Chris Dannen [Chris Dannen] - Introducing Ethereum and Solidity: Foundations of Cryptocurrency and Blockchain Programming for Beginners
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Introducing Ethereum and Solidity: Foundations of Cryptocurrency and Blockchain Programming for Beginners: summary, description and annotation
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Learn how to use Solidity and the Ethereum project second only to Bitcoin in market capitalization. Blockchain protocols are taking the world by storm, and the Ethereum project, with its Turing-complete scripting language Solidity, has rapidly become a front-runner. This book presents the blockchain phenomenon in context; then situates Ethereum in a world pioneered by Bitcoin.
See why professionals and non-professionals alike are honing their skills in smart contract patterns and distributed application development. Youll review the fundamentals of programming and networking, alongside its introduction to the new discipline of crypto-economics. Youll then deploy smart contracts of your own, and learn how they can serve as a back-end for JavaScript and HTML applications on the Web.
Many Solidity tutorials out there today have the same flaw: they are written for advanced JavaScript developers who want to transfer their skills to a blockchain environment. Introducing Ethereum and Solidity is accessible to technology professionals and enthusiasts of all levels. Youll find exciting sample code that can move forward real world assets in both the academic and the corporate arenas. Find out now why this book is a powerful gateway for creative technologists of all types, from concept to deployment.
What Youll Learn
See how Ethereum (and other cryptocurrencies) work
Compare distributed apps (dapps) to web apps
Write Ethereum smart contracts in Solidity
Connect Ethereum smart contracts to your HTML/CSS/JavaScript web applications
Deploy your own dapp, coin, and blockchain
Work with basic and intermediate smart contracts
Who This Book Is For
Anyone who is curious about Ethereum or has some familiarity with computer science Product managers, CTOs, and experienced JavaScript programmers
Experts will find the advanced sample projects in this book rewarding because of the power of Solidity
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Chris Dannen 2017
Chris Dannen , Introducing Ethereum and Solidity , 10.1007/978-1-4842-2535-6_10
Chris Dannen 1
(1) Brooklyn, New York, USA
Whether Ethereum is useful, and indeed groundbreaking, is best evaluated in the same terms as other network protocols. Its been so long since Ted Nelson coined the term hypertext in 1965, with his Xanadu project, that its easy to forget why people liked HTTP and its sibling, HTML. It had exactly one method, GET , which would request a page from a web server. The only acceptable response was an HTML page.
In many respects, the Ethereum network today is in the same stages as the Hypertext Transfer Protocol and the Hypertext Markup Language back in 1989. Its existence alone is a boon compared to what came before, so much so that the first iteration of the network feels almost like a one-trick pony.
Subsequent iterations will show that its seemingly sparse specification produces immensely sophisticated software. This chapter is dedicated to illustrating the kinds of applications that are on the near horizon.
To many cryptocurrency maximalists, the future will be replete with blockchains, which will have long since replaced every other technological paradigm. This will probably never come to passbecause traditional databases work fine for most thingsbut new interactions will result from these stateful networks that software developers and designers may not foresee today. And these interactions will encompass not just humans, but also machines working with an unprecedented free will. In the future, you may encounter the Ethereum protocol running below the surface in many of the everyday technological interactions you make. Well talk about how this future might develop in the following sections.
For large hardware makers, settling on industry standards for Internet of Things (IoT) has been difficult. Ethereum offers a secure, ownerlesss protocol that anyone can use. As a result, it has widely been seen as a boon for IoT. Some examples of IoT interactions on the Ethereum network might include the following:
Device-to-device payment policies: Lets say you want to allow your phone to spend up to $5 without asking your permission. Such an agreement could be presented much as an end-user license agreement (EULA) is for a mobile application today, but today EULAs are not empowered to move money. In a smart contract, the terms of an agreement you might customize, your phone would be able to buy things it knows you need. For example, say you run out of data on your LTE plan; it could pay for extra bandwidth, and even negotiate a price, without interrupting you to approve the purchase.
Encoding value or financialcontractsonto retail objects: It is difficult to merchandize intellectual property such as music or video, without a physical good to put in a product photo or on a store shelf. The same goes for financial products , which are hard to market because of their abstract nature. Gift-card-like objects in any size and shape could be used to sell financial products and services in a retail setting, by merely printing or encoding a contract address onto the item.
Hardware wallets: You may have seen small computer-like devices being marketed as hardware wallets for bitcoins or ether. Hardware wallets are USB-powered devices that connect to your computer and use its Internet connection to access the blockchain. Like any other node, a hardware wallet creates itself an address, and stores the private key (encrypted, of course) right there on the piece of hardware. Held in a media safe, hardware wallets are revolutionary in wealth management because they allow you to safely keep in your possession an arbitrarily large number of cryptoassets yourself.
Hardware wallets are generally safer than storing coins on your smartphone or PC, where you might forget theyre there, and accidentally lose themfor example, by formatting your hard drive without first backing up your private key. These devices are also quite durable. More important, they are typically built from audited, open source code and specifications, so you can rest assured your coins are kept safe from malware that might infect a computer or phone.
To see options for hardware wallets and other retail Ethereum gear, check out the product listing at http://wallets.eth.guide .
The Ethereum and Bitcoin blockchains also promise to change the way we buy normal retail goods.
Peer-to-peer marketplaceescrow contracts: Escrow contracts are used in a marketplace in which the buyer and seller do not know, or trust, each other. In an escrow contract, both the buyer and seller of a given item put up collateral in the same amount as the purchase. Collateral is something of value, held in trust, to secure a transaction in good faith. Only after the buyer confirms that the item has been delivered will the collateral be released back to the buyer and seller. This ensures that if either party tries to cheat the other, they end up sacrificing approximately the same amount they gain by cheatingpretty irrational!
Machine-readable patternsin public spaces: In programming, there is a concept of a pull request, whereby one collaborator requests for a project administrator to merge in code he or she has written. You can imagine an invoice to be a pull request for payment. Providing machine-readable codes on clothing or name tags would allow customers in retail spaces to interact with products or services and be invoiced passively, with a guarantee (presumably in a collateralized smart contract form) that the invoices will be resolved.
The way we finance everything from home loans to national debt might radically change as a result of smart contacts. In the US, Ethereum projects might take advantage of the JOBS Act passed in 2012 to relax restrictions on small business funding. The Title III component of this act, known as the CROWDFUND Act, creates a way for companies to use crowdfunding to issue securities, and went into effect May 16, 2016.
Crowdfunding: Because cryptocurrencies are so liquid (fast and easy to send from account to account), they have become a popular choice for denominating donations in crowdfunding campaigns. With the advent of the equity crowdfunding laws in the United States, we may see Ethereum smart contracts being used to create all kinds of incentive, payout, or dividend structures for backers who contribute to a new project. The crowdfunding of the Ethereum project itself, which raised $18 million in bitcoins, pioneered an unheard-of strategy for popularizing and endowing an open source protocol and governing nonprofit foundation. Its easy to imagine how a similar crowdfunding paradigm could be used to finance local public works, such as bridges and parks.
Federal currencyissuance: Both central banks and retail banks around the world have expressed interest in the issuance of digital currencies. Its conceivable that a government might beat private currencies to the punch by starting a federally mined chain and issuing a native fiat coin on that network.
People outside large organizations may also benefit from Ethereum in the following domains:
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