List of Figures |
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xix | |
List of Tables |
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xxv | |
About the Author |
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xxvii | |
Section I Blockchain And Bitcoin |
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1 Introduction to Blockchain |
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3 | (24) |
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3 | (4) |
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1.1.1 A Mysterious Scientist |
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4 | (1) |
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4 | (1) |
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1.1.3 Double-Spending Problem |
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5 | (1) |
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1.1.4 Nakamoto's Solution |
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6 | (1) |
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7 | (3) |
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7 | (1) |
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1.2.2 Definition of Blockchain |
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8 | (1) |
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8 | (1) |
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9 | (1) |
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1.3 Architectural Overview |
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10 | (4) |
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1.3.1 Centralised vs Decentralised Architecture |
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10 | (1) |
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1.3.2 Peer-to-Peer Network |
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11 | (2) |
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13 | (1) |
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14 | (2) |
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14 | (1) |
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1.4.2 Block Identifier and Height |
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15 | (1) |
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16 | (1) |
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16 | (1) |
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16 | (1) |
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16 | (1) |
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17 | (1) |
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17 | (1) |
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1.6.1 When Does a Fork Occur? |
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17 | (1) |
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18 | (1) |
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18 | (3) |
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1.7.1 Proof of Work (PoW) |
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18 | (1) |
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1.7.2 Alternative Consensus Algorithms |
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19 | (1) |
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20 | (1) |
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21 | (2) |
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1.8.1 Public and Private Blockchains |
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21 | (1) |
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1.8.2 Consortium, Shared Ledger, Sidechain |
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21 | (1) |
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22 | (1) |
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22 | (1) |
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23 | (3) |
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1.10 Revisiting the Double-Spending Problem |
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26 | (1) |
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26 | (1) |
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2 Immutability of Blockchain |
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27 | (22) |
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27 | (3) |
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2.1.1 What Are Cryptography and Cryptanalysis? |
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28 | (1) |
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28 | (1) |
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29 | (1) |
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30 | (6) |
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2.2.1 Symmetric-Key Cryptography |
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31 | (2) |
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2.2.2 Public-Key Cryptography |
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33 | (3) |
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2.3 Cryptographic Applications |
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36 | (5) |
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36 | (1) |
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2.3.2 Cryptographic Hash Function |
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37 | (1) |
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38 | (3) |
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2.4 Elliptic Curve Cryptography (ECC) |
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41 | (3) |
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41 | (1) |
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2.4.2 Public and Private Keys |
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42 | (1) |
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2.4.3 How Does ECC Compare to RSA? |
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43 | (1) |
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2.5 Making Blockchain Immutable |
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44 | (4) |
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2.5.1 Block and Block Header |
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44 | (1) |
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44 | (1) |
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45 | (1) |
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45 | (3) |
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48 | (1) |
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3 Consensus Mechanisms of Blockchain |
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49 | (12) |
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3.1 Distributed Systems and Consensus |
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49 | (3) |
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3.1.1 Distributed Systems |
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50 | (1) |
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3.1.2 Coordination and Agreement |
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50 | (1) |
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51 | (1) |
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3.2 Byzantine Generals Problem |
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52 | (4) |
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3.2.1 Two Generals Paradox |
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52 | (1) |
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3.2.2 Byzantine Generals Problem |
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53 | (2) |
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3.2.3 Byzantine Fault Tolerance |
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55 | (1) |
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3.3 Blockchain's Consensus Mechanism |
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56 | (3) |
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3.3.1 Hashcash Proof of Work |
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56 | (1) |
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3.3.2 Proof of Work in Blockchain |
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57 | (1) |
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58 | (1) |
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3.4 Solving the Double-Spending Problem |
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59 | (1) |
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60 | (1) |
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4 Bitcoin: World's First Cryptocurrency |
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61 | (32) |
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61 | (2) |
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4.2 Brief History of Bitcoin |
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63 | (1) |
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63 | (1) |
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64 | (1) |
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64 | (2) |
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4.3.1 Bitcoin Mining and Supply |
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65 | (1) |
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66 | (1) |
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66 | (3) |
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67 | (1) |
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67 | (1) |
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67 | (1) |
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68 | (1) |
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68 | (1) |
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69 | (4) |
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71 | (1) |
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72 | (1) |
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72 | (1) |
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73 | (7) |
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74 | (3) |
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77 | (1) |
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78 | (1) |
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78 | (1) |
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78 | (1) |
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4.6.4 Generation Transaction |
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79 | (1) |
