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Ramchandra Sharad Mangrulkar and Pallavi Vijay Chavan
Blockchain Essentials
Core Concepts and Implementations
Ramchandra Sharad Mangrulkar
Mumbai, Maharashtra, India
Pallavi Vijay Chavan

Mumbai, Maharashtra, India
ISBN 978-1-4842-9974-6 e-ISBN 978-1-4842-9975-3

https://doi.org/10.1007/978-1-4842-9975-3
© Ramchandra Sharad Mangrulkar and Pallavi Vijay Chavan 2024
This work is subject to copyright. All rights are solely and exclusively
licensed by the Publisher, whether the whole or part of the material is
concerned, specifically the rights of translation, reprinting, reuse of
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The use of general descriptive names, registered names, trademarks,

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The publisher, the authors, and the editors are safe to assume that the
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This Apress imprint is published by the registered company APress
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The registered company address is: 1 New York Plaza, New York, NY
10004, U.S.A.
To our cherished daughter, Mansi:
Your unwavering support, encouragement, and constant sympathy were
invaluable during the creation of this book. Without you, it would have
been completed in half the time.
Preface
Blockchain has become the buzzword of the day. Developers are
focusing on more user-friendly applications with the help of blockchain,
achieving decentralization and a trustless environment without third-
party involvement. This includes diverse concepts and tools that play
major roles in developing crypto-based applications in various
programming languages. The distributed ledger and smart contracts
involved reveal the importance of blockchain in creating immutable and
transparent, cryptographically secure record-keeping of transactions.
The programming approach helps to shed light on the core concepts of
blockchain and relevant applications in easy steps. This helps to
motivate learners to become part of the solution to most of the
applications demanding trustless and independent autonomous
systems. The identification and examination of blockchain technology
beyond cryptocurrency will help to investigate alternative solutions
using many blockchain-supportive tools.
The main purpose of this book is to present the difficult concepts of
blockchain technology in very accessible and easy-to-understand
language using a programming approach so that learners can easily
grasp the key concepts arising from the emerging notion of blockchain
technology. Another purpose of this book is to make available the
experience of academia and industry to the target audience through
hands-on programming.
This book presents the concepts of blockchain technology in a
concise manner with clear and easy examples using trending
blockchain programming languages. The book fills a gap of address
issues surrounding the practical implementation of blockchain
concepts using case studies. The book also highlights the usefulness of
blockchain technology beyond its current applications.
Mumbai, India Ramchandra Sharad Mangrulkar
September 2023 Pallavi Vijay Chavan
Any source code or other supplementary material referenced by the
author in this book is available to readers on GitHub (https://github.
com/Apress). For more detailed information, please visit https://www.
apress.com/gp/services/source-code.
Acknowledgments
We extend our sincere gratitude to the dedicated contributors and
accomplished researchers in the field of blockchain for their invaluable
contributions and pioneering work.
Contents
1 Introduction to Blockchain
1.1 Prerequisites
1.2 Blockchain Myths
1.3 Blockchain and Decentralization
1.4 What Is Blockchain?
1.5 Disruptive Technology
1.6 History
1.6.1 Milestones in Blockchain Development
1.7 Features of Blockchain
1.8 Present Growth
1.9 Predicted Market
1.10 Blockchain Types
1.10.1 Public
1.10.2 Private
1.10.3 Federated
1.10.4 Hybrid
1.10.5 Difference Between Public and Private Blockchains
1.11 Blockchain Framework
1.11.1 Hardware/Infrastructure Layer
1.11.2 Data Layer
1.11.3 Network Layer
1.11.4 Consensus Layer
1.11.5 Application and Presentation Layer
1.12 A Block and Its Structure
1.12.1 A Block
1.12.2 Block Structure
1.12.3 Ledger
1.12.4 Distributed
1.12.5 Transparency
1.12.6 Confirmation
1.12.7 Proof of Work
1.12.8 Block Awards
1.12.9 Transactions and UTXOs
1.12.10 Consensus
1.13 Scaling Blockchain
1.13.1 Issues in Scaling
1.13.2 Off-Chain Computation
1.13.3 Sharding in Blockchain
1.14 Blockchain DApps and Usecases
1.15 Laboratory Work
1.15.1 Program for Implementing Blockchain in Python
1.15.2 Program for Mining a New Block in Blockchain and
Printing It
1.15.3 Program for Creating Four Blocks in Blockchian and
Printing and Traversing
1.15.4 Implementing Blockchain and Printing All Fields as
per Etherscan.io
1.15.5 Implementing Blockchain and UTXo in Python
1.15.6 Explanation of Code
1.15.7 Implementation of PoW Algorithm in Python
1.15.8 Implementation of PoS Algorithm in Python
1.15.9 Program to Fetch the Latest Block Information from
Ethereum Blockchain Using Etherscan API
1.16 Summary
1.17 Exercise
1.17.1 Multiple Choice Questions
1.17.2 Short Answer Questions
1.17.3 Long Answer Questions
1.17.4 Practical Questions
1.17.5 Answer Set of MCQ
2 Essentials of Blockchain Programming
2.1 Cryptography Primitives
2.1.1 Hash Function
2.2 Hash Functions
2.2.1 Properties of Hash Functions
2.2.2 Hash Pointers and Data Structures
2.2.3 Tampering Is Computationally Challenging
2.2.4 Role of Hashes in Blockchain
2.3 Secure Hash Algorithm (SHA)
2.3.1 SHA Algorithm
2.3.2 Hashing Patterns
2.4 Public Key Cryptography
2.4.1 Secure Hash Algorithm-3 (Keccak)
2.5 Merkle Tree
2.5.1 Merkle Tree Creation
2.5.2 Role of Merkle Tree in Blockhain
2.5.3 Structure of Merkle Tree
2.5.4 Merkle Proof
2.5.5 Proof of Membership
2.5.6 Proof of Nonmembership
2.5.7 Advantages of Merkle Trees
2.5.8 Applications of Merkle Trees
2.5.9 Merkle Tree Proof of Reserves
2.6 Public Key Cryptography
2.6.1 Public and Private Keys
2.6.2 Public Key Encryption Algorithms
2.6.3 Digitally Signed Transaction
2.6.4 Digital Signing in Blockchain
2.7 Laboratory Work
2.7.1 Program in Python that Demonstrates the Use of
Hashlib Library to Generate the SHA-3 Hash of a Message
2.7.2 Python Program that Takes a String and the Desired
Number of Leading Zeros from the User and Outputs the
Input String, the Nonce Value for Which the Leading Zeros
Puzzle Is Solved, and the Corresponding Hash Generated
2.7.3 Program to Create Hash Code from Given Input String
2.7.4 Program in Python that Demonstrates How to Use the
SHA-256 Hash Function and Its Application in a Simple
Blockchain
2.7.5 Write a Program in Python to Verify Hash Properties
2.7.6 Program to Demonstrate a Simple Implementation of a
Blockchain Using Hash Codes as a Chain of Blocks
2.7.7 Program to Demonstrate the Mining Process in
Blockchain
2.7.8 Program to Create a Merkle Tree in Blockchain
2.7.9 Program to Prove Membership and Nonmembership
in a Merkle Tree Blockchain
2.7.11 Program to Demonstrate How to Prove the
Membership and Nonmembership of an Element in a
Merkle Tree Blockchain
2.7.12 Program in Python that Demonstrates RSA Digital
Signature Scheme
2.8 Summary
2.9 Exercise
2.9.4 Practical Questions
2.9.5 Programming Questions
3 Bitcoin
3.1 What Is Bitcoin
3.2 History
3.4 Wallet
3.4.1 Bitcoin Wallets
3.4.2 Custodial Wallet
3.4.3 Noncustodial Wallet
3.4.4 Software Wallet
3.4.5 Hardware Wallet
3.4.6 Features of Digital Wallet
3.4.7 Difference Between Digital Wallet and Bank Accounts
3.4.8 Top Digital Wallet
3.5 Digital Keys and Addresses
3.5.1 Private Keys
3.5.2 Public Keys
3.6 Addresses in Bitcoin
3.7 Transaction
3.7.1 Transaction Lifecycle
3.7.2 Creating Transactions
3.7.3 Broadcasting Transactions to the Bitcoin Network
3.7.4 Propagating Transactions on the Bitcoin Network
3.7.5 Data Structures for Transaction
3.7.6 Types of Transactions
3.7.7 Transaction Input and Output
3.8 Digital Signature
3.9 Mining and Consensus in Bitcoin
3.9.1 Mining
3.9.2 Consensus
3.9.3 Decentralized Consensus in Bitcoin
3.9.4 Mining and Racing in Bitcoin
3.9.5 Cost of Mining in Bitcoin
3.9.6 Consensus Attacks in Bitcoin
3.10 Forking
3.10.1 Hard Fork
3.10.2 Soft Fork
3.11 Laboratory Work
3.11.1 Program to Generate Private Keys Securely on a
Hardware Wallet
3.11.2 Program to Generate Public-Private Key Pairs,
Encrypting and Storing Private Keys Securely and Signing
Transactions Using the Private Key
3.11.3 Program to Demonstrate Some of the Features of a
Digital Wallet
3.11.4 Program to Compare the Features of Popular Digital
Wallets, Rank Them Based on User Reviews and Ratings,
and Recommend a Digital Wallet Based on User Preferences
3.11.5 Program to Deploy a Smart Contract to Blockchain
Using a Tool Like Remix IDE
3.11.6 Program that Measures the Transaction Throughput
