Blockchain fundamental

Abstract

In this chapter, we have provided a comprehensive overview of the fundamental knowledge regarding blockchains. We have summarized the four crucial protocol layers that are essential for blockchain implementation. Specifically, we have introduced the fundamentals of the data organization and network organization protocols in blockchains. Furthermore, by combining incentive mechanisms and consensus mechanisms, we have presented two major protocols, namely, PoW and Proof-of-Stake, to illustrate the fundamental mechanisms of incentivized consensus protocols in permissionless blockchains. Finally, we have provided a high-level overview of the smart contract layer as well as the decentralized applications of blockchains.