Book Image

Blockchain Development for Finance Projects

By : Ishan Roy
Book Image

Blockchain Development for Finance Projects

By: Ishan Roy

Overview of this book

Blockchain technology will continue to play an integral role in the banking and finance sector in the coming years. It will enable enterprises to build transparent and secure business processes. Experts estimate annual savings of up to 20 billion dollars from this technology. This book will help you build financial apps using blockchain, guiding you through enhancing popular products and services in the banking and finance sector. The book starts by explaining the essential concepts of blockchain, and the impact of blockchain technology on the BFSI sector. Next, you'll delve into re-designing existing banking processes and building new financial apps using blockchain. To accomplish this, you'll work through eight blockchain projects. By demonstrating the entire process, the book helps you understand everything from setting up the environment and building frontend portals to system integration and testing apps. You will gain hands-on experience with the Ethereum, Hyperledger Fabric, and Stellar to develop private and public decentralized apps. Finally, you'll learn how to use ancillary platforms and frameworks such as IPFS, Truffle OpenZeppelin, and MetaMask. By the end of this blockchain book, you'll have an in-depth understanding of how to leverage distributed ledgers and smart contracts for financial use cases.
Table of Contents (17 chapters)
Section 1: Blockchain Payments and Remittances
Section 2: Blockchain Workflows Using Smart Contracts
Section 3: Securing Digital Documents and Files Using Blockchain
Section 4: Decentralized Trading Exchanges Using Blockchain
Appendix: Application Checklist

Generating dynamic merchant addresses using HD wallets

To generate dynamic addresses, we'll be creating a Hierarchical Deterministic (HD) wallet system for the merchant. HD wallets create a hierarchical tree of public and private keys from a single master node. This allows the user to generate and control a suite of public and private keys from the same seed phrase. The HD wallet owner can easily port their suite of keys to another hardware by porting the seed phrase used to derive the public-private key tree.

All addresses are generated from a master seed. Each time a new key pair is generated, the seed is extended at the end by a counter value. This means that, theoretically, you can generate 2512 key pairs from the same seed phrase. To back up their wallet, the user needs to back up just the master seed phrase. They can also move their key pairs easily between hardware...