Kickstart Blockchain and Cryptography Fundamentals: Navigate the Intricacies of Modern Blockchain, Cryptography, Smart Contracts and Hyperledger for Driving Real-World Transformations

Cover Page
Title Page
Copyright Page
Dedication Page
About the Author
Acknowledgements
Preface
Errata
Table of Contents
1. Overview of Blockchain Technology
   Introduction
   Structure
   Introduction to Blockchain Technology
      Blockchain Architecture
      Working of a Blockchain
      Public Ledger
      Distributed Ledgers
      Business Ledger
      Problems with Conventional Business Ledgers
      Hyperledger
      Blockchain Decentralization
      Transparency
      Bitcoins
      Trustworthiness of Bitcoins
         COVID-19’s Impact on Bitcoin
   Smart Contracts
      Essential Elements of Smart Contracts
      Smart Contracts and Blockchain
         Smart Contract Platforms
   Building Blocks of Blockchain
      Main Building Blocks
   Transactions
      Key Steps of Blockchain Transaction
      Authentication
      Authorization
      Proof of Work (PoW)
      Miners
         The Energy Consumption in the Process of Mining
      The Problem with Proof of Work
         Proof of Stake
         The Process of Transaction
   Distributed Consensus
      Properties of Blockchain
      Blockchain Layers
      Consensus Taxonomy and Properties
      Consensus Properties
   Types of Transactions
      Types of Blockchain
      Private Transactions
   Cryptocurrencies: The Beginning of Blockchain’s Technological Rise
      Cryptocurrencies as a Blockchain
      Cryptocurrency: Procedure of Its Working
      Types of Cryptocurrency
      Advantages and Disadvantages of Cryptocurrency
      Permissioned Model of BlockChain
      Permissioned Blockchains
         Benefits of Permissioned Blockchains
         Consequences of Permissioned Blockchains
      Difference Between Permissioned and Permissionless Blockchain
   Blockchain Security
      Benefits and Drawbacks of Blockchain
      Unlawful Behavior
      Business Benefits of Blockchain
   Evolution of Blockchain
   History of Blockchain
      Likely Future Trends
      Additional Information
   Conclusion
   References
2. Cryptographic Hash Function
   Introduction
   Structure
   Introduction to Cryptographic Hash Function
      Hashing
      Miners
      Non-Fungible tokens (NFTs)
   Cryptographic Hash Function (CHF)
      The Need and Purpose of Generating and Using Hash Functions
      Properties of Hash Functions
      Methods for Quick Production of Cryptographic Hashes
      The Trade-Off of Design of Cryptographic Hash Functions
      Hash Functions for the Bitcoin Mining Process
      The Process of Solving the Hash
      Protection by Providing Secured Hash Algorithms
      Collision Attacks
   The Nonce
      Building Blocks with Nonces
      Process of Reducing Mining Difficulty
      Significance of the Adjustment
   Introduction to One-Way Hash Functions
      Hash Pointer and Merkle Tree (Hash Tree)
      Data Structures Built with Hash Pointers
         Tamper-Evident Property of Blockchain
      Merkle (Hash Tree)
   Cryptocurrency
      Advantages of Cryptocurrencies
      Disadvantages of Cryptocurrencies
      First Cryptocurrency Bitcoin
   Digital Signature
      Encryption with Digital Signature
      Types of Encryption Process
      Digital Certificate Authority
      Components of Digital Certificate
      Comparing Digital Certificate with Digital Signature
      Rules for Working of Digital Signature
      Main Features of the Digital Signature
      Electronic Signature
      Differences Between Digital Signature and Electronic Signature
      Digital Certification in India
   Public Key Cryptography or Asymmetric Cryptography
      Cryptographic Hashing
      Classes of Cryptographic Hash Functions
   Conclusion
   References
3. Understanding Blockchain with Cryptocurrency
   Introduction
   Structure
   Blockchain in Business
      Creation of Bitcoins
      Safety Requirements
   Creation of Coins
      Cryptocurrency Mining Reward (Using Bitcoin)
      Coins Versus Tokens
      User’s Ideal Basic Requirements for New Payment System
   Pricing Cryptocurrencies
      Why Bitcoin Needs Miners
      Reasons for Mining
      Bitcoin Versus Blockchain
   Payments and Double Spending
      Preventing Double Spending
      Double-Spending Attacks
   Bitcoin Scripts
      Understanding an OP_CODE or Operation Code
      Objective of Creating Script Language
      Example of a Bitcoin Script
   Bitcoin’s P2P (Peer-to-Peer) Network
   Transactions in Bitcoin Network
      Transactions - Private Keys
      Public and Private keys
      Broadcasting and Confirmations
      Variable Duration of Bitcoin Transaction Confirmations
      Bitcoin Transaction Fees
