Bitcoin and blockchain: history and current applications

297 Pages·2020·8.503 MB·English

by  Balas, Valentina Emilia, Elngar, Ahmed A., Kayed, Mohammed, Panda, Sandeep Kumar

Bitcoin and Blockchain
Internet of Everything (IoE)
Series Editor:
Mangey Ram
Professor, Graphic Era University, Uttarakhand, India
IoT
Security and Privacy Paradigm
Edited by
Souvik Pal, Vicente Garcia Diaz, and Dac-Nhuong Le
Smart Innovation of Web of Things
Edited by
Vijender Kumar Solanki, Raghvendra Kumar, and Le Hoang Son
Big Data, IoT, and Machine Learning
Tools and Applications
Rashmi Agrawal, Marcin Paprzycki, and Neha Gupta
Internet of Everything and Big Data
Major Challenges in Smart Cities
Edited by
Salah-ddine Krit, Mohamed Elhoseny, Valentina Emilia Balas, Rachid Benlamri,
and Marius M. Balas
Bitcoin and Blockchain
History and Current Applications
Edited by
Sandeep Kumar Panda, Ahmed A. Elngar, Valentina Emilia Balas,
and Mohammed Kayed
For more information about this series, please visit: https://www.crcpress.
com/Internet-of-Everything-IoE-Security-and-Privacy-Paradigm/book-series/
CRCIOESPP
Bitcoin and Blockchain
History and Current Applications
Edited by
Sandeep Kumar Panda, Ahmed A. Elngar,
Valentina Emilia Balas, and Mohammed Kayed
MATLAB® is a trademark of The MathWorks, Inc. and is used with permission. The MathWorks
does not warrant the accuracy of the text or exercises in this book. This book’s use or discussion of
MATLAB® software or related products does not constitute endorsement or sponsorship by The
MathWorks of a particular pedagogical approach or particular use of the MATLAB® software.
First edition published 2020
by CRC Press
6000 Broken Sound Parkway NW, Suite 300, Boca Raton, FL 33487-2742
and by CRC Press
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
© 2021 Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, LLC
Reasonable efforts have been made to publish reliable data and information, but the author and
publisher cannot assume responsibility for the validity of all materials or the consequences of their
use. The authors and publishers have attempted to trace the copyright holders of all material repro-
duced in this publication and apologize to copyright holders if permission to publish in this form
has not been obtained. If any copyright material has not been acknowledged please write and let us
know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced,
transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying, microfilming, and recording, or in any information
storage or retrieval system, without written permission from the publishers.
For permission to photocopy or use material electronically from this work, access www.copyright.
com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA
01923, 978-750-8400. For works that are not available on CCC please contact mpkbookspermis-
[email protected]
Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation without intent to infringe.
ISBN: 978-0-367-90100-4 (hbk)
ISBN: 978-1-003-03258-8 (ebk)
Typeset in Times
by codeMantra
Dedicated to my sisters Sujata and Bhaina Sukanta, nephew
Surya Datta, wife Itishree (Leena), my son Jay Jagdish, and my
late father Jaya Gopal Panda and late mother Pranati Panda.
Sandeep Kumar Panda
Dedicated to my parents, my brother, my sisters, and also to
my kids Farida and Seif, your smile brings happiness in my life.
Ahmed A. Elngar

