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Mastering Blockchain

Mastering Blockchain

3.9 (30)
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Mastering Blockchain

Mastering Blockchain

3.9 (30)

Overview of this book

Blockchain is a distributed database that enables permanent, transparent, and secure storage of data. The blockchain technology is the backbone of cryptocurrency – in fact, it’s the shared public ledger upon which the entire Bitcoin network relies – and it’s gaining popularity with people who work in finance, government, and the arts. Blockhchain technology uses cryptography to keep data secure. This book gives a detailed description of this leading technology and its implementation in the real world. This book begins with the technical foundations of blockchain, teaching you the fundamentals of cryptography and how it keeps data secure. You will learn about the mechanisms behind cryptocurrencies and how to develop applications using Ethereum, a decentralized virtual machine. You will explore different blockchain solutions and get an exclusive preview into Hyperledger, an upcoming blockchain solution from IBM and the Linux Foundation. You will also be shown how to implement blockchain beyond currencies, scability with blockchain, and the future scope of this fascinating and powerful technology.
Table of Contents (24 chapters)
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23
Index

Ethereum blockchain


Ethereum, just like any other blockchain, can be visualized as a transaction-based state machine. This is mentioned in the Ethereum yellow paper written by Dr. Gavin Wood. The idea is that a genesis state is transformed into a final state by executing transactions incrementally. The final transformation is then accepted as the absolute undisputed version of the state. In the following diagram, the Ethereum state transition function is shown, where a transaction execution has resulted in a state transition.

Ethereum State transition function

In the preceding example, a transfer of 2 Ether from Address 4718bf7a to Address 741f7a2 is initiated. The initial state represents the state before the transaction execution and the final state is what the morphed state looks like. This will be discussed in more detail later in the chapter, but the aim of this example is to introduce the core idea of state transition in Ethereum.

Currency (ETH and ETC)

As an incentive to the miners...

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Mastering Blockchain
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