Blockchain

Engineering
Playbook
2024

Rohas Nagpal
Version 1.4 dated 1 January 2024
This book is part of the Official Courseware of the
free Blockchain Engineering Program
conducted by Rohas Nagpal.

To register, join one of these WhatsApp Groups:

Group 1 or Group 2 or Group 3

The Official LinkedIn Group for this course is:

https://www.linkedin.com/groups/9082777

You can subscribe to my Blockchain Newsletter:

https://blockchainblog.substack.com
 Contents

1. Blockchain Basics..............................................................8
1.1 Blockchain Nodes..........................................................14
1.2 Mining...............................................................................17
1.3 Layers of a Blockchain Network................................18
1.4 Types of Blockchains....................................................20
1.5 Blockchain Consensus Mechanisms.........................23
1.6 Blockchain Bridges........................................................27
1.7 Blockchain Metrics........................................................30
1.8 Merged Mining................................................................32
1.9 Blockchain Forks...........................................................34
1.10 Blockchain Addresses................................................36
1.11 Blockchain Wallets.....................................................38
1.12 Blockchain Record-keeping Models........................42
1.13 Asset Tokenization......................................................44
1.14 Smart Contracts..........................................................49
1.15 Blockchain use-cases.................................................52

2. Blockchain APIs...............................................................56

3. Network Security & Privacy.........................................64

3.1 Network Attacks & Vulnerabilities.............................65
3.2 Node Security Best Practices.....................................68
3.3 Network Monitoring Tools...........................................71
3.4 Privacy Enhancing Technologies................................74
4. Node Maintenance & Optimization.............................78
4.1 Data Storage and Management..................................79
4.2 Node Performance Metrics.........................................83
4.3 Performance Tuning & Optimization.........................86
4.4 Backup & Disaster Recovery......................................89

5. Bitcoin................................................................................92

6. Ethereum...........................................................................97

7. Multichain.......................................................................105

8. HYFI Blockchain............................................................120

9. Hyperledger....................................................................133

10. Blockchain & Web3 Tech Stack..............................151

11. ChatGPT Super Prompt Templates........................172

12. Interview Questions...................................................180

13. Quiz Questions............................................................191

14. Quiz Answers...............................................................201

 About the Author

Rohas Nagpal
Chief Blockchain Architect,
Hybrid Finance Blockchain
(HYFI)

Rohas Nagpal, began his career

as a hacker in the early 1990s,

In 1999, he co-founded the

Asian School of Cyber Laws,
dedicating 16 years to cyber
investigation and cyber law.

During this time, he also assisted the Government of

India in framing draft rules under the Information
Technology Act.

His work spanned 18 countries, investigating

cybercrimes & data breaches for hundreds of
organizations across sectors like aerospace, banking,
law enforcement, pharma & shipping.

He also authored the Cyber Crime Investigation

Manual, hailed as a "bible for cybercrime investigators"
by the Times of India.
5
In 2016, he co-founded BankChain, a community of 37
banks + IBM, Microsoft, and Intel. The core product
was a self-building blockchain ecosystem with a web
app, PWA & Blockchain REST API service.

He has also been a consultant for the Reserve Bank

Innovation Hub for preparing a Whitepaper on
Non-Fungible Tokens (NFT) and Central Bank Digital
Currency (CBDC).

He writes a weekly newsletter for Mint, advises several

Blockchain startups, and has developed the Blockchain
Token Valuator.

He also conducts the free Blockchain Engineering

Program.

He can be contacted at rohas@hyfiblockchain.com

6
(c) 2023-24 Rohas Nagpal. All rights reserved.

This book is part of the courseware of the free

Blockchain Engineering Program conducted by Rohas
Nagpal.

The information in my documents, social media

networks, websites, and videos is for general
information only and should not be taken as
constituting professional advice from me.

I am not liable for any loss caused, whether due to

negligence or otherwise arising from the use of, or
reliance on, the information provided directly or
indirectly.

I link to external resources for your convenience. I am

selective about them but I don’t endorse them.

No investigation has been made of common-law

trademark rights in any word. Words that are known to
have current trademark registrations are shown with
an initial capital and are also identified as trademarks.
 01
Blockchain
Basics
A blockchain:
● is a linear, chronological structure
● consists of blocks of data (transactions) that are
chained together.

Blockchains are Internets of Value.

The conventional internet uses protocols like TCP/IP

and SMTP to move data across the globe in seconds
(email video pdf, text, etc).

Blockchains enable the movement of value across the

world in seconds.

This value can be crypto assets like Bitcoin & Monero

or tokenized versions of real-world assets like
airplanes, carbon credits, real estate, etc.

Tokenization of real-world assets is the most important

Blockchain use case. It is explained in depth later in
this book.

Blockchains increase transparency and reduce the

need for intermediaries in financial use cases.

9
Conceptual Image of a Blockchain Network

10
While Blockchains have a linear chronological
structure, Distributed Ledger Technologies (DLTs) can
have different structures, such as:

● Graph e.g. IOTA

● Mesh e.g. Holochain
● Tree e.g. Corda

DLTs are suited for multiple use cases such as:

● Supply Chain Management

● Identity and Verification
● Healthcare
● Government and Public services

All Blockchains are DLTs,

but all DLTs are not Blockchains.

11
12
13
 1.1 Blockchain Nodes

A blockchain is a transaction database shared by all

nodes participating in a network.

A node is a computer that runs the blockchain's

software to validate & store the complete history of
transactions.

A full copy of a blockchain contains every transaction

ever executed in the native coin (e.g. ETH) and tokens
(e.g. BAT) created on the blockchain.

Transactions are bundled in blocks.

Each block contains a record of some / all recent

transactions. Each block also contains a reference to
the block that came immediately before it.

A blockchain node is a computer that runs the

blockchain's software to validate & store the complete
history of transactions on the network.

Blockchain nodes constantly exchange information on

new transactions & blocks.

14
A conceptual overview of a Blockchain Node

15
Archival Full Nodes
They are the most important. They host the entire
blockchain, validate blocks & maintain consensus.

Pruned Full Node

A pruned full node first downloads the entire
blockchain and then deletes blocks beginning with the
oldest block till it holds only the most recent
transactions up to the size limit set by the operator.

Master nodes
Users run masternodes to earn network rewards. Some
amount of native tokens have to be "locked" by
masternode operators.

Light nodes
A light node does not hold the full copy of the
blockchain. It saves download time & storage space by
only downloading block headers.

Cold nodes
They are used for signing transactions offline and
storing private keys away from the network.

Lightning nodes
They reduce the load on the network by enabling
off-chain transactions. These nodes enable faster and
cheaper transactions.

16
 1.2 Mining

In a Proof of Work blockchain like Bitcoin, each block

also contains an answer to a difficult-to-solve
mathematical puzzle.

Mining is the process of competing to be the next to

find the answer that "solves" the current block.

New blocks cannot be submitted to the network

without the correct answer.

The mathematical problem in each block is very

difficult to solve, but once a valid solution is found, it is
very easy to verify.

Every block contains a hash of the previous block.

This creates a chain of blocks from the first (genesis)

block to the current block.

It is extremely difficult to modify a block once it has

been in the blockchain for some time because every
block after it would also have to be generated again.

17
 1.3 Layers of a Blockchain Network

Layer 0: Infrastructure or Physical Layer

This consists of the hardware, software, and networks
that enable the functioning of the blockchain.

Layer 1: Logical Layer

This consists of the protocols, rules, and standards
that define the functioning of the blockchain.

Layer 2: Application Layer

This consists of the protocols, applications, and
services that build on top of the basic building blocks
provided by layer 1.

Layer 3: User Interface Layer

This consists of the interfaces, applications, and
services that enable users to interact with the
blockchain and access its underlying functionality.

The infographic below depicts the 4 layers of a

Blockchain Network.

18
19
 1.4 Types of Blockchains

Layer-0 Blockchains

Layer-0 blockchains enable developers to create

custom blockchains.

Example: Polkadot enables the creation of sovereign

blockchains with their own tokens.

These parachains plug into a single base platform

called the Relay Chain which is responsible for shared
security, consensus & cross-chain interoperability.

Other examples of L0 are Cosmos and Horizen.

L0 blockchains are different from Blockchain

Frameworks like Multichain and Hyperledger Fabric.

Frameworks are open-source software that enable

developers to create custom blockchains.

Remember: Layer-0 blockchains are networks while

Frameworks are software programs.

20
Layer-1 Blockchains

Layer-1 blockchains validate & execute transactions

without the need for any external network. Examples:
Bitcoin, and Ethereum Mainnet.

Layer-2 Blockchains

Layer-2 blockchains are "sidechains" built on top of

Layer-1 blockchains. The underlying Layer-1 (e.g.
Ethereum Mainnet) provides decentralization &
security, while the Layer-2 (e.g. Polygon PoS) provides
scalability.

Permission-less blockchains

Anyone can participate on public / permission-less

blockchains without restrictions. Examples: Bitcoin,
Litecoin, Ethereum.

Permissioned blockchains

Various controls can be set in a private / permissioned

blockchain.

Example: Hybrid Finance Blockchain (HYFI) where

permissions such as connect, send, receive, issue,
create, mine, activate, and admin can be set.

21
Federated blockchains

In a federated / consortium blockchain network, the

validation process is controlled by a select set of
nodes.

EVM-compatible chains

Ethereum Virtual Machine (EVM) is "the environment in

which all 'Ethereum' accounts and smart contracts
live".

Smart contracts are programs that run automatically

when some pre-defined conditions are met.

EVM compatibility is the ability to write & deploy smart

contract code that are:

1. compatible with EVM, and

2. can be recognized by Ethereum nodes.

Examples of EVM-compatible blockchains are

Avalanche, Binance Smart Chain, Fantom, and Polygon.

22
 1.5 Blockchain Consensus
Mechanisms

Consensus algorithms are the heart of blockchains.

They enable network participants to agree on the

contents of a blockchain in a distributed and trustless
manner.

Today there are over 75 consensus algorithms

including:

Proof-of-Work (PoW)
This was the world’s first consensus algorithm. Miners
"solve" mathematical puzzles by investing in electricity
and computational power e.g. Bitcoin.

Proof of Stake (PoS)

Holders "lock" a number of coins as a "stake" and are
randomly assigned validation rights for a new block
e.g. Algorand.

Hybrid PoW / PoS

This brings together the security of Proof of work and
the governance & energy efficiency of Proof-of-Stake
e.g. Decred.

23
Proof-of-Work-Time (PoWT)
This features a variable blocktime that scales with
mining power. The blockchain speeds up with power
increases. This mechanism scales the blockchain well
and increases transaction speed with power.

Proof of Meaningful Work (PoMW)

The energy invested by miners' is used for calculations
that benefit public scientific research projects (e.g.
medical research for cures, chemical research, and
astrophysical simulations).

Proof of Elapsed Time (PoET)

Each node goes to sleep for a random "wait time"
generated by the network. The node with the shortest
wait time wakes up first and commits a new block e.g.
Hyperledger Sawtooth.

Proof-of-replication (PoRep)
Storage miners prove 2 things:
● that they are using space to store replicas of
data,
● that the data can easily be accessed.

They get rewards in exchange for their storage space

e.g. Filecoin.

24
Delegated Proof of Stake (DPoS)
Holders "lock" a number of coins as a "stake" but
outsource validation to "delegates" selected based on
reputation and trustworthiness e.g. Bitshares.

Proof-of-Spacetime (PoSt)
Randomly selected miners prove that they have been
physically storing data for a certain period of time e.g.
Filecoin.

Proof-of-burn (PoB)
Miners reach a consensus by sending coins to an
"eater" or "burn" address. This permanently eliminates
coins from circulation, reduces inflation, and validates
transactions e.g. Slimcoin.

Proof-of-Authority (PoA)
Identified, known, and credible validators produce
blocks in this system. It is meant for private &
enterprise blockchains.

25
This mindmap shows 82 blockchain consensus
mechanisms divided into 9 categories.

26
 1.6 Blockchain Bridges

Let's say you live in India and are traveling to

Singapore. In India, we use Indian Rupees (INR) while in
Singapore, they use Singapore Dollars (SGD).

So you could convert some money from INR to SGD

using a bank. Or you could use an international card
that enables you to pay in SGD when you are in
Singapore.

This is simple in the world of banks. But a lot more

difficult in the world of Blockchains.

Ethereum Mainnet and Terra are two independent

Blockchains. They have different rules and consensus
mechanisms. The native token of Ethereum Mainnet is
ETH while that of Terra is LUNA.

Now suppose that you have a bunch of LUNA on Terra,

but want to use it on the Ethereum Mainnet. How do
you do that?

That's where a Blockchain Bridge comes into the

picture. You could use the Terra Bridge to buy
Wrapped Luna (WLUNA) which is an ERC-20 token
native to the Ethereum Mainnet.

27
In simple terms, here's how a typical bridge works:

1. It receives one type of crypto e.g. LUNA.

2. It locks this LUNA as a deposit.

3. It "mints" an equal amount of another crypto e.g.

Wrapped LUNA and releases it on another
blockchain e.g. Ethereum Mainnet.

Hacking Blockchain Bridges

Because bridges hold a ton of crypto, they are juicy

targets for hackers.

And because writing the code for bridges is insanely

complex, hackers are having a field day plundering
them.

When a bridge gets attacked, the hacker withdraws

crypto from one side of the bridge, e.g. Wrapped LUNA,
without depositing anything on the other side e.g.
LUNA.

One of the biggest crypto attacks took place in March

2022 when the Ronin bridge, built for Axie Infinity, was
hacked for $600+ million in ETH and USDC.

28
Ronin worked "off-chain" - it interfaced with the
blockchain but existed on external servers that were
not a part of the blockchain.

Ronin relied on 9 validator nodes, of which 5 nodes

were needed to validate transactions.

The hackers exploited code vulnerabilities and also

used social engineering.

