Mastering Blockchain: A technical reference guide to the inner workings of blockchain, from cryptography to DeFi and NFTs, 4th Edition

Cover
Copyright
Table of Contents
Preface
Chapter 1 : Blockchain 101
	The growth of blockchain technology
		Progress towards maturity
		Rising interest
	Distributed systems
		CAP theorem
		PACELC theorem
	The history of blockchain
		Bitcoin
		Electronic cash
	Introducing blockchain
		Blockchain architecture
			Blockchain by layers
			Blockchain in business
		Generic elements of a blockchain
		Blockchain functionality
		Benefits and features of blockchain
		Limitations of blockchain technology
	Types of blockchain
		Distributed ledgers
		Shared ledger
		Public blockchains
		Private blockchains
		Semi-private blockchains
		Permissioned ledger
		Fully private and proprietary blockchains
		Tokenized blockchains
		Tokenless blockchains
		Layer 1 blockchains
			Monolithic and polylithic blockchains
		Layer 2 blockchains
			Sidechains
	Summary
Chapter 2 : Decentralization
	Introducing decentralization
		Methods of decentralization
		Disintermediation
		Contest-driven decentralization
		Quantifying decentralization
		Benefits of decentralization
		Evaluating requirements
	Full-ecosystem decentralization
		Storage
		Communication
		Computing power
	Decentralization in practice
		Smart contracts
		Autonomous agents
		Decentralized organizations
		Decentralized autonomous organizations
		Decentralized autonomous corporations
		Decentralized autonomous societies
		Decentralized applications
		Criteria for a DApp
		Operations of a DApp
		Design of a DApp
	Innovative trends
		Decentralized web
		Web 1
		Web 2
		Web 3
	Summary
Chapter 3 : Symmetric Cryptography
	Introducing cryptography
		Services provided by cryptography
	Cryptographic primitives
		Keyless primitives
			Random numbers
			Hash functions
		Symmetric key primitives
			Message authentication codes
			Secret key ciphers
	Advanced Encryption Standard
		Data Encryption Standard
		How AES works
		Encrypting and decrypting using AES
	Summary
Chapter 4 : Asymmetric Cryptography
	Foundational mathematics
	Asymmetric cryptography
		Public and private keys
		Asymmetric cryptography algorithms
			Integer factorization
			Discrete logarithm
			Elliptic curves
		Integrated encryption scheme
	Introducing RSA
		Encrypting and decrypting with RSA
	Introducing ECC
		Mathematics behind ECC
			Point addition
			Point doubling
			Point multiplication
		The discrete logarithm problem
		Generating keys with ECC
	Digital signatures
		RSA digital signature algorithms
			Generating RSA digital signatures
		The elliptic curve digital signature algorithm
			Generating ECDSA digital signatures
		Different types of digital signatures
			Blind signatures
			Multisignatures
			Threshold signatures
			Aggregate signatures
			Ring signatures
	Cryptographic constructs and blockchain technology
		Homomorphic encryption
		Secret sharing
		Commitment schemes
		Zero-knowledge proofs
			zk-SNARKs
			zk-STARKs
			Zero-knowledge range proofs
		Encoding schemes
			Base64
			base58
		Verifiable random functions
	Summary
Chapter 5 : Consensus Algorithms
	Introducing consensus
		Fault tolerance
		FLP impossibility
	Analysis and design
		Model
		Processes
		Timing assumptions
	Classification
	Algorithms
		CFT algorithms
			Paxos
			Raft
		BFT algorithms
			Practical Byzantine Fault Tolerance
			Istanbul Byzantine Fault Tolerance
			Tendermint
			Nakamoto consensus
			Variants of PoW
			HotStuff
	Choosing an algorithm
		Finality
		Speed, performance, and scalability
	Summary
Chapter 6 : Bitcoin Architecture
	Introducing Bitcoin
	Cryptographic keys
		Private keys in Bitcoin
		Public keys in Bitcoin
	Addresses
		Typical Bitcoin addresses
		Advanced Bitcoin addresses
	Transactions
		Coinbase transactions
		The transaction lifecycle
			Transaction validation
			Transaction fees
		The transaction data structure
			Metadata
			Inputs
			Outputs
			Verification
		The Script language
			Opcodes
			Standard transaction scripts
			Contracts
		Transaction bugs
	Blockchain