of EOA–EOA Transactions and CA–CA Transactions Using
Various Gas Limits on the Ethereum Network
3.11.7 Program that Uses Web3 to Categorize Ethereum
Addresses as EOA or Contract Addresses and Evaluates Its
Accuracy and Performance on a Large Dataset of Addresses
3.11.8 Program that Simulates the Life Cycle of a
Transaction on the Ethereum Network and Measures the
Time and Resources Required
3.11.9 Program for Implementing ECDSA
3.11.10 Program to Create a Bitcoin Transaction and Sign It
with a SIGHASH Flag Using the bitcoinlib Library
3.11.11 Program for Bitcoin Mining
3.11.12 Program that Demonstrates How to Identify 51%
Attackson a Blockchain
3.11.13 Program to Demonstrate the Concept of Forking
3.11.14 Program to Detect and Deal with 51% Attacks in the
BitcoinBlockchain
3.12 Summary
3.13 Exercise
4 Ethereum Blockchain
4.1 Overview of Ethereum Blockchain
4.1.1 Key Features
4.1.2 EVM
4.2 History of Ethereum
4.2.1 Ledger to State Machine
4.2.2 Ethereum Network
4.3 Smart Contracts
4.4 Challenges in Implementing Smart Contracts
4.4.1 Smart Contract Life Cycle
4.4.2 Introducing Solidity
4.4.3 Global Variables
4.5 Ethereum Development Tools
4.6 Ethereum Transactions
4.6.1 Transaction Life Cycle
4.7 Gas and Transaction Fees
4.7.1 Addressing Gas Fees
4.7.2 Factors Affecting Gas Price
4.7.3 Calculating Gas Costs
4.7.4 Gas Fee Calculation
4.7.5 Implications of Base Fee
4.7.6 Transaction Cost Predictability
4.7.7 Future with PoS
4.7.8 Gas Fees and Orchid
4.7.9 Example 1:Wallet-to-Wallet Transfer
4.7.10 Example 2:Deploying a Simple Contract
4.7.11 Avoiding Ethereum Gas Fees
4.8 Laboratory Work
4.8.1 Solidity Program for Displaying Hello Message
4.8.2 Program for Demonstrating Simple Increment and
Decrement Functions
4.8.3 Smart Contract Development with Solidity
4.8.4 Implementing Security Measures in Smart Contracts
4.8.5 Developing an ERC-20 Token
4.8.6 Building a Simple DApp
4.8.7 Interacting with Off-Chain Data Using Oracles
4.8.8 Program to Demonstrate a Basic Example of Smart
Contract Interaction and Ownership Management on
Ethereum Blockchain
4.8.9 Program to Create a Decentralized Blind Auction
Smart Contract on the Ethereum Blockchain, Enabling
Participants to Place Concealed Bids, Reveal Them, and
Determine the Highest Bidder While Ensuring Secure Fund
Management and Transparent Auction Outcomes.This
Contract Facilitates a Trustless and Tamper-Resistant
Auction Mechanism, Promoting Fairness and Efficiency in
Auction Processes
4.8.10 Program to Showcase the Vulnerability of Reentrancy
Attacks in a Smart Contract Context and Demonstrate the
Implementation of a Solution Using a Reentrancy Guard
4.9 Mist Browser
4.9.1 Guidlines for Using Mist Browser
4.9.2 Mist and Geth
4.9.3 Geth’s Role
4.10 Summary
4.11 Exercise
5 Hyperledger
5.1 Introduction to Hyperledger
5.1.1 The Purpose of Hyperledger
5.2 Hyperledger Architecture
5.2.1 Infrastructure Layer
5.2.2 Framework Layer
5.2.3 Tool Layer
5.3 Hyperledger Community and Development
5.4 Hyperledger Smart Contracts (Chaincode)
5.5 The Functioning of Hyperledger
5.5.1 Contributor
5.5.2 Endorser
5.5.3 Consenter
5.5.4 Example
5.5.5 Advantages of Hyperledger
5.5.6 Limitations of Hyperledger
5.6 Hyperledger Projects
5.6.1 Comparison of Hyperledger with Other Blockchain
Frameworks
5.6.2 Hyperledger Fabric in Blockchain
5.6.3 Consensus in Hyperledger Fabric
5.7 Hyperledger Consortiums and Networks
5.8 Hyperledger and Blockchain as a Service (BaaS)
5.8.1 Hyperledger Adoption Through BaaS
5.8.2 Advantages and Considerations
5.9 Laboratory Work
5.9.1 Program to Demonstrate Interaction with a
Hyperledger Fabric Blockchain Network Using the
Hyperledger Fabric JavaScript SDK
5.9.2 Program to Demonstrate How Hyperledger Fabric
Could Be Used in a Healthcare Context to Manage Patient
Medical Records
5.9.3 Program to Demonstrate the Implementation of a
Basic Government Application Using Hyperledger Fabric
5.9.4 Program to Demonstrate Finance Application Using
Hyperledger Fabric
5.9.5 Program to Demonstrate the Implementation of a
Finance and Payments System Using Hyperledger Fabric
5.9.7 Program to Demonstrate Simple Interoperability
Using the Hyperledger Fabric JavaScript SDK to Interact
with the Network and Demonstrate How Two Different
Smart Contracts Can Work Together
5.9.8 Program to Demonstrate Smart Contract Modeling
with Composer and Docker
5.9.9 Program for Demonstrating Hyperledger Caliper, a
Benchmarking Tool That Measures the Performance of
Hyperledger Blockchain Applications Under Various
Conditions
5.9.10 Running Caliper Benchmarks with Docker
5.10 Summary
5.11 Exercise
5.11.4 Programming Questions
6 Case Studies Using Blockchain
6.1 Blockchain – The Technology for Document Management
6.1.1 The Ownership
6.1.2 Introduction and Background
6.1.3 Problem Statement
6.1.4 Use Case Description
6.1.5 Solution Architecture
6.1.6 Implementation Steps
6.1.7 Smart Contracts
6.1.8 Data Management and Security
6.1.9 Interoperabilityand Integration
6.1.10 User Experience
6.1.11 Results and Benefits
6.1.12 Challenges and Lessons Learned
6.1.13 Future Enhancements and Scalability
6.1.14 Conclusion
6.2 Case Study 2:Blockchain in the Food Supply Chain
6.2.9 User experience
6.2.10 Results and Benefits
6.2.11 Challenges and Lessons Learned
6.2.12 Future Enhancements and Scalability
6.2.13 Conclusion
6.3 Case Study 3:Blokchain in the Insurance Industry
6.3.10 Analysis
6.3.11 Conclusion
6.4 Case Study 4:India’s Income Tax Department’s
Simplification of Tax Procedures
6.4.7 Tax Authority Interaction (Not Implemented in This
SimplifiedExample)
6.4.8 Event Log
6.4.12 Analysis
6.4.13 Conclusion
6.5 Case Study 5:Retail Banking
6.5.5 Implementation
6.5.7 Network Security
6.5.8 Incident Response
6.5.11 Analysis
6.5.12 Conclusion
6.6 Summary
6.7 Exercise
6.7.2 Short/Long Answer Questions
7 Beyond Blockchain
7.1 Blockchain for the Metaverse
7.2 Emergence of the Metaverse
7.3 Understanding the Metaverse
7.4 Metaverse Layers
7.4.1 Spatial Computing
7.4.2 Metaverse Components
7.5 Metaverse Through Immersive Technologies
7.5.1 Challenges in Metaverse Implementation
7.6 Blockchain’s Role in the Metaverse
7.6.1 Why Blockchain Technology Is Crucial for the
Metaverse
7.6.2 Interoperabilityand Standards
7.6.3 Security and Trust
7.6.4 Monetization and Incentives
7.7 Digital Scarcity and Ownership of Virtual Assets
7.8 Building Trust and Security in the Decentralized Metaverse
7.8.1 Trustless Nature of the Metaverse
7.8.2 Zero Trust Security in the Metaverse
7.9 Data Hub for Crypto, DeFi, NFT, Metaverse
7.9.1 Real-Time Data Streaming
7.10 Digital Trust Networks
7.10.1 Diverse Applications of Digital Trust Networks
7.10.2 Peer-to-Peer Marketplaces
7.10.3 Platform Ecosystems
7.10.4 Zero Trust Security Systems
7.10.5 Digital Identity Platforms
7.10.6 Decentralized Autonomous Organizations
7.11 Beyond Cryptocurrency:Transforming ESG, Digital
Assets,and Financial Markets
7.11.1 Environmental, Social, and Governance (ESG)
7.11.2 Digital Assets and Currency
7.11.3 Central Bank Digital Currencies
7.11.4 Blockchain Modernizing Financial Markets
7.11.5 Blockchain and AI:A Synergy for Trust and
Intelligence
7.11.6 Data Analysis and Predictive Insights
7.11.7 Smart Contract Automation
7.11.8 Enhanced Security
7.11.9 Scalability and Performance
7.12 The Future of Banks
7.12.1 Instant and Efficient Cross-Border Payments
7.12.2 Streamlined Trade Finance
7.12.3 Innovative Revenue Streams
7.13 Blockchain and Sustainable Technologies
7.13.1 Renewable Energy Trading
7.13.2 Environmental Conservation
7.14 Tangle
7.15 Summary
7.16 Short/Long Answer Questions
Bibliography
Index
About the Authors
Ramchandra Mangrulkar
is a Professor in the Department of Information
Technology in the Dwarkadas J. Sanghvi College of
Engineering in Mumbai, India. He holds various
memberships in professional organizations such as IEEE,
ISTE, ACM, and IACSIT. He completed his Doctor of
Philosophy (Ph.D.) in Computer Science and Engineering
from S.G.B. Amravati University in Maharashtra and
Master of Technology (MTech) in Computer Science and Engineering
from the National Institute of Technology, Rourkela. Dr. Mangrulkar is
proficient in several technologies and tools, including Microsoft’s Power
BI, Power Automate, Power Query, and Power Virtual Agents, Google’s
Dialog Flow, and Overleaf. With over 22 years of combined teaching and
administrative experience, Dr. Mangrulkar has established himself as a
knowledgeable and skilled professional in his field. He has also
obtained certifications like Certified Network Security Specialist
International CyberSecurity Institute (ICSI) – Certified Network
Security Specialist (CNSS) from ICSI, UK. Dr. Mangrulkar has an
extensive publication record, with 95 publications including
refereed/peer-reviewed international journal publications, book
chapters with international publishers (including ones indexed in
Scopus), and international conference publications.
Pallavi Vijay Chavan