Another major Bridge hack targeted Wormhole which

supports 6 blockchains - Terra, Solana, Ethereum,
Binance Smart Chain, Avalanche, and Polygon.

The cost of the hack was $325 million.

Bridges can be Trusted or Trustless.

A Trusted Bridge depends upon a central entity and

you lose control of your cryptos when you use it.

A Trustless Bridge operates using smart contracts and

you remain in control of your cryptos.

29
 1.7 Blockchain Metrics

Throughput
Throughput is the number of transactions per second
that a Blockchain consensus algorithm can process.

Fault tolerance threshold

Fault tolerance threshold is the upper limit of faulty
nodes that directly impacts the performance of a
blockchain consensus algorithm.

Finality
Finality (also called Latency) represents the time it
takes for a transaction to be settled in the "ledger" of a
blockchain.

Scalability
Scalability is the ability of a blockchain to expand
without degrading performance.

Bitcoin
● Throughput: 7 tps
● Threshold: 51%
● Finality: 60 min

30
Ethereum Mainnet
● Throughput: 14 tps
● Threshold: 51%
● Finality: 6 min

Polkadot
● Throughput: 1500 tps
● Threshold: 33%
● Finality: 60 secs

31
 1.8 Merged Mining

Merged mining is the process of mining two or more

blockchains at the same time.

Essentially the same proof of work can be used on

multiple chains.

Merged mining is technically called Auxiliary

Proof-of-Work (AuxPoW).

The concept is that the work done on one blockchain

can be leveraged as valid work on another blockchain.

The blockchain that provides the proof of work is

called the parent blockchain.

The blockchain that accepts the proof of work as valid

is the auxiliary blockchain.

To perform merged mining, all the involved blockchains

should be using the same algorithm.

Since Bitcoin uses SHA-256, any other blockchain that

uses SHA-256 can be mined along with Bitcoin subject
to some technical implementations.

32
Merged Mining increases the profitability and
performance of mining and is hugely beneficial for
miners.

Some examples of merge mining:

● Dogecoin and Litecoin
● Bitcoin and RSK

33
 1.9 Blockchain Forks

A "fork" is when a single blockchain splits into two.

Forks can be categorized as hard forks or soft forks.

Hard Fork

A hard fork is the result of an extensive network

change. Each node has to upgrade its software to be
compatible with the new processes.

If a node does not upgrade its software, it will be on a

different blockchain.

Soft Fork

In a soft fork, nodes running the old software are still

able to validate transactions. Software forks are
backward-compatible.

Ethereum Fork

In 2016, the world's first decentralized autonomous

organization (DAO) raised about US$ 150 million worth
of ETH through a token sale.

34
But a hacker exploited a bug in the "smart contract"
and siphoned out all the money!

A hard fork rolled back Ethereum's history to before

the hack.

This reallocated the hacked ether to a different "smart

contract" and allowed investors to withdraw their
funds.

The purists hated this, which led to Ethereum splitting

into 2 blockchains: Ethereum and Ethereum Classic.

Bitcoin Cash Fork

In July 2017, Bitcoin (BTC) miners representing more

than 80% of the Bitcoin computing power voted to
incorporate the SegWit2x (segregated witness)
technology to improve Bitcoin.

Many miners and developers, who did not want

SegWit2x to be introduced, initiated a hard fork and
created a new blockchain and cryptocurrency - Bitcoin
Cash (BCH).

35
 1.10 Blockchain Addresses

When you buy gold or real estate, you actually get

physical possession.

Blockchain assets (e.g. cryptocurrencies) are very

different.

On a blockchain, we all need a key pair - public key &

private key.

This key pair is generated using an algorithm such as

ECDSA (Elliptic Curve Digital Signature Algorithm).

Sample Private Key

b5ba96aae89dc703c27ec5b3d478a8b176b874f248c8
3e533d9edc18e6356d44

The private key is what you would need to digitally

"sign" transactions i.e. to send crypto to someone else.

If someone gets hold of your private key, they can

transfer all your crypto to another address.

36
This is what happens in most crypto ‘hacks’.

That's why we say that "Not your keys, not your coins".

Sample Public Key

02b90ecf13d0ef14cd777f3a427b712ddd46703375f45
8092714c1c72106803ca2

The public key is used to verify the digital signature. It

proves ownership of the private key.

Sample WIF
L3Jy6k2KCJ6uDNEj1hirw49sPWghT7Cg77rSDvfpAkA
C7F63PhGe

A "Wallet Import Format" (wif) is a shorter version of a

private key.

Sample Address
1AAE1EDcCAUmyBfi46G3vpik8oCaKVoabT

The address is similar to your bank account or UPI ID.

Anyone can send crypto to your address. The address
is derived from the public key.

If you send crypto to the "wrong" address, it’s gone

forever!

37
 1.11 Blockchain Wallets

A blockchain wallet is designed to:

● store your public and private keys,
● send and receive cryptos,
● monitor ‘balances’, and
● interact with supported blockchains.

There are 4 main types of wallets:

1. Paper Wallets
2. Hardware Wallets
3. Software Wallets
4. Exchange Wallets

A hot wallet is one that is connected to the Internet

and is considered the most vulnerable to hacking.

Examples: Software Wallets, Exchange Wallets.

A cold wallet is not connected to the Internet and is

considered more secure.

Examples: Paper Wallets, Hardware Wallets,

38
Paper wallets are inconvenient to use but are the
safest option. Consider using them if you have a large
number of crypto assets to keep for a long period of
time.

BitAddress is a JavaScript Client-Side Bitcoin Wallet

Generator.

You can use it to generate Bitcoin addresses and their

corresponding private keys in a web browser.

Site: https://www.bitaddress.org

To generate a Bitcoin address and its corresponding

private key, simply move your mouse randomly on the
bitaddress page.

A wallet will be generated in your web browser. It will

look something like this:

39
Hardware wallets are a little pricey and there’s always
the risk of losing or breaking them.

Software wallets are free & easy to use. But if you

accidentally delete them, your crypto is gone forever.

Examples: Trust Wallet, Metamask

40
So remember to back up the seed phrase - a bunch of
words that you can write down. Example:

history
lumber
quote
board
young
dove
robust
kit
invite
plastic
regular
skull

Wallets provided by Crypto Exchanges are called

"custodial" because the private keys are under the
control of the Exchange.

If they go bankrupt, you lose all your crypto.

Remember: Not your keys, not your coins.

41
1.12 Blockchain Record-keeping Models

Accounting or record-keeping methods are used by

blockchains to determine the provenance and ownership
of coins in the network.

3 types of record-keeping models are used in blockchain

networks:

1. UTXO (Unspent Transaction Output) Model e.g.

Bitcoin

2. Account/Balance Model e.g. Ethereum

3. Hybrid e.g. Cardano

Each Bitcoin transaction spends output from prior

transactions.

Each Bitcoin transaction also generates new outputs that

can be spent by transactions in the future.

A Bitcoin user’s wallet keeps track of all unspent

transactions associated with all addresses owned by the
user.

The balance of the wallet is the sum of those unspent

transactions.
42
UTXO can be compared to spending banknotes and
getting back change.

The account / balance model can be compared to

spending using a debit or credit card.

The benefits of the UTXO Model are scalability and

privacy (if the user uses new addresses for each
transaction).

The benefits of the account / balance model are simplicity

and efficiency.

Bitcoin derivatives such as Bitcoin Cash, Zcash, Litecoin,

Dogecoin, Dash, etc. are UTXO chains.

Ethereum, EOS, Tron, and Ethereum Classic are

account-based chains.

Cardano, Komodo, Tron, and Qtum use a hybrid model.

43
 1.13 Asset Tokenization

Imagine that you are relaxing on your favorite beach. You

whip out your smartphone and within minutes you’ve...

...bought shares in an innovative startup halfway across

the world

...traded a fraction of a Picasso painting for a fantastic

pair of collectible sneakers

...invested in the copyright license of your favorite movie

...swapped your gold & platinum holdings for fractional

ownership of a private plane and a cruise liner...

...invested in fractional ownership of an office building in

an upcoming high-rent location...

That’s the power of tokenization.

A Boston Consulting Group (BCG) report predicts that the

total size of illiquid asset tokenization globally would be
$16 trillion by 2030.

Considering that the total market capitalization of Crypto

Assets is currently less than 1.5 trillion, that's an amazing
10x opportunity!

44
 1. What are Illiquid Assets?

From a financial perspective, Assets can be either

Liquid or Illiquid.

Liquid Assets are those that can be easily converted to

cash e.g. Stocks, Bonds, Gold, Agricultural
commodities, etc.

Illiquid Assets are those that cannot easily be

converted to cash.

Examples:

1. Art: Paintings, Sculptures, and other forms of Fine

Art.

2. Carbon Credits: Tradable certificates representing

the right to emit a certain amount of carbon dioxide or
other greenhouse gases.

3. Copyright Licenses: Legal rights granted to the

creators of original works, such as music, movies,
books, and software.

4. Private Equity: Investments in startups and

companies that are not publicly traded on a stock
exchange.

5. Rare Collectibles: Unique items like vintage cars,

rare coins & stamps, luxury watches & jewellery, and
memorabilia.

45
6. Real Estate: Properties including residential,
commercial, industrial, and agricultural.

7. Structured Products: Complex financial instruments

such as Market-Linked Investments, Structured Notes,
Derivative Products, Insurance-Linked Securities, and
Collateralized Debt Obligations.

8. Luxury Liquor: High-end Whisky Casks and Wines.

2. What is Tokenization?

Tokenization is the process of converting the economic

rights of an asset into digital tokens on a blockchain.
These digital tokens represent a share or fraction of
the underlying asset.

Effectively this brings the asset to the Crypto world

where it can be fractionalized and traded 24x7 by a
global audience.

The biggest advantages of Tokenization are:

1. Democratization of investments by lowering entry

barriers.

2. Enabling small & individual investors to participate in

markets that were previously accessible only to
wealthy individuals or institutional investors.

3. Increased Liquidity and Market Efficiency

46
4. Bringing liquidity to markets that are traditionally
illiquid.

5. Bringing greater market efficiency and price

discovery.

3. How does Tokenization Create Wealth?

Tokenization offers new opportunities for investing in

various asset classes. Here are some statistics on the
market value of tokenizable assets:

• Art: US$ 580 Billion

• Carbon Credits: US$ 25 Billion

• Copyright Licenses: US$ 173 Billion

• Private Equity: US$ 11.7 Trillion

• Rare Collectibles: US$ 370 Billion

• Real Estate: US$ 326 Trillion

• Structured Products: US$ 7 Trillion

• Whisky Casks: US$ 300 Billion (5 years)

47
 Download the
Tokenization Playbook by Rohas Nagpal
rohasnagpal.com/docs/Tokenization_Playbook.pdf

48
 1.14 Smart Contracts

A smart contract is a computer program that

automatically executes tasks when specified conditions
are met.

Smart contracts:

● enable the automation of digital assets,

● enable trustless, transparent & verifiable
transactions,
● streamline processes,
● reduce the need for intermediaries and their
associated costs.

Smart contracts can be used for:

● financial transactions,
● supply chain management,
● digital identity,
● legal agreements.

The most important smart contract languages are

Solidity, Vyper, Cairo, and Rust.

Ethereum is the most widely used smart contract

blockchain.

49
Here's the code for a very basic smart contract called
"HelloWorld".

● It has one string variable called "message" which

is public and can be accessed by anyone.

● The contract has a constructor and an

"updateMessage" function.

50
 ● The constructor function executes automatically
when the contract is first deployed. In this case, it
sets the initial value of the "message" variable to
"Hello, World!".

● The "updateMessage" function allows anyone to

change the value of the "message" variable. It
takes in a single input, "newMessage", which is
the new value that the message variable should
be set to.

● This contract can be deployed on Ethereum.

Other contracts & external accounts can interact
with it via function calls.

To learn more, see these:

● Getting started with Smart Contracts

● How to write, compile & deploy a simple Solidity
smart contract
● How to create an ERC 20 token
● How to create an ERC721 token
● dApp Development frameworks
● How to build smart contracts with Marlowe

51
 1.15 Blockchain use-cases

● Transfer of land records / property

● Digital certificates management
● Pharmaceutical supply chain
● e-Notary service
● Blockchain-enabled e-Sign solution
● Farm Insurance
● Identity management
● Duty payments
● Automated customs enforcement and
compliance
● Agriculture / farm produce supply chains
● E-Voting
● Smart Grid applications include energy
transmission, distribution, trading, and marketing
of energy
● Authorized access to relaying in the substation
protection system
● Government crypto wallet platform for selling,
buying, and trading
● Multiple layer and multiple level access
Blockchain-based cloud storage of health test
records
● Validation of Bill of Lading in cross-border
transport
● Ease of validation of documents at customs at
the ports of entry and exit

52
● Electronic health record management
● Digital evidence management system
● Public service delivery
● Blockchain for social good use cases (charity,
donations)
● Metering and settlement
● Payment security mechanism
● Authentication and authorization services
● Automated control of decentralized power
● Smart grid application and grid management
● Microfinance for Self-Help Groups (SHG)
● Customs and trade finance
● Cross border trade
● Renewable energy trading and management
● Insurance underwriting and claims management
● Aggrotech environment
● Micro-financing, financing small businesses or
individuals
● Secured logistics document exchange (SLDE)
● Cold chain for supply chain
● National and state highways, toll collection,
tracking of public infrastructure
● Blockchain for urban development tracking
through Public Private Partnership
● Tracking the progress on climate agreement
through Blockchain

53
● Asset transfer across different government
departments
● Digital identities, and verifiable credentials to
secure privacy and enable new use cases
● Safe and secure vaccine distribution and
administration
● IoT device management and security
● Vehicle lifecycle management
● Chit fund operation and administration

54
55
 02
Blockchain
API
2. Blockchain API
Start with this video:

https://www.youtube.com/live/mX-WNX3C6VQ?featur
e=share&t=52

1. Private Key

A private key is created by picking a random 256-bit

number using a method that is not predictable or
repeatable e.g. bitaddress.org asks you to randomly
move your mouse around for a few seconds.

