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Blockchain is a distributed database that enables permanent, transparent, and secure storage of data. Blockchain technology uses cryptography to keep data secure. Learn Bitcoin and Blockchain is the perfect entry point to the world of decentralized databases.
This book will take you on a journey through the blockchain database, followed by advanced implementations of the blockchain concept. You will learn about Bitcoin basics and their technical operations. As you make your way through the book, you will gain insight into this leading technology and its implementation in the real world. You will also cover the technical foundation of blockchain and understand the fundamentals of cryptography and how they keep data secure. In the concluding chapters, you’ll get to grips with the mechanisms behind cryptocurrencies.
By the end of this book, you will have learned about decentralized digital money, advanced blockchain concepts, and Bitcoin and blockchain security.
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Seitenzahl: 119
Veröffentlichungsjahr: 2018
Copyright © 2018 Packt Publishing
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Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author, nor Packt Publishing or its dealers and distributors, will be held liable for any damages caused or alleged to have been caused directly or indirectly by this book.
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Commissioning Editor: Sunith ShettyAcquisition Editor: Divya PoojariContent Development Editor: Nathanya DiasTechnical Editor: Vibhuti GawdeCopy Editor: Safis EditingProject Coordinator: Kirti PisatProofreader: Safis EditingIndexer: Tejal Daruwale SoniGraphics: Jisha ChirayilProduction Coordinator: Deepika Naik
First published: August 2018
Production reference: 1280818
Published by Packt Publishing Ltd. Livery Place 35 Livery Street Birmingham B3 2PB, UK.
ISBN 978-1-78953-613-3
www.packtpub.com
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Kirankalyan Kulkarni is a determined and highly influential author. He has more than 17 years of experience in various technologies and has more than 9 years experience in hands-on programs, delivery, and account management. He has managed teams of around 125 professionals across global locations, including entry-level developers, project managers, and architects. He researches blockchain and its underlying architecture with Hyperledger and Ethereum variants.
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Title Page
Copyright and Credits
Learn Bitcoin and Blockchain
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Contributor
About the author
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Preface
Who this book is for
What this book covers
To get the most out of this book
Conventions used
Sections
Getting ready
How to do it...
How it works...
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See also
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Reviews
Introduction to Blockchain and Bitcoin
An introduction to cryptography and cryptocurrency
Workings and security of fiat currencies
Understanding cryptocurrency and its uses
Hash function
Digital signature
An introduction to Bitcoin
History of Bitcoin
Alternative cryptocurrencies to Bitcoin
Bitcoin wallets
An introduction to the blockchain
Workings of blockchain
Features of blockchain
Structure of blockchain
Structuring the Bitcoin block header
Representing the blockchain structure
Challenges with blockchain
Types of blockchain
Permission and permissionless blockchain implementations
Platforms for blockchain
Summary
Fundamentals of Decentralization
Decentralized, centralized, and distributed systems
How decentralized systems work
Decentralized applications
Decentralizing various entities
Categories of assets
Real-world transactions
Complex agreements
Decentralization of markets
Centralized markets for decentralization
The impact of decentralization
Sectors affected by decentralization
The pros and cons of decentralization
Summary
Advanced Blockchain Concepts
Introduction to consensus protocols
Properties of consensus mechanism
The Byzantine Generals' Problem
Solution to the Byzantine Generals' Problem
Practical Byzantine Fault Tolerance
Types of consensus algorithms
Proof of Work
Challenges with PoW
Proof of Stake
Proof of Elapsed Time
Comparison between PoW, PoS, and PoET
Key privacy challenges of the blockchain
Pseudonymous behavior of Bitcoin
Solutions to privacy challenges
CoinJoin
Ring signatures
Zero-knowledge proof
Smart contracts and decentralized applications
Understanding smart contracts
Workings of smart contracts
Decentralized applications
Challenges and solutions
Summary
Bitcoin and Blockchain Security
Securing Bitcoin and blockchain
Security practices for your wallet
Types of wallets
Hardware wallets
Workings of a hardware wallet
Types of physical Bitcoins
The survival of cryptocurrencies
Summary
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Leave a review - let other readers know what you think
Blockchain is a distributed database that enables permanent, transparent, and secure storage of data. The blockchain technology uses cryptography to keep data secure. This book is the perfect entry point to the world of decentralized databases.The book will take you on a journey through the blockchain database, followed by advanced implementations of the concept of blockchain. You will learn about the basics of Bitcoin and their technical operations. As you make your way through the book, you will gain insight into this leading technology and its implementation in the real world. You will also cover the technical foundations of blockchain, learn about the fundamentals of cryptography, and see how it keeps data secure. In the concluding chapters, you'll get to grips with the mechanisms behind cryptocurrencies.By the end of this book, you will have learned about decentralized digital money, advanced blockchain concepts, and Bitcoin and blockchain security.
This book is for anyone who wants to quickly understand and expand their knowledge of how blockchain and Bitcoin work and how they are applied commercially. No prior knowledge of blockchain and Bitcoin is required.
Chapter 1, Introduction to Blockchain and Bitcoin, will give us a step-by-step introduction to the essentials of Bitcoin and blockchain. It will cover the basics of this unique technology, which is developing greatly. We will cover the fundamentals of cryptography and cryptocurrency, an introduction and history of Bitcoin and blockchain, its structure, the various types of blockchain, and more. This chapter will also provide the bigger picture of what makes Bitcoin and blockchain the next great innovation after the internet.
Chapter 2, Fundamentals of Decentralization, will enable us to understand the various situations in which we can use decentralization and blockchain for the benefit of society and individuals. Since this technology is completely new and undergoing changes, we hope to see a better world tomorrow that includes security and transparency while eliminating all the downsides of the technology. Towards the end of the fundamentals of decentralization, we will see how decentralization is going to impact the present and future world in a better way.
Chapter 3, Advanced Blockchain Concepts, will cover some of the advanced concepts used in blockchain and various consensus protocols used in various blockchain implementations. We will look at some of the key challenges in privacy on blockchains and how solutions such as ZKP can help safeguard privacy. Then we will discuss smart contracts, which is one of the core building blocks of blockchain: how they are written, what they are, and how they are executed.
Chapter 4, Bitcoin and Blockchain Security, will start with an introduction to the fundamentals of cryptography, and it is using cryptocurrency. We will look into the history of Bitcoin, the structure of a blockchain, and the various types of blockchain. We will get familiar with the decentralization that sits at the core of blockchain. We will get insight on how decentralization works, its pros and cons, what all can be decentralized, and how it is impacting the world today. We will also get a deeper understanding of the advanced concepts of blockchain, such as its structure, architecture, and the protocols used. Finally, this chapter will enable us to understand the features and safety provided by the various crypto wallets. We will look at how hardware wallets work, some types of physical coin, the chances of survival of the various cryptocurrencies, such as Bitcoin and Altcoin, and we will try to understand how to balance and diversify risks related to investing in crypto tokens.
This book will give you an overview of in-depth knowledge of blockchain and Bitcoin. You need not have any prior knowledge before exploring this book. You will get well versed in how exactly the blockchain technology is implemented in today's world, and how it enables permanent, transparent, and secure data storage. This is a perfect entry point to decentralized digital databases. By the end of this book, you will know all the basic concepts and challenges of the blockchain technology, how this technology helps secure your cryptocurrency, the concepts around decentralized digital money, and also blockchain and Bitcoin security.
In this book, you will find several headings that appear frequently (Getting ready, How to do it..., How it works..., There's more..., and See also).
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