BlockChain Lab

Course outcomes:

On successful completion of the course students will be able to –

1. To get acquainted with the concept of Distributed ledger system and Blockchain.
2. To learn the concepts of consensus and mining in Blockchain through the Bitcoin network.
3. To understand Ethereum and develop-deploy smart contracts using different tools and
frameworks.
4. To understand permissioned Blockchain and explore Hyperledger Fabric.
5. To understand different types of crypto assets.
6. To apply Blockchain for different domains IOT, AI and Cyber Security.

Lab outcomes:

1. Develop and test smart contract on local Blockchain.

2. Develop and test smart contract on Ethereum test networks.
3. Write and deploy smart contract using Remix IDE and Metamask.
4. Design and develop Cryptocurrency.
5. Write and deploy chain code in Hyperledger Fabric.
6. Develop and test a Full-fledged DApp using Ethereum/Hyperledger.

Smart contracts:

Smart contracts are self-executing contracts with the terms of the agreement directly written into
code. They run on blockchain networks and automatically enforce and execute predefined
conditions and actions when specified criteria are met. Smart contracts enable trustless and
decentralized execution of agreements, removing the need for intermediaries and reducing the
risk of fraud or manipulation.

Characteristics of Smart Contracts:

1. *Automation: Smart contracts automate the execution of agreements, eliminating the need for
manual intervention.

2. *Transparency:* All transactions and operations within a smart contract are recorded on the
blockchain, providing transparency and immutability.

3. *Decentralization:* Smart contracts run on blockchain networks, which are decentralized and
distributed across multiple nodes, ensuring resilience and censorship resistance.

4. *Security:* Smart contracts use cryptographic techniques to secure transactions and prevent
tampering or unauthorized access.

5. Efficiency: By removing intermediaries and automating processes, smart contracts can

improve the efficiency and speed of executing agreements.
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Development of Smart Contracts:

Developing smart contracts involves several steps, including:

1. Define Requirements: Clearly define the requirements and specifications of the smart contract,
including the conditions, actions, and participants involved in the agreement.

2. Choose Platform: Select a blockchain platform that supports smart contracts. Ethereum is one
of the most popular platforms for developing smart contracts, but other platforms like Binance
Smart Chain, Polkadot, and Cardano also support smart contract development.

3. Choose Development Tools: Choose development tools and programming languages suitable
for smart contract development on the chosen blockchain platform. For Ethereum, Solidity is the
most commonly used programming language, but other languages like Vyper and JavaScript can
also be used.

4. Write Smart Contract Code: Write the code for the smart contract based on the defined
requirements using the chosen programming language and development tools. The code should
include the logic for executing the agreement, handling conditions, and managing interactions
with the blockchain network.

5. Testing: Thoroughly test the smart contract code to identify and fix any bugs, vulnerabilities,
or logical errors. Use testing frameworks, tools, and techniques to ensure the reliability and
security of the smart contract.
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6. Deployment: Deploy the smart contract code to the chosen blockchain network. This involves
compiling the code into bytecode and deploying it to the blockchain using deployment tools or
platforms provided by the blockchain network.

7. Integration: Integrate the deployed smart contract with other components or applications that
interact with it, such as decentralized applications (DApps), user interfaces, or external systems.

8. Audit and Review: Conduct a comprehensive audit and review of the smart contract code by
security experts and professionals to identify and mitigate any security risks or vulnerabilities.

9. Deployment and Maintenance: Once the smart contract is deployed, monitor its performance,
security, and functionality. Update and maintain the smart contract as needed to address any
issues or changes in requirements.

By following these steps, developers can create and deploy smart contracts that automate the
execution of agreements and provide the benefits of trustless, decentralized, and transparent
transactions on blockchain networks.
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Solidity is a programming language specifically designed for writing smart contracts on

blockchain platforms, with Ethereum being the most prominent one. To develop and deploy
smart contracts written in Solidity, developers need a development environment and a client.

Let's explore these components in detail:

Solidity Development Environment:

1. Integrated Development Environment (IDE): Developers typically use specialized IDEs for
Solidity development. Some popular IDEs include:

- Remix: A web-based IDE provided by the Ethereum Foundation. It allows developers to

write, deploy, and debug smart contracts directly in the browser.

- Visual Studio Code (VS Code): Developers can install Solidity extensions for VS Code, such
as "Solidity Visual Studio Code Extension," which provides syntax highlighting, code
completion, and debugging features.

- Truffle Suite: Truffle is a development framework that provides tools for compiling, testing,
and deploying smart contracts. It includes a built-in development environment and a command-
line interface (CLI) for managing projects.

2. Compiler: Solidity code needs to be compiled into bytecode before it can be deployed to the
blockchain. The Solidity compiler (solc) is used to compile Solidity source code into bytecode
that can be executed by the Ethereum Virtual Machine (EVM). Some IDEs include built-in
compilers, while others require developers to install and configure the compiler separately.

