Blockchain in Action
Bina Ramamurthy
  • September 2020
  • ISBN 9781617296338
  • 352 pages
  • printed in black & white

A terrific introduction to blockchain that takes you beyond the lingo to understand core concepts.

Michael Jensen, Arcadia
A blockchain is a collection of data records, or "blocks," that are linked through using secure cryptographic hashes to form a "chain" that can be read and verified easily by anyone with the correct credentials but cannot be altered. This system is perfect for supply chains, health records, and other sensitive data where security and transparency are critical. Blockchain in Action introduces the fundamental principles of the blockchain and teaches you to build secure applications that can be used for voting, private auctions, and electronic record management.

About the Technology

Blockchain is more than just the tech behind Bitcoin—much more! Combining impenetrable security, decentralized transactions, and independently verifiable supply chains, blockchain applications have transformed currency, digital identity, and logistics. Platforms such as Ethereum and Hyperledger make it easy to get started by using familiar programming languages.

About the book

Blockchain in Action teaches you how to design and build blockchain-based decentralized apps, and is written in a clear, jargon-free style. First, you'll get an overview of how blockchain works. Next, you'll code your first smart contract using Ethereum and Solidity, adding a web interface, trust validation, and other features until your app is ready for deployment. The only thing you need to get started is standard hardware and open source software.
Table of Contents detailed table of contents

