Bitcoin and blockchain: history and current applications

Cover......Page 1
Half Title......Page 2
Series Page......Page 3
Title Page......Page 4
Copyright Page......Page 5
Dedication......Page 6
Table of Contents......Page 8
Preface......Page 10
Editors......Page 14
Contributors......Page 18
Chapter 1 Bitcoin: A P2P Digital Currency......Page 20
 1.2 Digital Currencies before Bitcoin......Page 21
  1.2.5 Hashcash......Page 22
 1.3 Bitcoin in a Nutshell......Page 23
  1.4.2 Getting the Right Input......Page 24
 1.5 Timestamp Server......Page 25
 1.6 Proof of Work......Page 26
  1.7.1 Bitcoin Core Implementation......Page 28
  1.7.2 Wallet Setup and Encryption......Page 30
  1.8.1 Digital Signature......Page 31
  1.8.3 Wallets......Page 32
  1.8.4 Addresses......Page 33
   1.9.1.2 Mining Pool Attacks......Page 34
   1.9.1.4 Bitcoin Network Attacks......Page 36
   1.9.2.2 Eclipse Attack......Page 37
 1.10 Privacy and Anonymity in Bitcoin......Page 38
 References......Page 39
 2.1 Introduction......Page 42
 2.3 Summary of Bitcoin System......Page 43
 2.4 Bitcoin Nodes......Page 44
 2.5 Experimenting with the Bitcoin Network......Page 45
 2.6 Joining and Conserving the Network......Page 46
 2.7 Transaction and Block Propagation......Page 47
 2.8 Deanonymization......Page 49
 2.10 Bitcoin-Inspired Network Applications......Page 50
 2.11 Bitcoin Network Attacks......Page 51
 2.12 Securing Bitcoin Networks......Page 52
 References......Page 53
Chapter 3 Blockchain Technology: The Trust-Free Systems......Page 56
 3.2 History......Page 57
 3.3 Overview of Blockchain Technology......Page 58
  3.3.1 Structure of a Block......Page 59
  3.3.2 The Genesis Block......Page 61
  3.4.2 Private Blockchain......Page 62
  3.5.1 Decentralized......Page 63
 3.6 Transactions and Digital Signature......Page 64
 3.7 Merkle Tree......Page 65
 3.9 How Blockchain Works......Page 66
 3.10 Blockchain Open-Source Implementation......Page 67
  3.10.3 Hyperledger......Page 68
  3.11.2 Prevents Disruptions......Page 69
  3.13.4 Theft Resistance......Page 70
 Conclusion......Page 71
 References......Page 72
 4.1 Background......Page 74
  4.2.1 Reaching Consensus – The Issue of Byzantine Generals......Page 76
  4.2.2 Proof of Work – The Question of Monopoly......Page 77
  4.2.3 Proof of Stake – Resolving Incentive Problem......Page 78
  4.2.4 Proof of Activity – Promote Active Involvement......Page 79
  4.2.5 Proof of Elapsed Time......Page 80
  4.2.7 Federated BFT......Page 81
 Conclusion......Page 82
 References......Page 83
Chapter 5 Blockchain: Introduction to the Technology behind Shared I nfor mation......Page 84
  5.1.1 Blockchain: Types of Blockchain......Page 85
 5.2 Issues with the Conventional System: Trust at Stake......Page 86
  5.3.1 Empowering Participants by Decentralizing the Architecture......Page 87
  5.3.2 Authentication of Blocks through Consensus Algorithm......Page 88
 5.4 Confidentiality Provisions: Encryption and Decryption......Page 89
  5.6.1 Hashing......Page 90
  5.6.2 Consolidating Multiple Hash Signatures......Page 91
  5.7.1 Impact on Existing Industry: A New Wave of Technological Revolution......Page 92
  5.7.2 Impact on Existing Industry: Doomed to Fail......Page 93
  5.8.3 Voting and Governance......Page 94