3. Testing Frameworks: Testing is a crucial aspect of smart contract development to ensure their
functionality and security. Frameworks like Truffle, Ethereum Tester, and Solidity Testing
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Framework (STF) provide tools and utilities for writing and running tests for Solidity smart
contracts.

4. Deployment Tools: After writing and testing smart contracts, developers need tools to deploy
them to the blockchain network. Deployment tools like Truffle and Remix provide
functionalities for deploying contracts to test networks (e.g., Rinkeby, Ropsten) or the Ethereum
mainnet.

Solidity Client:

A Solidity client is software that interacts with the Ethereum blockchain network and executes
Solidity smart contracts. Clients can be categorized into different types based on their roles and
functionalities:

1. Ethereum Node Client: These are full-node implementations of the Ethereum protocol that
maintain a copy of the entire blockchain and participate in network consensus. Examples
include:

- Geth: Geth is one of the most popular Ethereum node clients written in Go. It provides a
command-line interface for interacting with the Ethereum network and executing transactions.
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- Parity Ethereum: Parity is another Ethereum node client written in Rust. It offers features like
enhanced performance, scalability, and support for private networks.

2. Light Client: Light clients are lightweight implementations of Ethereum clients that do not
require downloading the entire blockchain. They rely on other full nodes to provide blockchain
data. Examples include:

- MetaMask: MetaMask is a browser extension that serves as a light client, allowing users to
interact with Ethereum DApps directly from their web browsers.

- Infura: Infura is a cloud-based service that provides APIs for accessing Ethereum blockchain
data and executing transactions without running a full node.

3. Smart Contract Interaction Libraries: Libraries like Web3.js, ethers.js, and web3.py provide
interfaces and utilities for interacting with Ethereum smart contracts programmatically.
Developers can use these libraries to deploy contracts, send transactions, and query contract state
from their applications.

In summary, the Solidity development environment consists of tools, frameworks, and IDEs for
writing, testing, and deploying smart contracts, while Solidity clients facilitate interaction with
the Ethereum blockchain network and execution of smart contracts. These components play a
crucial role in the development and deployment of decentralized applications (DApps) and
blockchain-based solutions
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Basics of Solidity:

Solidity is a high-level, statically-typed programming language designed specifically for writing

smart contracts on blockchain platforms, with Ethereum being the most popular one. Here are the
basics of Solidity:

1. Syntax: Solidity syntax is similar to JavaScript and C++, making it relatively easy for
developers familiar with these languages to learn. It supports features like variables, functions,
loops, conditionals, and data structures such as arrays, structs, and mappings.

2. Data Types: Solidity supports various data types, including:

- Primitive Types: uint, int, address, bool, etc.

- Complex Types: arrays, structs, mappings, enums, etc.

- User-Defined Types: developers can define their own custom data structures using structs.

3. Functions: Smart contracts in Solidity consist of functions that define the contract's behavior.
Functions can be public, private, internal, or external, specifying their visibility and accessibility.
Solidity also supports function modifiers, which can be used to enforce conditions before
executing a function.

4. Events: Events in Solidity are used to notify external applications about state changes that
occur within the contract. They are emitted by the contract and can be subscribed to by external
clients to listen for specific events and take appropriate actions.

5. Modifiers: Modifiers are used to modify the behavior of functions in Solidity. They can be
used to enforce access control, validate inputs, or perform other checks before executing the
function's code. Modifiers can be applied to multiple functions within a contract, reducing code
duplication and enhancing security.

6. Inheritance: Solidity supports inheritance, allowing developers to create hierarchical

relationships between contracts. Contracts can inherit state variables, functions, and modifiers
from other contracts, enabling code reuse and modularity.

7. Error Handling: Solidity provides mechanisms for error handling, including revert, require,
and assert statements. These statements are used to validate conditions and revert transactions if
certain conditions are not met, ensuring the integrity and security of smart contracts.

8. Gas: Gas is the unit of computation used to execute operations on the Ethereum blockchain.
Solidity developers need to be mindful of gas consumption and optimize their contracts to
minimize gas costs, as excessive gas usage can make contracts prohibitively expensive to
execute.
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Basics of Web3:

Web3.js is a JavaScript library that provides an interface for interacting with the Ethereum
blockchain from web applications. It allows developers to build decentralized applications
(DApps) that can interact with smart contracts, send transactions, and query blockchain data.
Here are the basics of Web3:

1. Initialization: To use Web3.js in a web application, developers need to include the Web3.js
library in their HTML file and initialize a Web3 instance. This instance can be connected to an
Ethereum node, either running locally or hosted by a third-party provider like Infura.

