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The Essential Guide to Web3
The Essential Guide to Web3

The Essential Guide to Web3: Develop, deploy, and manage distributed applications on the Ethereum network

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The Essential Guide to Web3

Fundamentals of Blockchain and Web3

This chapter will lay the foundation for the rest of this course. We will walk through some of the basic blockchain fundamentals required to understand the rest of the concepts and other chapters in this book. You will be introduced to blockchain and the basic anatomy of a blockchain, including nodes, blocks, consensus, and the elements of a blockchain transaction. You’ll be introduced to private, public, and hybrid blockchains and learn when to use private and public blockchains. By learning all of the required basics, you’ll be fully prepared to learn Web3.

In this chapter, we’re going to cover the following main topics:

  • Getting started with blockchain
  • Understanding the role of cryptography in blockchain
  • The basic components of a blockchain
  • Types of blockchain
  • The anatomy of a blockchain transaction
  • Getting started with Web3
  • The fundamentals of Web3

Getting started with blockchain

Let’s start with some fundamentals about blockchain and topics related to blockchain. If you are already a blockchain expert, this will be a good refresher on the basic concepts.

A blockchain is a type of database that is used to store transactions across a network of computers. It is called a blockchain because it consists of a series of blocks that are chained together. Each block contains a list of transactions that have occurred since the last block was added to the chain.

The key feature of a blockchain is that it is decentralized, meaning it is not controlled by a single entity, such as a bank or government. Instead, it is maintained by a network of computers that work together to validate and record transactions. This makes it difficult for anyone to alter the data on the blockchain, as they would need to convince a majority of the computers on the network to accept their changes.

Blockchains are often used to store and track financial...

Understanding the role of cryptography in blockchain

It is essential to understand the role of cryptography and how it helps blockchain technology with the privacy, trust, and security of transactions. Currently, there are more than 350 cryptographic libraries available globally, but only a few of them are used in blockchain technology.

In a blockchain, each transaction is secured with the use of a unique digital signature, which is generated using a private key. This signature is used to verify the authenticity of the transaction and ensure that it has not been tampered with.

Cryptography is a key element of the security of blockchain technology. It is used to secure the transactions on the blockchain and ensure that the information on it is kept private and cannot be altered.

Cryptography is also used to secure the blocks on a blockchain. To maintain the chain’s integrity and prevent any tampering, each block in a blockchain carries a cryptographic hash of the one...

The basic components in a blockchain

Understanding the anatomy of a blockchain is key and a basic requirement to access Web3. Here, we will go over the components and architecture of a blockchain.

We are aware that a blockchain is a distributed database made up of a number of blocks, connected by cryptography and safeguarded with it. Each block has a list of several transactions, and once data has been recorded on a block, it cannot be altered. Let us look at the most common components of a blockchain, which includes but is not limited to the following:

  • Blocks: A block is a collection of transaction data that is added to a blockchain. Each block contains a unique code called a “hash” that distinguishes it from other blocks in the chain.
  • Nodes: A node is a computer that participates in the operation of a blockchain network. Nodes can validate transactions and add them to a blockchain.
  • Miners: Miners are nodes that perform the work of verifying transactions...

Types of blockchain

There are several types of blockchains, including public, private, consortium, and hybrid. Let us look at some of the popular types and some examples. In this book, we will deep-dive into Ethereum, the first blockchain to support smart contracts, also called programmable money.

Public blockchains

Public blockchains are open to anyone and are decentralized, meaning they are not controlled by a single entity. Let us look at the most popular blockchains and how they operate.

The following table shows a basic comparison of three popular blockchains, with high-level information. We will take a deep dive into Ethereum in the next chapter, and it will be our focus in the Web3 topics throughout this book.

Figure 1.3 – A public blockchain comparison

Figure 1.3 – A public blockchain comparison

Bitcoin (https://bitcoin.org/en/), the first cryptocurrency and the first public blockchain, continues to be the most popular and market leader.

Bitcoin is a digital currency that...

The anatomy of a blockchain transaction

Transaction is the core of everything that happens in a blockchain. It is important to understand what a blockchain transaction consists of and how the various elements hold valuable information about the transaction. This is also a good primer to understand how blockchain transactions are different from transactions of a traditional system.

A blockchain transaction typically consists of the following elements:

  • Input: The input refers to the previous transaction output that is used as the input for the current transaction.
  • Output: The output is the result of the transaction, which can be either the payment to a recipient or the creation of new units of a cryptocurrency.
  • Transaction fee: A transaction fee is a small amount of cryptocurrency that is included in the transaction and paid to the miner, who processes the transaction and adds it to the blockchain.
  • Signature: A signature is a piece of data that is used to verify...

Getting started with Web3

We need to understand Web1 and Web2 to understand Web3. Let us understand what Web1 stands for first.

Web1, or the first generation of the World Wide Web (W3), refers to the earliest stage of the web, which was primarily used to access and share information. It was characterized by static HTML pages that could be linked using hyperlinks. Web1 focused on the dissemination of information, rather than on interactive and dynamic content. It was also limited in terms of the types of media that could be shared, as it was primarily text-based. It is important to know that Web1 is the foundation for many modern technologies and frameworks that we have in the world today.

So, Web2 is simply the next generation of technologies that evolved from Web1. Web2, or the second generation of the W3, refers to the stage of the web that focuses on the development of interactive and dynamic content, and on improving the user experience. Some key features of Web2 include...

