Learn Ethereum: Build your own decentralized applications with Ethereum and smart contracts

Description

Ethereum is a blockchain-based, decentralized computing platform that allows running smart contracts. This book provides a basic overview of how Ethereum works, its ecosystem, mining process, and the consensus mechanism. It also demonstrates a step-by-step approach for building decentralized applications. This book begins with the very basics of Blockchain technology. Then it dives deep into the Ethereum architecture, framework and tools in its ecosystem. It also provides you an overview of ongoing research on Ethereum, for example, Layer 1 and 2 scaling solution, Stablecoin, ICO/STO/IEO, etc. Next, it explains Solidity language in detail, and provides step-by-step instructions for designing, developing, testing, deploying, and monitoring decentralized applications. In addition, you'll learn how to use Truffle, Remix, Infura, Metamask, and many other Ethereum technologies. It'll also help you develop your own cryptocurrency by creating ERC20, and ERC721 smart contracts from scratch. Finally, we explain private blockchains, and you learn how to interact with smart contracts through wallets. Cover Title Page Copyright and Credits About Packt Contributors Table of Contents Preface Section 1: Blockchain and Ethereum Basics Chapter 1: Blockchain and Cryptocurrency Technical Requirements Introducing blockchain technology Decentralized P2P network How does blockchain work? Rehashing cryptography Public key cryptography Cryptographic hash function Digital signature Anatomizing a blockchain consensus mechanism What is consensus? Proof-of-work How PoW works Targets and difficulty Incentives and rewards Double-spend issues Advantages and disadvantages Proof-of-stake Forking Hard fork Soft fork Understanding Bitcoin and cryptocurrency Bitcoin basics What is a wallet? Transactions, UTXO, and account balances Genesis block and coin supply How does Bitcoin payment work? Bitcoin transaction and block structure Transaction validation and block verification Limitations in Bitcoin Altcoins Ushering in the world of Ethereum Smart contract Ethereum Virtual Machine Account Summary Chapter 2: Ethereum Architecture and Ecosystem Technical Requirements Introducing Ethereum architecture Ethereum – the world computer The world of decentralization Diving deep into Ethereum Account Two types of accounts Externally owned account Contract account Transactions and messages Smart contract Ether and gas The Ethereum Virtual Machine Address and wallet Addresses in Ethereum Ethereum wallet Wallet tools Understanding mining in Ethereum Mining and consensus protocol Ethereum transaction and block structure Transaction validation and block verification Shift to proof-of-stake Working with tools and technologies in Ethereum ecosystem Ethereum client The Web3 Server API DApp development tools Summary Chapter 3: Deep Research on Ethereum Technical Requirements Understanding challenges in distributed systems The CAP theorem Horizontal scaling versus vertical scaling Scaling Ethereum Blockchain scalability trilemma Ethereum scaling solutions Block size Altcoins On-chain solutions Off-chain solutions ZK-SNARK State channel with Raiden Ethereum side chain with Plasma Ethereum sharding and Casper PoS consensus in Ethereum Following up on EVM and lower-level protocol improvements Implementing Ethereum 2.0 roadmap Introducing cryptoassets and Ethereum token standards Initial coin offerings STO and IEO Ethereum token standards Fungible and non-fungible tokens ERC-20 ERC-721 Stablecoin Dai stablecoin Making sense of cryptoeconomics Working with decentralized data and content storage Swarm IPFS BigchainDB Decentralized messaging with Whisper Summary Section 2: Blockchain Development Cycle Chapter 4: Solidity Fundamentals Technical Requirements Introducing Solidity Tools for the Solidity development environment Browser-based IDEs Standalone IDE with Solidity plugins Command-line development management tools Learning the fundamental programming structure in Solidity The layout of a Solidity source file Pragma Comments Import Structure of a contract State variables Built-in data types User-defined data type Functions Input parameters Output parameters Access modifiers The pure, view, and payable functions Constructor and destructor functions Fallback function Function overloading Function modifiers Events Global variables, contextual variables, and functions Understanding inheritance, abstract contracts, and interfaces Interface Abstract contract Inheritance Multiple inheritance and the diamond problem Function overriding Examining smart contract execution under the hood Mastering advanced programming concepts in Solidity Smart contract security Keep contracts simple and modular Use the checks-effects-interactions pattern DoS with block gas limit Handle errors in external calls Best practices in smart contracts Access restriction State machine Writing upgradable smart contracts Contract proxy and delegate Eternal storage Economic consideration of smart contract execution Putting it all together – rental property leasing Summary Chapter 5: Developing Your Own Cryptocurrency Technical Requirements Understanding token standards Setting up an Ethereum development environment Working with Truffle Creating an ERC-20 token Creating basic token information Defining and implementing the ERC-20 interface Assigning an admin role Working with the whitelist function Locking and unlocking an account The mint and burn tokens Creating ERC 721 token – the DigitalArt token Designing