		Structure
		The genesis block
		Stale and orphan blocks
		Forks
		Properties
	Miners
		Proof of Work (PoW)
		Mining systems
			CPU
			GPU
			FPGAs
			ASICs
		Mining pools
	Network
		Types of messages
		Client software
		Bloom filters
	Wallets
	Summary
Chapter 7 : Bitcoin in Practice
	Bitcoin in the real world
	Bitcoin payments
	Innovation in Bitcoin
		Bitcoin improvement proposals
		Advanced protocols
			Segregated Witness
			Bitcoin Cash
			Bitcoin Unlimited
			Bitcoin Gold
			Taproot
		Extended protocols on top of Bitcoin
			Colored coins
			Counterparty
		Altcoins from Bitcoin
	Bitcoin client installation
		Types of clients and tools
		Setting up a Bitcoin node
			Setting up the source code
			Setting up bitcoin.conf
		Starting up a node in the testnet
		Starting up a node in regtest
	Experimenting further with bitcoin-cli
		Using the Bitcoin command-line tool
		Using the JSON-RPC interface
		Using the HTTP REST interface
	Bitcoin programming
	Summary
Chapter 8 : Smart Contracts
	Introducing smart contracts
		Definitions
		Properties
		Real-world application
	Ricardian contracts
	Smart contract templates
	Oracles
		Software-and network-assisted proofs
			TLSNotary
			TLS-N-based mechanism
		Hardware device-assisted proofs
			Android proof
			Ledger proof
			Trusted hardware-assisted proofs
		Types of blockchain oracles
			Inbound oracles
			Outbound oracles
			Cryptoeconomic oracles
		Blockchain oracle services
	Deploying smart contracts
	The DAO
	Advances in smart contract technology
		Solana Sealevel
		Digital Asset Modeling Language
	Summary
Chapter 9 : Ethereum Architecture
	Introducing Ethereum
	Cryptocurrency
	Keys and addresses
	Accounts
	Transactions and messages
		MPTs
		Transaction components
		Recursive Length Prefix
		Gas
		Transaction types
			Simple transactions
			Contract creation transactions
			Message call transactions
		Messages
		Transaction validation and execution
		State and storage in the Ethereum blockchain
			The world state
			The account state
			Transaction receipts
	Ethereum virtual machine
		Execution environment
		The machine state
	Blocks and blockchain
		The genesis block
		Block validation, finalization, and processing
		Block difficulty mechanism
	Nodes and miners
		The consensus mechanism
		Forks in the blockchain
	The Ethereum network
		Main net
		Test nets
		Private nets
	Precompiled smart contracts
		Programming languages
			Solidity
			Runtime bytecode
			Opcodes
	Wallets and client software
		Wallets
		Geth
		Light clients
	Supporting protocols
		Whisper
		Swarm
	Summary
Chapter 10 : Ethereum in Practice
	Ethereum payments
	Innovations in Ethereum
		Difficulty time bomb
		EIP-1559
		The merge and upcoming upgrades
	Programming with Geth
		Installing and configuring the Geth client
		Creating a Geth new account
		Querying the blockchain using Geth
			Geth console
			Geth attach
			Geth JSON RPC API
	Setting up a development environment
		Connecting to test networks
		Creating a private network
			Starting up the private network
			Experimenting with the Geth JavaScript console
			Mining and sending transactions
	Introducing Remix IDE
	Interacting with the Ethereum Blockchain with MetaMask
		Installing MetaMask
		Creating and funding an account with MetaMask
		Using MetaMask and Remix IDE to deploy a smart contract
			Adding a custom network to MetaMask and connecting it with Remix IDE
			Importing accounts into MetaMask using keystore files
			Deploying a contract with MetaMask
			Interacting with a contract through MetaMask using Remix IDE
	Summary
Chapter 11 : Tools, Languages, and Frameworks for Ethereum Developers
	Languages
	The Solidity compiler
		Installing solc
		Experimenting with solc
	Tools, libraries, and frameworks
		Node.js
		Ganache
			ganache-cli
			Ganache UI
		Truffle
		Drizzle
		Other tools
	Contract development and deployment
		Writing smart contracts
		Testing smart contracts
		Deploying smart contracts
	The Solidity language
		Functions
		Variables
			Local variables
			Global variables
			State variables
		Data types
			Value types
