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Inside Blockchain, Bitcoin, and Cryptocurrencies [Hardback]

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  • Formāts: Hardback, 390 pages, height x width: 234x156 mm, weight: 825 g, 21 Tables, black and white
  • Izdošanas datums: 04-Sep-2019
  • Izdevniecība: CRC Press
  • ISBN-10: 1138618152
  • ISBN-13: 9781138618152
  • Hardback
  • Cena: 63,81 €
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  • Bibliotēkām
  • Formāts: Hardback, 390 pages, height x width: 234x156 mm, weight: 825 g, 21 Tables, black and white
  • Izdošanas datums: 04-Sep-2019
  • Izdevniecība: CRC Press
  • ISBN-10: 1138618152
  • ISBN-13: 9781138618152

This book covers blockchain from the underlying principles to how it enables applications to survive and surf on its shoulder. Having covered the fundamentals of blockchain, the book turns to cryptocurrency. It thoroughly examines Bitcoin before presenting six other major currencies in a rounded discussion. The book then bridges between technology and finance, concentrating on how blockchain-based applications, including cryptocurrencies, have pushed hard against mainstream industries in a bid to cement their positions permanent. It discusses blockchain as underlying banking technology, crypto mining and offering, cryptocurrency as investment instruments, crypto regulations, and markets.

List of Figures xix
List of Tables xxv
About the Author xxvii
Section I Blockchain And Bitcoin
1 Introduction to Blockchain
3(24)
1.1 The Birth of Bitcoin
3(4)
1.1.1 A Mysterious Scientist
4(1)
1.1.2 What is Bitcoin?
4(1)
1.1.3 Double-Spending Problem
5(1)
1.1.4 Nakamoto's Solution
6(1)
1.2 Blockchain
7(3)
1.2.1 Motivation
7(1)
1.2.2 Definition of Blockchain
8(1)
1.2.3 Distributed Ledger
8(1)
1.2.4 Key Properties
9(1)
1.3 Architectural Overview
10(4)
1.3.1 Centralised vs Decentralised Architecture
10(1)
1.3.2 Peer-to-Peer Network
11(2)
1.3.3 Characteristics
13(1)
1.4 Block
14(2)
1.4.1 Structure
14(1)
1.4.2 Block Identifier and Height
15(1)
1.4.3 Genesis Block
16(1)
1.5 Mining
16(1)
1.5.1 What is Mining?
16(1)
1.5.2 Consensus
16(1)
1.5.3 Incentivisation
17(1)
1.6 Forks
17(1)
1.6.1 When Does a Fork Occur?
17(1)
1.6.2 Types of Forks
18(1)
1.7 Consensus Mechanisms
18(3)
1.7.1 Proof of Work (PoW)
18(1)
1.7.2 Alternative Consensus Algorithms
19(1)
1.7.3 Comparison
20(1)
1.8 Types of Blockchains
21(2)
1.8.1 Public and Private Blockchains
21(1)
1.8.2 Consortium, Shared Ledger, Sidechain
21(1)
1.8.3 Hybrid Blockchains
22(1)
1.8.4 Comparison
22(1)
1.9 Applications
23(3)
1.10 Revisiting the Double-Spending Problem
26(1)
1.11 Summary
26(1)
2 Immutability of Blockchain
27(22)
2.1 Cryptography
27(3)
2.1.1 What Are Cryptography and Cryptanalysis?
28(1)
2.1.2 Background
28(1)
2.1.3 Basic Concepts
29(1)
2.2 Modern Cryptography
30(6)
2.2.1 Symmetric-Key Cryptography
31(2)
2.2.2 Public-Key Cryptography
33(3)
2.3 Cryptographic Applications
36(5)
2.3.1 TLS and SSL
36(1)
2.3.2 Cryptographic Hash Function
37(1)
2.3.3 Digital Signature
38(3)
2.4 Elliptic Curve Cryptography (ECC)
41(3)
2.4.1 Basic Concept
41(1)
2.4.2 Public and Private Keys
42(1)
