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Mastering Blockchain, Fourth Edition
Mastering Blockchain, Fourth Edition

Mastering Blockchain, Fourth Edition: Inner workings of blockchain, from cryptography and decentralized identities, to DeFi, NFTs and Web3 , Fourth Edition

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Mastering Blockchain, Fourth Edition

Consensus

Consensus is a process of achieving agreement between distrusting nodes on the final state of data. To achieve consensus, different algorithms are used. It is easy to reach an agreement in a centralized network (in client-server systems, for example), but when multiple nodes are participating in a distributed system and they need to agree on a single value, it becomes quite a challenge to achieve consensus. This process of attaining agreement on a common state or value among multiple nodes is known as distributed consensus. If faults are considered then we call such a mechanism Fault tolerant distributed consensus where despite the failure of some nodes, agreement is reached between nodes.

This topic is discussed in Chapter 5, Consensus algorithms in detail.

Remember, earlier in this chapter we said that distributed systems are difficult to build. A distributed system cannot have consistency, availability, and partition tolerance at the same time. This is a proven result; however...

CAP theorem and blockchain

The CAP theorem, also known as Brewer's theorem, was introduced by Eric Brewer in 1998 as a conjecture. In 2002, it was proven as a theorem by Seth Gilbert and Nancy Lynch. The theorem states that any distributed system cannot have consistency, availability, and partition tolerance simultaneously:

  • Consistency is a property that ensures that all nodes in a distributed system have a single, current, and identical copy of the data. Consistency is achieved using consensus algorithms to ensure that all nodes have the same copy of the data. This is also called state machine replication. The blockchain is a means for achieving state machine replication.
  • Availability means that the nodes in the system are up, accessible for use, and are accepting incoming requests and responding with data without any failures as and when required. In other words, data is available at each node and the nodes are responding to requests.
  • Partition tolerance ensures that if a group...

Summary

This chapter introduced blockchain technology at an advanced level. First, we discussed blockchain's progress toward becoming a mature technology, followed by some basic concepts about distributed systems, and then the history of blockchain was reviewed. Concepts such as e-cash were also discussed.

Various definitions of blockchain from different points of view were presented. Some applications of blockchain technology were also introduced. Next, different types of blockchain were explored. Finally, the benefits and limitations of this new technology were also examined. Some topics such as blockchain scalability and adoptability issues were intentionally introduced only lightly, as they will be discussed in depth in later chapters.

In the next chapter, we will introduce the concept of decentralization, which is central to the idea behind blockchains and their vast number of applications.

Decentralization in practice

The following concepts are worth citing in the context of decentralization. The terminology introduced here is often used in the literature concerning decentralization and its applications.

Smart contracts

A smart contract is a software program that usually runs on a blockchain. Smart contracts do not necessarily need a blockchain to run; however, due to the security benefits that blockchain technology provides, blockchain has become a standard decentralized execution platform for smart contracts.

A smart contract usually contains some business logic and a limited amount of data. The business logic is executed if specific criteria are met. Actors or participants in the blockchain use these smart contracts, or they run autonomously on behalf of the network participants.

More information on smart contracts will be provided in Chapter 8, Smart Contracts.

Autonomous agents

An Autonomous Agent (AA) is a software entity (artificially...

Innovative trends

With the growth of blockchain, several ideas have emerged that make use of the decentralization aspect of blockchain to provide more user-centric and fully decentralized services. Some of the key ideas in this space are the decentralized web, decentralized identity, and decentralized finance.

Decentralized web

Decentralized web is a term that’s used to describe a vision of the web where no central authority or set of authorities will be in control. The original intention of the Internet was indeed decentralized, and the development of open protocols such HTTP, SMTP, and DNS meant that any individual could use these protocols freely, and immediately become part of the Internet. This is still true; however, with the emergence of a layer above these protocols called the Web layer a more service-oriented infrastructure was introduced, which inevitably led to large profit-seeking companies taking over. This is evident from the rise of Facebook, Google,...