the decentralized digital art marketplace Setting up the DigitalArtERC721Token project Creating the basic token information Defining and implementing the ERC-721 standard Defining the art and art transaction struct Creating a non-fungible digital art token Implementing the buyArt() function Implementing the resellArt() function Implementing the findArt() function Implementing the findMyArts() function Implementing the findAllPendingArt() function Getting all art transactions through getArtAllTxn()  Summary Section 3: Ethereum Implementations Chapter 6: Smart Contract Development and Test Fundamentals Technical Requirements Understanding Remix development fundamentals Working with the Solidity compiler Analysis Testing Deploying and running transactions Debugging Understanding development using Truffle and unit testing The Truffle console and development features Running a Truffle migration Truffle unit testing Truffle Box Security testing Static and dynamic analysis MythX Securify Working with a linter Working with solhint Summary Chapter 7: Writing UI for the DApps Technical requirements Knowing about DApps Working with Web3 JavaScript API Setting up a DApp development environment Installing Ganache desktop Creating a development workspace Setting up the project for our DApp Deploying a smart contract Installing MetaMask and connecting to Ganache Setting MetaMask Ganache accounts Building frontend UI components Setting up project dependencies Getting the instance of a deployed contract Building a navigation bar The ART GALLERY page The PUBLISH YOUR ARTS page The MY WALLET INFO page Running the decentralized digital art market DApp Publishing your art (the first account) My wallet info (the first account) Publishing your art (the second account) My wallet info (the second account) Buying art (the second account) Reselling art Summary Chapter 8: Ethereum Tools and Frameworks Technical requirements Understanding the Ethereum development tools and frameworks Working with Infura Working with the Infura Ethereum API Using Remix with Infura The Ethereum client API Working with Web3j Ethereum storage Knowing the IPFS protocol Installing IPFS Starting an IPFS node Running an IPFS example Publishing a simple page in the command line Publishing and querying IPFS via Infura Working with Swarm Installing Swarm Installing Geth Running an example of Swarm Ethereum messages – Whisper Whisper protocol Whisper envelopes Whisper message Whisper example Popular smart contract libraries Working with OpenZeppelin Setting up a dev environment Access control Math Token Utils Summary Section 4: Production and Deployment Chapter 9: Creating an Ethereum Private Chain Technical requirements Understanding a private and permissioned blockchain Setting up a local private Ethereum blockchain Private blockchains without mining Setting up the environment Configuring the custom genesis file Running Geth Private blockchains with mining Setting up an environment Configuring the custom genesis file Running Geth Creating a new account Mining on a local private network Using optional flags with new chains Commands Ethereum options Developer chain options API and console options Networking options Transaction pool options Introducing the popular private blockchains in the industry Hyperledger Hyperledger Fabric Hyperledger Sawtooth Corda Quorum Private blockchains use cases Financial services Payments Audit and assurance Healthcare Medical records Medical costs Drugs Food supply chain Summary Chapter 10: Deployment of Your Smart Contract Technical requirements Deploying smart contracts with testnet Deploying a smart contract to the Goerli testnet with MyCrypto Creating a MetaMask account Getting test ether Deploying the smart contract Viewing deployed smart contracts on Etherscan Interacting with the deployed smart contract  Deploying a smart contract to the Ropsten testnet with MyEtherWallet Accessing or creating a new wallet on MyEtherWallet Getting test ether Deploying the smart contract Monitoring smart contracts Ethereum developer APIs  Further reading on uncle nodes Summary Chapter 11: Building Ethereum Wallets Technical requirements Understanding the wallet technology Understanding non-deterministic and deterministic wallets Mnemonic code words (BIP-39) Stretching mnemonic code words to the seed of the deterministic wallet HD wallets (BIP-32) Deriving a tree of keypairs Deriving wallet structure HD wallet path Multipurpose HD wallets (BIP-43) Multi-currency and multi-account wallets (BIP-44) Generating a private key in Ethereum Creating an Ethereum wallet Creating a non-deterministic wallet Viewing the Keystore file generated by the geth command Creating a non-deterministic wallet with MyCrypto Creating a non-deterministic wallet with MyEtherWallet Creating an HD wallet Working with third-party Ethereum wallets Wallets on different platforms Multi-signature wallets Smart contract wallets Hot and cold wallets Transferring funds between wallets Summary Section 5: Conclusion Chapter 12: Conclusion Technical requirements Facing the challenges of Ethereum and blockchain Consensus protocol and scalability UI/UX, usability, and design thinking Ethereum governance Government regulations Mainstream adoption A few more words about privacy Glancing over the Ethereum ecosystem Tools and infrastructure Decentralized applications AML and KYC Emerging technology fusion – blockchain, AI/ML, and IoT Internet of blockchains Blockchain meets AI and ML Smart things on a decentralized network Meeting the future of Ethereum Summary Other Books You May Enjoy Index