Basics of smart contracts and DApp development

* Bitcoin and smart contract basics
* Turing complete scripting language to create smart contracts
* Basics of Ethereum
* Setting up Ethereum development environment
* Create an "Hello World" smart contract
* Create, test and deploy a Proof of Ownership application.

Transcript

1. Basics of smart contracts and DApp development - Koshik Raj
2. Agenda • Bitcoin and smart contract basics • Turing complete scripting language to create smart contracts • Basics of Ethereum • Setting up Ethereum development environment • Create an "Hello World" smart contract • Create, test and deploy a Proof of Ownership application.
3. Why was Bitcoin created?
4. Centralization concerns in the past • Cyber attacks on major institutions. ◦ Sony pictures, JP Morgan Chase data breach. ◦ Target customer confidential data breach. • Expensive transaction fee. • Subprime mortgage crisis in 2008.
5. How Bitcoin solved it?
7. Distributed Ledger Technology (DLT) Each node holds a copy of the blockchain Blockchain + p2p+ Consensus algorithm = DLT
8. Cryptography in blockchain • Hashing • Digital signatures
9. Consensus mechanism • Algorithm to reach a global truth • Consensus mechanism solves the byzantine generals’ problem. • Bitcoin’s proof-of-work is the first and well known consensus algorithm.
10. Consensus algorithm: proof-of-work • Uses hash puzzle to do work • Incentivizes miner for their work from transaction fee + new coins • Hash cash proposed in 1997 by Adam Back • Reduce email spam and DOS attacks
11. Bitcoin addresses • Bitcoin uses asymmetric cryptography to generate public-private key pair • Public key is used to generate the public address • Private key is used to sign the transactions ◦ bitcoin-cli getnewaddress 1JK1yCXbP2WkwgzbAUqpWTeo9rQkA9seNg ◦ bitcoin-cli dumpprivkey 1JK1yCXbP2WkwgzbAUqpWTeo9rQkA9seNg L2NAKvQsbkeQZyhfPRWw1juQ19ohxGCFbdr8izQSHEmKWYFtVjXK
12. Bitcoin transactions • Bitcoin does bookkeeping with a transaction based ledger • Every transaction must be validated by the node • Every transaction consists of inputs and outputs • Transaction fee must be paid for every transaction created • Unconfirmed transactions are maintained in mempool: https://www.blockchain.com/btc/unconfirmed-transactions
13. Transaction verification • Bitcoin uses Turing incomplete stack-based language called "Script" • Uses locking and unlocking scripts ◦ Locking: 4 OP_ADD 6 OP_EQUAL ◦ Unlocking: 2
14. Smart contracts • Protocol that allows contracts to be verified and enforced in a self-executing manner. • Self enforcement removes the need for intermediaries
15. Ethereum basics • Ethereum is a widely-used platform for creating decentralized applications (https://www.stateofthedapps.com/stats) • Ethereum houses its own distributed virtual machine, and scripting language called Solidity
16. Ethereum VM and Solidity • EVM provides a runtime environment to execute smart contracts • EVM runs on a node that is isolated from the Ethereum network • Only the smart contract output can be inserted to the blockchain • EVM executes the compiled Solidity bytecode • Solidity is a contract-oriented programming language influenced by C++, Python and JavaScript
17. Let's build a DApp
18. Contact me: Koshik Raj linkedIn: koshikraj GitHub: koshikraj twitter: rajkoshik koshik.raj@gmail.com www.koshik.me “keep calm and create DApps”