2.4.3 How Does ECC Compare to RSA?
43(1)
2.5 Making Blockchain Immutable
44(4)
2.5.1 Block and Block Header
44(1)
2.5.2 Timestamp
44(1)
2.5.3 Merkle Tree
45(1)
2.5.4 Building the Chain
45(3)
2.6 Summary
48(1)
3 Consensus Mechanisms of Blockchain
49(12)
3.1 Distributed Systems and Consensus
49(3)
3.1.1 Distributed Systems
50(1)
3.1.2 Coordination and Agreement
50(1)
3.1.3 Consensus
51(1)
3.2 Byzantine Generals Problem
52(4)
3.2.1 Two Generals Paradox
52(1)
3.2.2 Byzantine Generals Problem
53(2)
3.2.3 Byzantine Fault Tolerance
55(1)
3.3 Blockchain's Consensus Mechanism
56(3)
3.3.1 Hashcash Proof of Work
56(1)
3.3.2 Proof of Work in Blockchain
57(1)
3.3.3 BFT in Blockchain
58(1)
3.4 Solving the Double-Spending Problem
59(1)
3.5 Summary
60(1)
4 Bitcoin: World's First Cryptocurrency
61(32)
4.1 What is Bitcoin?
61(2)
4.2 Brief History of Bitcoin
63(1)
4.2.1 Before Bitcoin
63(1)
4.2.2 Bitcoin Era
64(1)
4.3 Token: BTC
64(2)
4.3.1 Bitcoin Mining and Supply
65(1)
4.3.2 Units of Bitcoin
66(1)
4.4 Bitcoin's Blockchain
66(3)
4.4.1 Block Header
67(1)
4.4.2 Timestamp
67(1)
4.4.3 Merkle Tree
67(1)
4.4.4 Hash Generation
68(1)
4.4.5 Genesis Block
68(1)
4.5 Bitcoin Address
69(4)
4.5.1 Formats
71(1)
4.5.2 Hash Generation
72(1)
4.5.3 Address Structure
72(1)
4.6 Transactions
73(7)
4.6.1 Input and Output
74(3)
4.6.2 Redeeming Tokens
77(1)
4.6.3 Multi-Signature
78(1)
4.6.3.1 Escrow
78(1)
4.6.3.2 Cold Storage
78(1)
4.6.4 Generation Transaction
79(1)
4.6.5 Storing Data
79(1)
4.6.6 Contracts
79(1)
4.7 Mining
80(5)
4.7.1 Method
80(2)
4.7.2 Proof of Work
82(1)
4.7.3 Target and Difficulty
83(1)
4.7.4 Mining Process
84(1)
4.8 Split Coins and Altcoins
85(4)
4.8.1 Split Coins
85(1)
4.8.1.1 Bitcoin Cash
85(1)
4.8.1.2 Bitcoin Gold
85(1)
4.8.1.3 Bitcoin Private
86(1)
4.8.2 Altcoins
86(7)
4.8.2.1 Namecoin
87(1)
4.8.2.2 Litecoin
87(1)
4.8.2.3 Peercoin
88(1)
4.8.2.4 Nxt
88(1)
4.8.2.5 Dash
88(1)
4.9 Summary
89(4)
Section II Smart Contracts
5 Ethereum and Smart Contracts
93(16)
5.1 Introduction to Smart Contracts
93(3)
5.1.1 Vending Machine Analogy
94(1)
5.1.2 Nick Szabo and Bit Gold
95(1)
5.1.3 Turing-Completeness
96(1)