is Associate Professor at Ramrao Adik Institute of
Technology, D. Y. Patil “Deemed-to-be-University,” Navi
Mumbai, MH, India. She has been in academia for the past
17 years working in the area of computing theory, data
science, and network security. In her academic journey,
she has published research in data science and security
with reputable publishers such as Springer, Elsevier, CRC Press, and
Inderscience. She has published 2 books, over 7 book chapters, more
than 10 international journal papers, and over 30 international
conference papers. Presently she serves as advisor to five Ph.D.
research scholars in related fields. She completed her Ph.D. at
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur, MH, India, in
2017. In 2003, she earned the first merit position at Nagpur University
for a B.E. in Computer Engineering. She is the recipient of research
grants from University Grants Commission (UGC), Council of Scientific
& Industrial Research (CSIR), and University of Mumbai. She serves as a
reviewer for Elsevier and Inderscience journals. Her motto is “Teaching
is a mission.”
About the Technical Reviewer
Parikshit Mahalle
is a senior member of the Institute of Electrical and
Electronics Engineers and Professor, Dean of Research and
Development and -Chair of the Department of Artificial
Intelligence and Data Science at Vishwakarma Institute of
Information Technology, Pune, India. He completed his
Ph.D. at Aalborg University, Denmark, and continued as a
postdoctoral researcher at Communication, Media & Information
Technologies, Copenhagen, Denmark. He has over 23 years of teaching
and research experience. He is a former member of the Board of Studies
in Computer Engineering and former chairman of the Department of
Information Technology at Savitribai Phule Pune University and various
universities and autonomous colleges throughout India. He owns 15
patents, has published over 200 research studies and papers (2950+
Google Scholar, 1550+ H index-25 and Scopus citations, 438 H index-8,
Web of Science, and H index-10 citations), and has authored/edited 56
books with Springer, CRC Press, Cambridge University Press, and
others. He is editor in chief for IGI Global’s International Journal of
Rough Sets and Data Analysis and Inderscience’s International Journal of
Grid and Utility Computing, is a member of the editorial review board
for IGI Global’s International Journal of Ambient Computing and
Intelligence, and serves as a reviewer for various reputable journals and
conferences. His research interests include machine learning, data
science, algorithms, Internet of Things, identity management, and
security. He currently advises eight Ph.D. students in the areas of IoT
and machine learning, and six students have successfully defended
their Ph.D. under his supervision from Savitribai Phule Pune University.
He is also the recipient of the Best Faculty Award by Sinhgad Institutes
and Cognizant Technology Solutions. He has delivered over 200 lectures
at the national and international levels.
© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2024
R. S. Mangrulkar, P. Vijay Chavan, Blockchain Essentials
https://doi.org/10.1007/978-1-4842-9975-3_1
1. Introduction to Blockchain
Ramchandra Sharad Mangrulkar1 and Pallavi Vijay Chavan1
(1) Mumbai, Maharashtra, India
Keywords History – Growth – Layers – Types – Consensus
Readers of this book are likely to have some knowledge and basic idea
about the enormous potential of the trending, decentralizing, and
trustworthy technology called blockchain. This technology represents
an innovation in the digital ecosystem that has significantly impacted
trusted computing activities, resulting in an enhanced level of protection
from cyber security threats.
This chapter lays out the fundamentals of blockchain technology,
presenting its theoretical background, historical milestones, and present
growth trends. Further, the conceptual view of a block in blockchain and
the types of blockchain are described. The chapter discusses the basic
skill set and libraries required to start doing “blockchain programming,”
which is a key objective of this book. The chapter ends with a few
examples and their implementation in Python.
1.1 Prerequisites
The prerequisites for blockchain technology include:
Understanding of cryptography: Cryptography is the foundation of
blockchain technology. A basic understanding of cryptographic
concepts, such as hashing, public-key encryption, and digital
signatures, is necessary.
Distributed systems: Blockchain is a distributed system that runs on
multiple nodes. Therefore, it is essential to have a good understanding
of distributed systems to build and deploy blockchain applications.
Data structures and algorithms: Blockchain technology relies on
complex data structures such as Merkle trees and algorithms such as
consensus algorithms. Understanding of these concepts is crucial for
building a robust blockchain system.
Networking and security: Blockchain technology requires a good
understanding of networking protocols, such as TCP/IP, HTTP, and
HTTPS. Additionally, a solid understanding of security concepts, such
as firewalls, encryption, and authentication, is necessary to develop
secure blockchain applications.
Smart contracts: Smart contracts are self-executing contracts with the
terms of the agreement between buyer and seller directly written into
lines of code. Knowledge of smart contract programming languages,
such as Solidity, is necessary for building decentralized applications.
Business and economics: Blockchain technology is disrupting
traditional business models and creating new opportunities.
Understanding the economics of blockchain and how it can be applied
to business is essential for leveraging its potential.
Legal and regulatory dimensions: Blockchain technology operates in a
regulatory gray area in many countries, and regulations are constantly
evolving. Understanding the legal and regulatory environment in
which blockchain operates is critical for creating compliant and
successful blockchain applications.
1.2 Blockchain Myths

Blockchain is an emerging technology. The following list dispels some of
the myths surrounding blockchain:
Blockchain is the same thing as Bitcoin (or any other cryptocurrency)
There is a misleading idea that if you learn blockchain technology,
you will become a good trader! This is untrue. Blockchain is not
equivalent to any cryptocurrency, whether Bitcoin or any other
currencies on the market like Altcoins. In fact, blockchain is a
technology, whereas Bitcoin is a cryptocurrency that makes use of
blockchain technology. Blockchain has many applications outside the
crypto world. Blockchain technology provides a full support system
for developing cryptocurrencies, whereas Bitcoin is a fundamental
application that builds on this emerging blockchain technology.
Blockchain can solve all security issues
Blockchain cannot be used to definitively eliminate corruption or
fraudulent activities. Blockchain’s many applications have been
developed by players in the various models governing economies
around the world. Blockchain cannot all issues related to security.
Solving all societal issues using blockchain is a formidable challenge.
Thus, careful consideration needs to be given as to which societal
issues should be addressed using blockchain.
Blockchain is the only possible technology
Blockchain is not necessarily the best technology for solving your
problems; they might be better solved employing technology that
does not use blockchain. It is possible that many different existing
technologies would yield better results in terms of security without
the use of blockchain.
Blockchain and distributed databases are similar technologies
Blockchain and distributed databases are different technologies.
Blockchain is not a distributed databases. Blockchain is not designed
to store and secure data. Blockchain and distributed databases are
two different technologies, each with its own merits and demerits and
different potential to solve different problems. Both are essential, and
one cannot easily replace the other.
1.3 Blockchain and Decentralization