  5.8.6 Blood Group and/or Organ Donor List......Page 95
 References......Page 96
Chapter 6 Growth of Financial Transaction toward Bitcoin and Blockchain Technology......Page 98
 6.1 Overview of the Blockchain......Page 99
 6.2 Astonishing Worldwide Financial Crisis of 2007–2008......Page 100
  6.2.4 Influence on Exports from India......Page 101
  6.2.8 Foreign Institutional Investors and Foreign Direct Investment......Page 102
 6.3 Causes of Crisis......Page 103
  6.3.4 The First Bitcoin Value (2010)......Page 104
  6.3.9 A Hype in Bitcoin Touches 10,000 USD (2017)......Page 105
 6.5 Preliminaries of Bitcoin Mining......Page 106
 6.6 Aspects of Bitcoin and Blockchain......Page 107
  6.7.2 FedCoin: An Alternate Central Banks Mull Future of Cryptocurrency......Page 108
  6.8.1 Dark Web Power......Page 109
  6.8.5 Emergence of New Markets......Page 110
 6.9 Cybersecurity Aspects of Blockchain Technology......Page 111
 Conclusion......Page 114
 References......Page 115
Chapter 7 A Brief Overview of Blockchain Algorithm and Its Impact upon Cloud-Connected Environment......Page 118
 7.2 Overview of Blockchain Algorithm......Page 119
 7.3 Types of Algorithms in Blockchain......Page 121
   7.3.1.2 Consensus Algorithm Versus Protocol......Page 122
   7.3.2.2 Proof of Stake (PoS)......Page 123
 7.4 Mining Algorithms......Page 124
 7.5 Traceability Chain Algorithms......Page 125
 7.6 Byzantine Fault Tolerance (BFT)......Page 126
  7.7.2 State of the Art of Blockchain......Page 127
  7.8.1 Blockchain in Cloud Storage......Page 128
  7.8.2 The Risks of Cloud Computing Are Increasing......Page 129
 Conclusion and Future Scope......Page 130
 References......Page 131
Chapter 8 Solidity Essentials......Page 134
 8.2 Environment Setup......Page 135
 8.3 Getting Started......Page 136
   8.4.2.1 State Variables......Page 137
   8.4.2.3 Global Variables......Page 138
   8.4.3.2 Comparison Operators......Page 139
 8.5 Control Structures......Page 140
  8.6.1 Array......Page 141
  8.6.2 Mapping......Page 142
   8.6.2.1 Mapping Gotchas......Page 143
   8.6.4 Enum......Page 145
   8.6.5 Strings......Page 146
  8.7.1 Function Definition......Page 147
  8.7.4 Return Statement......Page 148
  8.7.5 Function Modifiers......Page 149
  8.7.8 Function Overloading......Page 150
 8.8 Contracts......Page 151
  8.8.1 Constructor......Page 152
 Conclusion......Page 153
 References......Page 154
Chapter 9 Installing Frameworks, Deploying, and Testing Smart Contracts in Ethereum Platform......Page 156
  9.2.1 Transaction Consensus......Page 157
  9.3.1 Smart Contract Structure......Page 158
 9.4 Deployment of the Contract in Ethereum Rinkeby Test Network......Page 159
 9.5 Web3 Library......Page 161
  9.5.1 Ganache Module......Page 162
  9.5.2 Fetching Accounts from Ganache......Page 163
  9.5.3 Asynchronous Method for Fetching Accounts......Page 164
 9.6 Metamask extension......Page 165
 9.6.1 Infura......Page 166
 9.7 Testing with Mocha Framework......Page 168
 9.8 Design of a Smart Contract......Page 170
  9.8.2 Entering the Lottery Contract......Page 171
  9.8.3 Validation with “require” Statement......Page 172
  9.9.1 Methodology Used for Pseudo Random Number Generator......Page 173
  9.9.3 Sending Ether from Contract......Page 174
  9.9.4 Resetting Contract State......Page 175