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79 | (1) |
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79 | (1) |
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80 | (5) |
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80 | (2) |
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82 | (1) |
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4.7.3 Target and Difficulty |
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83 | (1) |
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84 | (1) |
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4.8 Split Coins and Altcoins |
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85 | (4) |
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85 | (1) |
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85 | (1) |
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85 | (1) |
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86 | (1) |
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86 | (7) |
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87 | (1) |
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87 | (1) |
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88 | (1) |
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88 | (1) |
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88 | (1) |
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89 | (4) |
Section II Smart Contracts |
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5 Ethereum and Smart Contracts |
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93 | (16) |
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5.1 Introduction to Smart Contracts |
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93 | (3) |
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5.1.1 Vending Machine Analogy |
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94 | (1) |
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5.1.2 Nick Szabo and Bit Gold |
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95 | (1) |
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5.1.3 Turing-Completeness |
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96 | (1) |
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96 | (1) |
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97 | (2) |
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97 | (1) |
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98 | (1) |
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98 | (1) |
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99 | (3) |
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5.4.1 Ethereum Virtual Machine (EVM) |
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99 | (1) |
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100 | (1) |
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101 | (1) |
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101 | (1) |
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102 | (1) |
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102 | (1) |
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5.5.2 Block-Generation Rate |
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103 | (1) |
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103 | (1) |
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5.6 Smart Contracts in Ethereum |
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103 | (2) |
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103 | (1) |
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104 | (1) |
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5.6.3 High-Level Languages |
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104 | (1) |
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105 | (2) |
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105 | (1) |
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106 | (1) |
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106 | (1) |
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107 | (1) |
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5.8 Comparison to Bitcoin |
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107 | (1) |
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107 | (2) |
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109 | (8) |
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109 | (1) |
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110 | (1) |
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110 | (1) |
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111 | (1) |
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111 | (1) |
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111 | (1) |
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111 | (1) |
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6.4 Consensus Mechanism: dBFT |
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112 | (2) |
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112 | (1) |
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113 | (1) |
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6.4.3 Transaction Validation |
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113 | (1) |
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114 | (1) |
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6.4.5 Fault Tolerance and Transaction Time |
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114 | (1) |
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114 | (2) |
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116 | (1) |
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117 | (10) |
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117 | (1) |
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118 | (1) |
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7.2.1 Initial Coin Offering |
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118 | (1) |
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119 | (1) |
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119 | (1) |
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119 | (1) |
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7.4 Consensus Mechanism: DPoS |
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120 | (2) |
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120 | (1) |
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121 | (1) |
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122 | (1) |
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122 | (1) |
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7.6 EOS.IO Operating System |
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123 | (1) |
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7.6.1 Schema-Defined Actions and Database |
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123 | (1) |
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7.6.2 Separation of Authentication from Applications |
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124 | (1) |
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7.6.3 Inter-Blockchain Communication |
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124 | (1) |
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124 | (3) |
Section III Financial Networks |
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127 | (16) |
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127 | (1) |
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128 | (1) |
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8.2.1 Token Generation and Distribution |
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128 | (1) |
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129 | (1) |
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8.2.3 Market Capitalisation |
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129 | (1) |
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129 | (4) |
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130 | (1) |
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131 | (1) |
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132 | (1) |
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8.4 Consensus Mechanism: RPCA |
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133 | (3) |
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133 | (1) |
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134 | (1) |
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135 | (1) |
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8.5 Codius and Interledger |
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136 | (1) |
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8.6 Real-Time Gross Settlement System |
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136 | (3) |
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137 | (1) |
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138 | (1) |
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139 | (1) |
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139 | (1) |
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139 | (2) |
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141 | (2) |
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143 | (14) |
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143 | (1) |
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144 | (2) |
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9.2.1 Generation and Distribution |
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144 | (1) |
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9.2.2 Price and Market Cap |
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145 | (1) |
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9.2.3 Role of XLM in the Protocol |
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145 | (1) |
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146 | (1) |
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146 | (2) |
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146 | (2) |
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148 | (1) |
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148 | (5) |
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148 | (1) |
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9.5.2 Distributed Exchange |
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149 | (1) |
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9.5.3 Multi-Currency Transactions |