This should only be done using a cryptographically

secure pseudo-random number generator (CSPRNG).

57
A private key can be represented in multiple formats:

● Hex - 64 hexadecimal digits

● WIF - Wallet Import Format with the prefix 5
● WIF-compressed with the prefix K or L

Example of a Bitcoin private key in hexadecimal

format:
f7d662f28e1e6cbf6ac5a7129f36b2871e72c3f1d31036
509ae87962803b53df

Example of a Bitcoin private key in WIF-compressed

format:
L5XUUSuoF1SyrZW3kPqyFNWhDS52DsrGh2rQEw6bs
4kERcgiJU45

2. Public Key

A Public Key is calculated from the private key using

irreversible Elliptic Curve Cryptography.

Public Key = Private Key * Generator point (a constant)

Example of a Bitcoin public key in hexadecimal format:

021511f3e82638681e19c2ad9bf8550e82abfcf9814494
04288d81a84445dbf27a

Calculating the Private Key from the Public Key is

computationally infeasible as of today's computing
technology.

58
3. Address

The address is calculated from the public key through

a one-way cryptographic hash function.

Example: To calculate a bitcoin address, we compute

the SHA256 hash of the Public Key and then compute
the RIPEMD160 hash of the result.

Address = RIPEMD160(SHA256(Public Key))

Example of a Bitcoin Address:

1AThkzMLY37PYYJMUDydmjzS46xBr9ZMcm

4. Non-deterministic (Random) Wallets

Blockchain Wallets are of two main types:

● Non-deterministic (Random) Wallets

● Deterministic (Seeded) Wallets

Non-deterministic (Random) Wallets are just a

collection of randomly generated private keys. The
biggest problem with them is that they are difficult to
manage, back up, and import.

The basic code to generate a non-deterministic wallet

using BlockCypher API services is
https://api.blockcypher.com/v1/{BLOCKCHAIN}/main/
addrs

You will need to replace {BLOCKCHAIN} with the

blockchain name e.g. btc for Bitcoin, eth for Ethereum
Mainnet, etc.
59
5. Deterministic (Seeded) Wallets

Deterministic (Seeded) Wallets contain private keys

that are all derived from a common seed using a
one-way hash function.

A seed is a randomly generated number combined with

other data e.g. an index number to derive the private
keys.

A mnemonic code is a sequence of words that

represent a seed e.g.
urge pulp usage sister evidence arrest palm math
please chief egg abuse

The mnemonic code is used to create and re-create all

the keys. That's why you only need to back up these
words.

This process is defined in BIP0039:

● Create a random sequence of 128 to 256 bits.

● Create a checksum of the random sequence by
taking the first few bits of its SHA256 hash.
● Add the checksum to the end of the random
sequence.
● Divide the sequence into sections of 11 bits, using
those to index a dictionary of 2048 predefined
words.
● Produce 12 to 24 words representing the
mnemonic code.

60
6. Hierarchical Deterministic Wallets

Hierarchical deterministic (HD) wallets contain keys in a

tree structure. Parent keys can produce children keys,
which in turn can produce grandchildren keys. This can
go on infinitely.

Step 1: Generating Mnemonic Code and Extended

Public Key

The code for generating a BIP44 HD Wallet for Bitcoin

is here.
https://gist.github.com/rohasnagpal/dcec046406da51
5c4fbd85f895ebd0e9#file-bip44_hd_wallet-php

Note: You will need to generate a free Tatum API to use

this.

This is a sample response:

{
"mnemonic": "urge pulp usage sister evidence arrest
palm math please chief egg abuse",
"xpub":
"xpub6EsCk1uU6cJzqvP9CdsTiJwT2rF748YkPnhv5Qo
8q44DG7nn2vbyt48YRsNSUYS44jFCW9gwvD9kLQu9A
uqXpTpM1c5hgg9PsuBLdeNncid"
}

SLIP-0044 : Registered coin types for BIP-0044

BIP-0044 defines a logical hierarchy for deterministic
wallets. Level 2 of the hierarchy describes a coin type
in use. See details here:
https://github.com/satoshilabs/slips/blob/master/slip-
0044.md
61
Step 2: Generating the address

This code generates the address from the extended

public key and derivation path index:
https://gist.github.com/rohasnagpal/117b459e9a8459
b20ce95dcda904ae8e#file-generating-the-address

Note: You will need to generate a free Tatum API to use

this.

This is a sample response.

{
"address":
"0xa7673161CbfE0116A4De9E341f8465940c2211d4"
}

Step 3: Generating the private key

This code generates a private key for an address from

a mnemonic for a given derivation path index:

https://gist.github.com/rohasnagpal/c791fd4573e8408
8437688a4859ae673#file-generate-private-key

Note: You will need to generate a free Tatum API to use

this.

This is a sample response.

{"key":"cMotAJwwC3hruht3gYKBBLm9kUhEWvfovDTL
GPy4biyNbR2VBXLG"}

62
Sample BTC HD Wallet:
https://www.rohasnagpal.com/web3/files/hd_wallet_bt
c.php

Sample ETH HD Wallet:

https://www.rohasnagpal.com/web3/files/hd_wallet_et
h.php

63
 03
Network
Security
& Privacy
3.1 Blockchain Network Attacks &
Vulnerabilities

51% Attack

If a single miner or mining pool controls more than 50%

of the network's mining hashrate, they can manipulate
the blockchain's consensus mechanism, allowing them
to reverse transactions and double-spend coins. This
attack is mostly a concern for smaller, less
well-established blockchains like Bitcoin SV.

Sybil Attack

In a Sybil attack, an attacker subverts the reputation

system of a peer-to-peer network by creating a large
number of pseudonymous identities, using them to gain
a disproportionately massive influence.

Eclipse Attack

An Eclipse attack is when an attacker controls all of

the victim's connections to the network, isolating the
victim from the rest of the blockchain network, and
feeding them false information.

Routing Attack

By manipulating the routing of information over the

internet, an attacker can partition the blockchain
network or delay block propagation, increasing the risk
of double-spending attacks.
65
Selfish Mining Attack

In a selfish mining attack, a miner mines a new block

and keeps it secret from other miners. If the selfish
miner can find a second block before the others find
any, they can publish their chain and invalidate the
work of the other miners.

Double Spending Attack

This type of attack involves a situation where a user

manages to spend their cryptocurrencies more than
once by creating multiple copies of the transaction.

Replay Attack

A replay attack involves re-transmitting or delaying a

valid data transmission that has been fraudulently
repeated or delayed. This might occur during a hard
fork if proper security measures are not in place.

Timejacking Attack

This attack involves manipulating the timestamp of a

node, which can affect the blockchain's functionality, as
block generation relies on accurate timekeeping.

Smart Contract Vulnerabilities

Smart contracts are prone to various types of bugs and

vulnerabilities, including re-entrancy attacks, where
external contract calls can be hijacked. They are also
vulnerable to issues with underflows and overflows.

66
Phishing Attacks

Similar to traditional phishing attacks, blockchain phishing

attempts involve tricking users into giving away their
private keys, often through fake websites or social
engineering tactics.

Note: Each blockchain protocol will have its own specific

potential vulnerabilities depending on its design and
architecture. It's important for blockchain engineers to be
aware of these possible attacks.

67
3.2 Node Security Best Practices
Securing a blockchain node is essential to maintain the
integrity of the overall network and to protect the
information stored within the node.

Here is a comprehensive checklist for best practices in

node security:

❏ Regular Software Updates: Always ensure that

the node software and all of its dependencies are
up-to-date. This includes the operating system,
blockchain software, and any other installed
software.

❏ Firewall Configuration: Use a firewall to limit and

control the traffic that your node accepts. The
firewall should be configured to allow necessary
P2P traffic while blocking unnecessary or
potentially harmful traffic.

❏ DDoS Protection: Protect your node against

Distributed Denial-of-Service (DDoS) attacks. This
could include rate limiting, IP whitelisting, or using
a third-party DDoS protection service.

❏ Secure Communication: Use secure

communication protocols to protect data in
transit. For instance, Secure Socket Layer (SSL) /
Transport Layer Security (TLS) can be used to
encrypt communication.

68
❏ Role-Based Access Control: Use Role-Based
Access Control (RBAC) to limit who can access
what resources. It should be ensured that users
and applications only have the permissions that
they need and nothing more.

❏ Secure Key Management: Private keys should be

securely stored and never exposed. They should
also be backed up in a secure location. Hardware
Security Modules (HSMs) or secure key
management services can be used for enhanced
security.

❏ Regular Auditing: Regularly audit your node for

any signs of irregular or suspicious activity. This
includes monitoring log files, checking for
unauthorized access, and inspecting outgoing
traffic.

❏ Physical Security: Physical security is as

important as digital security. The hardware
running the node should be secured against
physical tampering.

❏ Redundancy and Backups: Ensure data

redundancy and regular backups. If the node
data gets corrupted or lost, having a backup
allows for a quick recovery.

❏ Secure APIs: If your node provides an API, ensure

that it's secure. This might include requiring API
keys, rate limiting, and regularly auditing API
usage.

69
❏ Patch Management: Regularly apply security
patches to all software. Unpatched software can
be a security vulnerability.

❏ Network Segmentation: Use network

segmentation to limit the potential impact of a
compromise. Sensitive systems, like a node,
should be isolated from less secure parts of the
network.

❏ Incident Response Plan: Have a clear incident

response plan in place in case of a security
breach. The quicker you can respond to a
security incident, the less damage it's likely to
cause.

70
3.3 Network Monitoring Tools
Network monitoring is an essential part of maintaining
a healthy and secure blockchain node.

Here are some popular tools used for network

monitoring:

Wireshark

This is an open-source protocol analyzer that network

professionals use for troubleshooting, analysis,
software and protocol development, and education. It
allows you to examine data from a live network or
from a capture file on disk.

Nagios

Nagios is a powerful, enterprise-grade open-source

monitoring system that allows organizations to identify
and resolve IT infrastructure problems before they
affect critical business processes.

Zabbix

Zabbix is an open-source monitoring tool for networks

and applications. It is designed to monitor and track
the status of network services, servers, and other
network hardware.

71
Prometheus

This open-source systems monitoring and alerting

toolkit can handle multi-dimensional data collection as
well as querying and alerting. It's often used in
combination with a visualization tool, like Grafana.

Netdata

Netdata is a free, open-source and real-time

performance and health monitoring tool with a web
front-end. It's useful for tracking performance
anomalies.

Ethereum Network Intelligence API

This is a backend-only part of a tool that provides a

complete overview of the current state of the
Ethereum network, including information about blocks,
transactions, and other network activity.

Bitcoin CLI (Command-Line Interface)

For Bitcoin nodes, the built-in command-line interface

can provide a wealth of information about the node's
operation and the network's status.

IFTOP

It listens to network traffic on named interfaces and

shows a table of current bandwidth usage by pairs of
hosts.

72
TCPdump

This command-line utility is a powerful tool for

analyzing network behavior and troubleshooting
problems.

Elastic Stack (ELK - Elasticsearch, Logstash, Kibana):

This is a set of open-source tools that work together to

help you monitor your system by collecting logs from
various sources, storing, indexing and visualizing them
in a centralized location.

73
3.4 Privacy Enhancing Technologies
Privacy Enhancing Technologies (PETs) are designed to
uphold data minimization principles and allow
individuals to retain control and ownership of their
personal data.

In the context of blockchain, several technologies can

enhance privacy:

Zero-Knowledge Proofs (ZKPs)

ZKPs are cryptographic methods that allow one party

(the prover) to prove to another party (the verifier) that
they know a value of a specific piece of information
without conveying any other information apart from the
fact that they know this value.

Zcash, a cryptocurrency, uses ZKPs to maintain the

privacy of transactions.

Ring Signatures

A type of digital signature that can be performed by

any member of a group of users that each have keys.
It's impossible to determine which of the group
members' keys was used to produce the signature.

Monero, a privacy-focused cryptocurrency, uses ring

signatures to provide transaction privacy.

74
Coin Mixing or CoinJoin

Services like CoinJoin allow multiple users to combine

their transactions into a single transaction, which
makes it difficult to determine which inputs (coins sent)
correspond to which output (coins received).

Mimblewimble

This blockchain protocol uses confidential transactions

and a unique transaction structure to dramatically
improve both scalability and privacy. It's used by
cryptocurrencies like Grin and Beam.

Homomorphic Encryption

This form of encryption allows computations to be

done on encrypted data without decrypting it first. The
result of the computation is encrypted and can be
decrypted to get the actual result.

Private Information Retrieval (PIR)

PIR protocols allow a user to retrieve an item from a

server in possession of a database without revealing
which item is retrieved. This is useful for light clients in
blockchain networks, which need to retrieve certain
parts of the blockchain without revealing their
interests.

75
Secure Multi-Party Computation (sMPC)

sMPC allows a set of parties to compute a function

over their inputs while keeping those inputs private.
This could be used in a blockchain setting to enable
private transactions and smart contracts.

Tor/I2P Networks

While not specific to blockchain, using privacy

networks like Tor or I2P can help hide a user's IP
address when making transactions or operating a
node, thus enhancing privacy.

These technologies can be used individually or

combined to provide multiple layers of privacy
protection.

76
 Download the Blockchain Security Controls from:

https://www.rohasnagpal.com/docs/blockchain-security/blockc
hain_security_controls.pdf

77
 04
Node Maintenance
& Performance
Optimization
4.1 Blockchain Data Storage and
Management
In a blockchain network, data storage and management
is a crucial aspect of maintaining efficient operations
and reliability.

Here's a breakdown of key concepts and strategies

involved in blockchain data storage and management:

Blockchain Structure

A blockchain is essentially a linked list where each

block contains a group of validated transactions and a
reference to the previous block via a hash.