5.2 What is Ethereum?
96(1)
5.3 Token: ETH
97(2)
5.3.1 Pre-Mining
97(1)
5.3.2 Price
98(1)
5.3.3 Units
98(1)
5.4 Architecture
99(3)
5.4.1 Ethereum Virtual Machine (EVM)
99(1)
5.4.2 Account
100(1)
5.4.3 Address
101(1)
5.4.4 Mist
101(1)
5.5 Mining
102(1)
5.5.1 Mining Process
102(1)
5.5.2 Block-Generation Rate
103(1)
5.5.3 Rewards
103(1)
5.6 Smart Contracts in Ethereum
103(2)
5.6.1 Transactions
103(1)
5.6.2 Gas
104(1)
5.6.3 High-Level Languages
104(1)
5.7 ERC Standards
105(2)
5.7.1 ERC-20
105(1)
5.7.2 ERC-223
106(1)
5.7.3 ERC-721
106(1)
5.7.4 Other Standards
107(1)
5.8 Comparison to Bitcoin
107(1)
5.9 Summary
107(2)
6 NEO
109(8)
6.1 What is NEO?
109(1)
6.2 Token: NEO and GAS
110(1)
6.2.1 Token Generation
110(1)
6.2.2 Token Distribution
111(1)
6.3 Architecture
111(1)
6.3.1 Basic Structure
111(1)
6.3.2 Advanced Features
111(1)
6.4 Consensus Mechanism: dBFT
112(2)
6.4.1 Algorithm
112(1)
6.4.2 Procedure
113(1)
6.4.3 Transaction Validation
113(1)
6.4.4 View Change
114(1)
6.4.5 Fault Tolerance and Transaction Time
114(1)
6.5 Smart Contracts
114(2)
6.6 Summary
116(1)
7 EOS
117(10)
7.1 What is EOS?
117(1)
7.2 Token: EOS
118(1)
7.2.1 Initial Coin Offering
118(1)
7.2.2 Transaction Fees
119(1)
7.2.3 Inflation
119(1)
7.3 Architecture
119(1)
7.4 Consensus Mechanism: DPoS
120(2)
7.4.1 Algorithm
120(1)
7.4.2 Procedure
121(1)
7.4.3 Reward
122(1)
7.5 Smart Contracts
122(1)
7.6 EOS.IO Operating System
123(1)
7.6.1 Schema-Defined Actions and Database
123(1)
7.6.2 Separation of Authentication from Applications
124(1)
7.6.3 Inter-Blockchain Communication
124(1)
7.7 Summary
124(3)
Section III Financial Networks
8 Ripple
127(16)
8.1 What is Ripple?
127(1)
8.2 Token: XRP
128(1)
8.2.1 Token Generation and Distribution
128(1)
8.2.2 Bridge Currency
129(1)
8.2.3 Market Capitalisation
129(1)
8.3 Architecture
129(4)
8.3.1 Hawala
130(1)
8.3.2 XRP Ledger
131(1)
8.3.3 Transactions
132(1)
8.4 Consensus Mechanism: RPCA
133(3)
8.4.1 Components
133(1)
8.4.2 Consensus Process
134(1)
8.4.3 Correctness
135(1)
8.5 Codius and Interledger
136(1)
8.6 Real-Time Gross Settlement System
136(3)
8.6.1 RippleNet
137(1)
8.6.2 xCurrent
138(1)
8.6.3 xRapid
139(1)
8.6.4 xVia
139(1)
8.7 Partners
139(2)
8.8 Summary
141(2)
9 Stellar
143(14)