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149 | (4) |
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153 | (1) |
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153 | (4) |
Section IV Advanced Ledgers And Applications |
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10 Purpose-Built Distributed Ledgers |
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157 | (20) |
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10.1 Purpose-Built Ledgers and Blockchains |
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157 | (2) |
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10.2 Internet of Things: IOTA |
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159 | (3) |
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159 | (1) |
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159 | (2) |
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161 | (1) |
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10.2.4 Alternatives: IBM Watson and Waltonchain |
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161 | (1) |
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10.3 Supply Chain: OriginTrail |
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162 | (2) |
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162 | (1) |
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163 | (1) |
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163 | (1) |
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10.3.4 Alternatives: VeChain and OpenChain |
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163 | (1) |
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164 | (2) |
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164 | (1) |
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164 | (2) |
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166 | (1) |
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10.5 Cybersecurity: Naoris |
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166 | (2) |
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166 | (1) |
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167 | (1) |
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168 | (1) |
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10.6 Private Network: HydraChain |
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168 | (2) |
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168 | (1) |
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168 | (2) |
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170 | (1) |
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10.7 Framework: Hyperledger |
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170 | (3) |
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170 | (1) |
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171 | (2) |
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173 | (1) |
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10.8 Emerging Distributed Ledgers |
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173 | (2) |
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10.8.1 Medical Services: MediChain and MediLedger |
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173 | (1) |
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10.8.2 Drug Development: BlockPharma |
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174 | (1) |
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10.8.3 Quality Assurance: Ambrosus |
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174 | (1) |
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10.8.4 Sharing Economy: Slock.it |
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174 | (1) |
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10.8.5 Genomic Data Collection: Nebula Genomics |
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174 | (1) |
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175 | (2) |
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11 Applications of Blockchain |
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177 | (24) |
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177 | (3) |
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180 | (2) |
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11.2.1 Classifying the Domains |
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181 | (1) |
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11.2.2 Classifying the Categories |
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181 | (1) |
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182 | (4) |
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182 | (1) |
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183 | (2) |
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185 | (1) |
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11.4 Business and Financial Services |
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186 | (1) |
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11.4.1 Financial Services |
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186 | (1) |
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187 | (1) |
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11.4.3 Exchange and Trading |
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187 | (1) |
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187 | (4) |
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188 | (1) |
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11.5.2 Online Betting, Gambling and Gaming |
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189 | (1) |
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11.5.3 e-Auctions and Online Bidding |
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189 | (2) |
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11.6 Supply Chain, Production and Provenance |
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191 | (2) |
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11.6.1 Commercial Supply Chain |
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191 | (1) |
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191 | (1) |
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11.6.3 Drug Manufacturing |
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192 | (1) |
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193 | (2) |
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193 | (1) |
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11.7.2 Physical Safety, Security and Tracking |
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194 | (1) |
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195 | (3) |
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195 | (1) |
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11.8.2 Smart Transportation |
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196 | (1) |
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196 | (1) |
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11.8.4 Citizen Engagement |
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197 | (1) |
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197 | (1) |
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198 | (3) |
Section V Cryptocurrency |
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12 Evolution of Money: From Barter to Bitcoin |
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201 | (18) |
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201 | (3) |
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12.1.1 Functions of Money |
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202 | (1) |
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202 | (1) |
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203 | (1) |
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204 | (1) |
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12.2 Origin and Early Forms |
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204 | (8) |
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12.2.1 Barter: The Origin of Money? |
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204 | (2) |
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12.2.2 Commodity and Representative Money |
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206 | (1) |
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207 | (2) |
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209 | (3) |
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212 | (1) |
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212 | (1) |
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12.3.2 US Dollar Standard |
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212 | (1) |
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12.3.3 Nixon Shock and Creation of Fiat Money |
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213 | (1) |
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213 | (2) |
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12.4.1 Centralised Digital Money |
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213 | (1) |
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12.4.2 Decentralised Digital Money |
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214 | (1) |
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215 | (2) |
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217 | (2) |
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219 | (14) |
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219 | (2) |
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13.1.1 Evolution of Mining |
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220 | (1) |
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220 | (1) |
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221 | (1) |
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221 | (1) |
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221 | (1) |
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13.2.1 Understanding Hash Rate |
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221 | (1) |
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13.2.2 Calculating Hash Rate |
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222 | (1) |
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13.2.3 Hash Rate and Profits |
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222 | (1) |
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222 | (3) |