Each transaction in a block is made up of metadata

and inputs and outputs.

On-Chain Storage

Storing data directly on the blockchain is known as

on-chain storage. This means that the data is stored in
the transactions themselves and becomes an
immutable part of the blockchain.

This is generally the most secure form of storage but is

also the most expensive and least scalable due to the
size limitations of a block and the cost of transactions.

79
Off-Chain Storage

Large scale data storage in blockchain is not feasible

due to cost and size restrictions. Hence, only the hash
of the data or a reference to the data is stored
on-chain, while the actual data is stored off-chain, i.e.,
outside of the blockchain.

Off-chain data storage could be centralized servers,

distributed file systems (like IPFS), or data clouds.

Decentralized Storage Systems

Decentralized storage systems like the InterPlanetary

File System (IPFS), Filecoin, or Swarm are used for more
efficient and distributed data storage and retrieval.

This type of system is often used in conjunction with a

blockchain to create decentralized applications that
require file storage.

Sharding

Sharding is a scalability technique where the state of

the blockchain is divided into partitions or "shards",
each capable of processing its own transactions and
smart contracts.

Sharding can potentially allow a blockchain to process

many transactions in parallel, improving scalability.

80
Pruning

Blockchain pruning is a method of limiting a node's

storage requirements by discarding older blocks from
storage after they've been verified and their
transactions have been accounted for.

Pruned nodes keep only the set of transactions that

are necessary to maintain a fully validating node (i.e.,
the blockchain's UTXO set).

State Channels

These are two-way pathways opened between two

users that want to make multiple transactions without
committing all transactions to the blockchain.

This reduces the strain on the network and reduces

fees for the two participants.

Database Management

Depending on the specific implementation, blockchains

may utilize traditional database systems (like LevelDB
or RocksDB used in Bitcoin and Ethereum) to store and
retrieve data efficiently.

Backups

Regular backups of the blockchain data (i.e., the entire

ledger or just the latest state) are essential to ensure
data availability in case of any faults or data
corruption.

81
A combination of these techniques can be used
depending on the specific use case and requirements.

Each technique comes with its own trade-offs in terms

of security, cost, scalability, and decentralization.

82
4.2 Node Performance Metrics
Node performance metrics help in understanding the
overall health and efficiency of a blockchain node.

They enable you to identify potential issues and

optimize the node for better performance.

Here are some key performance metrics for a

blockchain node:

Block Propagation Time

The amount of time it takes for a block to propagate

through the network. Faster propagation times
generally indicate a healthier network.

Memory Usage

The amount of RAM being used by the node. Excessive

memory usage could indicate a memory leak or
inefficient memory management.

CPU Usage

The amount of CPU resources being used by the node.

Similar to memory usage, high CPU usage could
indicate inefficiencies or bugs in the node's software.

Disk Usage

The amount of disk space being used by the node.

Blockchain data can take up a significant amount of
storage space, especially for full nodes.
83
Network Latency

The time it takes for a packet of data to get from one

designated point to another in the network. Lower
latency is better for overall network performance.

Number of Connected Peers

The number of other nodes that your node is

connected to. A healthy number of peers is crucial for
the robustness and redundancy of the network.

Number of Transactions in the Mempool

The mempool (or memory pool) is a holding area for

transactions waiting to be confirmed by the network. A
growing mempool could indicate network congestion.

Transaction Verification Time

The time it takes to verify a transaction. Faster

verification times improve the overall user experience.

Block Verification Time

The time it takes to verify a block of transactions.

Faster block verification times improve the overall
throughput of the blockchain network.

84
Uptime

The amount of time the node has been running without

interruption. High uptime is generally desirable, as
interruptions can disrupt the functioning of the network
and the applications running on it.

Each of these metrics can be monitored using various

tools and techniques, including command-line tools,
APIs, log analysis, and dedicated monitoring software.

Regular monitoring and optimization based on these

metrics can help ensure the smooth operation of your
blockchain node.

85
4.3 Performance Tuning &
Optimization
Performance tuning and optimization for a blockchain
node involves identifying and resolving issues that
hinder its efficiency and reliability. Here are some
strategies:

Hardware Upgrade

Enhancing the node's hardware can significantly

improve performance. This could mean adding more
memory (RAM), using faster storage (SSD instead of
HDD), or upgrading the CPU.

A fast and stable internet connection is also essential.

OS Optimization

The operating system hosting the node can be

optimized to better handle the node's demands. This
can include tuning network settings, optimizing disk
I/O, adjusting CPU scheduling, and ensuring adequate
system resources are available.

Database Optimization

The underlying database that the node uses to store

blockchain data can often be optimized. This could
involve tuning database parameters, indexing, or
optimizing database queries.

86
Node Configuration

Most blockchain nodes have several configuration

options that can be tuned for better performance.

These options can control things like memory usage,

the number of peer connections, or the amount of data
to keep in cache.

Sharding

Sharding is a technique where the state of the

blockchain is divided into partitions or "shards", each
capable of processing its own transactions and smart
contracts.

Sharding can potentially allow a blockchain to process

many transactions in parallel, improving scalability.

Off-Chain Transactions

Implementing off-chain transactions or state channels

can help scale the blockchain by handling transactions
off the blockchain and settling the net result on-chain.

Pruning

Pruning is a method of reducing storage requirements

by discarding older blocks from storage after they've
been verified and their transactions have been
accounted for.

87
Network Optimization

This involves optimizing the node's connections to its

peers to ensure efficient communication. This could
involve managing the number of connections,
optimizing data transfer protocols, or selecting peers
based on their network latency or reliability.

Threading and Parallel Processing

If the node software and the hardware support it,

enabling multi-threading or parallel processing can
significantly improve the performance of a node.

Regular Monitoring and Updates

Regularly monitor performance metrics to identify

potential bottlenecks or issues. Keep the node
software up-to-date, as updates often include
performance improvements and bug fixes.

Note: Optimization strategies can vary depending on

the specific blockchain technology, the role of the node
(full node, miner, validator, etc.), and the underlying
hardware and network conditions.

Always test changes in a controlled environment

before applying them to a production node to
understand their impact.

88
4.4 Backup & Disaster Recovery
Backup and disaster recovery are crucial aspects of
maintaining a reliable and resilient blockchain node.

Here's how you might approach this:

Regular Backups

Regularly back up your node's data. This includes the

blockchain data, configuration files, and any private
keys or wallets associated with the node.

The frequency of the backups will depend on your

node's activity and your tolerance for data loss.

Offsite Storage

Store backups in a different location from your primary

node. This protects against physical disasters like fires,
floods, or hardware failures.

Secure Storage

Protect your backups from unauthorized access. This

might involve encryption, access controls, or physically
secure storage locations.

Redundancy

Consider setting up redundant nodes that can take

over if your primary node fails. This can be part of a
load balancing setup, which can also improve
performance.
89
Testing

Regularly test your backup and recovery procedures to

make sure they work as expected. This might involve
setting up a test node and trying to restore it from a
backup.

Disaster Recovery Plan

Have a disaster recovery plan that outlines what to do

in various disaster scenarios. This plan should be
reviewed and updated regularly.

Failover Mechanisms

Consider setting up automatic failover mechanisms

that can detect when your primary node is down and
switch over to a backup node.

Backup Software

Use reliable backup software that can automate the

backup process, handle encryption, and ensure data
integrity.

Documentation

Document your backup and recovery procedures, and

make sure that the relevant people are trained and
familiar with these procedures.

90
Node Software Backups

Besides the blockchain data, keep copies of the node

software or docker images. In case of software
corruption, having these backups will be useful.

Note: Remember, the goal of backup and disaster

recovery is not just to protect against data loss, but
also to minimize downtime and ensure the smooth
operation of your node and the services that depend
on it.

The specific strategies you choose will depend on the

specific requirements of your node, your network, and
your organization.

91
 05
Bitcoin
If blockchain technology were a religion, the Bitcoin
whitepaper would be its Bible.

The Bitcoin whitepaper is the foundational document that

started the Blockchain revolution. As a Blockchain
Engineer, you MUST have a deep understanding of it.

The video below covers Digital Signatures, Hash-based

Proof-of-Work, Double-spending, Transactions, Simplified
Payment Verification, Combining & Splitting Value, and
Privacy.

https://www.youtube.com/watch?v=3BBRF1XgjTE&t=75s

93
94
 Setting up a Bitcoin node

Here's a Step-by-Step Guide to setting up a Bitcoin

node.

1. Download Bitcoin Core

Visit the official Bitcoin Core website

(https://bitcoincore.org/en/download/).

Download the latest version of Bitcoin Core for your

operating system (Windows, macOS, Linux).

2. Install Bitcoin Core

Follow the installation instructions for your specific

operating system. It's a straightforward process.

3. Initial Blockchain Sync

Launch Bitcoin Core.

Allow it to sync with the Bitcoin blockchain. This

process can take several hours, as it involves
downloading and verifying the entire blockchain
history. Make sure you have enough storage space.

4. Configure Bitcoin Core

Once the initial sync is complete, you can configure

your node by creating a bitcoin.conf file.

95
This file allows you to set various parameters, such as
enabling RPC (Remote Procedure Call) for interacting
with your node.

5. Let Your Node Run

Keep your Bitcoin Core software running 24/7 if

possible. This helps contribute to the Bitcoin network
by relaying transactions and blocks.

Your node will automatically join the Bitcoin network

and start helping validate transactions and blocks.

96
 06
Ethereum
Ethereum is NOT a blockchain. It's NOT a
cryptocurrency either! It's actually a protocol (a set of
rules or procedures) like "HTTP" or "HTTPS".

Multiple independent blockchains run on the Ethereum

protocol:

● Ethereum Mainnet: This is the production

network.

● Görli: This is a Proof of Authority testnet.

● Private networks: Development networks, and

Consortium networks.

● Layer 2 testnets: Arbitrum Rinkeby, and

Optimistic Kovan.

When most people talk about Ethereum, they are

talking about Mainnet - the primary public Ethereum
production blockchain.

This is where actual-value transactions occur on the

blockchain. The native crypto of this Ethereum is Ether
(ETH).

Ethereum Virtual Machine (EVM)

One of the greatest blockchain innovations is the

Ethereum Virtual Machine (EVM).

EVM is "the environment in which all 'Ethereum'

accounts and smart contracts live". Smart contracts
are programs that run automatically when some
predefined conditions are met.
98
The sole purpose of the Ethereum protocol is to keep
"the continuous, uninterrupted, and immutable
operation" of the EVM. At any given block, Ethereum
has only one "canonical" or unique state.

EVM defines the rules for computing new valid states

from one block to another.

EVM exists as a single entity maintained by a large

number of connected computers (nodes) running an
Ethereum client e.g. Geth or OpenEthereum.

A client is a software that enables nodes to read blocks

on the blockchain and smart contracts.

For details, see:

https://ethereum.org/en/developers/docs/evm

Ethereum standards

The most popular Ethereum standards are:

ERC-20

This is a standard API for tokens within smart

contracts. It provides basic functionality to transfer
tokens and allow tokens to be approved and be spent
by another on-chain third party.

For details, see:

https://ethereum.org/en/developers/docs/standards/t
okens/erc-20

99
ERC-721

This is a standard for non-fungible tokens (NFT).

ERC-721 tokens are unique and can have a different
value as compared to another token from the same
smart contract - due to age, rarity, image, etc.

For details, see:

https://ethereum.org/en/developers/docs/standards/t
okens/erc-721

ERC-777

This is a fungible token standard that improves ERC-20.

For details, see:

https://ethereum.org/en/developers/docs/standards/t
okens/erc-777

ERC-1155

This is a multi-token standard. A single contract can

include a combination of tokens - fungible,
non-fungible, semi-fungible, etc. An ERC-1155 token
can perform the functions of ERC-20 and ERC-721
tokens with more efficiency.

For details, see:

https://ethereum.org/en/developers/docs/standards/t
okens/erc-1155

100
ERC-4626

This is a standard API for tokenized yield-bearing vaults

which represent shares of a single underlying ERC-20
token.

For details, see:

https://ethereum.org/en/developers/docs/standards/t
okens/erc-4626

Others
For a detailed list of Ethereum Token Standards, see:
https://github.com/PhABC/ethereum-token-standards-l
ist

For a deep dive into Ethereum, see:

https://blockchainblog.substack.com/p/ethereum-for-
developers

101
102
 Setting up an Ethereum node

There are two main types of Ethereum nodes: "full

nodes" and "light nodes."

Full nodes store the entire Ethereum blockchain, while

light nodes rely on others to provide them with
blockchain data.

This section provides a simplified guide to setting up an

Ethereum full node.

Note: Running a full Ethereum node requires significant

disk space, processing power, and a stable internet
connection. Make sure your computer meets the
system requirements before proceeding.

1. Install Ethereum Software

The most commonly used Ethereum client software is

called "Geth."

You can download it from the official Ethereum

website: https://geth.ethereum.org/downloads/

Follow the installation instructions for your specific

operating system (Windows, macOS, Linux).

2. Syncing the Blockchain

After installation, open a terminal or command prompt.

103
After installation, open a terminal or command prompt.

Start syncing the Ethereum blockchain by running the

following command:

geth --syncmode full

This command will download and verify the entire

Ethereum blockchain. It can take a significant amount
of time (several hours to days) depending on your
internet speed and hardware.

3. Creating an Account

Once the blockchain is fully synced, you can create an

Ethereum account with the following command:

geth account new

Follow the prompts to set a password for your

account. Make sure to keep this password safe, as it's
required to access your account.

4. Interacting with Your Node

You can interact with your Ethereum node using

various tools and libraries. For example, you can use
web3.js or web3.py for programming interactions.

You can also connect your Ethereum wallet (like

MetaMask) to your local node by specifying its RPC
address.

104
 07
Multichain
Multichain is a framework for creating permissioned
blockchains.