			Reference types
		Control structures
		Events
		Inheritance
		Libraries
		Error handling
	Summary
Chapter 12 : Web3 Development Using Ethereum
	Interacting with contracts using Web3 and Geth
		Deploying contracts
		Using solc to generate ABI and code
		Querying contracts with Geth
		Interacting with Geth using POST requests
	Interacting with contracts via frontends
		Installing the web3.js JavaScript library
		Creating a web3 object
		Creating an app.js JavaScript file
		Creating a frontend webpage
		Calling contract functions
		Creating a frontend webpage
	Deploying and interacting with contracts using Truffle
		Installing and initializing Truffle
		Compiling, testing, and migrating using Truffle
		Interacting with the contract
		Using Truffle to test and deploy smart contracts
		Deployment on decentralized storage using IPFS
	Summary
Chapter 13 : The Merge and Beyond
	Introduction
	Ethereum after The Merge
		The Beacon Chain
			Beacon nodes
			Consensus client
			Execution client
			Validator client
			Proof-of-stake
		P2P interface (networking)
	The Merge
	Sharding
	The future roadmap of Ethereum
	Summary
Chapter 14 : Hyperledger
	Projects under Hyperledger
		Distributed ledgers
			Fabric
			Sawtooth
			Iroha
			Indy
			Besu
		Libraries
			Aries
			Transact
			Ursa
			AnonCreds
		Tools
			Cello
			Caliper
		Domain-specific
			Grid
	Hyperledger reference architecture
		Hyperledger design principles
	Hyperledger Fabric
		Key concepts
			Membership service
			Blockchain services
			Smart contract services
			APIs and CLIs
		Components
			Peers/nodes
			Clients
			Channels
			World state database
			Private data collections
			Transactions
			Membership Service Provider
			Smart contracts
			Crypto service provider
		Applications
			Chaincode implementation
			The application model
		Consensus mechanism
		Transaction lifecycle
	Fabric 2.0
		New chaincode lifecycle management
		New chaincode application patterns
	Summary
Chapter 15 : Tokenization
	Tokenization on a blockchain
		Advantages of tokenization
		Disadvantages of tokenization
	Types of tokens
		Fungible tokens
		Non-fungible tokens
		Stable tokens
		Security tokens
	Process of tokenization
	Token offerings
		Initial coin offerings
		Security token offerings
		Initial exchange offerings
		Equity token offerings
		Decentralized autonomous initial coin offering
		Other token offerings
	Token standards
		ERC-20
		ERC-223
		ERC-777
		ERC-721
		ERC-884
		ERC-1400
		ERC-1404
		ERC-1155
		ERC-4626
	Building an ERC-20 token
		Building the Solidity contract
		Deploying the contract on the Remix JavaScript virtual machine
		Adding tokens in MetaMask
	Emerging concepts
		Tokenomics/token economics
		Token engineering
		Token taxonomy
	Summary
Chapter 16 : Enterprise Blockchain
	Enterprise solutions and blockchain
		Success factors
		Limiting factors
	Requirements
		Privacy
		Performance
		Access governance
		Further requirements
			Compliance
			Interoperability
			Integration
			Ease of use
			Monitoring
			Secure off-chain computation
			Better tools
	Enterprise blockchain versus public blockchain
	Enterprise blockchain architecture
	Designing enterprise blockchain solutions
		TOGAF
		Architecture development method (ADM)
		Blockchain in the cloud
	Currently available enterprise blockchains
	Enterprise blockchain challenges
		Interoperability
		Lack of standardization
		Compliance
		Business challenges
	VMware Blockchain
		Components
		Consensus protocol
		Architecture
		VMware Blockchain for Ethereum
	Quorum
		Architecture
			Nodes
			Privacy manager
		Cryptography
		Privacy
			Enclave encryption
			Transaction propagation to transaction managers
			Enclave decryption
		Access control with permissioning
		Performance
		Pluggable consensus
	Setting up a Quorum network with IBFT
		Installing and running Quorum Wizard
		Running a private transaction
		Attaching Geth to nodes
		Viewing the transaction in Cakeshop
		Further investigation with Geth
	Other Quorum projects
		Remix plugin
		Pluggable architecture
	Summary
Chapter 17 : Scalability
	What is scalability?
