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Foundations of Blockchain

Foundations of Blockchain

By : Koshik Raj
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Foundations of Blockchain

Foundations of Blockchain

By: Koshik Raj

Overview of this book

Blockchain technology is a combination of three popular concepts: cryptography, peer-to-peer networking, and game theory. This book is for anyone who wants to dive into blockchain from first principles and learn how decentralized applications and cryptocurrencies really work. This book begins with an overview of blockchain technology, including key definitions, its purposes and characteristics, so you can assess the full potential of blockchain. All essential aspects of cryptography are then presented, as the backbone of blockchain. For readers who want to study the underlying algorithms of blockchain, you’ll see Python implementations throughout. You’ll then learn how blockchain architecture can create decentralized applications. You’ll see how blockchain achieves decentralization through peer-to-peer networking, and how a simple blockchain can be built in a P2P network. You’ll learn how these elements can implement a cryptocurrency such as Bitcoin, and the wider applications of blockchain work through smart contracts. Blockchain optimization techniques, and blockchain security strategies are then presented. To complete this foundation, we consider blockchain applications in the financial and non-financial sectors, and also analyze the future of blockchain. A study of blockchain use cases includes supply chains, payment systems, crowdfunding, and DAOs, which rounds out your foundation in blockchain technology.
Table of Contents (14 chapters)
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Cryptographic hashing

A cryptographic hash function is a type of function that maps arbitrary sized data to a fixed size string called a hash. Hash functions possess certain properties that make them ideal for use in cryptography.

Hash functions are widely used in hash table data structures. A hash table stores the data in a key-value pair. Hash tables are used when large keys need to be converted into smaller keys using a hash function, and then the values are mapped to these smaller keys. This makes the mapping of key to value quite easy, and this could be achieved in O(1) time complexity. This is due to the fact that hash functions have a constant time complexity.

We have repeatedly mentioned that hashing is the backbone of blockchain architecture, and it has several properties that make it really valuable and ideal for blockchain implementation.

Every hash function has the...

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