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13.3.1 Non-Specialised Hardware |
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222 | (2) |
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13.3.2 Specialised Hardware (ASICs) |
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224 | (1) |
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13.3.3 Profitability Factors |
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225 | (1) |
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225 | (3) |
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13.4.1 Pooled Mining Basics |
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225 | (1) |
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226 | (2) |
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228 | (1) |
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228 | (1) |
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13.6 Criticism of PoW Mining |
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229 | (2) |
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231 | (2) |
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233 | (16) |
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233 | (2) |
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14.1.1 Private Key and Address |
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234 | (1) |
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14.1.2 Transferring Funds |
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234 | (1) |
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235 | (6) |
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236 | (1) |
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236 | (2) |
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14.2.3 External Storage Media |
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238 | (1) |
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238 | (1) |
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239 | (1) |
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240 | (1) |
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241 | (1) |
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14.3.1 Multi-Signature Wallet |
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241 | (1) |
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14.3.2 Cold-Storage Wallet |
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241 | (1) |
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14.3.3 Receive-Only Wallet |
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242 | (1) |
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14.4 Deterministic Wallet |
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242 | (4) |
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242 | (1) |
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243 | (1) |
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244 | (2) |
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246 | (1) |
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247 | (2) |
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15 Cryptocurrency Trading and Investment |
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249 | (18) |
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249 | (4) |
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15.1.1 Financial Instruments |
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250 | (1) |
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251 | (1) |
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251 | (1) |
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252 | (1) |
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15.1.5 Status of Cryptocurrency |
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253 | (1) |
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253 | (4) |
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253 | (1) |
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254 | (2) |
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256 | (1) |
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15.3 Exchanges and Platforms |
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257 | (4) |
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15.3.1 Cryptocurrency Trading Exchange |
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258 | (1) |
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15.3.2 Derivative Trading Exchanges |
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259 | (1) |
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15.3.3 Investment Platforms |
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260 | (1) |
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261 | (1) |
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261 | (1) |
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262 | (1) |
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262 | (1) |
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15.5 Investing in Cryptocurrencies |
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262 | (3) |
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263 | (1) |
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264 | (1) |
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15.6 Regulation and Tax Affairs |
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265 | (1) |
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266 | (1) |
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16 Initial Coin Offerings (ICOs) |
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267 | (14) |
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267 | (2) |
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16.1.1 The Creation of ICOs |
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268 | (1) |
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269 | (1) |
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269 | (2) |
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269 | (1) |
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270 | (1) |
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271 | (3) |
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271 | (1) |
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16.3.2 Signs of Good and Bad ICOs |
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272 | (1) |
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16.3.3 Advantages and Disadvantages |
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273 | (1) |
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274 | (1) |
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274 | (1) |
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16.4.2 Breakdown by Industry |
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274 | (1) |
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16.4.3 Biggest Winners and Losers |
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275 | (1) |
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16.5 Scams and Criticisms |
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275 | (2) |
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277 | (4) |
Section VI Socio-Economic Landscape |
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17 Economic Outlook of Cryptocurrency |
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281 | (14) |
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281 | (3) |
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282 | (1) |
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283 | (1) |
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284 | (1) |
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284 | (1) |
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17.3 Volatility of Bitcoin |
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285 | (2) |
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17.4 Historic Price Predictions |
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287 | (1) |
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17.5 Price Movement of Major Cryptocurrencies |
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287 | (3) |
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288 | (1) |
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288 | (1) |
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289 | (1) |
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289 | (1) |
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289 | (1) |
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290 | (3) |
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17.6.1 Acceptance by Merchants |
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290 | (1) |
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17.6.2 Acceptance by Investors |
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291 | (1) |
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17.6.3 Acceptance by Governments |
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292 | (1) |
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293 | (2) |
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18 Crime, Criminals and Cryptocurrencies |
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295 | (22) |
|
|
295 | (1) |
|
|
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) |
|
|
299 | (2) |
|
18.3.2 Post-Silk Road Markets |
|
|
301 | (3) |
|
18.3.3 Assassination Markets |
|
|
304 | (2) |
|
|
306 | (2) |
|
|
308 | (2) |
|
|
308 | (2) |
|
18.4.2 Market Manipulation |
|
|
310 | (1) |
|
18.5 Fraudulent Activities |
|
|
310 | (2) |
|
|
311 | (1) |
|
|
312 | (1) |
|
|
312 | (4) |
|
|
313 | (1) |
|
|
314 | (1) |
|
|
315 | (1) |
|
|
316 | (1) |
|
19 Regulations, Laws and Practices |
|
|
317 | (12) |
|
19.1 Legality of Blockchain and Cryptocurrency |
|
|
317 | (1) |
|
|
318 | (2) |
|
19.2.1 Misuse of Pre-Mining and ICOs |
|
|
319 | (1) |
|
19.2.2 Crackdowns on Mining and Trading |
|
|
319 | (1) |
|
|
320 | (3) |
|
|
320 | (1) |
|
|
321 | (1) |
|
19.3.3 Blockchain-Friendly Nations |
|
|
322 | (1) |
|
19.4 Regulations for Blockchain Technology and Cryptocurrency |
|
|
323 | (5) |
|
|
323 | (1) |
|
|
324 | (2) |
|
|
326 | (1) |
|
19.4.4 Australia and Africa |
|
|
327 | (1) |
|
|
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) |
|
|
334 | (1) |
|
20.6 To Invest or Not to Invest? |
|
|
335 | (2) |
|
|
337 | (1) |
|
|
338 | (6) |
|
|
344 | (1) |
Bibliography |
|
345 | (10) |
Index |
|
355 | |