Description
Discover how distributed ledger technologies work under the hood and learn how to identify those that are actually cryptographically secured and decentralized
In The Digital Asset Technology Guidebook: Deciphering the Keys to Crypto, Blockchain, and Decentralized Finance, certified blockchain developer and a Vice President of Emerging Technology Integration and Cybersecurity, Dr. David Utzke, delivers an authoritative and well-organized discussion of how to understand the architectural components inside distributed ledgers. In other words, this book shows you how to understand the real-world risks of exploitation in digital assets minted in Layer 2 (“smart”) contracts.
You’ll learn how to identify the developer team behind specific contracts and determine whether cryptography actually exists as a component in the “crypto” asset. You’ll also discover which technological features and capabilities are most likely to result in vulnerabilities to bad actors.
Inside the book:
- A taxonomical description of digital assets, as well as insights into hundreds of distributed ledger architectures
- A guide to identifying assets developed on non-distributed ledger platforms
- The technical information you need to confidently navigate the world of distributed ledger and blockchain technologies
Perfect for academics and researchers studying and teaching distributed ledger technology and digital asset coding and security, The Digital Asset Technology Guidebook is also a must-read for financial crime analysts, law enforcement personnel investing financial and cyber crimes, attorneys, investors, and fund analysts and managers.
Table of Contents
Foreword ix
Preface – Author’s Insights xv
Introduction 1
Chapter 1 Distributed Ledger Architectural Primitives with a Historical Perspective 9
Distributed Ledger: The Beginning 11
The First Distributed Ledger 13
The Contribution of the Merkle Cryptographic Hash to DLT 14
Cryptographic Digital Signatures in DLT 15
Consensus in DLT 17
Consensus Protocols vs. Consensus Algorithms 18
Distributed Network Architecture and Topology 25
Nodes and Clients in Distributed Networks 29
Messaging Protocols in Distributed Networking 31
Chapter 2 Distributed Ledger Transparency: Types of Network Design 39
Permissioned vs. Permissionless Design 41
Private vs. Public Network Design 44
Federated Network Design 47
Chapter 3 Distribute Network Secure Data Ledger Architectural Design Typologies 51
Distributed Computing 54
Distributed Networking 55
Data Ledger Structures in DLT 56
Data Ledger Structures: Block Ledgers 58
Data Ledger Technology Structures: Blockless Ledger Architecture 65
Hybrid Ledger Architecture 72
Chapter 4 Alternative Ledger Frameworks 81
Relay-Parachain Model 82
Hub-zone Model and App-chains 86
Chapter 5 The Distributed Ledger Stack 91
Layer-0 (L0)—TCP/IP Layer 95
Layer-1 (L1)—Mainnet (Main Network) Layer 96
Layer-2 (L2)—Developer Layer 102
L2 Contracts in General 102
L1-to-L2 Contracts 107
State Channels 110
Roll-ups 114
Bridges 118
Oracles 121
Side Chains and Child Chains 124
Side Chains 125
Child Chains 127
Layer-3 (L3)—Distributed Applications Layer 128
Chapter 6 Digital Currency in the Context of Currency and Money Systems 131
Money vs. Currency 132
Money 133
Currency 134
Digital Currency 137
Digital Asset Taxonomy, Typology, and Topology Insights 146
Taxonomy 148
Typology 150
Topology 151
Chapter 7 Governance Tenets of Distribution, Democratization, and Decentralization (G=D 3) 153
Tenet 1: Governance in Distributed Systems 158
Tenet 2: Governance in Democratized Systems 161
Tenet 3: Governance in Decentralization 164
Chapter 8 Trends in Use Cases and Convergence with Other Technologies 173
Digital Asset Reserve Funds 174
Tokenization of Real-World Assets (RWA)/ In Real-Life Assets (IRLA) 187
Synthetic Fiat 188
Synthetic Securities 201
Layer-2 Contract Meme Tokens and Layer- 3
Project Development 208
DeComm, DePIN, DeREN, DeWiFi, and DeVS 214
Quantum Cryptography & Quantum Entanglement Distributed Networks 216
Conclusion 221
Index 225
