Contents List of Figures.xix List of Tables.xxv Section IâBLOCKCHAIN AND BIT COIN 1 Introduction to Blockchain.3 1.1 The Birth of Bitcoin.3 1.1.1 A Mysterious Scientist.
4 1.1.2 What is Bitcoin?.4 1.1.3 Double-Spending Problem.5 1.1.
4 Nakamotos Solution.6 1.2 Blockchain.7 1.2.1 Motivation.7 1.2.
2 Definition of Blockchain.8 1.2.3 Distributed Ledger.8 1.2.4 Key Properties.9 1.
3 Architectural Overview.10 1.3.1 Centralised vs Decentralised Architecture.10 1.3.2 Peer-to-Peer Network.11 1.
3.3 Characteristics.13 1.4 Block.14 1.4.1 Structure.14 1.
4.2 Block Identifier and Height.15 1.4.3 Genesis Block.16 1.5 Mining.16 1.
5.1 What is Mining?.16 1.5.2 Consensus.16 1.5.3 Incentivisation.
17 1.6 Forks.17 1.6.1 When Does a Fork Occur?.17 1.6.2 Types of Forks.
18 1.7 Consensus Mechanisms.18 1.7.1 Proof of Work (PoW).18 1.7.2 Alternative Consensus Algorithms.
19 1.7.3 Comparison.20 1.8 Types of Blockchains.21 1.8.1 Public and Private Blockchains.
21 1.8.2 Consortium, Shared Ledger, Sidechain.21 1.8.3 Hybrid Blockchains.22 1.8.
4 Comparison.22 1.9 Applications.23 1.10 Revisiting the Double-Spending Problem.26 1.11 Summary.26 2 Immutability of Blockchain.
27 2.1 Cryptography.27 2.1.1 What is Cryptography and Cryptanalysis?.28 2.1.2 Background.
28 2.1.3 Basic Concepts.29 2.2 Modern Cryptography.30 2.2.1 Symmetric-Key Cryptography.
31 2.2.2 Public-Key Cryptography.33 2.3 Cryptographic Applications.36 2.3.1 TLS and SSL.
36 2.3.2 Cryptographic Hash Function.37 2.3.3 Digital Signature.38 2.4 Elliptic Curve Cryptography (ECC).
41 2.4.1 Basic Concept.41 2.4.2 Public and Private Keys. 42 2.4.
3 How Does ECC Compare to RSA?.43 2.5 Making Blockchain Immutable. 44 2.5.1 Block and Block Header. 44 2.5.
2 Timestamp. 44 2.5.3 Merkle Tree.45 2.5.4 Building the Chain.45 2.
6 Summary.48 3 Consensus Mechanisms of Blockchain.49 3.1 Distributed Systems and Consensus.49 3.1.1 Distributed Systems.50 3.
1.2 Coordination and Agreement.50 3.1.3 Consensus.51 3.2 Byzantine Generals Problem.52 3.
2.1 Two Generals Paradox.52 3.2.2 Byzantine Generals Problem.53 3.2.3 Byzantine Fault Tolerance.
55 3.3 Blockchain''s Consensus Mechanism.56 3.3.1 Hashcash Proof of Work.56 3.3.2 Proof of Work in Blockchain.
57 3.3.3 BFT in Blockchain.58 3.4 Solving the Double-Spending Problem.59 3.5 Summary.60 4 Bitcoin: World''s First Cryptocurrency.
61 4.1 What is Bitcoin?.61 4.2 Brief History of Bitcoin.63 4.2.1 Before Bitcoin.63 4.
2.2 Bitcoin Era. 64 4.3 Token: BTC. 64 4.3.1 Bitcoin Mining and Supply.65 4.
3.2 Units of Bitcoin. 66 4.4 Bitcoin''s Blockchain. 66 4.4.1 Block Header.67 4.
4.2 Timestamp.67 4.4.3 Merkle Tree.67 4.4.4 Hash Generation.
68 4.4.5 Genesis Block.68 4.5 Bitcoin Address.69 4.5.1 Formats.
71 4.5.2 Hash Generation.72 4.5.3 Address Structure.72 4.6 Transactions.
73 4.6.1 Input and Output.74 4.6.2 Redeeming Tokens. 77 4.6.
3 Multi-Signature.78 4.6.3.1 Escrow.