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Preface
Who this book is for
What this book covers
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Blockchain 101
The growth of blockchain technology
Distributed systems
The history of blockchain and Bitcoin
Electronic cash
Blockchain
Blockchain defined
Peer-to-peer
Distributed ledger
Cryptographically-secure
Append-only
Updateable via consensus
Generic elements of a blockchain
How blockchain works
How blockchain accumulates blocks
Benefits and limitations of blockchain
Tiers of blockchain technology
Features of a blockchain
Types of blockchain
Distributed ledgers
Distributed Ledger Technology
Public blockchains
Private blockchains
Semiprivate blockchains
Sidechains
Permissioned ledger
Shared ledger
Fully private and proprietary blockchains
Tokenized blockchains
Tokenless blockchains
Consensus
Consensus mechanism
Types of consensus mechanisms
Consensus in blockchain
CAP theorem and blockchain
Summary
Decentralization
Decentralization using blockchain
Methods of decentralization
Disintermediation
Contest-driven decentralization
Routes to decentralization
How to decentralize
The decentralization framework example
Blockchain and full ecosystem decentralization
Storage
Communication
Computing power and decentralization
Smart contracts
Decentralized Organizations
Decentralized Autonomous Organizations
Decentralized Autonomous Corporations
Decentralized Autonomous Societies
Decentralized Applications (DApps)
Requirements of a Decentralized Application
Operations of a DApp
DApp examples
KYC-Chain
OpenBazaar
Lazooz
Platforms for decentralization
Ethereum
MaidSafe
Lisk
Summary
Understanding How Ethereum Works
Overview of Ethereum
Ethereum accounts
Transactions
Consensus
Timestamp
Nonce
Block time
Forking
Genesis block
Ether denominations
Ethereum virtual machine
Gas
Peer discovery
Whisper and Swarm
Geth
Installing geth
OS X
Ubuntu
Windows
JSON-RPC and JavaScript console
Sub-commands and options
Connecting to the mainnet network
Creating a private network
Creating accounts
Mining
Fast synchronization
Ethereum Wallet
Mist
Weaknesses
Sybil attack
51% attack
Serenity
Payment and state channels
Proof-of-stake and casper
Sharding
Summary
Smart Contracts
History
Definition
Ricardian contracts
Smart contract templates
Oracles
Smart Oracles
Deploying smart contracts on a blockchain
The DAO
Summary
Symmetric Cryptography
Working with the OpenSSL command line
Introduction
Mathematics
Set
Group
Field
A finite field
Order
An abelian group
Prime fields
Ring
A cyclic group
Modular arithmetic
Cryptography
Confidentiality
Integrity
Authentication
Entity authentication
Data origin authentication
Non-repudiation
Accountability
Cryptographic primitives
Symmetric cryptography
Stream ciphers
Block ciphers
Block encryption mode
Electronic Code Book
Cipher Block Chaining
Counter mode
Keystream generation mode
Message authentication mode
Cryptographic hash mode
Data Encryption Standard
Advanced Encryption Standard
How AES works
Summary
Public Key Cryptography
Asymmetric cryptography
Integer factorization
Discrete logarithm
Elliptic curves
Public and private keys
RSA
Encryption and decryption using RSA
Elliptic Curve Cryptography
Mathematics behind ECC
Point addition
Point doubling
Discrete logarithm problem in ECC
RSA using OpenSSL
RSA public and private key pair
Private key
Public key
Exploring the public key
Encryption and decryption
Encryption
Decryption
ECC using OpenSSL
ECC private and public key pair
Private key
Private key generation
Hash functions
Compression of arbitrary messages into fixed-length digest
Easy to compute
Preimage resistance
Second preimage resistance
Collision resistance
Message Digest
Secure Hash Algorithms
Design of Secure Hash Algorithms
Design of SHA-256
Design of SHA-3 (Keccak)
OpenSSL example of hash functions
Message Authentication Codes
MACs using block ciphers
Hash-based MACs
Merkle trees
Patricia trees
