Book Image

Blockchain for Business 2019

By : Peter Lipovyanov
Book Image

Blockchain for Business 2019

By: Peter Lipovyanov

Overview of this book

Blockchain for Business 2019 is a comprehensive guide that enables you to bring in various blockchain functionalities to extend your existing business models and make correct fully-informed decisions. You will learn how decentralized applications are transforming numerous business sectors that are expected to play a huge role in the future. You will see how large corporations are already implementing blockchain technology now. You will then learn about the various blockchain services, such as Bitcoin, Ethereum, Hyperledger, and others to understand their use cases in a variety of business domains. You will develop a solid fundamental understanding of blockchain architecture. Moving ahead, you will get to grips with the inner workings of blockchain, with detailed explanations of mining, decentralized consensus, cryptography, smart contracts, and many other important concepts. You will delve into a realistic view of the current state of blockchain technology, along with its issues, limitations, and potential solutions that can take it to the next level. By the end of this book, you will all be well versed in the latest innovations and developments in the emerging blockchain space.
Table of Contents (17 chapters)

The Proof-of-Work consensus algorithm

Now that you know the problem, let's see the solution, which is called the Byzantine fault tolerance algorithm. This algorithm involves game theory and math.

The first and foremost practical implementation of the Byzantine fault tolerance algorithm came with the Bitcoin's Proof-of-Work. In this case, the generals are nodes on the Bitcoin network, also known as miners. A network node is a connection point that can receive, create, store, and send data across a network. In other words, nodes are the connected dots that make up a network.

The important concept to grasp here is that these mining nodes start from the assumption that nobody else on the network can be trusted.

The Proof-of-Work algorithm guarantees network consensus even in the presence of Byzantine non-compliant nodes. Let's see how this mechanism works in Bitcoin...