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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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Block synchronization

Each node that joins the blockchain network needs to update its local copy of the blockchain to synchronize its state with the global state of the rest of the network. This is achieved by block synchronization. A node that needs to update its blockchain sends a message consisting of blockchain height information. Any peer that has a longer blockchain sends an inventory consisting of metadata about the fixed number of blocks that needs to be added to the host node. Now the node makes a request to all its peers to fetch individual blocks by referring to the inventory it received. The node should make sure not to flood the network with block requests by maintaining a cap on the number of block requests it sends.

Block synchronization is a long process for a newly-joined node. However, once all the blocks are up to date, it can verify the information in the block...

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