Distributed Hash Tables
Digital signatures
RSA digital signature algorithm
Sign then encrypt
Encrypt then sign
Elliptic Curve Digital Signature Algorithm
How to generate a digital signature using OpenSSL
ECDSA using OpenSSL
Homomorphic encryption
Signcryption
Zero-Knowledge Proofs
Blind signatures
Encoding schemes
Financial markets and trading
Trading
Exchanges
Orders and order properties
Order management and routing systems
Components of a trade
The underlying instrument
General attributes
Economics
Sales
Counterparty
Trade life cycle
Order anticipators
Market manipulation
Summary
Getting Started with web3.js
Introduction to web3.js
Importing web3.js
Connecting to nodes
The API structure
BigNumber.js
Unit conversion
Retrieving gas price, balance, and transaction details
Sending ether
Working with contracts
Retrieving and listening to contract events
Building a client for an ownership contract
The project structure
Building the backend
Building the frontend
Testing the client
Summary
Introducing Bitcoin
Bitcoin
Bitcoin definition
Bitcoin – a bird's-eye view
Sending a payment to someone
Digital keys and addresses
Private keys in Bitcoin
Public keys in Bitcoin
Addresses in Bitcoin
Base58Check encoding
Vanity addresses
Multisignature addresses
Transactions
The transaction life cycle
Transaction fee
Transaction pools
The transaction data structure
Metadata
Inputs
Outputs
Verification
The script language
Commonly used opcodes
Types of transactions
Coinbase transactions
Contracts
Transaction verification
Transaction malleability
Blockchain
The structure of a block
The structure of a block header
The genesis block
Mining
Tasks of the miners
Mining rewards
Proof of Work (PoW)
The mining algorithm
The hash rate
Mining systems
CPU
GPU
FPGA
ASICs
Mining pools
Summary
Building a Wallet Service
Difference between online and offline wallets
hooked-web3-provider and ethereumjs-tx libraries
What is a hierarchical deterministic wallet?
Introduction to key derivation functions
Introduction to LightWallet
HD derivation path
Building a wallet service
Prerequisites
Project structure
Building the backend
Building the frontend
Testing
Summary
Alternative Coins
Theoretical foundations
Alternatives to Proof of Work
Proof of Storage
Proof of Stake (PoS)
Various stake types
Proof of coinage
Proof of Deposit (PoD)
Proof of Burn
Proof of Activity (PoA)
Nonoutsourceable puzzles
Difficulty adjustment and retargeting algorithms
Kimoto Gravity Well
Dark Gravity Wave
DigiShield
MIDAS
Bitcoin limitations
Privacy and anonymity
Mixing protocols
Third-party mixing protocols
Inherent anonymity
Extended protocols on top of Bitcoin
Colored coins
Counterparty
Development of altcoins
Consensus algorithms
Hashing algorithms
Difficulty adjustment algorithms
Inter-block time
Block rewards
Reward halving rate
Block size and transaction size
Interest rate
Coinage
Total supply of coins
Namecoin
Trading Namecoins
Obtaining Namecoins
Generating Namecoin records
Litecoin
Primecoin
Trading Primecoin
Mining guide
Zcash
Trading Zcash
Mining guide
Address generation
GPU mining
Downloading and compiling nheqminer
Initial Coin Offerings (ICOs)
ERC20 tokens
Summary
Development Tools and Frameworks
Languages
Compilers
Solidity compiler (solc)
Installation on Linux
Installation on macOS
Integrated Development Environments (IDEs)
Remix
Tools and libraries
Node version 7
EthereumJS
Ganache
MetaMask
Truffle
Installation
Contract development and deployment
Writing
Testing
Solidity language
Types
Value types
Boolean
Integers
Address
Literals
Integer literals
String literals
Hexadecimal literals
Enums
Function types
Internal functions
External functions
Reference types
Arrays
Structs
Data location
Mappings
Global variables
Control structures
Events
Inheritance
Libraries
Functions
Layout of a Solidity source code file
Version pragma
Import
Comments
Summary
Building a Betting App
Introduction to Oraclize
How does it work?