Blockchain technology emerged to solve most of the issues in
decentralization. Decentralization refers to the distribution of power or
authority away from a single central entity to multiple individuals or
groups. In the context of technology, it refers to systems or networks
that operate without a central authority controlling them. Figure 1-1
gives an overview of centralized and decentralized systems.
Decentralization is required to address trust issues, that is, the
different parties involved do not trust each other, but they should
cooperate. The network of different entities such as businesses,
individuals, government, private- and public-sector organizations, with
their own interests, can come together and cooperate with each other to
solve societal issues. Decentralization and blockchain work together to
create a secure, transparent, and tamper-proof system that operates
without the need for a central authority.
Figure 1-1 Overview: centralized and decentralized systems
Figure 1-2 Blocks and chain in blockchain
1.4 What Is Blockchain?

Blockchain is an append-only, immutable, never-ending chain of data
where data, once added, cannot be deleted or modified, achieving a
tamper-proof system. The immutable property of blockchain means no
one can change it. Its append-only nature ensures that no one can erase
data once they are written in the blockchain. This append-only nature of
blockchain makes it a never-ending but fully traceable system. Figure 1-
2 shows the basic idea of blocks and chain in blockchain.
Every individual player maintains a copy of the blockchain, removing
the need for central administration or centralization. The addition of
information to the existing blockchain happens in the form of a new
block appended at the end while at the same time ensuring that all
copies of the local blockchain available to the different network players
must also be updated in the same order. This will ensure data
consistency in the blockchain, and all copies will be the same. This
doubtlessly will require an additional authentication and validation
mechanism, but at a superficial level, everyone will have an updated
copy of the blockchain.
The data structure in blockchain consists of a chain of blocks linked
together with the help of current and previous pointers. These two
fields store the hashed data of the contents of the block, the previous
pointer stores the hashed data of the previous block, and the current
pointer stores the hashed data of the current block.
The data are stored in the blockchain in a transparent way and are
available to everyone, allowing anyone to validate and verify the data as
and when required.
Definition 1.1 Blockchain is a decentralized, immutable, append-

only public ledger.
1.5 Disruptive Technology

Clayton Christensen introduced the idea of disruptive technologies in a
1995 Harvard Business Review article. Disruptive technology refers to
any innovation that disrupts an existing market or industry, displacing
established products or services and creating new markets and
opportunities. These technologies often have a transformative effect on
society, leading to changes in business models, consumer behavior, and
even cultural norms.
Not all innovations are disruptive technologies. It is the process
rather than product or services. Blockchain is a sustaining innovation
rather than a disruptive innovation in the financial sector.
Disruptive technologies typically emerge from unexpected sources
and are often initially dismissed as inferior or irrelevant by established
players in the market. However, as they gain momentum and become
more widely adopted, they can completely change the competitive
landscape and reshape entire industries.
The following are examples of disruptive technologies:
Ecommerce: The rise of ecommerce in the 2000s disrupted traditional
brick-and-mortar retail, creating new opportunities for businesses to
sell products and services online.
Personal computers: The development of personal computers in the
1970s and 1980s disrupted the established mainframe computer
industry, creating new markets and opportunities for businesses and
individuals.
Social media: The emergence of social media in the 2010s disrupted
traditional media and advertising industries, leading to the rise of
new platforms for content creation and distribution.
Digital photography: The advent of digital photography in the 1990s
disrupted the traditional film photography industry, leading to the
demise of many established companies and the emergence of new
players in the market.
Blockchain is considered a disruptive technology for several reasons:
Decentralization: One of the key features of blockchain technology is
its ability to operate in a decentralized manner, without the need for
intermediaries such as banks or government institutions. This
eliminates the need for trust in centralized institutions, which can be
slow, expensive, and prone to corruption.
Immutable and transparent: Blockchain technology is immutable and
transparent, meaning that once data are added to a blockchain, it
cannot be modified or deleted. This creates a high degree of trust in
the data stored on the blockchain and eliminates the need for
intermediaries to verify data.
Security: Blockchain technology is secured by cryptographic
algorithms that make it virtually impossible to tamper with the data
stored on the blockchain. This creates a high degree of security for
transactions and other data stored on the blockchain.
Smart contracts: Smart contracts are self-executing contracts with the
terms of the agreement between buyer and seller being directly
written into lines of code. This eliminates the need for intermediaries
to execute and enforce contracts, which can be slow, expensive, and
prone to errors.
Tokenization: Blockchain technology enables the creation and
exchange of digital assets, or tokens, which can represent anything of
value, such as currency, property, or ownership rights. This creates
new opportunities for businesses to generate value and disrupt
traditional business models.
1.6 History
Blockchain, a technology with the potential to become the foundation of
global record-keeping systems, was introduced a mere decade ago by
anonymous individuals associated with the digital currency Bitcoin,
under the pseudonym Satoshi Nakamoto. Despite its relatively recent
inception, blockchain has quickly gained recognition as a transformative
innovation, poised to revolutionize various industries through its
decentralized and secure nature.
1.6.1 Milestones in Blockchain Development

The subsection discusses some of the significant milestones in the
development of blockchain technology (Figure 1-3).
1. 2008 – The publication of Bitcoin’s whitepaper by Satoshi

Nakamoto marked the groundbreaking introduction of the
cryptocurrency. This event revolutionized the financial landscape,
ushering in a new era of decentralized digital currency. The
whitepaper laid the foundation for a peer-to-peer electronic cash
system that would eventually disrupt traditional monetary systems
worldwide.
2. 2009 – The inaugural Bitcoin transaction between Satoshi

Nakamoto and Hal Finney stands as a significant milestone in
cryptocurrency history. This historic event symbolized the
practical application and transferability of Bitcoin as a digital
currency. The transaction showcased the potential of Bitcoin as a
decentralized payment system, setting the stage for its widespread
adoption and subsequent impact on the financial industry.
Figure 1-3 Blockchain timeline
3. 2011 – Namecoin’s launch marked a groundbreaking moment as it
became the first alternative cryptocurrency to utilize blockchain
technology. This pioneering step opened the door for a multitude
of innovative blockchain-based digital assets. Namecoin’s
introduction demonstrated the potential for decentralized systems
beyond traditional currencies, paving the way for the development
of various blockchain applications and cryptocurrencies.
4. 2013 – Vitalik Buterin’s creation of Ethereum unleashed a

revolutionary platform enabling the creation of smart contracts
and decentralized applications (dApps). Ethereum’s emergence
introduced a new paradigm in blockchain technology, empowering
developers to build complex applications on a decentralized
network. Buterin’s vision laid the foundation for a vibrant
ecosystem of dApps, fueling innovation and transforming
industries through the power of decentralized computing.
5. 2015 – The formation of the Enterprise Ethereum Alliance united
leading corporations and blockchain startups, fostering
collaboration in the advancement of blockchain technology. This
alliance served as a catalyst for exploring the potential of Ethereum
in various industries and promoting blockchain adoption on a
global scale. The Enterprise Ethereum Alliance aimed to accelerate
innovation, establish industry standards, and drive the mainstream
integration of blockchain solutions across sectors.
6. 2016 – The Hyperledger Project, initiated by the Linux Foundation,

set out to develop open-source blockchain software specifically
tailored to enterprise applications. This strategic launch brought
together industry leaders and technologists to collaborate on
building scalable and interoperable blockchain solutions. By
providing a collaborative platform, the Hyperledger Project aimed
to accelerate the adoption of blockchain technology among
businesses, fostering transparency, efficiency, and trust in
enterprise operations.
7. 2017 – The cryptocurrency market witnessed an unprecedented

surge in value, primarily led by Bitcoin, accompanied by an
explosive growth in initial coin offerings (ICOs). This phenomenon
resulted in widespread frenzy and speculation, attracting investors
seeking to capitalize on the potential returns of digital assets. The
soaring value of cryptocurrencies and the ICO boom reshaped the
financial landscape, bringing both opportunities and risks while
fueling the development of innovative blockchain projects
worldwide.
8. 2018 – Blockchain-based platforms like IBM’s Food Trust have

emerged as transformative solutions for supply chain
management, enabling enhanced transparency and traceability
within the food industry. By leveraging blockchain technology,
these platforms offer a secure and immutable record of every step
in the supply chain, promoting accountability and reducing fraud.
The adoption of such blockchain solutions has the potential to
revolutionize the way we track and verify the origins, quality, and
safety of food products, ensuring consumer confidence and driving
industry-wide improvements.
9. 2019 – Facebook’s launch of the Libra cryptocurrency encountered
substantial regulatory scrutiny and widespread resistance from
governments worldwide. The ambitious project aimed to create a
global digital currency, but concerns over data privacy, monetary
sovereignty, and potential risks to the financial system led to
intense pushback. The Libra initiative highlighted the complex
challenges and regulatory hurdles that arise when tech giants
venture into the realm of cryptocurrencies and sparked
discussions on the future of digital currencies in a regulated
environment.
10. 2020 – Major financial institutions like JP Morgan and Goldman