Contents
Preface.......................................................................................................................ix
Editors ....................................................................................................................xiii
Contributors ...........................................................................................................xvii
Chapter 1 Bitcoin: A P2P Digital Currency .........................................................1
Sathya A.R. and Ahmed A. Elngar
Chapter 2 Exploring the Bitcoin Network ..........................................................23
Sathya A.R. and K. Varaprasada Rao
Chapter 3 Blockchain Technology: The Trust-Free Systems ..............................37
Sathya A.R. and Ajay Kumar Jena
Chapter 4 Consensus and Mining in a Nutshell ..................................................55
Sathya A.R. and Santosh Kumar Swain
Chapter 5 Blockchain: Introduction to the Technology behind Shared
Information .........................................................................................65
Naseem Ahamed
Chapter 6 Growth of Financial Transaction toward Bitcoin and Blockchain
Technology .........................................................................................79
Chiranji Lal Chowdhary
Chapter 7 A Brief Overview of Blockchain Algorithm and Its Impact upon
Cloud-Connected Environment ..........................................................99
Subhasish Mohapatra and Smita Parija
Chapter 8 Solidity Essentials ............................................................................115
Parv Garg and Neeraj Khadse
Chapter 9 Installing Frameworks, Deploying, and Testing Smart Contracts
in Ethereum Platform .......................................................................137
Tushar Sharma
vii
viii Contents
Chapter 10 Blockchain in Healthcare Sector ......................................................163
S. Porkodi and D. Kesavaraja
Chapter 11 Blockchain Theories and Its Applications .......................................183
Jaipal Dhobale and Vaibhav Mishra
Chapter 12 Building Permissioned Blockchain Networks Using
Hyperledger Fabric ...........................................................................193
K. Varaprasada Rao, Mutyala Sree Teja, P. Praneeth Reddy,
and S. Saikrishna
Chapter 13 Fraud-Resistant Crowdfunding System Using Ethereum
Blockchain ........................................................................................237
Sandeep Kumar Panda
Index ......................................................................................................................277
Preface
Globally, the industries provide employment to about 500 million people from the
main business sectors which include service, retail, manufacturing, business, health
care, local and central government, finance sector, etc. All of these sectors are made
either automatic or semiautomatic by sophisticated business processes forming an
integral part of the digital economy. In this revolution, the Internet plays a vital role
in core business, and financial aspects of the digital economy are still centralized,
with the help of centralized agencies such as banks and tax agencies, to authenticate
and settle payments and transactions. These centralized services often are manual,
difficult to automate, and represent a bottleneck to facilitating a frictionless digital
economy. The blockchain technology, a distributed, decentralized, and public ledger,
addresses these issues by maintaining records of all transactions on a blockchain
network that promises a smart world of automation of complex services and manu-
facturing processes.
A blockchain network is a peer-to-peer network and does not require a central
authority or trusted intermediaries to authenticate or settle the transactions. The
first generation of blockchain network was coined by Satoshi Nakamoto in his 2008
white paper where the primary application of the blockchain network was the use of
electronic cash or cryptocurrency called Bitcoin. The second-generation blockchain
network called Ethereum was introduced in 2013. Ethereum allows a single program-
mable blockchain network to be used for developing different types of applications
where each application takes the form of a smart contract which is implemented in a
high-level language and deployed on the blockchain network.
There are very few books that can serve as a foundational text book for colleges and
universities looking to create new educational programs in the areas of blockchain,
smart contracts, and decentralized applications. The existing books are focused on
the business side of blockchain and case study–based evaluation of applications.
We have edited this book to meet the need at colleges and universities. This book
can serve as a textbook for senior- and graduate-level courses on the domains such
as business analytics, finance, Internet of Things, computer science, mathematics,
and business schools. This book is also dedicated to novice programmers and solu-
tion architects who want to build powerful, robust, optimized smart contracts using
solidity, and hyperledger fabrics from scratch.
This book is organized into 13 chapters.
Chapter 1, Bitcoin: A P2P Digital Currency, presents an overview of digital cur-
rencies, discusses the Bitcoin transactions and proof of work, reviews the Bitcoin
security attacks, and illustrates the Bitcoin development environment.
Chapter 2, Exploring the Bitcoin Network, describes the overall process of Bitcoin
networks like transactions, digital signatures, relay networks, and Bitcoin script.
Chapter 3, Blockchain Technology: The Trust-Free Systems, discusses blockchain
technology in detail and highlights some of the applications in which it can be used.
It also specifies some challenges and benefits of this technology that is all set to
transform the digital world.
ix