   Block Processing - Mining
      Blockchain Data Structure
      Cryptocurrency Transactions
      Blocks
   Block Propagation and Block Relay
      Block Propagation Time or Block Propagation Delay
      Relay Network
      Blockchain Relay Networks
   Conclusion
   References
4. Distributed Consensus in Open Environments
   Introduction
   Structure
   Consensus in a Bitcoin Network
      Consensus-Building Process
      The Mechanism of Consensus
   Public Blockchains Function
      Workproofing
      The Proof of Work (PoW)
      Open and Closed Types of Blockchains
         Advantages of Proof of Work
      Technical Specifics of Blockchain Proof of Work
         Disadvantages of Proof of Work Blockchains
   HashCash Protocol for POW
      Bitcoin and PoW
   The Proof of Stake (PoS)
      Attacks on PoW and the Monopoly
   Proof of Burn (PoB)
   Proof of Elapsed Time (PoET) Blockchain
      Understanding Proof of Elapsed Time (PoET)
      Operation of PoET
         Distinguishing PoET from PoW
   Proof of History (PoH)
   The Hardness of Mining and Mining Difficulty
      Evolution of Mining Equipment
      Mining Pool
   Conclusion
   References
5. Understanding Blockchain for Enterprises
   Introduction
   Structure
   Permissioned Blockchain Model and Use Cases
      Types of Blockchains
      Permissionless Blockchains
         Difference Between Permissioned Blockchain and Permissionless Blockchain
      Permissioned Blockchains and Tokens
         Advantages and Disadvantages of Permissioned Blockchain
      Characteristics Associated with Permissioned (or Private Blockchain Networks)
      The Ripple and XRP
      Layers of Blockchains
      Layer 1 of Blockchain: BFT Consensus
      Layer 2 of Blockchain: Smart Contracts
      Layer 3 of Blockchain: Applications and Use Cases
   List of Best Permissioned Blockchain Platforms
      Ethereum
      IBM Blockchain
      Hyperledger Fabric
      Hyperledger Sawtooth
      R3 Corda
      Tezos
      EOSIO Blockchain Platform
      Stellar
      ConsenSys Quorum
      Hedera Hashgraph
   Emergence of OpenChain
      Challenges of Permissioned Solutions
   State Machine Replication
      The State Machine Approach
      Consensus on a Sequence of Values
         Fault Tolerant State Machine Replication (FT-SMR)
         Optimizing for a Sequence of Values
      Example of State Machine: Smart Contract – Crowdfunding
   Conclusion
   References
6. Distributed Consensus in Closed Environment
   Introduction
   Structure
   Distributed Consensus
      Consortium Blockchain
   Overview of Consensus Models for Permissioned Blockchain
   Types of Distributed Consensus Algorithm
      Paxos Algorithm
      Raft Consensus Algorithm
      Byzantine (Military) Generals Problem
      Analogy
   Byzantine Fault Tolerance (BFT)
      Characteristics/Objective of Byzantine Fault Tolerance
      Types of Byzantine Failures
      Practical Byzantine Fault Tolerance
         A Simplified Three-Phase pBFT Process
         Applicable Scenarios
      Limitations
         Advantages of pBFT
         Working Style of pBFT
      Limitations of pBFT
      Platforms Using pBFT Variants
      Asynchronous Byzantine Fault Tolerance (ABFT)
      Lamport-Shostak-Pease BFT Algorithm
   Conclusion
   References
7. Enterprise Application of Blockchain
   Introduction
   Structure
   Cross-Border Payments
      Blockchain and Cross-Border Money Transfer
      Drawbacks of Cross-Border Money Transfer
   Know Your Customer (KYC)
      Steps Involved in KYC
      KYC Registry for SWIFT
      India: The Reserve Bank of India KYC Guidelines for Banks in 2002
   Blockchains Applications
      Blockchain in Food Industry
      Blockchain in Mortgage Processing
      Conventional Loan Procedure
         The Mortgage Process and Blockchain
      Blockchain Mortgages’ Advantages
      Blockchain-Enabled Trade
      Blockchain in Finance and Banking
      The Use of Blockchain Technology in Logistics
      Blockchain in Real Estate Documents
      Blockchain in Medical Field
      Blockchain in Elections and Voting
   Enterprise Blockchain Requirements
      Currency
      Property Records
      Supply Chains
   Blockchain Technology Disrupting Financial Services
      Adopting Blockchain Technology in Business
      Application of Blockchain in Legal Field
      Use of Blockchain in Real Estate
      Logistics and Supply Chain Through Blockchain
      Impact of Blockchain Innovation on Business
      Trade
      International Trade
      Benefits of Blockchain in Global Trade and Commerce
      Trade Finance
         Trade Finance Benefit to Business
         we.trade: The Largest Blockchain-Enabled Trade Networks
         we.trade and Small and Medium-sized Enterprises (SMEs)
   Supply Chain Finance