The fundamentals of Web3

Web3 refers to the third generation of the World Wide Web, which emphasizes the use of decentralized technologies such as blockchain and peer-to-peer networking. Some of the key features of Web3 include the following:

  • Decentralization: In contrast to the centralized nature of Web2, Web3 technologies are decentralized and distributed, meaning that they are not controlled by any single entity.
  • Blockchain: A key technology underlying Web3 is the blockchain, which is a decentralized, distributed ledger that records transactions in a secure and transparent manner.
  • Smart contracts: Smart contracts are typically used in dApps that run on blockchain networks, such as Ethereum. They are used to automate the execution of complex financial transactions, enforce rules and regulations, and ensure that all parties involved in the contract are held accountable.
  • Interoperability: Web3 technologies are designed to be interoperable, meaning that they can...

Summary

Let’s summarize what we learned in this chapter. We started by understanding blockchain as a technology and framework. Then, we saw how cryptography plays a very important and integral part in the blockchain technology stack. We also covered some of the basic components of a blockchain. We looked at the anatomy of a blockchain transaction and how it plays an important role, followed by a few common types of blockchain and how they are used. This chapter also laid out the foundation to get started with Web3 and the core fundamentals required for Web3.

In the next chapter, we’ll start looking at the Ethereum blockchain to understand its core fundamentals and basics. We’ll look into concepts such as Ethereum Improvement Proposals (EIP) and Ethereum Request For Comment (ERCs) and the importance of key management. We’ll also learn how to use a wallet and deep-dive into the history of Ethereum.

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Key benefits

  • Get to grips with Web3, NFTs, DeFi, and smart contract development
  • Create fungible and non-fungible tokens, explore DAOs, and more
  • Build powerful apps using Ethereum to secure transactions and create smart contracts
  • Purchase of the print or Kindle book includes a free PDF eBook

Description

Web3, the new blockchain-based web, is often hailed as the future of the internet. Driven by technologies such as cryptocurrencies, NFTs, DAOs, decentralized finance, and more, Web3’s aim is to give individuals more control over the web communities they belong to. Whether you’re a beginner or an experienced developer, this book will help you master the intricacies of Web3 and its revolutionary technologies. Beginning with a concise introduction to blockchain and the Ethereum ecosystem, this book quickly immerses you in real-world blockchain applications. You’ll work on carefully crafted hands-on exercises that are designed for beginners as well as users with prior exposure. The chapters show you how to build and deploy smart contracts, while mastering security controls and discovering best practices for writing secure code. As you progress, you’ll explore tokenization and gain proficiency in minting both fungible and non-fungible tokens (NFTs) with the help of step-by-step instructions. The concluding chapters cover advanced topics, including oracles, Layer 2 (L2) networks, rollups, zero knowledge proofs, and decentralized autonomous organizations (DAOs). By the end of this Web3 book, you’ll be well-versed in the Web3 ecosystem and have the skills to build powerful and secure decentralized applications.

Who is this book for?

This book is for blockchain developers and blockchain enthusiasts who want to build powerful and secure decentralized applications. Familiarity with the basics of blockchain, along with knowledge of how they function, is necessary to grasp the topics discussed in this book.

What you will learn

  • Get an in-depth understanding of Ethereum's ecosystem, its status, and key EIPs and ERCs
  • Gain practical skills using non-custodial wallets such as MetaMask for blockchain transactions
  • Write, debug, and deploy smart contracts on test networks
  • Discover Web3 dev tools and set up a local environment
  • Get to grips with tokenomics and create ERC20, ERC721, and ERC1155 tokens
  • Explore decentralized storage with IPFS and integrate it into your Web3 projects
  • Expand your NFT strategy with APIs and SDKs to lead in the NFT space
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Publication date : Nov 30, 2023
Length: 366 pages
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Language : English
ISBN-13 : 9781801813471
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Table of Contents

24 Chapters
Part 1 – Introduction to Web3 Chevron down icon Chevron up icon
Chapter 1: Fundamentals of Blockchain and Web3 Chevron down icon Chevron up icon
Chapter 2: Getting Started With Ethereum Chevron down icon Chevron up icon
Chapter 3: Your First Ethereum Transaction Chevron down icon Chevron up icon
Part 2 – All about Smart Contracts Chevron down icon Chevron up icon
Chapter 4: Introduction to Smart Contracts Chevron down icon Chevron up icon
Chapter 5: Creating and Deploying Your First Smart Contract Chevron down icon Chevron up icon
Chapter 6: Smart Contract Security and Access Controls Chevron down icon Chevron up icon
Part 3 – Writing Your DApps for Web3 Chevron down icon Chevron up icon
Chapter 7: Developer Tools and Libraries for Web3 Development Chevron down icon Chevron up icon
Chapter 8: Writing and Testing Your First dApp on Web3 Chevron down icon Chevron up icon
Part 4 – Fungible Tokens Chevron down icon Chevron up icon
Chapter 9: Introduction to Tokenization Chevron down icon Chevron up icon
Chapter 10: Creating Your First Token Chevron down icon Chevron up icon
Part 5 – Non-Fungible Tokens Chevron down icon Chevron up icon
Chapter 11: Non-Fungible Token Standards Chevron down icon Chevron up icon
Chapter 12: Creating Your First Non-Fungible Token Chevron down icon Chevron up icon
Part 6 – Web3 Advanced Topics Chevron down icon Chevron up icon
Chapter 13: Understanding Oracles Chevron down icon Chevron up icon
Chapter 14: Zero-Knowledge Proofs and Zero-Knowledge EVMs Chevron down icon Chevron up icon
Chapter 15: L2 Networks and Rollups Chevron down icon Chevron up icon
Chapter 16: Decentralized Autonomous Organizations – Overview Chevron down icon Chevron up icon
Index Chevron down icon Chevron up icon
Other Books You May Enjoy Chevron down icon Chevron up icon

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NIt is not for beginners, it is completely on Linux, but it is not warned in the summary. Windows is not covered. The code parts are poorly formatted which makes it difficult to read.
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