Sachs have embraced blockchain technology, recognizing its
potential for efficiency and security in financial operations.
Simultaneously, numerous countries have launched their own
central bank digital currencies (CBDCs), aiming to leverage the
benefits of blockchain and enhance their monetary systems. This
combined trend showcases the growing acceptance and integration
of blockchain technology within the traditional financial sector,
paving the way to transformative changes in how transactions and
currencies are managed globally.
11. 2021 – In a historic move, El Salvador became the first country to

officially adopt Bitcoin as legal tender in 2021. This decision
enabled businesses to utilize Bitcoin for paying employee salaries
and established its acceptance as a valid payment method
throughout the country. El Salvador’s embrace of Bitcoin as a form
of currency marked a significant milestone in the mainstream
acceptance and integration of cryptocurrencies into national
economies.
12. 2022 – The year 2022 witnessed notable blockchain growth,

particularly in the emergence of national cryptocurrencies. This
concept revolved around the idea of CBDCs, where central banks
opted to develop their own digital coins instead of relying on
decentralized cryptocurrencies. This trend highlighted a shift
toward more centralized control over digital currencies, with
central banks exploring the benefits and challenges of issuing their
own blockchain-based currencies.
13. 2023 – The year 2023 has witnessed a notable focus on
environmentally friendly blockchains, facilitated by carbon
offsetting practices and energy-conscious network architectures.
The adoption of greener blockchains will be made more feasible
through the utilization of eco-friendly algorithms like proof of
stake. These developments signify a growing commitment to
reducing the environmental impact of blockchain technology and
promoting sustainable practices within the industry.
1.7 Features of Blockchain

The remarkable attention and interest surrounding blockchain
technology can be attributed to several key factors (Figure 1-4).
1. Immutable
Immutability lies at the core of blockchain technology, rendering
it an unchangeable and enduring network. By operating through a
network of nodes, the blockchain ensures that once a transaction is
recorded, it becomes permanent and resistant to modification. This
immutability characteristic establishes the blockchain as a secure
and trustworthy ledger, bolstering confidence in its integrity and
authenticity.
Figure 1-4 Features of blockchain
2. Distributed
Transparency is a fundamental feature of blockchain technology,
as all network participants possess a copy of the ledger, ensuring
complete visibility. By employing a public ledger, the blockchain
offers comprehensive information regarding participants and
transactions. The distributed computational power across multiple
computers enhances the efficiency and reliability of the network,
leading to improved outcomes in terms of security and consensus.
3. Decentralized
Blockchain technology operates as a decentralized system,
devoid of a central authority, whereby numerous nodes collaborate
to authenticate and validate transactions. Every node within a
blockchain network possesses an identical copy of the ledger,
ensuring consistency and eliminating the need for a central point of
control. This decentralized architecture enhances the security,
resilience, and transparency of the network, making it resistant to
single points of failure or manipulation.
4. Secure
In a blockchain, each record undergoes individual encryption,
bolstering the overall security of the network. The absence of a
central authority does not grant unrestricted access to add, update,
or delete data on the network. Cryptographic hashing assigns a
unique identity to every piece of information on the blockchain,
ensuring the integrity and immutability of the data. Each block
contains a distinctive hash along with the hash of the preceding
block, creating cryptographic links between blocks. Modifying the
data would require changing all the hash IDs, an exceedingly
challenging and practically infeasible task.
5. Consensus
Consensus plays a vital role in blockchain networks by enabling
efficient and impartial decision-making. It involves the use of
algorithms that allow a group of active nodes to reach swift and
reliable agreements, ensuring the smooth operation of the system.
Although nodes may lack trust in one another, they rely on the
consensus algorithm at the heart of the network to facilitate
consensus. Various consensus algorithms exist, each with its own
advantages and disadvantages. A consensus algorithm is essential
for any blockchain to maintain its value and integrity.
6. Unanimous
In a blockchain network, agreement on the validity of records is
crucial before their inclusion. When a node intends to add a block, it
requires majority consensus through voting, ensuring that the block
can be added to the network. Unauthorized addition, modification,
or deletion of information is prevented. Updates to records occur
simultaneously, rapidly propagating throughout the network.
Therefore, any changes without the consent of the majority of nodes
are practically impossible due to the stringent consensus
requirements in place.
7. Smart Contract
Smart contracts are agreements whose provisions are encoded
in computer code and automatically execute. Without
intermediaries, they automate, facilitate, and enforce contractual
agreements. Smart contracts augment a blockchain with
programmable capabilities, allowing actions and transactions to be
activated automatically when predefined conditions are met. This
function improves the efficacy and independence of blockchain
applications, such as financial services and supply chain
management.
1.8 Present Growth
The growth of blockchain technology has continued to accelerate in
recent years. Here are some examples of its present growth:
Investment: According to a report by CB Insights, global investment in
blockchain startups has increased steadily, with over USD billion
raised across 342 deals in 2021 alone.
Enterprise adoption: Major corporations, including IBM, Walmart, and
Visa, are investing in and implementing blockchain technology for
supply chain management, payment processing, and other
applications.
Cryptocurrency adoption: Cryptocurrencies such as Bitcoin and
Ethereum have seen significant increases in adoption and investment.
In 2021, the total market capitalization of all cryptocurrencies
surpassed USD 2 trillion.
Government interest: Several governments around the world are
exploring the use of blockchain technology for various applications,
including the development of CBDCs and voting systems.
NFTs: The emergence of nonfungible tokens (NFTs) on blockchain
platforms has created a new market for digital assets and has the
potential to revolutionize the art, music, and gaming industries.
Increased scalability: The development of new blockchain
technologies, such as sharding and layer-2 solutions, is addressing the
issue of scalability, making it possible to process more transactions
per second and enabling more widespread adoption.

The market for blockchain technology is expected to continue to grow in
the coming years. The market size of blockchain technology globally was
valued at USD 10.02 billion in 2022. It is projected to experience
significant growth at a compound annual growth rate (CAGR) of 87.7%
from 2023 to 2030. This growth can be attributed to the rising venture
capital funding in companies involved in blockchain technology.
Etherium will dominate
In 2023, Ethereum is poised to become the leading blockchain
platform, driven by updates such as the Merge and the Shanghai
upgrade. These enhancements will enhance usability, performance,
and scalability, particularly with the implementation of proto-
danksharding. As a result, Ethereum will solidify its position as the
preeminent player in the blockchain industry.
Ethereum Staking
In 2023, Ethereum has emerged as the leading platform for
staking, with over $20 billion staked, driving innovation in this field.
EigenLayer, a notable project, offers “security as a service” to other
blockchain platforms, leveraging Ethereum’s staked security to
enhance their own. EigenLayer’s upcoming EigenDA protocol aims to
introduce a restaking mechanism in 2023, further advancing staking
innovation. With growing demand for ETH staking and the
development of new solutions, Ethereum will solidify its role as a
global settlement layer for the Web3 ecosystem.
Evolution of NFTs In the coming year, NFTs will expand beyond digital
art, driven by major brands like Starbucks. NFT rewards programs
will inspire other commercial leaders to follow suit. The fusion of
physical and digital experiences will fuel NFT adoption. Projects
lacking adaptation and utility may fail, while recognized ones like
CryptoPunks could thrive. The widespread commercial use of NFTs
will shape their future.
Future of Tech Crypto
Cryptocurrency enables trading and investment, while “tech
crypto” prioritizes peer-to-peer networks and global software for
transactions. The shift toward tech crypto includes decentralized
finance and nonfinancial decentralized applications. Growing
adoption of tech crypto will bolster its importance, paving the way to
the next bull market and providing stability amid market fluctuations.
Reputation Management in Web3
Decentralized identity and reputation systems will be vital for
Web3 transactions in 2023, allowing reputation transfer and holistic
identity views. Projects like Intuition are leading the way by
leveraging attested data for a deeper understanding of identity. These
systems will be fundamental to Web3, enabling global decentralized
coordination and supporting diverse interactions and transactions.
Bitcoin’s Market Challenges
Bitcoin’s market share is likely to be challenged in the coming year
due to various factors. The lack of daily utility compared to other
tokens and ecosystems with higher commercial use diminishes
Bitcoin’s appeal. Criticism related to environmental concerns and the
energy-intensive proof-of-work system adds to the challenges.
Bitcoin’s failure to serve as a risk-off digital gold hedge may hinder its
progress, creating an opportunity for a more utility-driven layer 1
asset in the next bull run.
Web 3.0 Gaming
In 2023, Web 3.0 gaming is set to overcome its early flaws and
integrate Web3 utility and gaming aesthetics more seamlessly. The
industry’s focus will shift toward gameplay-centered studios, moving
away from token-centric projects. Game projects will leverage
advanced technologies to enhance gameplay experiences and drive
growth in the Web 3.0 gaming market. The upcoming year holds
promise for Web 3.0 gaming to engage the global gaming community
of three billion players and reshape its negative reputation.
1.10 Blockchain Types