Summary

This chapter introduced the concept of decentralization, which is the core service offered by blockchain technology. Although the concept of decentralization is not new, it has gained renewed significance in the world of blockchain. As such, various applications based on a decentralized architecture have recently been introduced.

The chapter began with an introduction to the concept of decentralization. Next, decentralization from the blockchain perspective was discussed. Moreover, ideas relating to the different layers of decentralization in the blockchain ecosystem were introduced. Several new concepts and terms have emerged with the advent of blockchain technology and decentralization from the blockchain perspective, including DAOs, DACs, and DApps. Finally, some innovative trends relating to DApps were presented. We also touched upon the concepts of algocracy and blockcracy.

In the next chapter, fundamental concepts necessary to understand blockchain technology...

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Key benefits

  • Study new blockchains, including Polkadot, Solana, and Avalanche blockchain, along with recent developments in security, scalability, and privacy
  • Explore key cryptocurrencies and distributed ledgers such as Ethereum, Bitcoin, Hyperledger Fabric, Corda, and Quorum
  • Get to grips with Solidity, Web3, NFTs, DeFi, and smart contract development

Description

Blockchain is the backbone of cryptocurrencies, it has had a massive impact in many sectors, including finance, supply chains, healthcare, government, and media. It’s also being used for cutting edge technologies such as AI and IoT. This new edition is thoroughly revised to offer a practical approach to using Ethereum, Hyperledger, Fabric, and Corda with step-by-step tutorials and real-world use-cases to help you understand everything you need to know about blockchain development and implementation. With new chapters on Decentralized Finance and solving privacy, identity, and security issues, as well as bonus online content exploring alternative blockchains, this is an unmissable read for everyone who wants to gain a deep understanding of blockchain. The book doesn’t shy away from advanced topics and practical expertise, such as decentralized application (DApp) development using smart contracts and oracles, and emerging trends in the blockchain space. Throughout the book, you’ll explore blockchain solutions beyond cryptocurrencies, such as the IoT with blockchain, enterprise blockchains, and tokenization, and gain insight into the future scope of this fascinating and disruptive technology. By the end of this blockchain book, you will have gained a thorough comprehension of the various facets of blockchain and understand the potential of this technology in diverse real-world scenarios.

Who is this book for?

This book is for blockchain enthusiasts from all backgrounds, including software developers and programmers who want to learn how to build DApps, business executives and managers who want to explore the benefits and challenges of leveraging blockchain in different industries, and system architects and solution designers who want insight into blockchain architecture, consensus mechanisms, and security considerations. It is also a useful reference guide for blockchain development professionals who want to build fast and highly secure transactional applications. Basic knowledge in any programming language will come in handy.

What you will learn

  • Grasp the mechanisms behind Bitcoin, Ethereum, and other cryptocurrencies
  • Understand cryptography and its usage in blockchain
  • Become familiar with the theoretical foundations of smart contracts and blockchain consensus
  • Develop DApps using Solidity, Remix, Truffle, and Ganache
  • Solve issues relating to privacy, identity, scalability, and security in enterprise blockchains
  • Dive into the architecture of Ethereum 2.0
  • Delve into emerging trends like DeFi, NFTs, and Metaverse
  • Explore various applications, research topics, and future directions of blockchain
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Publication date : Mar 31, 2023
Length: 818 pages
Edition : 4th
Language : English
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Table of Contents

