Blockchain Application Security

Chapter 1The Blockchain Technology Primer

We are at the very beginning of time for the human race. It is not unreasonable that we grapple with problems. But there are tens of thousands of years in the future. Our responsibility is to do what we can, learn what we can, improve the solutions, and pass them on.

—Richard Feynman

1.1 Introduction

This chapter provides a comprehensive introduction to distributed ledger technology (DLT) and blockchain. It begins by defining DLT, clarifying its relationship to blockchain, and outlining the key characteristics and benefits of DLT. Next, it explores different blockchain network types, comparing public versus private and permissioned versus permissionless networks – followed by a discussion of scalability and interoperability solutions. An overview of blockchain’s data structure and various consensus algorithms is included, along with the evolution of cryptocurrencies. The chapter also emphasizes the importance of privacy and identity controls in blockchain technology and concludes by addressing legal and regulatory considerations.

Before delving into how to securely design and implement blockchain-based applications (such as dApps), it’s essential to understand the fundamental concepts and constructs of blockchain technology. A strong foundation in how data is stored, validated, and protected on the blockchain is crucial for recognizing potential risks, adhering to best practices, and ultimately building robust and secure solutions. ...