		Blockchain trilemma
		Methods for improving scalability
			Layer 0 – multichain solutions
			Polkadot
			Layer 1 – on-chain scaling solutions
			Layer 2 – off-chain solutions
			Layer 2
		Rollups
			Data validity
			Data availability
			How rollups work
			Types of rollups
			Optimistic rollups
			ZK-rollups
			Technologies used for building ZK-rollups
			ZK-ZK-rollups
			Optimistic rollups vs ZK-rollups
			Fraud and validity proof-based classification of rollups
			Example
			Layer 3 and beyond
	Summary
Chapter 18 : Blockchain Privacy
	Privacy
		Anonymity
		Confidentiality
	Techniques to achieve privacy
		Layer 0
			Tor
			I2P
			Indistinguishability obfuscation
			Homomorphic encryption
			Secure multiparty computation
			Trusted hardware-assisted confidentiality
			Mixing protocols
			CoinSwap
			TumbleBit
			Dandelion
			Confidential transactions
			MimbleWimble
			Zkledger
			Attribute-based encryption
			Anonymous signatures
			Zether
			Privacy using Layer 2 protocols
			Privacy managers
		Privacy using zero-knowledge
			Cryptographic Commitments
			Zero-knowledge proofs
			Building ZK-SNARKs
		Example
	Summary
Chapter 19 : Blockchain Security
	Security
	Blockchain layers and attacks
		Hardware layer
		Network layer
		Blockchain layer
			Attacks on transactions
			Transaction replay attacks
			Attacks on consensus protocols
			Double-spending
			Selfish mining
			Forking and chain reorganization
		Blockchain application layer
			Smart contract vulnerabilities
			DeFi attacks
		Interface layer
			Oracle attacks/oracle manipulation attacks
			Attacks on wallets
	Attacks on layer 2 blockchains
		Cryptography layer
			Attacking public key cryptography
			Attacking hash functions
			Key management-related vulnerabilities and attacks
			ZKP-related attacks
	Security analysis tools and mechanism
		Formal verification
			Formal verification of smart contracts
			Model checking
		Smart contract security
			Oyente
		Solgraph
	Threat modeling
	Regulation and compliance
	Summary
Chapter 20 : Decentralized Identity
	Identity
	Digital identity
		Centralized identity model
			Federated identity model
			Decentralized identity model
			Self-sovereign identity
			Components of SSI
	Identity in Ethereum
	Identity in the world of Web3, DeFi, and Metaverse
	SSI-specific blockchain projects
		Hyperledger Indy, Aries, Ursa, and AnonCreds
		Other projects
		Some other initiatives
	Challenges
	Summary
Chapter 21 : Decentralized Finance
	Introduction
	Financial markets
		Trading
		Exchanges
			Orders and order properties
			Order management and routing systems
			Components of a trade
			Trade lifecycle
	Applications of blockchain in finance
		Insurance
		Post-trade settlement
		Financial crime prevention
		Payments
	Decentralized finance
		Properties of DeFi
		DeFi layers
		DeFi primitives
		DeFi services
			Asset tokenization
			Decentralized exchanges
			Flash loans
			Derivatives
			Money streaming
			Yield farming
			Insurance
			Decentralized lending – lending and borrowing
		Benefits of DeFi
		Uniswap
		Swap the token
		Uniswap liquidity pool
	Summary
Chapter 22 : Blockchain Applications and What’s Next
	Use cases
		IoT
	IoT architecture
		The physical object layer
		The device layer
		The network layer
		The management layer
		The application layer
		Benefits of IoT and blockchain convergence
	Implementing blockchain-based IoT in practice
		Setting up Raspberry Pi
		Setting up the first node
		Setting up the Raspberry Pi node
		Installing Node.js
		Building the electronic circuit
		Developing and running a Solidity contract
	Government
		Border control
		Elections
		Citizen identification
	Health
	Media
	Blockchain and AI
	Some emerging trends
	Some challenges
	Summary
Index