9.1 What Is Stellar?
143(1)
9.2 Token: Lumens (XLM)
144(2)
9.2.1 Generation and Distribution
144(1)
9.2.2 Price and Market Cap
145(1)
9.2.3 Role of XLM in the Protocol
145(1)
9.3 Architecture
146(1)
9.4 Consensus Mechanism
146(2)
9.4.1 Quorum and Slices
146(2)
9.4.2 Agreement
148(1)
9.5 Applications
148(5)
9.5.1 Anchors
148(1)
9.5.2 Distributed Exchange
149(1)
9.5.3 Multi-Currency Transactions
149(4)
9.6 Partners
153(1)
9.7 Summary
153(4)
Section IV Advanced Ledgers And Applications
10 Purpose-Built Distributed Ledgers
157(20)
10.1 Purpose-Built Ledgers and Blockchains
157(2)
10.2 Internet of Things: IOTA
159(3)
10.2.1 Overview
159(1)
10.2.2 Technical Details
159(2)
10.2.3 Applications
161(1)
10.2.4 Alternatives: IBM Watson and Waltonchain
161(1)
10.3 Supply Chain: OriginTrail
162(2)
10.3.1 Overview
162(1)
10.3.2 Technical Details
163(1)
10.3.3 Applications
163(1)
10.3.4 Alternatives: VeChain and OpenChain
163(1)
10.4 Connectivity: Moeco
164(2)
10.4.1 Overview
164(1)
10.4.2 Technical Details
164(2)
10.4.3 Applications
166(1)
10.5 Cybersecurity: Naoris
166(2)
10.5.1 Overview
166(1)
10.5.2 Technical Details
167(1)
10.5.3 Applications
168(1)
10.6 Private Network: HydraChain
168(2)
10.6.1 Overview
168(1)
10.6.2 Technical Details
168(2)
10.6.3 Applications
170(1)
10.7 Framework: Hyperledger
170(3)
10.7.1 Overview
170(1)
10.7.2 Technical Details
171(2)
10.7.3 Application
173(1)
10.8 Emerging Distributed Ledgers
173(2)
10.8.1 Medical Services: MediChain and MediLedger
173(1)
10.8.2 Drug Development: BlockPharma
174(1)
10.8.3 Quality Assurance: Ambrosus
174(1)
10.8.4 Sharing Economy: Slock.it
174(1)
10.8.5 Genomic Data Collection: Nebula Genomics
174(1)
10.9 Summary
175(2)
11 Applications of Blockchain
177(24)
11.1 Hype or Hope?
177(3)
11.2 Classification
180(2)
11.2.1 Classifying the Domains
181(1)
11.2.2 Classifying the Categories
181(1)
11.3 Citizen Services
182(4)
11.3.1 e-Governance
182(1)
11.3.2 Healthcare
183(2)
11.3.3 Education
185(1)
11.4 Business and Financial Services
186(1)
11.4.1 Financial Services
186(1)
11.4.2 Smart Property
187(1)
11.4.3 Exchange and Trading
187(1)
11.5 Online Marketplace
187(4)
11.5.1 e-Commerce
188(1)
11.5.2 Online Betting, Gambling and Gaming
189(1)
11.5.3 e-Auctions and Online Bidding
189(2)
11.6 Supply Chain, Production and Provenance
191(2)
11.6.1 Commercial Supply Chain
191(1)
11.6.2 Food Production
191(1)
11.6.3 Drug Manufacturing
192(1)
11.7 Safety and Security
193(2)
11.7.1 Cybersecurity
193(1)
11.7.2 Physical Safety, Security and Tracking
194(1)
11.8 Smart City
195(3)
11.8.1 Smart Home
195(1)
11.8.2 Smart Transportation
196(1)
11.8.3 Smart Grid
196(1)
11.8.4 Citizen Engagement
197(1)
11.8.5 Quality Control
197(1)
11.9 Summary
198(3)
Section V Cryptocurrency
12 Evolution of Money: From Barter to Bitcoin
201(18)
12.1 Money
201(3)
12.1.1 Functions of Money
202(1)
12.1.2 Properties
202(1)
12.1.3 Money Supply
203(1)
12.1.4 Central Bank
204(1)
12.2 Origin and Early Forms
204(8)