Blockchain is a digital ledger technology that provides a secure and
transparent way of storing and sharing data. There are different types of
blockchain, each with its unique features and characteristics (Figure 1-
5).
Some of the blockchain types are categorized into permissioned and
permissionless; they overlap is illustrated in Figure 1-6.
The following subsections present the characteristics of various
categories of blockchain and provides examples of each.
Figure 1-5 Types of blockchain

Figure 1-6 Permissionless vs. permissioned blockchain
1.10.1 Public
A public blockchain is a type of blockchain technology that is open to
anyone, and anyone with Internet facilities is eligible to participate. It
operates in a decentralized manner, allowing participants to validate
blocks and send transactions without the need for permission from a
central authority. Public blockchains often use two major consensus
algorithms: proof of work (PoW) and proof of stake (PoS).
They are characterized by their openness, transparency, and lack of
central authority. Nodes can join and leave a network freely, and all
nodes can verify new data added to the blockchain.
Public blockchains employ incentive mechanisms to ensure the
correct operation of the system. They are permissionless, meaning
anyone can access the blockchain without requiring permission, and the
ledger is shared and transparent. Participants in a public blockchain can
remain anonymous, as real names and identities are not necessary.
Public blockchains offer users greater freedom and flexibility in how
they use the platform, without the limitations imposed by regulations.
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Watt, from old stern-hearted but at last relenting Tanna. The Church
of Victoria has again summoned me to visit the Colonial
Congregations, to tell the story of my Mission life, and to promote
the interests of its now grand and growing Foreign Scheme. It is in
the midst of such labours, while addressing at least one meeting
every day, and three or four every Sabbath day, that I have penned
the preceding pages; and I leave them to speak for themselves,
without any attempt at ornament or style. The Lord whom I serve in
the Gospel knows my motive and my hope, and I very calmly leave
this book to His disposal, and the succeeding volume to His
guidance, if such there shall ever be—as the reader well knows I have
had to leave heavier and darker issues in the same blessed Hands. I
offer every one, who has done me the favour to read or to listen, my
kindly greeting. May you and I meet in the glory of Jesus, and
continue our fellowship there! Good-bye.
APPENDIX.
APPENDIX A.
(See p. 354.)
THE PRAYER OF THE TANNESE, WHO LOVE THE WORD OF

JEHOVAH, TO THE GREAT CHIEF OF SYDNEY.
[Written at the urgent request and dictation of the Missionary’s
friends on Tanna to be presented to the Governor of New South
Wales. Literally translated by me, John G. Paton.]
To the Chief of Sydney, the servant of Queen Victoria of Britannia,
saying—We great men of Tanna dwell in a dark land. Our people are
very dark hearted. They know nothing good.
Missi Paton the man, Missi Mathieson the man, and Missi
Mathieson the woman, have dwelt here four yams (= years) to teach
us the worship of Jehovah. Their conduct has been straight and very
good; therefore we love these three Missionaries, and the worship of
Jehovah which they three have taught us, the Tannese.
Alas! a part, as it were, only three of our Chiefs, whose names are
Nauka, Miaki, and Karewick, besides Ringian, Enukarupi, Attica, and
Namaka, they and their people hate the worship and all good
conduct like that which the Word of Jehovah teaches us and the
people of all lands. These men all belong to four Villages only. They
have stolen all Missi’s property; they have broken into his house.
They have cut down his bananas. They have scolded and persecuted
him; and they desire to kill Missi and to eat him, so that they may
destroy the Worship of God from the land of Tanna.
We hate exceedingly their bad conduct, and pray you, the Great
Chief of Sydney, to punish these dark Tannese, who have persecuted
Missi, who have deceived Missi, who have altogether deceived the
Great Chief (= Commodore Seymour) and the Chief (= Captain
Hume) of the men-of-war, and who deceived the Chief and the
Missionaries in the John Williams, who murdered one of Missi
Paton’s Aneityum Teachers, who fought Missi Turner and Missi
Nisbet, who killed Vasa and his Samoan people, who killed the
foreigners, who have now fought and driven away our three
Missionaries. Their conduct has been exceedingly bad. They destroy
the Kingdom of Tanna, kill the people and eat them, and are guilty of
bad conduct every day. Our hearts hate their bad conduct; we are
pained by it.
Therefore we earnestly pray you, the Chief of Sydney, to send
quickly a man-of-war to punish them, and to revenge all their bad
conduct towards Missi. Then truly we will rejoice; then it will be
good and safe for the three Missionaries to dwell here, and to teach
us, men of the devil. Our hearts are very dark; we know nothing; we
are just like pigs. Therefore it is good for Missi to teach us the Word
and the Worship of Jehovah the Great King. Long ago He was
unknown here. Missi brought His knowledge to us.
Our love to you, the Great Chief of Sydney, the servant of Queen
Victoria, and we earnestly pray you to protect us, and to protect our
Missionaries and the Worship of God in our land, the land of Tanna.
We weep for our Missionaries. They three gave us medicine in our
sickness, and clothing for our bodies; taught us what is good
conduct, and taught us the way to Heaven. Of all these things long
ago we had no knowledge whatever; therefore we weep, and our
hearts cling to these three, our Missionaries. If they three are not
here, who will teach us the way to Heaven? Who will prevent our bad
conduct? Who will protect us from the bad conduct of foreigners?
And who will love us, and teach us all good things?
Oh, compassionate us, Chief of Sydney! Hold fast these three, our
Missionaries, and give them back to us, and we will love you and
your people. You and your people know the Word of Jehovah; you
are going on the path to Heaven; you all love the Word of Jehovah.
Oh, look in mercy on us, dark-hearted men, going to the bad land, to
the great eternal fire, just like our fathers who are dead!
May Jehovah make your heart and the hearts of your people sweet
towards us, to compassionate us, and to look in mercy on our dark
land; and we will pray Jehovah to make you good, and give you a rich
reward.
The names of us, the Chiefs of Tanna, who worship towards
Jehovah:—
Yarisi, x his mark.
Ruawa, x his mark.
Kapuka, x his mark.
Taura, x his mark.
Faimungo, x his mark.
Manuman, x his mark.
Nuara, x his mark.
Nebusak, x his mark.
Kaua, x his mark.
Nowar, x his mark.
APPENDIX B.
NOTES ON THE NEW HEBRIDES
By the Editor.
The South Seas—so named by Vasco Nugnez de Balboa, who in 1513
first saw the Ocean on the other side of Darien, and marched into it
as far as he durst, waving his sword, and taking possession of it in
name of his master, the King of Spain.
The Pacific Ocean—so named by Ferdinand Magellan, who in
1521 sailed westwards in his Victory seven thousand miles, and
found the sea exceptionally peaceful—for that trip at least.
The New Hebrides—so named by Captain Cook, who in 1773 first
fully explored and described the whole of the group. As far back,
however, as 1606, Captain Pedro Fernandez de Quiros had landed on
the largest and most northerly island of the group. He at once
fancied it to be the great Southern Continent, deemed to be essential
to balance the great Continents of the North, and eagerly looked for
both by sailors and men of science. He named the bay, Vera Cruz,—
the river that flowed into it, Jordan,—and the city which he founded
there, New Jerusalem. The land itself he called by the preposterous
designation of Tierra Australis del Espiritu Santo. In 1768 a French
explorer, Bougainville, sailed round Santo, discovering that it was
but an island, and through the Straits that still bear his name;
whereon, finding many islands all around, he re-baptized them
L’Archipel des Grandes Cyclades. But Cook, being the first who
sailed in and out amongst all the group, and put on record the most
faithful descriptions and details, which to this hour remain generally
authoritative, considered himself entitled to name them the New
Hebrides; and history since has been well pleased to adopt his views,
seeing, doubtless, the geographical analogy betwixt the
multitudinous scattered isles and islets of the old Hebrides and those
of the new.
From Santo in the north to Aneityum in the south, a distance of
about 400 miles, there are scattered over the Ocean thirty islands,
twenty being well inhabited, and eleven of them being of
considerable size, from Aneityum, which is forty miles in
circumference, to Santo, which measures seventy miles by forty. The
Islands lie 1,000 miles to the North of New Zealand, 1,400 miles
North-East from Sydney, 400 miles West of Fiji, and 200 East of
New Caledonia. The population is now estimated at 70,000; but, in
the early days of Missions, before Traders and Kanaka-collectors,
and the new Epidemics of Civilization (!) had decimated them, their
numbers were certainly three times greater.
The general appearance of the Islands is that of a range of
mountains bursting up out of the sea, clothed with forests, and
severed from each other by deep valleys, through which the tides
now flow. They are all volcanic in origin, but the lava has poured
itself out over a bed of coral, and the mountains have reared
themselves up on a coral base. The fires are still active on Tanna,
Ambrym, and Polevi—the volcano on Tanna being now, as in the
days of Cook, a pillar of cloud by day and of fire by night, a far-
shining light-house for the sailor, kindled by the finger of God
Himself. The climate is moist and humid, with a thermometer
seldom below 60° and seldom above 90° in the shade; their winter is
called the Rainy Season, and their vegetation is tropical in its
luxuriance.
On one Island may be found a hundred varieties of ferns alone.
The damara or kauri-pine, so prized in New Zealand, grows there, as
also the bread-fruit tree, the banana, the papua-apple, the chestnut,
and above all the cocoa-nut, which for refreshing drink competes
with the vine of other lands, and for varied uses and services to man
almost rivals the very palmtree of Palestine. The sandal-wood, for its
sacred odours and idol incense, has been almost swept entirely away,
—as much as £70,000 worth being carried off from Erromanga
alone!
Among native foods, the yam and the taro hold the foremost place,
not inferior to our finest potatoes; besides the banana, the sugar-
cane, the bread-fruit, and the cocoa-nut, which flourish to perfection.
Their arrowroot is in some respects the finest in the world, and is
kept only for special uses as yet, but may develop into a great and
valuable industry, as Commerce opens up her markets and stretches
out her hands. The English cabbage has been introduced and grows
well; also the planting of cotton and of coffee.
The scarcity of animals is marvellous. The pig, the dog, and the rat
are their only four-footed creatures; and some affirm that the rat is
the alone indigenous quadruped in all the New Hebrides! Lizards
and snakes abound, but are declared not to be poisonous. There are
many small and beautiful pigeons, also wild ducks and turkeys,
besides multitudes of ordinary fowls. Goats have now been largely
introduced, as well as sheep, and various European animals. Fish, of
course, swarm in millions around the shores, and a whaling station
on Aneityum sent into the market £2,000 worth of oil in a year.
The Natives are practically quite naked, till induced by the
Missionary to “wear a shirt”—the first sign of renouncing
Heathenism and inclining towards Christianity. They are Cannibals
of a very pronounced type, and Savages without any traces of
civilization, except those connected with war(!),—without a
literature, and almost without a religion, except only the dread of evil
spirits, the worship of ancestors, and the lowest forms of fetishism,
trees, stones, etc. They are partly Malay and partly Papuan,—a
mixture of Ham and of Shem,—some with hair crisp and woolly,
stuck full of feathers and shells, others with hair long and wavy,
twisted into as many as 700 separate whipcords on a single head,
and taking five years to finish the job! Their bows and arrows,
tomahawks, clubs and spears, are sometimes elaborately carved and
adorned; and they can twist and weave grasses and fibres into
wondrously beautiful mats, bags, and girdles. They make bracelets
out of shells, sliced and carved in marvellous ways, as also ear-rings
and nose-rings; and in many similar methods they show some savage
sense of beauty.
Polygamy, with all its accompanying cruelties and degradations,
universally prevails. Infanticide is systematically practised; and even
the despatch of parents, when they grow old and helpless. Widows
are put to death on almost every island to bear their husbands
company into the spirit world. There is not an unmentionable vice
hinted at in Romans i. which is not unblushingly practised on those
Islands, wheresoever the Gospel has not dawned.
For the best published information on all these subjects, consult

