Learn Bitcoin and Blockchain - Kirankalyan Kulkarni - E-Book

Learn Bitcoin and Blockchain E-Book

Kirankalyan Kulkarni

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Beschreibung

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

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Learn Bitcoin and Blockchain
Understanding blockchain and Bitcoin architecture to build decentralized applications
Kirankalyan Kulkarni
BIRMINGHAM - MUMBAI

Learn Bitcoin and Blockchain

Copyright © 2018 Packt Publishing

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews.

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.

Packt Publishing has endeavored to provide trademark information about all of the companies and products mentioned in this book by the appropriate use of capitals. However, Packt Publishing cannot guarantee the accuracy of this information.

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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Contributor

About the author

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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Table of Contents

Title Page

Copyright and Credits

Learn Bitcoin and Blockchain

Packt Upsell

Why subscribe?

PacktPub.com

Contributor

About the author

Packt is searching for authors like you

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...

There's more...

See also

Get in touch

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

Other books you may enjoy

Leave a review - let other readers know what you think

Preface

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.

Who this book is for

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.

What this book covers

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.

To get the most out of this book

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.

Sections

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).

To give clear instructions on how to complete a recipe, use these sections as follows:

Getting ready

This section tells you what to expect in the recipe and describes how to set up any software or anypreliminary settings required for the recipe.

How to do it...

This section contains the steps required to follow the recipe.

How it works...

This section usually consists of a detailed explanation of what happened in the previous section.

There's more...

This section consists of additional information about the recipe in order to make you moreknowledgeable about the recipe.

See also

This section provides helpful links to other useful information for the recipe.

Get in touch

Feedback from our readers is always welcome.

General feedback: Email [email protected] and mention the book title in the subject of your message. If you have questions about any aspect of this book, please email us at [email protected].

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Reviews

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Introduction to Blockchain and Bitcoin