Blockchain, Part II: Configuring a Blockchain Network and Leveraging the Technology

Petros Koutoupis — Tue, 24 Apr 2018 16:30:00 +0000

How to set up a private ethereum blockchain using open-source tools and a look at some markets and industries where blockchain technologies can add value.

In Part I, I spent quite a bit of time exploring cryptocurrency and the mechanism that makes it possible: the blockchain. I covered details on how the blockchain works and why it is so secure and powerful. In this second part, I describe how to set up and configure your very own private ethereum blockchain using open-source tools. I also look at where this technology can bring some value or help redefine how people transact across a more open web.

Setting Up Your Very Own Private Blockchain Network

In this section, I explore the mechanics of an ethereum-based blockchain network—specifically, how to create a private ethereum blockchain, a private network to host and share this blockchain, an account, and then how to do some interesting things with the blockchain.

What is ethereum, again? Ethereum is an open-source and public blockchain platform featuring smart contract (that is, scripting) functionality. It is similar to bitcoin but differs in that it extends beyond monetary transactions.

Smart contracts are written in programming languages, such as Solidity (similar to C and JavaScript), Serpent (similar to Python), LLL (a Lisp-like language) and Mutan (Go-based). Smart contracts are compiled into EVM (see below) bytecode and deployed across the ethereum blockchain for execution. Smart contracts help in the exchange of money, property, shares or anything of value, and it does so in a transparent and conflict-free way avoiding the traditional middleman.

If you recall from Part I, a typical layout for any blockchain is one where all nodes are connected to every other node, creating a mesh. In the world of ethereum, these nodes are referred to as Ethereum Virtual Machines (EVMs), and each EVM will host a copy of the entire blockchain. Each EVM also will compete to mine the next block or validate a transaction. Once the new block is appended to the blockchain, the updates are propagated to the entire network, so that each node is synchronized.

In order to become an EVM node on an ethereum network, you'll need to download and install the proper software. To accomplish this, you'll be using Geth (Go Ethereum). Geth is the official Go implementation of the ethereum protocol. It is one of three such implementations; the other two are written in C++ and Python. These open-source software packages are licensed under the GNU Lesser General Public License (LGPL) version 3. The standalone Geth client packages for all supported operating systems and architectures, including Linux, are available here. The source code for the package is hosted on GitHub.

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Blockchain, Part II: Configuring a Blockchain Network and Leveraging the Technology

Setting Up Your Very Own Private Blockchain Network