens, transactions, and smart contracts that you need to build simple DApps. Blockchain Developer's Guide also explains why you must specifically use Solidity for Ethereum-based projects and lets you explore different blockchains with easy-to-follow examples. You will learn a wide range of concepts - beginning with cryptography in cryptocurrencies and including ether security, mining, and smart contracts. You will learn how to use web sockets and various API services for Ethereum. By the end of this Learning Path, you will be able to build efficient decentralized applications. This Learning Path includes content from the following Packt products: • Blockchain Quick Reference by Brenn Hill, Samanyu Chopra, Paul Valencourt • Building Blockchain Projects by Narayan Prusty
Table of Contents (37 chapters)
Title Page
About Packt

Internal currency in DApps

For a centralized application to sustain for a long time, the owner of the app needs to make a profit in order to keep it running. DApps don't have an owner, but still, like any other centralized app, the nodes of a DApp need hardware and network resources to keep it running. So the nodes of a DApp need something useful in return to keep the DApp running. That's where internal currency comes into play. Most DApps have a built-in internal currency, or we can say that most successful DApps have a built-in internal currency.

The consensus protocol is what decides how much currency a node receives. Depending on the consensus protocol, only certain kinds of nodes earn currency. We can also say that the nodes that contribute to keeping the DApp secure and running are the ones that earn currency. Nodes that only read data are not rewarded with anything. For example, in Bitcoin, only miners earn Bitcoins for successfully mining blocks.

The biggest question is since this...