Preface

The goal of this book is to teach the theory and practice of distributed ledger technology to anyone interested in learning this fascinating new subject. Anyone can benefit from this book, whether a seasoned technologist, student, business executive, or enthusiast. To this end, I aim to provide a comprehensive and in-depth reference of distributed ledger technology that serves the expert and is also accessible to beginners. I primarily focus on describing the core characteristics of blockchain so that readers can build a strong foundation on which to build further knowledge and expertise. The main topics include core blockchain principles, cryptography, consensus algorithms, distributed systems theory, and smart contracts. In addition, practical topics such as programming smart contracts in solidity, building blockchain networks, using blockchain development frameworks such as Truffle, and writing decentralized applications and descriptions constitute a significant part of this book. Moreover, many types of blockchains, related use cases, and cross-industry applications of blockchain technology are discussed in detail.

This book is a unique blend of theoretical principles and hands-on application. Readers will not only be able to understand the technical underpinnings of this technology, but they will also be able to write code for smart contracts and build blockchain networks. Practitioners can use this book as a reference, and it can also serve as a textbook for students wishing to learn this technology. Indeed, some institutions have adopted previous editions of this book as a primary textbook for their courses on blockchain technology.

This book has six new chapters on the latest topics in blockchain, including scalability, security, privacy, the Ethereum Merge, decentralized identity, and decentralized finance.

I hope that this work will serve well technologists, teachers, students, scientists, developers, business executives, and anyone who wants to learn this fascinating technology for many years to come.

Who this book is for

This book is for anyone who wants to understand blockchain technology in depth. It can also be used as a reference resource by developers who are developing applications for blockchain. It can also be used as a textbook for courses related to blockchain technology and cryptocurrencies, as well as being a learning resource for various examinations and certifications related to cryptocurrency and blockchain technology.

What this book covers

Chapter 1, Blockchain 101, introduces the basic concepts of distributed computing, which blockchain technology is based on. It also covers the history, definitions, features, types, and benefits of blockchains, along with various consensus mechanisms that are at the core of blockchain technology.

Chapter 2, Decentralization, covers the concept of decentralization and its relationship with blockchain technology. Various methods and platforms that can be used to decentralize a process or a system will also be introduced.

Chapter 3, Symmetric Cryptography, introduces the theoretical foundations of symmetric cryptography, which is necessary to understand how various security services such as confidentiality and integrity are provided.

Chapter 4, Asymmetric Cryptography, introduces concepts such as public and private keys, digital signatures, and hash functions with practical examples.

Chapter 5, Consensus Algorithms, covers the fundamentals of consensus algorithms and describes the design and inner workings of several consensus algorithms. It covers both traditional consensus protocols and blockchain consensus protocols.

Chapter 6, Bitcoin Architecture, covers Bitcoin, the first and largest blockchain. It introduces technical concepts related to Bitcoin cryptocurrency in detail.

Chapter 7, Bitcoin in Practice, covers the Bitcoin network, relevant protocols, and various Bitcoin wallets. Moreover, advanced protocols, Bitcoin trading, and payments are also introduced. Moreover, various Bitcoin clients and programming APIs that can be used to build Bitcoin applications are covered.

Chapter 8, Smart Contracts, provides an in-depth discussion on smart contracts. Topics such as the history, the definition of smart contracts, Ricardian contracts, Oracles, and the theoretical aspects of smart contracts are presented in this chapter.

Chapter 9, Ethereum Architecture, introduces the design and architecture of the Ethereum blockchain in detail. It covers various technical concepts related to the Ethereum blockchain and explains the underlying principles, features, and components of this platform in depth. Other topics covered are related to the Ethereum Virtual Machine, mining, and supporting protocols for Ethereum.

Chapter 10, Ethereum in Practice, covers the topics related to setting up private networks for Ethereum smart contract development and programming.

Chapter 11, Tools, Languages, and Frameworks for Ethereum Developers, provides a detailed practical introduction to the Solidity programming language and different relevant tools and frameworks that are used for Ethereum development.

Chapter 12, Web3 Development Using Ethereum, covers the development of decentralized applications and smart contracts using the Ethereum blockchain. A detailed introduction to the Web3 API is provided along with multiple practical examples and a final project.

Chapter 13, The Merge and Beyond, introduces the latest development in Ethereum, such as the Beacon Chain, sharding, and future upgrades.

Chapter 14, Hyperledger, presents a discussion about the Hyperledger project from the Linux Foundation, which includes different blockchain projects introduced by its members.

Chapter 15, Tokenization, introduces the topic of tokenization, stable coins, and other relevant ideas such as initial coin offerings and token development standards.

Chapter 16, Enterprise Blockchain, covers the use and application of blockchain technology in enterprise settings and covers DLT platforms such as Quorum.

Chapter 17, Scalability, is dedicated to a discussion of one of the challenges, that is, scalablity, faced by blockchain technology and how to address it. We focus on layer 2 solutions to address this problem, however, other solutions are also discussed.

Chapter 18, Blockchain Privacy, introduces the problem of lack of privacy in blockchains and explains various techniques to address this limitation. We cover solutions to achieve confidentiality and anonymity in blockchains using techniques such as ZK-SNARKs, mixers, and various other methods.

Chapter 19, Blockchain Security, introduces the various security challenges in blockchains and how to solve them. These include smart contract security, formal verification, security concerns, and best practices at each layer of the blockchain system.

Chapter 20, Decentralized Identity, covers one of the hottest topics in the blockchain world. Decentralized identity is a cornerstone of the Web3 ecosytem. In this chapter, we explore the methods, techniques, and ecosystems that underpin the Web3 and decentralized identity landscape.

Chapter 21, Decentralized Finance, covers the use and application of decentralized finance, its various aspects, the use cases of blockchain in fianance, and different DeFi protocols.

Chapter 22, Blockchain Applications and What’s Next, provides a practical and detailed introduction to the applications of blockchain technology in fields other than cryptocurrency, including the Internet of Things, government, media, and finance. It is aimed at providing information about the current landscape, projects, and research efforts related to blockchain technology.

Chapter 23, Alternative Blockchains, introduces alternative blockchain solutions and platforms as bonus content that is available online. It covers technical details and features of alternative blockchains and relevant platforms. This is a online chapter and you can read about it at the following link: https://packt.link/OceZK.

To get the most out of this book

In order to get the most out of this book, some familiarity with computer science and basic knowledge of a programming language is desirable.

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