Practical 1: Setting up a permissioned blockchain

Watch the recording here:

https://www.youtube.com/live/WX_LjGQdf5o?feature=
share&t=89

Use these instructions to set up the blockchain:

● https://www.multichain.com/download-community

● https://www.multichain.com/developers/creating-co
nnecting

106
Practical 2: Addresses & Permissions

1. Creating custodial addresses

2. Creating non-custodial addresses
3. Managing permissions

https://www.youtube.com/live/mZk1K0NEUyw?feature
=share&t=102

Address related commands covered in this video

getnewaddress
Returns a new custodial address whose private key is
added to the wallet.

getaddresses true
Returns a list of addresses in this node’s wallet with
more information about each address,

107
getaddresses false
Returns a list of addresses in this node’s wallet.

listaddresses
Returns information about the addresses in the wallet.

createkeypairs

Generates one or more non-custodial public / private

key pairs, which are not stored in the wallet or drawn
from the node’s key pool, ready for external key
management.

For each key pair, the address, pubkey (as embedded

in transaction inputs) and privkey (used for signatures)
is provided.

To generate multiple keypairs, use:

createkeypairs 2
createkeypairs 3
etc.

validateaddress

Returns information about address, or the address

corresponding to the specified private key or public
key, including whether this node has the address’s
private key in its wallet.

108
importaddress

Adds address (or an array of addresses) to the wallet,

without an associated private key.

This creates one or more watch-only addresses, whose

activity and balance can be retrieved via various APIs
(e.g. with the includeWatchOnly parameter), but whose
funds cannot be spent by this node.

Permissions related commands covered in this video

In MultiChain, there are many global permissions that

can be granted to addresses:

connect
to connect to other nodes and see the blockchain’s
contents

send
to send funds

receive
to receive funds

issue
to create new native assets

create
to create data streams

109
mine
to create blocks

activate
to change connect, send and receive permissions for
other users

admin
to change all permissions for other users, including
issue, mine, activate and admin

For more on permissions, see:

https://www.multichain.com/developers/permissions-
management

grant addresses permissions

Example:
grant 1bCrPbynVnRuqra8E1M1XdY5HFarKK2zuh2puf
send,receive

listpermissions
Returns a list of all permissions which have been
explicitly granted to addresses.

revoke addresses permissions

Revokes permissions from addresses
Example:
revoke 1bCrPbynVnRuqra8E1M1XdY5HFarKK2zuh2puf
receive

For more, see:

https://www.multichain.com/developers/json-rpc-api

110
Practical 3: Smart Asset Management

Watch the recording here:

https://www.youtube.com/live/u5N4fqMPn-c?feature=
share&t=77

Step 1: Address with issue permission

We start by finding an address that can create assets.

For this, run these 2 commands:

listpermissions issue
listaddresses

An address is suitable if it appears in the output of the

first command, and also in the second command
together with "ismine" : true.

111
If there is no address with issue permissions, you can
give an address this permission using this:

grant <address> issue

Step 2: Issues the asset

Before issuing the asset, we need the following

information:

● Issue from: The address from which the asset is

to be created. This address must have issue
permission.

● Issue to: The address to which the newly created

asset should be sent. This address must have
receive permission.

Depending upon the use case, the issue from and issue
to addresses can be the same.

Once the asset is issued, it can be sent to other

addresses as and when required.

● Name: Name of the asset - max 32 characters.

● Open: If more units can be issued in the future,

set as true. Otherwise set as false.

112
● Can open and Can close: Whether to allow the
asset to be closed and/or (re)opened for future
issuance using the update command.

● Restrict: Whether per-asset send and receive

permissions are to be enabled.

● Total Limit: The maximum total number of units

which can be issued.

● Issue Limit: The maximum number of units per

issuance.

● Quantity being issued: Number of tokens being

issued in this transaction.

● Asset description: Details of the underlying asset

Example:.
● Category: Tokenized RWA
● Subcategory: Aviation Asset
● Type: Aircraft
● AssetName: Cessna Skyhawk 172
● Identifier: N123SP
● TokenIssuer: HYFI Aviation
● Custodian: ABC Custodian
● ProspectusURL: www.example.com
● RealTimeDataURL: www.example.com
● Starts: 17-July-2023
● Ends: NA

113
See the sample code for issuing this asset:
https://gist.github.com/rohasnagpal/610a906ff2954fe7
2c5f14b6959d8b11

Step 3: View asset details

listassets
displays details of all assets

listassets <identifier>
Displays details of asset having the specified:
● Name e.g. Cessna-Skyhawk-172.8
● Issuance transaction ID e.g. 269-266-32631
● Asset reference number e.g.
777feac622d9af4c5ae91f8cdb62f3575e3153093
0feecf839e9febaa8567f63

Step 4: Update asset params (Optional)

update Cessna-Skyhawk-172.8 '{"open":true}'

or

update 269-266-32631 '{"open":true}'

or

update
777feac622d9af4c5ae91f8cdb62f3575e31530930feecf
839e9febaa8567f63 '{"open":true}'

114
115
Step 5: Issue more tokens (Optional)

issuemorefrom
1WQ65QwRZFyvUDhUDFKTHBgPqEYvA1C5vRNxyU
1WQ65QwRZFyvUDhUDFKTHBgPqEYvA1C5vRNxyU
Cessna-Skyhawk-172.8 2500 0 '{"Metadata":"Reasons
for issuing more tokens e.g. token split"}'

Step 6: Per-asset permissions (Optional)

Examples:

grant <address> Cessna-Skyhawk-172.8.send,receive

revoke <address> Cessna-Skyhawk-172.8.send,receive

Step 7: Send assets

sendassetfrom <from-address> <to-address> <asset>

<quantity>

All the commands are here:

https://www.multichain.com/developers/json-rpc-api

116
Practical 4: Atomic Exchange Transactions

Watch the recording here:

https://www.youtube.com/live/li9guOpF9oI

The commands are here:

https://www.multichain.com/developers/atomic-excha
nge-transactions

117
Production blockchain parameters

These are the recommended settings for long-term

deployment:
https://www.multichain.com/developers/blockchain-p
arameters/#production

Tips for performance optimization

These are the recommended server specifications and

usage patterns:
https://www.multichain.com/developers/performance-
optimization/

Upgrading nodes and chains

Keeping up to date with new MultiChain features and

maintenance releases:
https://www.multichain.com/developers/upgrading-no
des-chains/

Backing up and restoring nodes

Being prepared for catastrophic system failures:

https://www.multichain.com/developers/backing-up-re
storing-nodes/

118
Cold nodes and wallets

To keep private keys away from nodes connected to

the network:
https://www.multichain.com/developers/cold-nodes-w
allets/

Clustering for high availability

Minimizing downtime due to power cuts, system

crashes or loss of connectivity:
https://www.multichain.com/developers/clustering-hig
h-availability/

119
 08
HYFI Blockchain
Hybrid Finance Blockchain (HYFI) is a Legally-compliant
Permissioned Layer-1 Blockchain for the Tokenization
of Real World Assets (Authentication, Provenance,
Fractional Ownership, and Trading).

HYFI is tokenizing these assets:

1. Art: US$ 579.52 Billion

2. Carbon Credits: US$ 25.35 Billion
3. Copyright Licenses: US$ 172.5 Billion
4. Private Equity: US$ 11.7 Trillion
5. Rare Collectibles: US$ 370 Billion
6. Real Estate: US$ 326 Trillion
7. Structured Products: US$ 7 Trillion
8. Whisky Casks: US$ 300 Billion (5 years)

Website: https://www.hyfiblockchain.com/

8.1 HYFI is a permissioned blockchain

1. How HYFI provides Better Security:
As a permissioned blockchain, the HYFI network is
limited to verified participants. This reduces the threat
of malicious actors and hacking attempts.

2. How HYFI provides Improved Scalability:

As a permissioned blockchain, HYFI can handle more
transactions per second than many public blockchains.
This makes HYFI suitable for high-volume applications.

121
3. How HYFI provides Enhanced Privacy:
As a permissioned blockchain, HYFI members have
control over who can access the network. This helps to
keep sensitive data confidential.

4. How HYFI provides Faster Consensus:

HYFI uses a distributed consensus between identified
block validators. This is similar to PBFT (Practical
Byzantine Fault Tolerance). There is one validator per
block, working in a round-robin type of fashion.

5. How HYFI provides Efficient Resource Management:

As a permissioned blockchain, HYFI optimizes the use
of network resources, reducing costs and improving
performance.

6. How HYFI provides Customizable Rules:

As a permissioned blockchain, HYFI tailors the
network's rules and governance/ This enables greater
flexibility and control.

7. How HYFI provides Legal Compliance:

As a permissioned blockchain, HYFI is designed to
comply with regulatory requirements - KYC, AML, CFT,
Consumer Protection, Data Privacy,
Right-to-be-forgotten Regulations, and Freezing of
assets.

122
8.2 Legal & regulatory compliance
Hybrid Finance (HYFI) Blockchain supports regulatory
compliance in 7 ways:

1. How HYFI supports KYC (Know Your Customer)

HYFI nodes are operated by verified entities from

FATF-compliant jurisdictions.

Regulators nodes are available for real-time monitoring

of all activities on the HYFI network.

HYFI is a permissioned blockchain and each address is

given permissions based on the level of KYC.

2. How HYFI supports AML (Anti-Money Laundering)

HYFI nodes are operated by verified entities from

FATF-compliant jurisdictions.

These entities have robust policies for customer

identification & verification, risk assessment, and
monitoring & reporting of suspicious transactions.

Regulators nodes are available for real-time monitoring

of all activities on the HYFI network.

123
3. How HYFI supports CFT (Countering the Financing
of Terrorism)

HYFI nodes are operated by verified entities from

FATF-compliant jurisdictions. These entities have
robust policies for due diligence, transaction
monitoring & suspicious activity reporting.

Regulators nodes are available for real-time monitoring

of all activities on the HYFI network.

4. How HYFI supports Freezing of Assets

Assets can be frozen on the HYFI network, through the

use of specific permissions, based on orders from
courts & enforcement agencies.

This enables added security, fraud minimization, and

control over the movement & usage of assets within
the network.

5. How HYFI supports Consumer Protection

Consumer protection is provided through responsible

address allocation & permission management.

The allocation of custodial addresses and management

of permissions reduces the risk of unauthorized access
& loss of funds, providing a safer experience for users.

124
Role-based asset controls allow for business,
compliance, and regulatory oversight.

6. How HYFI supports Right-to-be-forgotten

Regulations

Off-Chain Data Purging allows for the selective removal

of off-chain data from local storage to meet
right-to-be-forgotten regulations.

7. How HYFI supports Data Privacy

Stream Read Restrictions enable publishing and

retrieving items only visible to nodes with appropriate
permissions.

Fully encrypted peer-to-peer connections prevent

intermediate routers from seeing any private data.

8.3 HYFI Security Features

Hybrid Finance (HYFI) Blockchain has several security
features to protect users and their data:

1. Only authorized users and nodes can participate

in the network and access its data, making it
secure from unauthorized access.

125
2. The P2P connections in HYFI Blockchain are fully
encrypted, preventing intermediate routers from
seeing any private data.

3. HYFI Blockchain offers flexible private key

management options, including support for
external private keys and multi-signatures for all
transactions.

4. In the HYFI blockchain, cold nodes play a crucial

role in enhancing the system's overall security. By
keeping private keys offline, users can minimize
the risk of theft or unauthorized access to their
assets.

5. HYFI supports full multi-signature support and

external key management, which enables users
to securely manage their assets using hardware
security modules (HSMs). This allows users to
store their private keys in a secure and
encrypted manner, which provides an additional
layer of protection against potential threats.

126
8.4 HYFI Scalability Features
Some of the scalability features of Hybrid Finance
(HYFI) Blockchain are:

1. HYFI supports millions of addresses, assets,

streams, and unlimited transactions / stream
items, and can handle unlimited nodes in the
network.

2. With the capability to process more than 1000

transactions per second, HYFI can handle large
volumes of transactions.

3. HYFI blockchain's block time is as low as 2

seconds, which helps to reduce latency &
improve overall efficiency.

4. The HYFI Blockchain provides ample storage

space with each transaction being able to store
up to 64 MB of data.

5. Streams in the system support various data

structures such as key-value, identity, and time
series, making it easy to store and search for
information.

127
 6. The scalability of the HYFI Blockchain is
improved through Selective Stream Indexing and
Selective Data Retrieval.

7. With Selective Stream Indexing, the indexing of

streams can be controlled for enhanced
performance & reduced disk usage.

8. Selective Data Retrieval allows for the specific

selection of off-chain items to be retrieved from
the network, conserving bandwidth and disk
space.

8.5 HYFI Cold Nodes

A blockchain cold node is a node that is offline or
disconnected from the network. It does not actively
participate in the validation of transactions or blocks.

Cold nodes are used for the storage of sensitive

information, such as private keys, which are crucial for
accessing and managing blockchain assets.

In the Hybrid Finance (HYFI) Blockchain, cold nodes

play a crucial role in enhancing the system's overall
security. By keeping private keys offline, users can
minimize the risk of theft or unauthorized access to
their assets.

128
8.6 Integrating HYFI with other
applications
Hybrid Finance (HYFI) Blockchain can be integrated
with other applications through its unified JSON-RPC
API.

The API for customer applications in HYFI works by

providing a secure and convenient interface for
developers to interact with the blockchain and build
custom applications.

The API is designed to cleanly separate the application

from the node and is compatible with any API library
developed for Bitcoin Core.

This makes it easier for developers to build

applications that interact with the HYFI blockchain and
add new functionality to the platform.

The API allows developers to easily access and utilize

the various functions and services available in HYFI,
such as issuing and transferring assets, managing
permissions, and retrieving information about the
blockchain and its transactions.

129
By providing a simple and flexible API, HYFI enables
developers to create a wide range of custom
applications, from simple web interfaces to complex
decentralized applications (dApps), that can interact
with the blockchain in a secure and efficient manner.