12.2.1 Barter: The Origin of Money?
204(2)
12.2.2 Commodity and Representative Money
206(1)
12.2.3 Coinage
207(2)
12.2.4 Banknotes
209(3)
12.3 Fiat Money
212(1)
12.3.1 Gold Standard
212(1)
12.3.2 US Dollar Standard
212(1)
12.3.3 Nixon Shock and Creation of Fiat Money
213(1)
12.4 Digital Money
213(2)
12.4.1 Centralised Digital Money
213(1)
12.4.2 Decentralised Digital Money
214(1)
12.5 Cryptocurrency
215(2)
12.6 Summary
217(2)
13 Cryptocurrency Mining
219(14)
13.1 Mining
219(2)
13.1.1 Evolution of Mining
220(1)
13.1.2 Mining Process
220(1)
13.1.3 Difficulty
221(1)
13.1.4 Rewards
221(1)
13.2 Hash Rate
221(1)
13.2.1 Understanding Hash Rate
221(1)
13.2.2 Calculating Hash Rate
222(1)
13.2.3 Hash Rate and Profits
222(1)
13.3 Mining Hardware
222(3)
13.3.1 Non-Specialised Hardware
222(2)
13.3.2 Specialised Hardware (ASICs)
224(1)
13.3.3 Profitability Factors
225(1)
13.4 Pooled Mining
225(3)
13.4.1 Pooled Mining Basics
225(1)
13.4.2 Mining Pools
226(2)
13.4.3 Reward Sharing
228(1)
13.5 Mining Nations
228(1)
13.6 Criticism of PoW Mining
229(2)
13.7 Summary
231(2)
14 Cryptocurrency Wallet
233(16)
14.1 Wallet
233(2)
14.1.1 Private Key and Address
234(1)
14.1.2 Transferring Funds
234(1)
14.2 Types of Wallets
235(6)
14.2.1 Web Wallet
236(1)
14.2.2 Software Wallet
236(2)
14.2.3 External Storage Media
238(1)
14.2.4 Paper Wallet
238(1)
14.2.5 Hardware Wallet
239(1)
14.2.6 Brain Wallet
240(1)
14.3 Special Wallets
241(1)
14.3.1 Multi-Signature Wallet
241(1)
14.3.2 Cold-Storage Wallet
241(1)
14.3.3 Receive-Only Wallet
242(1)
14.4 Deterministic Wallet
242(4)
14.4.1 Type-1 Wallet
242(1)
14.4.2 Type-2 Wallet
243(1)
14.4.3 HD Wallet
244(2)
14.5 Wallet Providers
246(1)
14.6 Summary
247(2)
15 Cryptocurrency Trading and Investment
249(18)
15.1 Investment
249(4)
15.1.1 Financial Instruments
250(1)
15.1.2 Commodities
251(1)
15.1.3 Currencies
251(1)
15.1.4 Derivatives
252(1)
15.1.5 Status of Cryptocurrency
253(1)
15.2 Portfolio
253(4)
15.2.1 Funds
253(1)
15.2.2 Indices
254(2)
15.2.3 ETFs
256(1)
15.3 Exchanges and Platforms
257(4)
15.3.1 Cryptocurrency Trading Exchange
258(1)
15.3.2 Derivative Trading Exchanges
259(1)
15.3.3 Investment Platforms
260(1)
15.4 Investment Strategy
261(1)
15.4.1 Day Trading
261(1)
15.4.2 Buy and Hold
262(1)
15.4.3 Value Investment
262(1)
15.5 Investing in Cryptocurrencies
262(3)
15.5.1 Self-Investment
263(1)
15.5.2 Guided Investment
264(1)
15.6 Regulation and Tax Affairs
265(1)
15.7 Summary
266(1)
16 Initial Coin Offerings (ICOs)
267(14)
16.1 Overview
267(2)
16.1.1 The Creation of ICOs
268(1)