Data sources
Proof of authenticity
Pricing
Getting started with the Oraclize API
Setting the proof type and storage location
Sending queries
Scheduling queries
Custom gas
Callback functions
Parsing helpers
Getting the query price
Encrypting queries
Decrypting the data source
Oraclize web IDE
Working with strings
Building the betting contract
Building a client for the betting contract
Projecting the structure
Building the backend
Building the frontend
Testing the client
Summary
Hyperledger
Projects under Hyperledger
Fabric
Sawtooth Lake
Iroha
Burrow
Indy
Explorer
Cello
Composer
Quilt
Hyperledger as a protocol
The reference architecture
Requirements and design goals of Hyperledger Fabric
The modular approach
Privacy and confidentiality
Scalability
Deterministic transactions
Identity
Auditability
Interoperability
Portability
Rich data queries
Fabric
Hyperledger Fabric
Membership services
Blockchain services
Consensus services
Distributed ledger
The peer to peer protocol
Ledger storage
Chaincode services
Components of the fabric
Peers
Orderer nodes
Clients
Channels
World state database
Transactions
Membership Service Provider (MSP)
Smart contracts
Crypto service provider
Applications on blockchain
Chaincode implementation
The application model
Consensus in Hyperledger Fabric
The transaction life cycle in Hyperledger Fabric
Sawtooth Lake
PoET
Transaction families
Consensus in Sawtooth
The development environment – Sawtooth Lake
Corda
Architecture
State objects
Transactions
Consensus
Flows
Components
Nodes
The permissioning service
Network map service
Notary service
Oracle service
Transactions
Vaults
CorDapp
The development environment – Corda
Summary
Alternative Blockchains
Blockchains
Kadena
Ripple
Transactions
Payments related
Order related
Account and security-related
Interledger
Application layer
Transport layer
Interledger layer
Ledger layer
Stellar
Rootstock
Sidechain
Drivechain
Quorum
Transaction manager
Crypto Enclave
QuorumChain
Network manager
Tezos
Storj
MaidSafe
BigchainDB
MultiChain
Tendermint
Tendermint Core
Tendermint Socket Protocol (TMSP)
Platforms and frameworks
Eris
Summary
Blockchain - Outside of Currencies
Internet of Things
Physical object layer
Device layer
Network layer
Management layer
Application layer
IoT blockchain experiment
First node setup
Raspberry Pi node setup
Installing Node.js
Circuit
Government
Border control
Voting
Citizen identification (ID cards)
Miscellaneous
Health
Finance
Insurance
Post-trade settlement
Financial crime prevention
Media
Summary
Scalability and Other Challenges
Scalability
Network plane
Consensus plane
Storage plane
View plane
Block size increase
Block interval reduction
Invertible Bloom Lookup Tables
Sharding
State channels
Private blockchain
Proof of Stake
Sidechains
Subchains
Tree chains (trees)
Block propagation
Bitcoin-NG
Plasma
Privacy
Indistinguishability Obfuscation
Homomorphic encryption
Zero-Knowledge Proofs
State channels
Secure multiparty computation
Usage of hardware to provide confidentiality
CoinJoin
Confidential transactions
MimbleWimble
Security
Smart contract security
Formal verification and analysis
Oyente tool
Summary
Building a Consortium Blockchain
What is a consortium blockchain?
What is Proof-of-Authority consensus?
Introduction to parity
Understanding how Aura works
Getting parity running
Installing rust
Linux
OS X
Windows
Downloading, installing and running parity
Creating a private network
Creating accounts
Creating a specification file
Launching nodes
Connecting nodes
Permissioning and privacy
Summary
Current Landscape and What's Next
Emerging trends
Application-specific blockchains (ASBCs)
Enterprise-grade blockchains
Private blockchains
Start-ups
Strong research interest
Standardization
Enhancements
Real-world implementations
Consortia
Answers to technical challenges
Convergence
Education of blockchain technology
Employment
Cryptoeconomics
Research in cryptography
New programming languages
Hardware research and development
Research in formal methods and security
Alternatives to blockchains
Interoperability efforts
Blockchain as a Service
Efforts to reduce electricity consumption
Other challenges
Regulation
Dark side
Blockchain research
Smart contracts
Centralization issues
Limitations in cryptographic functions
Consensus algorithms
Scalability
Code obfuscation
Notable projects
Zcash on Ethereum
CollCo
Cello
Qtum
Bitcoin-NG
Solidus
Hawk
Town-Crier
SETLCoin
TEEChan
Falcon
Bletchley
Casper
Miscellaneous tools
Solidity extension for Microsoft Visual Studio
MetaMask
Stratis
Embark
DAPPLE
Meteor
uPort
INFURA
Convergence with other industries
Future
Summary
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