2. Provider: The Web3 instance requires a provider to connect to the Ethereum network.
Providers can be local (e.g., using MetaMask) or remote (e.g., Infura). Providers handle
communication with the Ethereum network and facilitate transactions and data retrieval.

3. Accounts: Web3.js provides methods for managing Ethereum accounts, including creating
new accounts, importing existing accounts, and signing transactions. Developers can use these
methods to interact with user accounts and perform transactions on their behalf.

4. Contracts: Web3.js allows developers to interact with Ethereum smart contracts by providing
methods for deploying contracts, calling contract functions, and listening for contract events.
Developers can use Web3.js to build user interfaces that interact with smart contracts and display
blockchain data to users.

5. Transactions: Web3.js provides methods for sending transactions to the Ethereum network.
Developers can use these methods to send ether, execute smart contract functions, and interact
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with decentralized applications. Transactions require gas to execute, and developers can specify
gas limits and gas prices when sending transactions.

6. Events: Web3.js allows developers to listen for events emitted by smart contracts and react to
them in real-time. Events can be used to update user interfaces, trigger notifications, or perform
other actions based on changes in contract state.

7. Error Handling: Web3.js provides error handling mechanisms to handle errors that occur
during blockchain interactions. Developers can use try-catch blocks or promise-based error
handling to handle errors gracefully and provide feedback to users.

In summary, Solidity is a programming language for writing smart contracts, while Web3.js is a
JavaScript library for building web applications that interact with the Ethereum blockchain.
Together, they enable developers to build decentralized applications (DApps) that leverage
blockchain technology to create secure, transparent, and trustless systems.

Life Cycle of Smart Contract

The life cycle of a smart contract involves several stages, from creation to execution and
eventual termination. Here's a detailed explanation of each stage in the life cycle of a smart
contract:

1. Development:

i. Designing Requirements: The life cycle of a smart contract begins with defining the
requirements and specifications of the contract. This involves identifying the purpose of
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the contract, its functionalities, inputs, outputs, and the conditions under which it will
execute.
ii. Writing Code: Once the requirements are defined, developers write the code for the smart
contract using a programming language like Solidity. The code defines the logic and
behavior of the contract, including functions, variables, data structures, and event
emissions.
iii. Testing: After writing the code, developers thoroughly test the smart contract to identify
and fix any bugs, vulnerabilities, or logical errors. Testing ensures that the contract
functions as intended and behaves predictably under different conditions.

2. Deployment:

i. Compiling: Once the smart contract code is written and tested, it needs to be
compiled into bytecode that can be executed by the blockchain network. Developers
use compilers like solc (Solidity Compiler) to compile the source code into bytecode.
ii. Deployment: After compiling, the bytecode is deployed to the blockchain network.
Deployment involves creating a transaction to deploy the contract to the network,
specifying the contract bytecode, constructor arguments (if any), and gas limits.
iii. Confirmation: Once the deployment transaction is sent to the network, it needs to be
confirmed by miners through the process of mining. Confirmation ensures that the
contract is added to the blockchain and becomes accessible to users.

3. Execution:

i. Interaction: Once deployed, the smart contract becomes active on the blockchain, and
users can interact with it. Users can send transactions to the contract, calling its functions,
and providing inputs as required by the contract's logic.
ii. State Changes: Interactions with the contract may trigger state changes, modifying the
contract's internal state variables and updating its state on the blockchain. State changes
are recorded on the blockchain and are immutable once confirmed by consensus.

4. Termination:

i. Upgradability or Modification: Depending on the contract's design, it may be possible to

upgrade or modify the contract's code and functionalities. Upgrades can be implemented
through mechanisms like proxy contracts, where the contract's address remains the same,
but the implementation logic is changed.
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ii. Self-Destruction: In some cases, smart contracts may have built-in mechanisms for self-
destruction or termination. Contracts can define functions to destroy themselves and
release any remaining funds or resources back to designated addresses.
iii. Expiration: Contracts may have expiration conditions built into their logic, specifying a
certain time or condition after which the contract is no longer active. Once expired, the
contract's functions may become inaccessible, and its state remains unchanged on the
blockchain.

5. Monitoring and Maintenance:

i. Monitoring: Throughout its life cycle, smart contracts need to be monitored for
performance, security, and compliance with regulations. Monitoring involves tracking
contract activity, analyzing transactions, and identifying any abnormal behavior or
security vulnerabilities.
ii. Maintenance: Smart contracts may require periodic maintenance to address bugs,
security vulnerabilities, or changes in requirements. Maintenance involves updating
contract code, deploying new versions, and ensuring backward compatibility with
existing contracts.

By following these stages in the life cycle, developers can create, deploy, and manage
smart contracts effectively, ensuring their reliability, security, and compliance with
business requirements throughout their lifetime on the blockchain network.