16.1.2 How Do ICOs Work?
269(1)
16.2 Token Creation
269(2)
16.2.1 Token
269(1)
16.2.2 Platforms
270(1)
16.3 Understanding ICOs
271(3)
16.3.1 ICOs vs IPOs
271(1)
16.3.2 Signs of Good and Bad ICOs
272(1)
16.3.3 Advantages and Disadvantages
273(1)
16.4 ICOs in Number
274(1)
16.4.1 Amount Raised
274(1)
16.4.2 Breakdown by Industry
274(1)
16.4.3 Biggest Winners and Losers
275(1)
16.5 Scams and Criticisms
275(2)
16.6 Summary
277(4)
Section VI Socio-Economic Landscape
17 Economic Outlook of Cryptocurrency
281(14)
17.1 Classification
281(3)
17.1.1 Currency
282(1)
17.1.2 Commodity
283(1)
17.1.3 Stock
284(1)
17.2 Price of Bitcoin
284(1)
17.3 Volatility of Bitcoin
285(2)
17.4 Historic Price Predictions
287(1)
17.5 Price Movement of Major Cryptocurrencies
287(3)
17.5.1 ETH
288(1)
17.5.2 XRP
288(1)
17.5.3 XLM
289(1)
17.5.4 NEO
289(1)
17.5.5 EOS
289(1)
17.6 Reception
290(3)
17.6.1 Acceptance by Merchants
290(1)
17.6.2 Acceptance by Investors
291(1)
17.6.3 Acceptance by Governments
292(1)
17.7 Summary
293(2)
18 Crime, Criminals and Cryptocurrencies
295(22)
18.1 Criminal Activities
295(1)
18.2 Deep Web
296(3)
18.2.1 Darknet and Dark Web
297(1)
18.2.2 Onion Routing and Tor
297(1)
18.2.3 Bitcoin: The Missing Piece
298(1)
18.3 Darknet-Based Crimes
299(9)
18.3.1 Silk Road
299(2)
18.3.2 Post-Silk Road Markets
301(3)
18.3.3 Assassination Markets
304(2)
18.3.4 Cybercrimes
306(2)
18.4 Financial Crimes
308(2)
18.4.1 Money Laundering
308(2)
18.4.2 Market Manipulation
310(1)
18.5 Fraudulent Activities
310(2)
18.5.1 False Claims
311(1)
18.5.2 Scams
312(1)
18.6 Prevention
312(4)
18.6.1 Regulation
313(1)
18.6.2 Cooperation
314(1)
18.6.3 Participation
315(1)
18.7 Summary
316(1)
19 Regulations, Laws and Practices
317(12)
19.1 Legality of Blockchain and Cryptocurrency
317(1)
19.2 Regulatory Issues
318(2)
19.2.1 Misuse of Pre-Mining and ICOs
319(1)
19.2.2 Crackdowns on Mining and Trading
319(1)
19.3 Current Landscape
320(3)
19.3.1 Challenges
320(1)
19.3.2 Areas
321(1)
19.3.3 Blockchain-Friendly Nations
322(1)
19.4 Regulations for Blockchain Technology and Cryptocurrency
323(5)
19.4.1 The Americas
323(1)
19.4.2 Europe
324(2)
19.4.3 Asia
326(1)
19.4.4 Australia and Africa
327(1)
19.5 Summary
328(1)
20 Criticism, Scepticism and Support
329(16)
20.1 Before It All Started
329(1)
20.2 Early Days of Bitcoin
330(1)
20.3 Bitcoin Grabs Attention
331(1)
20.4 Beginning of the Bull Run
332(2)
20.5 Crazy Price Hike
334(1)
20.6 To Invest or Not to Invest?
335(2)
20.7 $10K and Counting
337(1)
20.8 Nosedive
338(6)
20.9 Summary
344(1)
Bibliography 345(10)
Index 355
Dr. Niaz Chowdhury is a postdoctoral researcher working with blockchain technology in the European Union funded project QualiChain. His research experience spans over a decade across three British and Irish nations in England, Scotland and Ireland. He presently holds a Research Associate position in the Open Blockchain group of Knowledge Media Institute, a small but renowned and well-regarded research lab within the Open University in England. He also completed two more postdocs before joining this position, one in the Department of Computing and Communication in the same university working for the Big Data and Smart City project MK:Smart while another at his current lab in the Data Science group. Dr. Chowdhury obtained his PhD from the School of Computing Science of the University of Glasgow in Scotland, as a recipient of the prestigious Scottish ORS Scholarship. He was also a research scholar at the School of Computer Science in Trinity College Dublin where he received Government of Ireland IRCSET Embark Initiative Scholarship. His earlier academic achievements include a bachelor and a master degree with gold medal distinction in Computer Science and Engineering from East West University, Bangladesh. Dr. Chowdhury published numerous journal articles, conference papers and book chapters on the blockchain technology, the Internet of Things, wireless networks and data science.