Crypto Architecture (Layers of the tech stack)
Section outline
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Lesson Summary
This article provides an overview of the layered architecture of blockchain technology, explaining how each layer addresses different aspects of security, scalability, and decentralisation. It covers foundational terms such as layer-1 and layer-2 solutions, introduces the concept of blockchain scalability and throughput, and outlines the "blockchain trilemma," which suggests that decentralised networks face trade-offs among scalability, security, and decentralisation. The article also details six specific layers of blockchain architecture, explaining each layer's function within the network’s ecosystem.
Learning Objectives
- Define Blockchain Layers: Understand the distinctions between layer-1 (base layer) and layer-2 (enhancement layer) in blockchain networks.
- Explain the Blockchain Trilemma: Analyse the blockchain trilemma, exploring why blockchain systems typically must balance scalability, security, and decentralisation.
- Describe Blockchain Scalability: Learn what scalability means in blockchain and why it is essential for handling increased transactions in a decentralised network.
- Identify Blockchain Layers and Their Functions: Outline the six key layers of blockchain architecture and the purpose of each layer.
- Evaluate Solutions to Scalability: Discuss examples of solutions (e.g., sharding, off-chain scaling) that address the scalability issue while attempting to maintain security and decentralisation.
- Examine Real-World Applications: Investigate how different blockchain networks, such as Bitcoin and Ethereum, apply these concepts to improve scalability and security.
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Staff must demonstrate a sound understanding of crypto layers by passing this multichoice test with a pass rate of 70%.
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Objective
- The objective of this practical exercise is to learn the basics of analyzing an ERC20 contract using various tools and platforms.
Prerequisites
Basic knowledge of blockchain technology and Ethereum
Basic knowledge of Solidity programming language
A computer with the following tools installed:
A browser capable of using the following tools:
Learning outcomes
By the end of this exercise, you will have learned:
- How to set up a local development blockchain using Ganache Desktop
- How to create a self-custody wallet using Metamask
- How to connect your newly created wallet to connect to a custom network
- How to select a Solidity compiler version and compile a smart contract using Solidity Visual Developer for VSCode
- How to use the various tools within Solidity Visual Developer
- How to identify a hidden mint function within a smart contract using the report and ftrace tools
- How to connect to your Metamask wallet and deploy a smart contract using RemixIDE in a browser
- How to sign transactions with Metamask to complete the deployment to your local blockchain
- How to test the functions using the RemixIDE interface and Metamask
- How to view the transactions on Ganache
- How to manually test the functions for the hidden mint function
HOWTO:
Access this public repository:
Follow the instructions here:
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Lesson Summary:
This lesson explores the role of blockchain bridges, also known as cross-chain bridges, in connecting different blockchain networks. It covers how bridges facilitate asset transfers, information exchange, and interoperability between blockchains, which are otherwise isolated ecosystems. The lesson also explains the workings of centralised and decentralised bridges, the use of liquidity pools, and the significance of these bridges in expanding applications like decentralised finance (DeFi). Furthermore, the lesson provides insights into the technical process of building a decentralised bridge between Ethereum and Binance Smart Chain, highlighting security and usability considerations.
Lesson Objectives:
- Define blockchain bridges and explain their role in the blockchain ecosystem.
- Identify the key functions of blockchain bridges, including asset transfer and interoperability.
- Describe the differences between centralised and decentralised bridges and their security implications.
- Understand the steps involved in developing a decentralised bridge, with a focus on Ethereum and Binance Smart Chain.
- Discuss the challenges and importance of security in maintaining blockchain bridges.
- Evaluate the potential impact of blockchain bridges on expanding DeFi and other blockchain applications.
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