8.7 Freezing of funds on HYFI

Funds can be frozen in Hybrid Finance (HYFI)
Blockchain through the use of specific permissions and
conditions set by the address owner or administrators
of the blockchain network.

This allows for added security, fraud minimization, and

control over the movement & usage of assets within
the network.

8.8 HYFI Data Streams

Data streams are a way to securely publish & retrieve
items in the blockchain.

These items can be visible only to nodes with the

appropriate permissions, and they allow for the
creation of channels where specific groups of
participants can access and interact with certain data.

130
Data streams provide a mechanism for organizing &
managing data within the blockchain in a secure and
scalable manner, making it possible for a wide range of
use cases, including but not limited to, content
distribution, copyright licensing, and secure data
sharing.

Technically speaking, data streams enable a blockchain

to be used as a general-purpose append-only
database, with the blockchain providing time stamping,
notarization & immutability.

The Hybrid Finance (HYFI) Blockchain provides ample

storage space with each transaction being able to store
up to 64 MB of data.

Streams in the system support various data structures

such as key-value, identity, and time series, making it
easy to store and search for information.

8.9 HYFI Smart Filters

A Smart Filter is a piece of code that is embedded in
the blockchain, and which allows custom rules to be
defined regarding the validity of transactions or stream
items.

131
Smart Filters are written in JavaScript and run within a
deterministic version of Google’s V8 JavaScript engine,
which is embedded directly within MultiChain 2.

This is the same JavaScript engine used in Chrome,

Node.js, and many other platforms. It offers excellent
performance by compiling JavaScript to machine code
and optimizing that code as it runs.

See the HYFI Documentation for:

1. HYFI Nodes
2. Addresses
3. Tokenizing Assets on HYFI Blockchain
4. Transactions

132
 09
Hyperledger
Hyperledger is an open-source initiative for growing
enterprise use of blockchain technologies.

Hyperledger projects include:

● 5 Distributed Ledgers
● 4 Libraries
● 6 Tools

Distributed Ledgers

Distributed Ledgers are multiparty databases with no

central trusted authorities.

Hyperledger has 5 Distributed Ledgers:

1. Besu
2. Fabric
3. Indy
4. Iroha
5. Sawtooth.

Libraries

Libraries are code bases that add functionality to

enterprise blockchain use cases e.g. digital credentials,
smart contracts & cryptographic code.

Hyperledger has 4 Libraries:

1. AnonCreds
2. Aries
3. Transact
4. Ursa

134
Tools

Tools improve interoperability, performance & security

in enterprise blockchains.

Hyperledger has 6 Tools -

1. Bevel
2. Cacti
3. Caliper
4. Cello
5. Firefly
6. Solang

135
Hyperledger Besu

Hyperledger Besu is an Ethereum client that is

optimized for use in enterprise environments and can
be used for both public and private permissioned
networks.

● It includes several consensus algorithms &

permissioning schemes.

● It can run on various test networks.

● It is flexible & modular, with an extractable EVM

implementation.

● It is suitable for consortium environments.

136
Hyperledger Fabric

Hyperledger Fabric is a modular blockchain platform

with plug-and-play components such as consensus &
membership services.

It can be used to develop applications for a broad

range of enterprise use cases.

It enables high performance & preserves privacy.

137
Hyperledger Indy

Hyperledger Indy is a set of tools, libraries & reusable

components for creating interoperable digital
identities.

Indy enables the decentralization of identity.

Indy can be used standalone or integrated with other

blockchain systems.

138
Hyperledger Iroha

Hyperledger Iroha is a blockchain platform designed

for simplicity & ease of integration into infrastructural
or IoT projects.

It features a simple construction, modular,

domain-driven C++ design.

Its focus is on client application development.

It has a crash fault-tolerant consensus algorithm called

YAC.

139
Hyperledger Sawtooth

Hyperledger Sawtooth is a flexible & modular

blockchain platform that separates the core system
from the application domain.

It allows smart contracts to define business rules for

applications without needing knowledge of the
underlying core system design.

It supports multiple consensus algorithms such as

Practical Byzantine Fault Tolerance (PBFT) and Proof of
Elapsed Time (PoET).

140
AnonCreds

Hyperledger AnonCreds is a type of verifiable

credential that utilizes zero-knowledge proof
cryptography to support advanced privacy-protecting
capabilities.

141
Aries

Hyperledger Aries is a toolkit for creating, transmitting

& storing verifiable digital credentials in a p2p
blockchain-rooted environment.

142
Transact

Hyperledger Transact provides a standard interface for

executing smart contracts, separate from the
underlying ledger implementation. It supports multiple
smart contract engines.

143
Ursa

Hyperledger Ursa is a shared cryptographic library that

provides a centralized repository for cryptographic
code & interfaces.

144
Bevel

Hyperledger Bevel is an accelerator for deploying

production-ready distributed networks across public &
private cloud providers.

145
Cacti

Hyperledger Cacti is a blockchain integration tool

enabling the integration of different blockchains.

146
Caliper

Hyperledger Caliper is a blockchain benchmark tool

for measuring the performance of a blockchain
implementation with a set of predefined use cases.

147
Cello

Hyperledger Cello is an operational console for

managing blockchains running on bare-metal, virtual
machine & container platforms. It can also be used for
creating Blockchain as a Service.

148
Firefly

Hyperledger FireFly is a complete stack for building &

scaling secure Web3 applications.

149
Solang

Hyperledger Solang compiles Solidity for Solana &

Substrate.

150
 10
Blockchain & Web3
Tech Stack
1. Akash Network

Akash Network is called the "Airbnb for Cloud

Compute". It leverages "85% of underutilized cloud
capacity in 8.4 million global data centers, enabling
anyone to buy and sell cloud computing".

The platform claims to provide cloud computing at 1/3

the cost of providers like Amazon, Google, and
Microsoft.

Get started: https://akash.network

2. Alchemy

● Alchemy Supernode is a blockchain engine that

ensures scalability, reliability and data accuracy.

● Alchemy Web3 APIs simplify and optimize

common request patterns.

● Alchemy enables the sending of real-time

notifications to users for critical events like mined
and dropped transactions.

● Alchemy Explorer enables searching through

millions of historical requests to identify error
patterns and optimize performance.

● Alchemy Composer enables prototyping and

fixing failing requests or exploring the behavior of
new methods, directly from the dashboard.

152
 ● Mempool Visualizer enables troubleshooting
transactions that may be delayed, stuck or
dropped in the mempool.

● You can track requests by method and

geo-location, without sacrificing privacy or
security.

Get started: https://www.alchemy.com

3. API3

API3 provides secure and cost-efficient

blockchain-native, decentralized APIs (dAPIs).

Beacons enable connecting Web3 applications to

continuously updated streams of off-chain data e.g.
latest cryptocurrency, stock and commodities prices.

Managed Oracle Services - dAPIs are data feeds built

entirely on-chain from first-party, API
provider-operated oracles with decentralized
governance.

API3 provides Quantum Random Numbers for Smart

Contracts for free. You need to pay for the gas.

Get started: https://api3.org

4. Aragon
Aragon App is a simple, modular and adaptable DAO
platform.

153
Aragon Client is a DAO platform for communities to
raise funds, pay contributors, and govern together.
Aragon Voice is a gasless and universally verifiable
voting solution for web3.

Vocdoni is a secure, end-to-end verifiable, and

censorship-resistant voting solution for organizations.

Get started: https://aragon.org

5. Arweave

Arweave is "a collectively owned hard drive that never

forgets. It allows the permanent storage of data with a
single upfront fee.

Arweave is a decentralized storage network for the

indefinite storage of data. At its core is "permaweb" - a
"permanent, decentralized web with applications and
platforms like UI hosting, database writes & queries,
and smart contracts.

Miners are paid in Arweave's native cryptocurrency,

AR, to indefinitely store information.

Get started: https://www.arweave.org

6. Audius

Audius is a decentralized music streaming protocol that

aims to give "everyone the freedom to distribute,
monetize, and stream any audio content".

154
Audius is built on both Ethereum and Solana.

$AUDIO is the native token that enables network

security, exclusive feature access, and
community-owned governance.

$AUDIO can be staked to run discovery or content

nodes. Artists can also stake $AUDIO to unlock artist
tokens and badges, and to "receive voting power from
fans who want to share in their success".

Get started: https://audius.co

7. Band Protocol

Band Protocol is a decentralized cross-chain data

oracle platform that aggregates and connects
real-world data and APIs to smart contracts.

The BandChain Oracle solution is a middle layer

operating between dApps and multiple data providers.

Get started: https://bandprotocol.com

8. Basic Attention Token

Basic Attention Token (BAT) is disrupting the $330

billion digital advertising industry.

Here's how the BAT ecosystem works:

● Users can earn BAT for viewing ads while

maintaining privacy.

155
 ● Content creators earn ad revenue, user
contributions, and tips.

● Advertisers get a better return on investment and

know their ads' effectiveness without violating the
privacy of users.

Brave Browser is at the heart of the BAT ecosystem.

Brave blocks ads and trackers. This makes your
browsing 3 times faster and very private.

Brave Wallet is the first crypto wallet that is built

directly into a browser. This is unlike Metamask which
is a browser extension. Because of this, Brave wallet is
less vulnerable to faked versions and phishing.

Get started: https://basicattentiontoken.org

9. Chainlink

Chainlink is a decentralized network of independent

oracle node operators. It provides:

● price feeds of financial market data,

● verifiable randomness that is needed for on-chain

gaming,

● proof of reserve for asset-backed cryptos such

as stablecoins.

156
How can a smart contract get data from the outside
world? That's the problem that Oracles solve. They act
as middleware between smart contracts and external
sources of data.

Software Oracles handle data that originates from

online sources e.g. temperature, prices of commodities
and goods, flight delays.

Hardware Oracles get data from the physical world

(e.g. from IoT devices) and are popular in the supply
chain industry.

Inbound Oracles provide data from the external world

to the blockchain while Outbound Oracles enable
smart contracts to send data to the outside world.

Consensus-based Oracles get their data from human

consensus and prediction markets e.g. Augur, Gnosis,
etc.

Chainlink is NOT a blockchain.

Each Chainlink oracle network comprises multiple

independent oracle nodes. These nodes fetch data
from multiple independent data providers.

This data is then aggregated into a single data point

and delivered "on-chain" for consumption by smart
contracts.

157
LINK is the crypto token that is used for paying
Chainlink node operators for providing oracle services.

Get started: https://chain.link

10. Civic Pass

Civic Pass is an integrated "permissioning tool" that

helps businesses control access to their dApps.

It is used by crypto-native communities, NFT platforms

& marketplaces, and DAOs.

Get started: https://www.civic.com

11. DeFi Llama

DefiLlama is a DeFi TVL (Total Value Locked)

aggregator.

Get started: https://defillama.com

12. Drizzle

Drizzle is a collection of front-end libraries that make

creation of dApp user interfaces easier.

Get started: https://trufflesuite.com/drizzle

158
13. Ethereum Name Service

Ethereum Name Service (ENS) is a decentralized

naming system based on the Ethereum blockchain. It
converts human-readable Ethereum addresses like
sanya.eth into crypto addresses like
1Mk13r5uu51F5jQ6yGuBPxkuZw91nM4MeY and
vice-versa.

Get started: https://ens.domains

14. Filecoin

Filecoin is the Airbnb for data.

It is a decentralized data storage network where

excess storage can be bought and sold.

It is also the incentive & security layer for

InterPlanetary File System (IPFS). In simple words, it is a
marketplace for unused storage - in consumer
hardware and data centers.

In the conventional world, cloud service providers like

Amazon Web Services (AWS) and Microsoft Azure
provide centralized servers and IP addresses for user
data.

In the blockchain world, Filecoin uses hash-addressed

content structures to reduce redundancy and increase
efficiency.

159
Filecoin is integrated with Ethereum. This enables
developers to access Ethereum blockchain data and
interact with Ethereum smart contracts.

Filecoin (FIL) is the native crypto of the Filecoin

network. It can be used to pay miners to
store/distribute data and to retrieve information.
Storage providers guarantee a minimum service level
by providing FIL as collateral.

Its consensus mechanism is Proof-of-replication

(PoRep) and Proof-of-spacetime (PoSt).

PoRep enables storage miners to prove that they are

physically storing a unique copy of client data. PoSt
proves that storage miners are continuing to dedicate
storage space to client data over time.

Get started: https://filecoin.io

15. Ganache

Ganache is a personal blockchain for rapid Ethereum

and Corda dApp development. Ganache can be used
across the entire development cycle.

Ganache comes in two flavors - a desktop application

supporting Ethereum & Corda, and a command-line
tool for Ethereum development.

Get started: https://trufflesuite.com/docs/ganache

160
16. Gnosis Safe

An externally owned account (EOA) is a single key

wallet which is commonly used by crypto holders using
MetaMask,Trustwallet, etc. An EOA is secured with a
"seed phrase" which generates private keys. If the key
is compromised, the crypto can be stolen.

Gnosis Safe is a multisig smart contract wallet that

requires a minimum number of people (m-of-n) to
approve a transaction before it can take place e.g. 3
out of 5 people.

Gnosis Safe supports Ether (ETH), ERC20 tokens and

ERC721 NFTs. You can sign transactions using mobile
wallets, browser extensions, and hardware wallets.

Gnosis Safe can be accessed in a browser, on the

desktop, and on mobile.

Get started: https://gnosis-safe.io

17. Helium network

Internet of Things (IoT) is a multi-trillion dollar industry,

with billions of connected devices. For proper
functioning, most IoT devices need to be connected to
the Internet.

The conventional technologies for this (cellular, WiFi,

and Bluetooth) are expensive, power-hungry, or have a
limited range.

161
The Helium network is a decentralized wireless
network. It enables IoT devices to wirelessly connect to
the Internet and geolocate themselves without satellite
location hardware or cellular plans.