  9.11.1 package.json File......Page 176
  9.11.2 Raffle.sol File......Page 177
  9.11.3 Raffle.test.js File......Page 178
  9.11.5 deploy.js File......Page 179
 References......Page 180
  10.1.1 Today and Tomorrow......Page 182
  10.1.4 Challenges in Healthcare......Page 183
  10.1.5 Blockchain......Page 184
 10.2 Related Works......Page 185
  10.3.1 E-Health Record System......Page 187
  10.3.3 Clinical Research......Page 190
  10.3.5 Neuroscience......Page 191
  10.4.1 Privacy and Security of the Data......Page 193
  10.4.2 Issues in Interoperability......Page 194
  10.4.5 Standardization......Page 195
 Conclusion and Future Directions......Page 196
 References......Page 197
 11.1 Introduction......Page 202
 11.2 Blockchain Working......Page 203
  11.3.1 Characteristics of Blockchain......Page 207
 11.4 History and Development of Blockchain......Page 208
  11.4.1 Applications of Blockchain......Page 209
 References......Page 210
Chapter 12 Building Permissioned Blockchain Networks Using Hyperledger Fabric......Page 212
  12.1.1 Permissioned Blockchain......Page 213
 12.2 Permissioned Blockchain Frameworks......Page 214
  12.2.3 Corda......Page 215
  12.3.1 Fabric Overview......Page 216
   12.3.2.1 Organization......Page 217
   12.3.2.5 Channels......Page 218
   12.3.2.6 Peers......Page 219
   12.3.2.8 World State and Databases......Page 220
   12.3.2.10 Ordering Service......Page 221
  12.3.3 Transaction Flow......Page 222
  12.4.1 Demo of the Hyperledger Fabric Network......Page 225
   12.4.2.1 Docker......Page 227
  12.4.3 Docker-Compose Services Configuration......Page 228
   12.4.3.1 Orderer......Page 230
  12.4.4 Crypto-config.yaml configuration......Page 232
   12.4.4.1 Configtx.yaml Configuration......Page 234
   12.4.4.4 Channel Defaults......Page 235
   12.4.4.6 Orderer Defaults......Page 236
  12.4.5 Commands......Page 237
  12.4.6 Chaincode......Page 241
   12.4.6.1 Stub, Getstate, Putstate, getQueryResult,getHistoryForKey......Page 243
   12.4.7.1 Fabric SDK......Page 245
   12.4.7.2 User Interaction API using the Fabric SDK (NodeJS)......Page 246
  12.4.8 Hyperledger Explorer......Page 253
 References......Page 254
Chapter 13 Fraud-Resistant Crowdfunding System Using Ethereum Blockchain......Page 256
 13.2 Kickstarter......Page 257
 13.3 Guidelines in Kickstarter......Page 258
 13.4 Issues with Kickstarter......Page 260
 13.6 Working of Contract......Page 262
  13.6.1 Methods in CampaignFactory Contract......Page 263
  13.6.3 Methods in Campaign......Page 266
  13.7.1 Architecture of Next.js......Page 270
  13.7.2 Routing and Front-End......Page 273
  13.8.1 package.json......Page 277
 13.9 Contract Code, Compiling, and Deploying......Page 278
  13.9.1 Campaign.sol......Page 279
  13.9.3 deploy.js......Page 281
  13.9.6 campaign.js......Page 282
  13.10.1 server.js......Page 283
  13.10.4 components/Layout.js......Page 284
  13.10.5 components/ContributeForm.js......Page 285
  13.10.6 components/RequestRow.js......Page 286
  13.10.7 pages/index.js......Page 287
  13.10.8 pages/campaigns/new.js......Page 288
  13.10.9 pages/campaigns/show.js......Page 289
  13.10.10 pages/campaigns/requests/index.js......Page 291
  13.10.11 pages/campaigns/requests/new.js......Page 292
 References......Page 294
Index......Page 296