Crypto Development

Blockchain Fundamentals

At its core, blockchain is a distributed ledger where data is stored in blocks linked together chronologically. Each block contains transactions verified by a consensus mechanism. Nodes maintain the network and ensure transparency.

• Public blockchains (e.g., Ethereum, Bitcoin) allow open participation.
• Private blockchains (e.g., Hyperledger Fabric) restrict access to known participants.

Cryptographic Foundations

Crypto development relies on advanced cryptography:

• Public/private key pairs secure ownership of assets.
• Digital signatures validate transactions.
• Merkle trees ensure data integrity.
• Zero-knowledge proofs enable private verification.
• Elliptic curve cryptography underpins secure key exchanges.

Consensus Algorithms

Consensus ensures all participants agree on the ledger state:

• Proof of Work (PoW): Energy-intensive but highly secure.
• Proof of Stake (PoS): Energy-efficient, widely adopted by Ethereum 2.0.
• Delegated Proof of Stake (DPoS): Fast but more centralized.
• Proof of Authority (PoA): Suited for enterprise use cases.

Each mechanism balances security, speed, decentralization, and energy use differently.

Smart Contracts

Smart contracts are self-executing programs deployed on blockchains. They automate processes such as token issuance, voting, or financial settlements without intermediaries.

• Languages: Solidity (Ethereum), Rust (Solana), Vyper (Ethereum), Move (Aptos, Sui).
• Benefits: Transparency, automation, cost savings.

Tokens & Assets

Tokens represent digital value or rights:

• Fungible tokens (ERC-20): Interchangeable units like stablecoins or utility tokens.
• Non-fungible tokens (ERC-721, ERC-1155): Unique assets like artwork or in-game items.
• Stablecoins: Pegged to fiat currencies, offering low volatility.
• Security tokens: Represent regulated financial instruments.

Scalability Layers

To overcome blockchain limits, developers use scalability layers:

• Layer-1: Core blockchains (Ethereum, Solana, Avalanche).
• Layer-2: Off-chain scaling (Optimistic Rollups, ZK-Rollups).
• Sidechains: Independent blockchains connected to mainnets for specialized tasks.