the work by Dr. John Inglis: “In the New Hebrides” (Nelson &
Sons, 1887),—Reminiscences of noble Missionary Service for three-
and-thirty years.
A SELECTION FROM
Fleming H. Revell Company’s
CATALOGUE
Important Missionary Publications.
TOBIOGRAPHY OF JOHN G. PATON. Missionary to the New Hebrides.

Introductory note by Arthur T. Pierson, D.D. 2 vols., 12mo., portrait and map, in
neat box, net $2.00.
One of the most remarkable biographies of modern times.
“I have just laid down the most robust and the most fascinating piece of
autobiography that I have met with in many a day.... It is the story of the wonderful
work wrought by John G. Paton, the famous missionary to the New Hebrides; he
was made of the same stuff with Livingstone.”—T. L. Cuyler.
“It stands with such books as those Dr. Livingstone gave the world, and shows to
men that the heroes of the cross are not merely to be sought in past ages.”—
Christian Intelligencer.
HE LIFE OF JOHN KENNETH MACKENZIE. Medical

Missionary to China; with the story of the First Chinese Hospital by
Mrs. Bryson, author of “Child Life in Chinese Homes,” etc. 12mo.,
cloth, 400 pages, price $1.50 with portrait in photogravure.
“The story of a singularly beautiful life, sympathetically and ably written.... A
really helpful, elevating book.”—London Missionary Chronicle.
“The volume records much that is fresh and interesting bearing on Chinese
customs and manners as seen and vividly described by a missionary who had
ample opportunities of studying them under most varied circumstances and
conditions.”—Scotsman.
HE GREATEST WORK IN THE WORLD. The Evangelization of

all Peoples in the Present Century. By Rev. Arthur T. Pierson, D.D.
12mo., leatherette, gilt top. 35c.
The subject itself is an inspiration, but this latest production of Dr. Pierson
thrills with the life which the Master Himself has imparted to it. It will be a
welcome addition to Missionary literature.
HE CRISIS OF MISSIONS. By Rev. Arthur T. Pierson, D.D. Cloth,

$1.25; paper, 35c.
“We do not hesitate to say that this book is the most purposeful, earnest and
intelligent review of the mission work and field which has ever been given to the
Church.”—Christian Statesman.
EDICAL MISSIONS. Their Place and Power. By John Lowe, F. R. C.

S. E., Secretary of the Edinburgh Medical Mission Society. 12mo.,
308 pages, cloth, $1.50.
“This book contains an exhaustive account of the benefits that may, and in point
of fact do, accrue from the use of the medical art as a Christian agency. Mr. Lowe is
eminently qualified to instruct us in this matter, having himself been so long
engaged in the same field.”—From Introduction by Sir William Muir.
NCE HINDU: NOW CHRISTIAN. The early life of Baba Padmanji.

Translated from the Marathi. Edited by J. Murray Mitchell, M. A.,
LLD. 12mo., 155 pages, with appendix. Cloth, 75c.
“A more instructive or more interesting narrative of a human soul, once held
firmly in the grip of oriental superstition, idolatry and caste, gradually emerging
into the light, liberty and peace of a regenerate child of God, does not often come to
hand.”—Missionary Herald.
N INTENSE LIFE. By George F. Herrick. A sketch of the life and

work of Rev. Andrew T. Pratt, M.D., Missionary of the A. B. C. F. M.,
in Turkey, 1852–1872. 16mo., cloth, 50c.
VERY-DAY LIFE IN SOUTH INDIA, or, the Story of

Coopooswamey. An Autobiography. With fine engravings by E.
Whymper. 12mo., cloth, $1.00.
HE CHILDREN OF INDIA. Written for children by one of their
friends. Illustrations and map. Small 4to., cloth, $1.25.
“These are good books for the Sunday-School Library, and will help young
people in missionary societies who desire to have an intelligent idea of the people
in India whom they are sending their money and their missionaries to convert.”—
Missionary Herald.
NDUISM, PAST AND PRESENT. With an account of recent

Hindu reformers, and a brief comparison between Hinduism and
Christianity. By J. Murray Mitchell, M.A., LLD. 12mo., cloth, $1.60.
“A praiseworthy attempt to present a popular view of a vast and important
subject.”—Saturday Review.
OSPEL ETHNOLOGY. With illustrations. By S. R. Paterson, F. G. S.

