Introduction to Blockchain Technology

Introduction to Blockchain Technology
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Blockchain technology has come a long way since the initial vision published by Satoshi Nakamoto in 2008. Big buzz words like «bitcoin,» «blockchain,» and «cryptocurrency» are everywhere. Companies and governments have started to use blockchain technology in earnest and will increasingly do so for the foreseeable future. This book takes an in-depth look at blockchain technology and how users can take advantage of its potential. Since its initial conception, blockchain has encompassed both a social promise and new technology. Originally proposed as a solution for Bitcoin's cryptocurrency record-keeping system, blockchains are now used to store the records of all types of applications. Core services we all depend on like the transfer of money, voting, land records, IP rights, and identity all rely on intermediaries. Blockchain software has begun taking the place of these antiquated systems. The software becomes the trusted record-keeping system, and the rules programed into the software become the intermediaries. This book explains the fundamentals of blockchain technology and assumes that the reader has little to no knowledge of the subject. Topics are explained as simply as possible, while not obscuring details that may affect the reader. It also gives the reader insight into the critical differences in blockchain software and will provide them with a basic understanding of how and why these systems work. After reading this book, the reader will be able to speak with confidence on the topic, know key differences in technology. The reader will also have critical insight into blockchain software's inherent limitations and shortcomings. This book is also the definitive guide to the Blockchain Technology Foundation (BTF) exam from EXIN. It will prepare the reader for the test, and each chapter ends with review questions for extra guidance in preparing for the exam.

Оглавление

Tiana Laurence. Introduction to Blockchain Technology

Other publications by Van Haren Publishing

Introduction. to blockchain. technology

Colophon

Preface

Contents

1 Introduction to Blockchain Technology

1.1 Key blockchain concepts

What is a blockchain?

What are nodes?

What is cryptocurrency?

What are tokens?

What does distributed mean?

1.2 Summary

1.3 Test your knowledge

2 Key parts of blockchain technology

2.1 Cryptography

Machines that encrypted data in the past

Modern encryption

Private and public keys

2.2 What is a hash?

From blocks to hashes

2.3 Ledgers

Transactions and trade

2.4 The public witness

Computers that witness

2.5 Summary

2.6 Test your knowledge

3 The structure of the network: consensus algorithm

3.1 Proof of Work

3.2 Proof of Stake (PoS)

3.3 Delegated Proof of Stake

3.4 Proof of Authority

3.5 Proof of Elapsed Time

3.6 Proof of Capacity and Proof of Space

3.7 Proof of Burn

3.8 Hyperledger Fabric

3.9 Summary

3.10 Test your knowledge

4 Key blockchain networks and technologies

4.1 The history of blockchain networks

4.2 Top challenges for blockchain networks

4.3 A deeper dive into Bitcoin

The top challenges that face Bitcoin’s global adoption

Major Bitcoin contributors

4.4 Hyperledger

4.5 EOS’s delegated Proof of Stake

4.6 Ripple

4.7 Unearthing Ethereum

4.8 The Waves platform – a Russian blockchain

4.9 Summary

4.10 Test your knowledge

5 Second generation applications of Blockchain technology

5.1 Smart contracts

Smart contracts: origins and how they function

Creating and deploying smart contracts

5.2 Tokens

Token standards

Second generation tokens

5.3 Decentralized applications

How are DApps constructed?

5.4 Decentralized Autonomous Organizations (DAOs)

How DAOs work

Key takeaways about DAOs

Legality of DAOs

5.5 Summary

5.6 Test your knowledge

6 Expanding applications of blockchain

6.1 Decentralized identity

Online identity - the honey pot

Self-sovereign identity

What is identity?

History of identity documentation

Challenges of identity

6.2 Blockchain protected identity

Blockstack

Microsoft

IBM’s Trusted Identity

Civic

6.3 Blockchain and IoT

Toyota

IBM

6.4 Artificial Intelligence and blockchain

The history of Artificial Intelligence

Companies building blockchain technology for AI

SingularityNET

Enigma

Matrix AI network

6.5 Decentralized marketplaces and exchanges

Challenges of decentralized marketplaces

Lack of legal framework

Emerging developments

Loss of customer touch

Popular decentralized marketplaces and exchanges

OpenBazaar

ModulTrade

FundRequest

6.6 Summary

6.7 Test your knowledge

7 Blockchain and the world economy

7.1 Supply chain industry

Supply chain of the past

Supply chain of the future

Supply chain using blockchain technology

7.2 Cross-border money transfer

A little history in cross-border money transfer

Innovation in cross-border payment

Cross-border payment of the future

Top three challenges in cross-border money transfer

7.3 Financial change agents

The Ripple protocol

The R3 consortium

COTI

Everex

SendFriend

7.4 Summary

7.5 Test your knowledge

8 New frontiers in blockchain and business

8.1 Digital fiat currency

History of digital fiat currency

Top challenges in the digital fiat currency industry

Long-term effects to physical tenders

8.2 Disrupters in banking and currency

eCurrency

Blockstream - Liquid

Ripio

Woorton

BABB

8.3 Blockchain and insurance

History of insurance

Insurance of the present

Insurance of the future

Top challenges in the insurance industry

Blockchain startup companies in the insurance industry

Black

BlockRe

B3i

ChainThat

8.4 Intellectual property rights and providence

History of intellectual property rights

Intellectual property at present

Intellectual property of the future

Top challenges in the intellectual property rights industry

Digital reproduction

Coverage expansion of rights

Digital IP of the future

IPwe

LOCI

Vaultitude

8.5 Summary

8.6 Test your knowledge

9 Blockchain and people

9.1 Lean governments

9.2 Estonia’s e-Residency

9.3 Better authentication and notarization in China

9.4 The trust layer for the internet

9.5 Spam-free email

9.6 Blockchain oracles for IoT

9.7 IP and trusted authorship

9.8 Intellectual property rights

9.9 Government

Smart cities of China - Hangzhou

U.S. Department of Homeland Security

Singapore’s Smart Nation project

Singapore satellite cities in India

China’s Whole Country strategy

9.10 Financial capitals of the world

London

Exciting projects across the UK

9.11 Dubai’s 2020 goal

9.12 BitLicense of New York City

9.13 Malta, the blockchain island of the EU

9.14 German blockchain

9.15 French blockchain efforts

9.16 Summary

9.17 Test your knowledge

10 Blockchain and the inhibitors

10.1 Blockchain vulnerabilities

Smart contract vulnerabilities

Centralized public networks

Centralized private networks

10.2 Community fractures and feuds

10.3 Fraud and scams

Advanced fee schemes

Identity theft and credit card fraud

Internet and device hacking

Market manipulation

Pyramid and Ponzi schemes

10.4 Summary

10.5 Test your knowledge

Appendix A: Answer Keys. Section 1.3

Section 2.4

Section 3.10

Section 4.10

Section 5.6

Section 6.7

Section 7.5

Section 8.6

Section 9.16

Section 10.5

Index

Отрывок из книги

INTRODUCTION TO BLOCKCHAIN TECHNOLOGY

- IT and IT Management

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7 Blockchain and the world economy

7.1 Supply chain industry

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