Part 1: Getting started with blockchain programming

1 Blockchain basics

1.1 From Bitcoin to blockchain

1.2 What is a blockchain?

1.3 Blockchain programming

1.3.1 Decentralized infrastructure

1.3.2 Distributed ledger technology

1.3.3 Disintermediation protocol

1.3.4 Trust enabler

1.4 Motivating scenarios

1.4.1 Automatic and consistent data collection

1.4.2 Timely information sharing

1.4.3 Verifiable compliance

1.4.4 Auditable actions for provenance

1.4.5 Guidance for governance

1.4.6 Attribution of actions

1.4.7 Pandemic management

1.5 Retrospective

1.6 Summary

2 Smart contracts

2.1 The concept of a smart contract

2.1.1 Bitcoin transactions versus smart contract transactions

2.1.2 What does a smart contract do?

2.2 Design of a smart contract

2.2.1 A use case diagram for the counter

2.2.2 Data assets, peer participants, roles, rules, and transactions

2.2.3 From class diagram to contract diagram

2.3 Development of a smart contract code

2.3.1 Solidity language

2.3.2 Smart contract code for Counter

2.4 Deploying and testing the smart contract

2.4.1 The Remix IDE

2.4.2 Deployment and testing

2.4.3 Key takeaways

2.5 What makes a blockchain contract smart?

2.6 Decentralized airline system use case

2.6.1 ASK definition

2.6.2 Sequence of operations

2.7 Airlines smart contract

2.7.1 Peer participants, data assets, roles, rules, and transactions

2.7.2 Airlines smart contract code

2.7.3 ASK smart contract deployment and testing

2.8 Smart contract design considerations

2.9 Best practices

2.10 Summary

3 Techniques for trust and integrity

3.1 Essentials of trust and integrity

3.1.1 Trust

3.1.2 Integrity

3.2 Digital democracy problem

3.2.1 Designing a solution

3.2.2 Use case diagram

3.2.3 Incremental development of code

3.2.4 Users, assets, and transactions

3.2.5 Finite state machine diagram

3.2.6 Trust intermediation

3.2.7 Defining and using modifiers

3.2.8 Contract diagram including modifiers

3.2.9 Putting it all together

3.3 Testing

3.3.1 Positive tests

3.3.2 Negative tests

3.4 Using modifiers, require(), and revert()

3.5 Assert() declarations

3.6 Best practices

3.7 Retrospective

3.8 Summary

4 From smart contracts to Dapps

4.1 Dapp development using Truffle

4.1.1 The development process

4.1.2 Installing Truffle

4.1.3 Building the Dapp stack

4.2 Install Ganache test chain

4.3 Develop the smart contract

4.3.1 Create a project folder

4.3.2 Add smart contract and compile

4.3.3 Configure blockchain network

4.3.4 Deploy the smart contract

4.4 Develop and configure the web application

4.4.1 Develop ballot-app

4.4.2 Launch the ballot-app

4.4.3 Install MetaMask wallet

4.4.4 Interact with Ballot-Dapp

4.4.5 Connect web client to smart contract

4.5 Retrospective

4.6 Best practices

4.7 Summary

Part 2: Techniques for end-to-end Dapp development

5 Security and privacy

5.1 Cryptography basics

5.1.1 Symmetric key cryptography

5.1.2 Asymmetric key cryptography

5.2 The relevance of public-key cryptography to blockchain

5.2.1 Generating Ethereum addresses

5.2.2 Transaction signing

5.2.3 Deploying smart contracts on Ropsten

5.2.4 Using the private key in mnemonic form

5.2.5 Populating a blockchain wallet

5.2.6 Deploying and transacting on Ropsten

5.3 Hashing basics

5.3.1 Digital signing of documents

5.3.2 Hashed data on distributed ledger

5.3.3 Hashes in Ethereum block header

5.3.4 Solidity hashing functions

5.4 Application of hashing

5.4.1 Blind auction design

5.4.2 Blind auction smart contract

5.4.3 Privacy and security aspects

5.4.4 Testing the BlindAuction contract

5.4.5 Test plan

5.5 Retrospective

5.6 Best practices

5.7 Summary

6 On-chain and off-chain data

6.1 On-chain data

6.2 Blind auction use case

6.2.1 On-chain event data

6.2.2 Blind auction with events

6.2.3 Testing with the web UI

6.2.4 Accessing on-chain data using the web3 API

6.3 Off-chain data: External data sources

6.4 ASK airline system

6.4.1 ASK concept

6.4.2 Airlines smart contract

6.4.3 ASK on-chain data

6.4.4 ASK off-chain data

6.4.5 ASK Dapp development process

6.4.6 ASK web user interface

6.4.7 Putting it all together

6.4.8 Interacting with ASK Dapp

6.5 Retrospective

6.6 Best practices

6.7 Summary

7 Web3 and a channel Dapp

7.1 Web3 API

7.1.1 Web3 in Dapp stack

7.1.2 Web3 packages

7.2 The channel concept

7.3 Micropayment channel

7.4 Micropayment channel use case

7.4.1 Traditional banking solution

7.4.2 Users and roles

7.4.3 On-chain and off-chain operations

7.4.4 MPC smart contract (MPC-contract)

7.4.5 MPC application development (MPC-app)

7.4.6 MPC sequence diagram

7.4.7 Demonstration of MPC execution

7.4.8 Accessing the web3 provider

7.4.9 Extensions of MPC

7.4.10 The relevance of the micropayment channel

7.4.11 Other web3 packages of interest

7.5 Retrospective

7.6 Best practices

7.7 Summary

8 Going public with Infura

8.1 Nodes and networks

8.2 Infura blockchain infrastructure

8.3 Going public with Infura

8.3.1 Blockchain node as a service

8.4 End-to-end process for public deployment

8.4.1 Account generation and management

8.4.2 Choosing a network and importing accounts

8.4.3 Collecting ether from faucets

8.4.4 Creating blockchain nodes on Infura

8.4.5 Installing HDWalletProvider

8.4.6 Configuring and deploying the smart contract

8.4.7 Configuring and deploying the web application

8.5 Deploying BlindAuction-Dapp on Infura

8.5.1 Setting up the blind auction environment

8.5.2 Decentralized participants

8.5.3 Configure and deploy the beneficiary account

8.5.4 Configure and deploy bidders

8.5.5 Interact with deployed blind auction Dapp

8.6 Deploying MPC-Dapp on Infura

8.6.1 Setting up the MPC environment

8.6.2 Configure and deploy the organizer

8.6.3 Configure and deploy the worker

8.7 Retrospective

8.8 Best practices

8.9 Summary

Part 3: A roadmap and the road ahead

9 Tokenization of assets

9.1 Ethereum standards

9.1.1 Ethereum improvement proposal

9.1.2 ERC20 token standard

9.1.3 Fungible and non-fungible tokens

9.2 RES4: Non-fungible real estate token

9.2.1 Use case diagram

9.2.2 Contract diagram

9.2.3 RES4 ERC721-compliant token

9.2.4 RES4 Dapp

9.2.5 Interaction with RES4 Dapp

9.3 Retrospective

9.4 Best practices

9.5 Summary

10 Testing smart contracts

10.1 Importance of testing smart contracts

10.1.1 Types of testing

10.1.2 Language choice for test programs

10.2 Testing counter smart contract

10.2.1 Writing counter test script

10.2.2 Positive and negative tests

10.2.3 Running the test script

10.3 Testing ballot smart contract

10.3.1 Writing the ballot test script

10.3.2 Executing the ballot test script

10.3.3 Describe() and it() test functions

10.4 Recap writing of test script

10.5 The blind auction test script

10.5.1 Analysis of describe() and it() code

10.5.2 Executing the blind auction test script

10.5.3 Full auction run

10.6 Retrospective

10.7 Best practices

10.8 Summary

11 A roadmap to Dapp development

11.1 Motivating scenario: Educational credentialing

11.2 The roadmap

11.3 Problem description

11.3.1 Context for the DCC application

11.3.2 Design choices

11.4 Analysis and design

11.4.1 Operation flow and finite state machine

11.4.2 Contract diagram

11.5 Developing the smart contract

11.5.1 Data structures

11.5.2 Events

11.5.3 Modifiers

11.5.4 Functions

11.6 Local deployment

11.7 Automated testing using truffle

11.8 Developing the web application

11.8.1 UI design

11.8.2 Coding the app.js

11.9 Testing the DCC-Dapp

11.10 Public deployment

11.10.1 Deployment on Ropsten-Infura

11.10.2 Create web-client for distribution

11.11 Retrospective

11.12 Best practices


12 Blockchain: The road ahead

12.1 Decentralized identity

12.2 Self-managed identity

12.3 Consensus and integrity

12.3.1 Proof of work

12.3.2 Proof of stake

12.3.3 Byzantine fault-tolerant consensus

12.4 Scalability

12.5 Scalability solutions

12.5.1 Side channel

12.5.2 Block size

12.5.3 Network speed

12.6 Privacy

12.7 Public, private, and permissioned networks

12.8 Confidentiality

12.8.1 Open information

12.8.2 A solution

12.9 Security

12.10 Securing it with cryptocurrency

12.11 Accessing off-chain data (Oracles)

12.12 From foundations to practical systems

12.13 Looking ahead

12.14 Best practices

12.15 Retrospective

12.16 Summary


Appendix A: UML blockchain design models

A.1 Problem analysis and design

A.2 Behavioral diagrams

A.2.1 Use case diagrams

A.2.2 Finite state machine diagrams

A.3 Structural diagrams

A.3.1 Class diagrams

A.3.2 Classes and relationships

A.4 Interaction diagrams

Appendix B: Design principles

What's inside

  • Blockchain compared with other distributed systems
  • Development in Solidity
  • Identity, privacy, and security
  • On-chain and off-chain data and operations

About the reader

For programmers who know JavaScript.

About the author

Bina Ramamurthy has thirty years of experience teaching distributed systems, data science, peer-to-peer networking, and blockchain.

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