Get started: https://www.helium.com

18. Infura

Infura provides tools & infrastructure for dApp testing

and scaling. It provides simple access to Ethereum and
IPFS.

Infura supports Ethereum mainnet and testnets

(Rinkeby, Ropsten, Kovan, Görli), IPFS, Filecoin (Beta),
Eth2 Beacon Chain (Beta), Polygon PoS (Beta), Optimism
Ethereum, and Arbitrum Rollup.

Infura is natively supported in the Azure Blockchain

Development Kit extension for VS Code.

Infura uses the following clients: Geth (Go Ethereum),

OpenEthereum, Hyperledger Besu, Teku, Lotus,
Go-IPFS, Bor/Heimdall, l2geth, and Arbitrum.

Get started: https://infura.io

19. IPFS

InterPlanetary File System (IPFS) is a distributed system

for storing and accessing files, websites, applications,
and data.

162
Traditional URLs & file paths identify a file by where it's
located.

Examples:
https://www.rohasnagpal.com/web3/index.html
file:///Users/sanyanagpal/Documents/hyfi.pdf

IPFS addresses a file by its content. The content

identifier is a cryptographic hash of the content at that
address. e.g.
bafkreih2jxpb4zewzqug3uk6oak5nzsrc6oz6sjhzonn7b
ktjde6xks7fm

The hash is unique to the content and enables

verification of the data.

● To try it out, create a free account at:

https://nft.storage

● Upload a file and copy the ipfsHash or CID

(content identifier for the file) e.g.
bafkreih2jxpb4zewzqug3uk6oak5nzsrc6oz6sjhzo
nn7bktjde6xks7fm

● To download the file, add https:// to the beginning

and .ipfs.w3s.link to the end of the CID or
ipfsHash. Example:
https://bafkreih2jxpb4zewzqug3uk6oak5nzsrc6o
z6sjhzonn7bktjde6xks7fm.ipfs.w3s.link

Get started: https://nft.storage

163
20. Livepeer

Video streaming, especially live streaming, is very

expensive because video has to be transcoded first.
That's the process of reformatting a raw video file so
that it can be viewed well on all devices and
bandwidths.

Livepeer is a protocol for reducing transcoding costs

up to 50x. This is achieved by peer-to-peer
infrastructure which interacts through an
Ethereum-based marketplace.

Orchestrators can earn fees by contributing CPU, GPU,

and bandwidth for transcoding and distributing video.
The Livepeer token (LPT) is required for this. The more
LPT you hold, the more work you can perform and the
more fees you earn.

LPT holders can also earn fees by staking their tokens

towards orchestrators.

Get started: https://livepeer.org

21. Moralis

Moralis Web3 API enables quick fetching block info,

transaction info, NFT metadata, token prices, user
balances, owner list of a particular NFT and other EVM
blockchain data.

Get started: https://moralis.io

164
22. NuCypher

NuCypher is a decentralized encryption, access

control, and key management system for public
blockchains. NuCypher offers end-to-end encrypted
data sharing on public blockchains and decentralized
storage solutions.

Get started: https://www.nucypher.com

23. Ocean Protocol

Ocean Protocol enables individuals and businesses to

monetize their data through ERC-20 based datatokens.
Datasets can be discovered and traded on the Ocean
Market.

Get started: https://oceanprotocol.com

24. Ontology

Ontology is a high-speed, low-cost public blockchain

for bringing decentralized identity and data solutions to
Web3.

Get started: https://ont.io

25. OpenZeppelin

OpenZeppelin Contracts minimize risk by using

battle-tested libraries of smart contracts for most used
implementations of ERC standards.

165
OpenZeppelin Defender manages smart contract
administration including access controls, upgrades, and
pausing. It Works with popular multi-sigs including
Gnosis Safe.

OpenZeppelin Contracts Wizard is an interactive

generator to bootstrap smart contracts.

Get started: https://www.openzeppelin.com

26. Push Protocol

Push Protocol is a decentralized blockchain-agnostic

communication protocol providing notifications for
on-chain & off-chain activity.

Push notifications can be triggered via smart contract,

backend, and dApps. These come from an open
communication network (push nodes) and are tied to
wallet addresses..

Get started: https://push.org

27. Render Network

Render Network is a distributed graphics processing

unit (GPU) rendering network built on top of the
Ethereum blockchain. It connects artists and studios in
need of GPU compute power with mining partners
willing to rent their GPU capabilities.

Get started: https://rendertoken.com

166
28. Sia

Sia is a decentralized cloud storage platform and a

data storage marketplace.

It encrypts and distributes files across a decentralized

network. Users control their private encryption keys
and own their data. This is unlike traditional cloud
storage providers.

Sia's storage can cost upto 90% less than leading

traditional cloud storage providers. These charges are
paid using the native token Siacoin (SC).

According to the project website, storing 1TB of files on

Sia costs about $1-2 per month, compared with $23 on
Amazon S3.

Here's how it works:

Step 1: Files are divided into 30 segments - The Sia

software divides each file into 30 segments using
"Reed-Solomon erasure coding" which is also used in
CDs and DVDs. The data can be recovered fully using
just 10 of the 30 segments. This means that even if 20
of the 30 hosts go down, the data can be recovered.

Step 2: Each file segment is encrypted and then

distributed - Each file segment is encrypted using the
open-source Threefish algorithm before it is distributed
to hosts across the world.

167
Step 3: Files are sent to hosts using smart contracts -
Storage renters enter into file contracts (smart
contracts) with hosts for pricing, uptime commitments,
etc. Service Level Agreements (SLAs) are stored on the
Sia blockchain and automatically enforced by the
network.

Renters and hosts use Siacoin (SC) for payments. File

contracts are usually for 90 days and hosts provide
proof of storage using Merkle trees.

Get started: https://sia.tech

29. Steemit

Steemit is a blockchain-based blogging and social

media platform. Users earn crypto for publishing and
curating content.

Get started: https://steemit.com

30. The Graph

The Graph is a decentralized protocol for indexing and

querying data from blockchains. Developers can build
and publish open APIs (subgraphs) that make data
easily accessible.

The Graph is currently used by many projects including

Uniswap, Synthetix, and Decentraland.

Get started: https://thegraph.com/en

168
31. Theta

Theta is like Airbnb for video streaming - viewers earn

rewards for sharing excess bandwidth and computing
resources.

Theta’s benefits are:

● Users earn rewards for sharing excess bandwidth

& computing resources.

● Viewers get better quality streaming services.

● Content creators improve their earnings.

● Video platforms don't have to build expensive

infrastructure.

● Video platforms can increase revenues.

● Theta also has smart contract capability for fully

digitized item ownership, payment-consumption
models, transparent royalty distributions, etc.
Theta Enterprise Validators include Google,
Binance, Sony Europe, and Samsung.

The Theta blockchain has two native tokens:

● Theta (THETA) for governance, and

● Theta Fuel (TFUEL) for powering transactions.

Get started: https://www.thetatoken.org

169
32. TokenTerminal

Token Terminal is a platform that aggregates financial

data on the leading blockchains and dApps.

Get started: https://tokenterminal.com

33. Truffle

Truffle is a development environment, testing

framework and asset pipeline for EVM blockchains.

Get started: https://trufflesuite.com/truffle

170
This video covers:

1. Web Storage
2. Web Workers
3. Server-Sent Events
4. Hash calculations
5. Password Security using Salt & Pepper
6. Cryptographically strong pseudorandom number
generator (CSPRNG)
7. Encryption & Decryption

https://www.youtube.com/live/68u-GVvdbds?feature=
share&t=74

171
 11
ChatGPT
Super Prompt
Templates
ChatGPT Super Prompt Templates
Here are some ChatGPT super prompt templates that
you can customize and use:

1. Troubleshooting smart contract code

I am currently developing a smart contract and require

your expertise in troubleshooting some issues I have
encountered. The purpose of the smart contract is
[briefly describe the purpose or functionality], and it is
built on the [specify the platform, e.g., Ethereum,
Binance Smart Chain] platform. Here is the relevant
code snippet where I am facing difficulties: [provide the
code snippet(s)]. My concerns encompass functionality,
where I have observed [describe problems or
unexpected behavior]; security, with suspected
vulnerabilities such as [mention security concerns]; gas
consumption, particularly in relation to [explain
concerns about excessive gas usage or optimization
needs]; and code readability, specifically in areas like
[highlight areas where the code is difficult to
understand or maintain]. Given this information,
identify the root cause of these issues and propose
suitable solutions or optimizations. Additionally,
provide any general best practices or
recommendations for enhancing my smart contract.

173
2. Building scalable decentralized applications (dApps)

In need of guidance for building scalable decentralized

applications (dApps), the following information is
provided: the dApp's purpose [briefly describe the
purpose or functionality], the target platform [specify
the platform, e.g., Ethereum, Binance Smart Chain], and
the intended user base [describe the target users or
market]. Additionally, the dApp must address
challenges such as [list specific scalability concerns or
constraints]. Considering this context, please offer
expert insights into the architecture, technologies, and
best practices for developing a scalable dApp,
addressing aspects like efficient smart contract design,
off-chain data management, layer 2 scaling solutions,
and other pertinent factors that contribute to the
dApp's performance, security, and user experience.

3. Advising on token design & implementation

Deliver strategic and well-structured advice on token

design and implementation for a [specific blockchain
platform or project], tailored to [target audience, e.g.,
developers, project managers, or stakeholders],
incorporating the following key elements: clear token
utility and purpose, [specific token design principles or
best practices], relevant and context-appropriate
token distribution and governance models, and
effective evaluation methods to assess the impact and
benefits of the token design on the overall ecosystem
and user experience.

174
4. Suggesting improvements to existing blockchain
systems

Provide a comprehensive and innovative improvement

proposal for an existing blockchain system [specify the
blockchain], designed for [target audience, e.g.,
developers, stakeholders, or users], incorporating the
following key elements: clear problem identification,
[specific improvement technique or strategy], relevant
and context-appropriate use cases, and effective
evaluation methods to assess the impact and benefits
of the proposed improvements.

5. Providing recommendations for tooling and

development frameworks

Offer insightful and practical recommendations for

tooling and development frameworks in the context of
[specific technology or programming language],
designed for [target audience, e.g., developers, project
managers, or stakeholders], incorporating the following
key elements: clear requirements analysis, [specific
evaluation criteria or comparison methodology],
relevant and industry-appropriate tools and
frameworks, and effective implementation strategies to
ensure seamless integration and adoption within the
development process.

175
6. Choosing blockchain consensus mechanisms

Present a comprehensive and well-reasoned guide for

choosing the most suitable blockchain consensus
mechanism for a [specific blockchain project or use
case], designed for [target audience, e.g., developers,
project managers, or stakeholders], incorporating the
following key elements: clear understanding of
different consensus mechanisms and their trade-offs,
[specific evaluation criteria or decision-making
framework], relevant and context-appropriate
comparisons of existing consensus mechanisms, and
effective implementation strategies to ensure seamless
integration and optimal performance of the chosen
consensus mechanism within the blockchain system.

7. Best practices for building secure smart contracts

Deliver an exhaustive and actionable guide on best

practices for building secure smart contracts on
[specific blockchain platform or programming
language], tailored for [target audience, e.g.,
developers, project managers, or stakeholders],
incorporating the following key elements: clear
understanding of common security vulnerabilities and
risks, [specific secure coding techniques or principles],
relevant and context-appropriate tools and
frameworks for smart contract security analysis, and
effective testing and auditing methodologies to ensure
the robustness and reliability of the smart contract
code against potential attacks and exploits.

176
8. Implementation of blockchain-based payment
systems

Provide a detailed and practical blueprint for

implementing a blockchain-based payment system
within [specific business or industry context], designed
for [target audience, e.g., developers, project
managers, or stakeholders], incorporating the following
key elements: clear understanding of payment system
requirements and regulations, [specific blockchain
platform or technology], relevant and
context-appropriate transaction processing and
settlement mechanisms, and effective security and
scalability measures to ensure a robust, efficient, and
user-friendly blockchain-based payment system.

9. Building decentralized finance (DeFi) protocols

Provide an in-depth and comprehensive guide for

building decentralized finance (DeFi) protocols on
[specific blockchain platform], designed for [target
audience, e.g., developers, project managers, or
stakeholders], incorporating the following key
elements: clear understanding of DeFi concepts and
financial primitives, [specific DeFi protocol design
principles or best practices], relevant and
context-appropriate smart contract templates and
governance models, and effective risk management
and security measures to ensure the stability,
interoperability, and user trust in the developed DeFi
protocol.

177
10. Design & implementation of blockchain-based
gaming systems

Present a detailed and engaging blueprint for the

design and implementation of blockchain-based gaming
systems within [specific gaming genre or platform],
tailored for [target audience, e.g., developers, project
managers, or stakeholders], incorporating the following
key elements: clear understanding of gaming
mechanics and player incentives, [specific blockchain
technology or tokenization strategy], relevant and
context-appropriate integration of decentralized assets
and game economy, and effective performance
optimization and security measures to ensure an
enjoyable, fair, and immersive gaming experience for
users.

11. Securing an Ethereum Node

Prepare a detailed checklist with relevant commands

and code for securing an Ethereum node. Include
physical security measures, operating system security,
application security, system administrator security,
account security, monitoring procedures, and
encryption methods. The checklist must be
comprehensive and based on the best practices, tools,
and techniques to secure each area to protect the
server from unauthorized access, data breaches, and
other security threats.

178
12. Simulating a Bitcoin node

I want you to act as a Bitcoin full node using Bitcoin

Core. I will type commands and you will reply with
what the node should show. I want you to only reply
with the terminal output inside one unique code block,
and nothing else. Do not write explanations. Do not
type commands unless I instruct you to do so. When I
need to tell you something in English I will do so by
putting text inside curly brackets {like this}. My first
command is bitcoin-cli getnewaddress.

179
 12
Interview
Questions
12.1 Blockchain Basics
1. How would you explain blockchain technology to
someone without a technical background?