23 Chapters
Blockchain 101 Chevron down icon Chevron up icon
Decentralization Chevron down icon Chevron up icon
Symmetric Cryptography Chevron down icon Chevron up icon
Asymmetric Cryptography Chevron down icon Chevron up icon
Consensus Algorithms Chevron down icon Chevron up icon
Bitcoin Architecture Chevron down icon Chevron up icon
Bitcoin in Practice Chevron down icon Chevron up icon
Smart Contracts Chevron down icon Chevron up icon
Ethereum Architecture Chevron down icon Chevron up icon
Ethereum in Practice Chevron down icon Chevron up icon
Tools, Languages, and Frameworks for Ethereum Developers Chevron down icon Chevron up icon
Web3 Development Using Ethereum Chevron down icon Chevron up icon
The Merge and Beyond Chevron down icon Chevron up icon
Hyperledger Chevron down icon Chevron up icon
Tokenization Chevron down icon Chevron up icon
Enterprise Blockchain Chevron down icon Chevron up icon
Scalability Chevron down icon Chevron up icon
Blockchain Privacy Chevron down icon Chevron up icon
Blockchain Security Chevron down icon Chevron up icon
Decentralized Identity Chevron down icon Chevron up icon
Decentralized Finance Chevron down icon Chevron up icon
Blockchain Applications and What’s Next Chevron down icon Chevron up icon
Index Chevron down icon Chevron up icon

Customer reviews

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Vitor Oct 23, 2023
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Gianfranco Nov 21, 2023
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Very practical book to understand the basic and intermediate blockchain!
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Chung Lee Jan 21, 2024
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Very affordable price and good quality for obtaining this cutting-edge technology book.
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hawkinflight May 30, 2023
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The book starts off really well with Chapter 1, Blockchain 101, explaining what a blockchain is. It provides the history and connection with Bitcoin, outlines the generic elements, and describes the benefits, features, and limitations, as well as the different types of blockchains. Subsequent chapters explain in more detail aspects mentioned in first chapter.The book presents information about Bitcoin and Ethereum, starting in the first chapter. This is an interesting point, "Bitcoin’s scripting language is not Turing complete, whereas Ethereum’s Solidity language is." This is further explained, "To facilitate arbitrary program development on a blockchain, a Turing-complete programming language is needed, and it is now a very desirable feature tohave for blockchains."Chapter 12 provides practical examples and a final project of "Web3 Development Using Ethereum", allowing hands-on practice. This example is explained further "work with various tools such as Ganache, the Geth client console, and the Remix IDE to develop, test, and deploy smart contracts. Use the Truffle framework to test and migrate smart contracts. Explore how IPFS can be used to host the webpages for our DApp, serving as the decentralized storage layer of the blockchain ecosystem".I am looking forward to spending time with Chapter 14, Hyperledger, to learn more about the blockchain projects introduced by the members of the Linux Foundation's Hyperledger project. The first paragraph clearly explains that the Hyperledger project "is not a blockchain but a project that was initiated by the Linux Foundation in December 2015 to advance blockchain technology", that it "can be used to develop and implement blockchain applications and systems", and can be used to "support global business transactions". The project also focuses on " improving the reliability and performance of blockchain systems".Chapter 22, Blockchain Applications and What's Next, provides excellent content for learning about the various applications of blockchain technology in addition to cryptocurrency, such as Internet of Things, government, media, and finance, and research efforts related to the blockchain technology. This chapter includes a neat example with code for connecting an IoT device to the Ethereum blockchain using a Raspberry Pi device. A door is unlocked (represented by an LED device) when an appropriate amount of funds are sent.Finally, Chapter 23 provides bonus content online about Alternative Blockchains; for example, new blockchains such as Solana, and protocols such as Ripple and Kadena, and concepts such as sidechains and drivechains are discussed. It's not surprising, but it's good to read and know that "blockchain is a very fast-moving field, and there are many other blockchain projects".This book has 783 pages including an index. It's not a "blockchain for dummies" or a "blockchain in 100 pages" kind of book. It is clearly written and easy to read, so it is accessible to the beginner to blockchain. The Table of Contents and the Index can help you move around to read the parts as you're ready.It has definitely helped me to better understand Blockchain.
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Amazon Customer Jul 12, 2023
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This book provides a deep dive into the fascinating world of blockchain technology. As someone with a growing interest in the subject, I can confidently say that this book offers an outstanding learning experience.topics such as decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 are seamlessly integrated into the narrative, enriching the reader's knowledge beyond the core blockchain principles. This comprehensive coverage is a testament to the author's commitment to providing a holistic educational experience. Kudos
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