   Digital Identity in Blockchain
      Meaning of Identity
      Managing Multiple Identities
         Anonymous Authentication
   Blockchain: The Challenges Facing Governments
      About Tata Steel
      Benefits of Blockchain
   Conclusion
   References
8. Hyperledger and Smart Contracts
   Introduction
   Structure
   Hyperledger Fabric
      Advantages of Hyperledger Fabric Architecture
   Architecture of Hyperledger
      Transaction
      Data Structures in Blockchain
      Partitioning (Ordering Service Channels)
      Components of a Hyperledger Fabric Network
   Writing a Blockchain Application
   Identity
      A Simple Scenario to Explain the Use of an Identity
      A Public Key Infrastructure (PKI)
      Digital Certificates
   Policies in Hyperledger Fabric
      Understanding Policy
      Need of Policies in Hyperledger Fabric
         Implementation of Policies Throughout Fabric
      Application Channel Configuration
      Access Control Lists (ACLs)
      Policy Types
      Valid System Chaincode (VSCC)
   Access Control
      Attribute-Based Access Control (ABAC) in Hyperledger Fabric
      Membership Service Provider (MSP)
      Channels in Hyperledger System
      Multiple Channels
      Transaction Validation
      Read-Write Set Transaction Validation
      Flow of Transactions
   Executing Contracts in Blockchain
      Basic Definition of Smart Contracts
      EOSIO Blockchain
      Advantages of Intelligent Contracts
      Smart Contract Anatomy
      Smart Contract’s Life Cycle
      Use Cases of Smart Contracts
         Smart Contract Usage Patterns
         Smart Contract Platforms
      Benefits of Smart Contracts
      Challenges to Smart Contracts Technology
   Conclusion
   References
9. Blockchain Interoperability
   Introduction
   Structure
   Need for Blockchain Interoperability
      Blockchain-Based Initiatives
      Avalanche
      Polygon (MATIC)
      Crypto Tokens
   Cross-Chain Technology
      Main Characteristic Features of Cross-Chain Technology
      Working Approaches of Cross-Chain Technology
         Benefits of Cross-Chain Technology
   Blockchain Interoperability Projects
      Hyperledger Cactus
      Key Characteristics of Hyperledger Cactus
      Hyperledger FireFly
      Salient Features of Hyperledger FireFly
      Weaver
      Salient Features of Weaver
      YUI
      Salient Features of YUI
   Blockchain Interoperability Architecture
   Conclusion
   References
10. Legal and Environmental Aspects
   Introduction
   Structure
   Legal Aspects of Cryptocurrencies
      Legal Status of Cryptocurrencies in Major Countries of the World
   The Transfer of Property
   Digital Ownership and Non-Fungible Tokens (NFT)
      Difference Between NFT and Cryptocurrency
      Working Method of NFT
         Use Cases for NFTs
   Digital Ownership with Blockchain
   Electricity Consumption and Environmental Footprints in Usage in Blockchain Operations
      Combating Bitcoin’s Energy Problem
   The Environmental Future of the Blockchain
      Illicit Contents
      Scammers
   Transfer of Funds
      Preventing Money Laundering by Blockchain Technology
      Immutable Ledger for Regulatory Oversight
      Transactions Monitoring in Smart Contracts
   Exchange of Blockchain
      MetaMask Exchange for Ethereum
      Frailty
   Metaverse
      The Origins of the Metaverse
   Conclusion
   References
11. Exercises for Practical
   Introduction
   Structure
   Practical 1: How to Get Started with Docker Container
      Containers
      Linux Containers (LXC)
         The Docker Dashboard
      Docker Container
      Docker’s Working Method
      Docker Client and Server
      Image Docker
      The Docker Registry
      Containerized Docker
      Step-by-Step Docker Installation on Windows
      Starting the Docker Desktop Tool
      Getting Started with Docker Container
         Running Applications Using Docker Compose
      The Docker Dashboard
      Advantages of Working with Docker on Windows
         Container Revisited
   Practical Exercise 2: Create and Deploy a Blockchain Network
      Code Pattern
      Networks of Blockchains
      Blockchain Network Types
         Creating Blockchain Network-IBPV20 Using the IBM Blockchain Platform
         Building a Blockchain Application Using the IBM Blockchain Platform
      Packaging the Smart Contract
      Creating IBM Cloud Services
   Practical Exercise 3: Interact with a Blockchain Network
      Developer Pattern
      Deploy Blockchain Network Smart Contract on the Network
      Instantiate Smart Contract
      Connect Application to the Network
      Create an Application Admin
      Update Application Connection
      Run the Application
      Troubleshooting
      Extending the Code Pattern
   Conclusion
   References
Index