12mo., cloth, $1.00.
“The first attempt to treat this subject from a thorough-going scientific
standpoint. A very powerful argument for the truth of Christianity.”—English
Churchman.
“A book to refer to for information not easily to be obtained otherwise.”—Church
Missionary Intelligencer.
ATIVE LIFE IN SOUTH INDIA. Being sketches of the social and

religious characteristics of the Hindus. By the Rev. Henry Rice. With
many illustrations from native sketches. 12mo., cloth boards, $1.00.
“Those who have heard Mr. Rice’s missionary addresses will be prepared to hear
that this is a fascinating book.”—Life and Work.
HRISTIAN PROGRESS IN CHINA. Gleanings from the writings

and speaches of many workers. By Arnold Foster, B.A., London
Missionary, Hankow. With map of China. 12mo., cloth, $1.00.
MONG THE MONGOLS. By Rev. James Gilmour, M.A., London

Mission, Peking. Numerous engravings from photographs and native
sketches. 12mo., gilt edges, cloth, $1.25.
“The newness and value of the book consists solely in its Defoe quality, that
when you have read it you know, and will never forget, all Mr. Gilmour knows and
tells of how Mongols live.”—Spectator.
VERY-DAY LIFE IN CHINA, or, Scenes along River and Road in the
Celestial Empire. By Edwin J. Dukes. Illustrations from the author’s
sketches. 12mo., with embellished cover, $2.00.
That China is a mysterious problem to all who interest themselves in its affairs is
the only excuse for offering another book on the subject.
• MISSIONARY PUBLICATIONS •
PORT OF THE CENTENARY CONFERENCE on the Protestant Missions

of the World. Held in London, June, 1888. Edited by the Rev. James Johnston,
F. S. S., Secretary of the Conference. Two large 8vo. vols., 1200 pages, $2.00 net
per set.
An important feature in this report, lack of which has prejudiced many against
reports in general, is the special care taken by the Editor, who has succeeded in
making the work an interesting and accurate reproduction of the most important
accumulation of facts from the Mission Fields of the World, as given by the
representatives of all the Evangelical Societies of Christendom.
And another: The exceptionally complete and helpful indexing of the entire work
in such a thorough manner as to make it of the greatest value as a Reference
Encyclopedia on mission topics for years to come.
HE MISSIONARY YEAR BOOK FOR 1889–90. Containing

Historical and Statistical accounts of the Principle Protestant
Missionary Societies in America, Great Britain and the Continent of
Europe.
The American edition, edited by Rev. J. T. Gracey, D.D., of Buffalo, embraces
about 450 pages, one-fourth being devoted to the work of American Societies, and
will contain Maps of India, China, Japan, Burmah, and Siam; also a language Map
of India and comparative diagrams illustrating areas, population and progress of
Mission work. This compilation will be the best presentation of the work of the
American Societies in Pagan Lands that has yet been given to the public. The book
is strongly recommended by Rev. Jas. Johnston, F.S.S., as a companion volume to
the Report of the Century Conference on Missions. Cloth, 12mo. $1.25.
ARENGANZE: or, Seven Years’ Pioneer Missionary Work in

Central Africa. By Fred. S. Arnot, with introduction by Rev. A. T.
Pierson, D.D. Twenty Illustrations and an original Map.
The author’s two trips across Africa, entirely unarmed and unattended except by
the local and constantly changing carriers, and in such marked contrast with many
modern adventurers, strongly impress one to ask if another Livingstone has not
appeared among us. Traversing where no white man had ever been seen before,
and meeting kings and chiefs accustomed only to absolute power, he demanded
and received attention in the name of his God. Cloth 8vo, 290 pages, $1.25.
THE FAR EAST: China Illustrated. Letters from Geraldine

Guinness. Edited by her sister, with Introduction by Rev. J.
Hudson Taylor. A characteristic Chinese cover. Cloth 4to, 224
pages, $1.50.
CONTENTS.
“Good-Bye!”
Second Class.
On the Way to China.
Hong-Kong and Shanghai.
First days in the Flowery Land.
Opium Suicides amongst Women.
Ten Days on a Chinese Canal.
At Home in our Chinese “Haddon Hall.”
By Wheelbarrow to Antong.
Life on a Chinese Farm.
A Visit to the “Shun” City.
Blessing—and Need of Blessing—In the Far East.
Rev. C. H. Spurgeon, writes:

“I have greatly enjoyed ‘In the Far East.’ God blessing it, the book should send
armies of believers to invade the Flowry Land.”
The author is to be congratulated for the taste and beauty with which these
letters are now put into permanent form. A full page colored map of China
enhances this admirable gift book.
NEW YORK. :: Fleming H. Revell Company :: CHICAGO.
TRANSCRIBER’S NOTES
1. Silently corrected obvious typographical errors and
variations in spelling.
2. Retained archaic, non-standard, and uncertain spellings
as printed.
*** END OF THE PROJECT GUTENBERG EBOOK JOHN G.
PATON, MISSIONARY TO THE NEW HEBRIDES ***
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Blockchain Essentials: Core Concepts

and Implementations (ePub Convert)

Pallavi Vijay Chavan

ISBN 978-1-4842-9974-6 e-ISBN 978-1-4842-9975-3

© Ramchandra Sharad Mangrulkar and Pallavi Vijay Chavan 2024

The use of general descriptive names, registered names, trademarks,

Pallavi Vijay Chavan

Keywords History – Growth – Layers – Types – Consensus

1.2 Blockchain Myths

1.3 Blockchain and Decentralization

Figure 1-1 Overview: centralized and decentralized systems

Figure 1-2 Blocks and chain in blockchain

1.4 What Is Blockchain?

Definition 1.1 Blockchain is a decentralized, immutable, append-

1.5 Disruptive Technology

1.6.1 Milestones in Blockchain Development

1. 2008 – The publication of Bitcoin’s whitepaper by Satoshi

2. 2009 – The inaugural Bitcoin transaction between Satoshi

4. 2013 – Vitalik Buterin’s creation of Ethereum unleashed a

6. 2016 – The Hyperledger Project, initiated by the Linux Foundation,

7. 2017 – The cryptocurrency market witnessed an unprecedented

8. 2018 – Blockchain-based platforms like IBM’s Food Trust have

10. 2020 – Major financial institutions like JP Morgan and Goldman

11. 2021 – In a historic move, El Salvador became the first country to

12. 2022 – The year 2022 witnessed notable blockchain growth,

1.7 Features of Blockchain

1.9 Predicted Market

1.10 Blockchain Types

Figure 1-5 Types of blockchain

THE PRAYER OF THE TANNESE, WHO LOVE THE WORD OF

For the best published information on all these subjects, consult

Important Missionary Publications.

TOBIOGRAPHY OF JOHN G. PATON. Missionary to the New Hebrides.

HE LIFE OF JOHN KENNETH MACKENZIE. Medical

HE GREATEST WORK IN THE WORLD. The Evangelization of

HE CRISIS OF MISSIONS. By Rev. Arthur T. Pierson, D.D. Cloth,

EDICAL MISSIONS. Their Place and Power. By John Lowe, F. R. C.

NCE HINDU: NOW CHRISTIAN. The early life of Baba Padmanji.

N INTENSE LIFE. By George F. Herrick. A sketch of the life and

VERY-DAY LIFE IN SOUTH INDIA, or, the Story of

NDUISM, PAST AND PRESENT. With an account of recent

OSPEL ETHNOLOGY. With illustrations. By S. R. Paterson, F. G. S.

ATIVE LIFE IN SOUTH INDIA. Being sketches of the social and

HRISTIAN PROGRESS IN CHINA. Gleanings from the writings

MONG THE MONGOLS. By Rev. James Gilmour, M.A., London

PORT OF THE CENTENARY CONFERENCE on the Protestant Missions

HE MISSIONARY YEAR BOOK FOR 1889–90. Containing

ARENGANZE: or, Seven Years’ Pioneer Missionary Work in

THE FAR EAST: China Illustrated. Letters from Geraldine

Rev. C. H. Spurgeon, writes:

Updated editions will replace the previous one—the old editions

Creating the works from print editions not protected by U.S.

START: FULL LICENSE

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Section 1. General Terms of Use and

1.B. “Project Gutenberg” is a registered trademark. It may only

1.E. Unless you have removed all references to Project

1.E.1. The following sentence, with active links to, or other

This eBook is for the use of anyone anywhere in the United

1.E.2. If an individual Project Gutenberg™ electronic work is

1.E.3. If an individual Project Gutenberg™ electronic work is

1.E.4. Do not unlink or detach or remove the full Project

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