Book Image

Learn Ethereum - Second Edition

By : Xun (Brian) Wu, Zhihong Zou, Dongying Song
Book Image

Learn Ethereum - Second Edition

By: Xun (Brian) Wu, Zhihong Zou, Dongying Song

Overview of this book

Ethereum is a blockchain-based, decentralized computing platform that allows you to run smart contracts. With this book, you’ll discover the latest Ethereum tools, frameworks, wallets, and layer 2, along with setting up and running decentralized applications for the complete, end-to-end development experience. Learn Ethereum, 2nd Edition is a comprehensive overview of the Ethereum ecosystem, exploring its concepts, mechanisms, and decentralized application development process. You’ll delve into Ethereum's internals, technologies, and tools, including Ethereum 2.0 and the Ethereum Virtual Machine (EVM), gas, and its account systems. You’ll also explore Ethereum's transition to proof of stake, L1/L2 scaling solutions, DeFi protocols, and the current marketplace. Additionally, you’ll learn about EVM-compatible blockchains, connectivity techniques, and advanced topics such as sharding, off-chain scaling, DAOs, Metaverse, and NFTs. By the end of this book, you’ll be well-equipped to write smart contracts and develop, test, and deploy DApps using various tools, wallets, and frameworks.
Table of Contents (24 chapters)
1
Part 1: Blockchain and Ethereum Basics
7
Part 2:Ethereum Development Fundamentals
11
Part 3: Ethereum Development Fundamentals
15
Part 4:Production and Deployment
20
Part 5:Conclusion

Understanding DeFi protocols

In this section, we will help you understand popular DeFi constructs and concepts and show you how different DeFi applications work, including decentralized lending and borrowing, exchange, derivative, and insurance. We will also dive deep into leading DeFi protocols in those categories.

Basic DeFi constructs

Let’s start by looking at the key DeFi building blocks and basic constructs:

  • Liquidity pool: Liquidity and liquidity pools play a critical role in the DeFi ecosystem. Liquidity, in the form of crypto assets, is the lifeline of any liquidity-based DeFi application. It is used to bootstrap, govern, and secure the DeFi protocol. It is used to facilitate the trading of crypto assets through the protocol rules. A liquidity pool is a mechanism where liquidity is locked into the smart contract; the process of locking liquidity is also called staking. The liquidity provider may get the governance token – that is, LP tokens –...