2. What are the key features that differentiate

blockchain from traditional database systems?

3. Can you explain the basic structure and

operation of a blockchain node?

4. What are some common consensus mechanisms

used in blockchain systems? Can you discuss the
pros and cons of each?

5. What is a blockchain bridge and what is its role in

interoperability between different blockchains?

6. Could you explain the concept of merged mining?

7. Can you differentiate between hard and soft

forks in a blockchain?

8. What are the different types of blockchain

(public, private, consortium, etc.) and in what
scenarios might each type be used?

9. What are blockchain wallets and addresses? How

do they work?

10. Can you discuss some common use cases for

blockchain technology?

181
12.2 Blockchain APIs
1. Can you explain what a Blockchain API is and
how it differs from traditional APIs?

2. What are some common use cases for

Blockchain APIs? Can you provide a specific
example where a Blockchain API significantly
improves a process or system?

3. What are the key security considerations when

using Blockchain APIs? How do they address
common security challenges in data
transactions?

4. What challenges might a developer face when

integrating a Blockchain API into an existing
system? How would you approach these
challenges?

5. Are there differences in APIs provided by various

blockchain platforms like Ethereum, Hyperledger,
or others? Can you give an example?

6. How do Blockchain APIs interact with smart

contracts? Can you walk me through the process
of deploying a smart contract using an API?

7. What metrics would you use to evaluate the

performance of a Blockchain API? How do these
metrics impact the choice of a particular API?

182
 8. How do Blockchain APIs handle scalability and
efficiency issues, especially in systems with high
transaction volumes?

9. How does a Blockchain API handle the concepts

of decentralization and consensus? Can you
explain this with an example of a transaction
process?

10. Where do you see the future of Blockchain APIs

heading, and what new developments or trends
should we be aware of?

12.3 Network Security & Privacy

1. Can you discuss some common vulnerabilities in
blockchain networks and how to protect against
them?

2. What are some best practices for maintaining the

security of a blockchain node?

3. What tools would you use to monitor the

performance and security of a blockchain
network?

4. Can you name and describe some

privacy-enhancing technologies used in
blockchain?

183
12.4 Node Maintenance &
Optimization
1. What are some key considerations for blockchain
data storage and management?

2. What metrics would you use to assess the

performance of a blockchain node?

3. How would you approach performance tuning

and optimization for a blockchain node?

4. What are some best practices for backing up

blockchain data and ensuring disaster recovery?

12.5 Bitcoin
1. Can you explain what Bitcoin is and how it differs
from traditional fiat currencies?

2. How does the underlying blockchain technology

of Bitcoin work, and why is it important for
Bitcoin's functionality?

3. What is Bitcoin mining and how does it contribute

to the Bitcoin network?

4. How does Bitcoin's decentralized nature

contribute to its security and integrity?

184
 5. Can you explain the process of a Bitcoin
transaction from one wallet to another? What
role do private and public keys play in this?

6. What factors influence the value of Bitcoin, and

how does its price volatility impact its use as a
currency?

7. How do various global regulations affect Bitcoin,

and what challenges do these regulations pose
for its widespread adoption?

8. What are the steps involved in setting up and

managing a Bitcoin node?

9. What are the major risks associated with using

and investing in Bitcoin?

10. Where do you see the future of Bitcoin in the next

5-10 years, both as a technology and a financial
asset?

12.6 Ethereum
1. Can you explain what Ethereum is and how it
differs from Bitcoin?

2. What are smart contracts in the context of

Ethereum, and how do they work?

3. Can you describe the role of the Ethereum Virtual

Machine (EVM) in the Ethereum ecosystem?

185
 4. How does Ethereum's consensus mechanism
work?

5. What is the difference between Ether and Gas in

the Ethereum network?

6. Can you give examples of decentralized

applications (DApps) that are built on Ethereum
and explain their significance?

7. What languages and tools are commonly used for

developing smart contracts on Ethereum?

8. What are some key security concerns when

developing on Ethereum, particularly related to
smart contracts?

9. How does setting up and managing an Ethereum

node differ from managing a Bitcoin node?

10. What upcoming developments or upgrades in the

Ethereum ecosystem are you most excited about,
and why?

12.7 Multichain
1. Can you explain what MultiChain is and how it
differs from Ethereum and Hyperledger?

2. How does MultiChain's approach to permissioned

blockchains compare to permissionless
blockchains?

186
 3. What are some key features of MultiChain that
make it suitable for enterprise blockchain
applications?

4. How does MultiChain handle the creation and

management of assets within its blockchain
network?

5. What consensus mechanism does MultiChain use,

and how does it ensure network integrity and
security?

6. Can you discuss how smart contracts are

implemented in MultiChain and their potential use
cases?

7. What is a 'stream' in MultiChain, and how is it

used for data sharing and management?

8. What are some important considerations when

setting up and deploying a blockchain using
MultiChain?

9. How does MultiChain support interoperability

and integration with existing systems and other
blockchain networks?

10. What are some challenges or limitations of using

MultiChain for blockchain solutions, and how can
they be addressed?

11. What is the process of setting up a private

blockchain using Multichain?
187
12.8 HYFI Blockchain
1. Explain the legal & regulatory compliance
features of HYFI Blockchain.

2. Explain the Security Features of HYFI Blockchain.

3. Explain the Scalability Features of HYFI

Blockchain.

4. What are HYFI Cold Nodes?

5. Explain fow HYFI Blockchain can be integrated

with other applications.

6. Explain freezing of funds on HYFI Blockchain.

7. What are HYFI Data Streams?

8. What are HYFI Smart Filters.

9. Explain address permissions in the HYFI

Blockchain.

10. Explain the process of tokenizing assets on HYFI

Blockchain.

11. Explain atomic exchange transactions on HYFI

Blockchain.

188
12.9 Hyperledger
1. Can you explain what Hyperledger is and how it
differs from other blockchain platforms like
Ethereum?

2. Can you discuss a few key projects under the

Hyperledger umbrella and their distinct features?

3. What makes Hyperledger particularly suited for

enterprise solutions compared to public
blockchain platforms?

4. How does Hyperledger handle consensus

mechanisms across its different frameworks, and
how do they differ from traditional mechanisms
like Proof of Work?

5. What is the role of smart contracts in

Hyperledger, and how are they implemented and
executed?

6. In Hyperledger Fabric, what are Channels, and

how do they contribute to privacy and
scalability?

7. How does the permissioned nature of

Hyperledger networks affect their security and
governance?

8. How does Hyperledger facilitate interoperability

and integration with existing systems and other
blockchain networks?
189
 9. Can you explain the modular architecture of
Hyperledger frameworks and its benefits for
custom blockchain solutions?

10. What are some of the challenges or limitations

associated with using Hyperledger for blockchain
solutions, and how can they be addressed?

12.10 Blockchain & Web3 Tech Stack

1. Explain the core differences between Akash
Network, Filecoin, and Sia.

2. Explain how Arweave works.

3. Explain how InterPlanetary File System (IPFS)

works.

4. Explain the core differences between Audius and

Theta.

5. Explain how Chainlink works.

6. Explain how Livepeer works.

7. Explain how OpenZeppelin works.

190
 13
Quiz
Questions
BEP-1. Which of these Blockchain performance
indicators represents the transactions per second that
a consensus algorithm can process?

A. Fault tolerance threshold

B. Latency / Finality
C. Scalability
D. Throughput

BEP-2. Which of these represents an upper bound of

faulty nodes that directly impacts the performance of
the consensus algorithm?

A. Fault tolerance threshold

B. Latency / Finality
C. Scalability
D. Throughput

BEP-3. Which of these Blockchain performance

indicators represents the time it takes for a transaction
to become settled in the ledger?

A. Fault tolerance threshold

B. Latency / Finality
C. Scalability
D. Throughput

192
BEP-4. Which of these Blockchain performance
indicators represents the ability for a network to
expand without degrading performance?

A. Fault tolerance threshold

B. Latency / Finality
C. Scalability
D. Throughput

BEP-5. Which of these enables developers to create

custom blockchains?

A. Layer-0 Blockchains
B. Layer-1 Blockchains
C. Layer-2 Blockchains

BEP-6. Which of these are open-source software that

enable developers to create custom blockchains?

A. Blockchain Frameworks
B. Cosmos & Horizen

BEP-7. Which of these validate & execute transactions

without the need for any external network?

A. Layer-0 Blockchains
B. Layer-1 Blockchains
C. Layer-2 Blockchains

193
BEP-8. Which type of blockchain nodes enable faster
and cheaper transactions?

A. Cold nodes
B. Light nodes
C. Lightning nodes

BEP-9. Smart contracts are the environment in which

the Ethereum Virtual Machine (EVM) lives.

A. True
B. False

BEP-10. Which of these runs the blockchain's software

to validate & store the complete history of transactions
on the network?

A. Nodes
B. Smart contracts

BEP-11. Which of these nodes hosts the entire

blockchain, validates blocks & maintains consensus?

A. Archival Full Nodes

B. Pruned Full Node

194
BEP-12. In which type of Blockchain fork does each
node need to upgrade its software to be compatible
with the new processes?

A. Hard Fork
B. Soft Fork

BEP-13. Which of these blockchain nodes saves

download time & storage space by only downloading
block headers?

A. Light nodes
B. Lightning nodes

BEP-14. Which of these blockchain nodes are used for

signing transactions offline and storing private keys
away from the network?

A. Cold nodes
B. Lightning nodes

BEP-15. Which of these are "sidechains" built on top of

Layer-1 blockchains?

A. Blockchain Frameworks
B. Layer-2 Blockchains

195
BEP-16. Which of these consists of the hardware,
software, and networks that enable the functioning of a
blockchain?

A. Infrastructure Layer
B. User Interface Layer

BEP-17. Which of these consists of the interfaces, apps

& services that enable users to interact with the
blockchain and access its functionality?

A. Application Layer
B. User Interface Layer

BEP-18. In which type of Blockchain Bridge do you

remain in control of your cryptos?

A. Trusted
B. Trustless

BEP-19. Which of these Blockchain nodes holds only

the most recent transactions up to the size limit set by
the operator?

A. Archival Full Nodes

B. Pruned Full Node

196
BEP-20. Which of these enables fungible Ethereum
tokens to be re-used by other applications such as
wallets and decentralized exchanges?

A. ERC-20
B. ERC-721

BEP-21. Which of these describes a method for initially

locking tokens within a token contract and slowly
dispensing them using a Proof of Work algorithm?

A. ERC-918
B. ERC-1178

BEP-22. Ether (ETH) is NOT an ERC20 token.

A. True
B. False

BEP-23. Which standard improves on ERC-20 and

enables operators to send tokens on behalf of other
address—contracts?

A. ERC-10
B. ERC-777

197
BEP-24. Which standard outlines a smart contract
interface that can represent any number of fungible
and non-fungible token types?

A. ERC-1203
B. ERC-1155

BEP-25. Which standard enables multi-class fungible

tokens within smart contracts?

A. ERC-1178
B. ERC-1203

BEP-26. Ordinals enable data to be inscribed into

individual satoshis on the Bitcoin Blockchain.

A. True
B. False

BEP-27. Which of these is a Proof of Stake algorithm

that implements stake slashing for bad behavior like
chain halts & censorship?

A. Casper the Friendly Finality Gadget

B. Leasing Proof of Stake
C. Variable Delayed Proof of Stake

198
BEP-28. Which is a structure where every address gets
its own chain that only it can write to, and everyone
holds a copy of all of the chains?

A. Block-lattice
B. Proof of Zero
C. VeriBlock

BEP-29. In which do nodes share their known

transactions at random so that eventually all the
transactions are gossiped to all the nodes?

A. Hashgraph
B. Magi's POS
C. Raft

BEP-30. In transaction censoring, block miners choose

not to mine a block containing certain addresses.
Which of these best solves it?

A. Proof of Process
B. Proof of Stake Boo
C. Proof of Work

BEP-31. Which of these considers 3 components -

stake amount, financial transfer activity, and social
activity?

A. Delegated Proof of Importance

B. Proof of Believability
C. Proof of Care

199
BEP-32. The goal of which of these blockchain attacks
is to perform a double spend?

A. 51% Attack
B. Sybil Attack

BEP-33. Penalizing delayed block submissions is a

solution for which type of Blockchain attack?

A. 51% Attack
B. Sybil Attack

BEP-34. In which of these types of Blockchain attacks is

a P2P network manipulated by creating multiple fake
identities?

A. 51% Attack
B. DDOS Attack
C. Sybil Attack

BEP-35. In which of these does the attacker slow down

or halt the Blockchain network by spamming it with a
large number of transactions?

A. 51% Attack
B. DDOS Attack
C. Sybil Attack

BEP-36. In which of these can a number of Sybil nodes

surround your node and prevent it from connecting to
other, honest nodes on the network?

A. 51% Attack
B. Eclipse Attack
200
 14
Quiz
Answers
BEP-1: D BEP-2: A BEP-3: B

BEP-4: C BEP-5: A BEP-6: A

BEP-7: B BEP-8: C BEP-9: B

BEP-10: A BEP-11: A BEP-12: A

BEP-13: A BEP-14: A BEP-15: B

BEP-16: A BEP-17: B BEP-18: B

BEP-19: B BEP-20: A BEP-21: A

BEP-22: A BEP-23: B BEP-24: B

BEP-25: A BEP-26: A BEP-27: A

BEP-28: A BEP-29: A BEP-30: B

BEP-31: A BEP-32: A BEP-33: A

BEP-34: C BEP-35: B BEP-36: B

202
Credits
● Cover image: https://www.freepik.com

● https://blockchainblog.substack.com

● https://ethereum.org

● https://bitcoin.org

● https://blog.coinbase.com/a-simple-guide-to-the-
web3-developer-stack-8364b612d69c

● https://alchemy.com/blog/web3-stack

● https://en.bitcoin.it

● https://www.multichain.com

203