This book's central argument is that understanding distributed ledger technologies requires identifying their actual cryptographic security and decentralization. It provides readers with the tools to analyze the architectural components of distributed ledgers, assess real-world risks of exploitation in digital assets, and discern the presence and effectiveness of cryptography within "crypto" assets. The book aims to empower users to identify vulnerable technological features and developer teams behind specific contracts.
The book offers a taxonomical description of digital assets and insights into various distributed ledger architectures, including those on non-distributed ledger platforms. It is presented as a guide for academics, researchers, financial crime analysts, law enforcement, attorneys, investors, and fund managers seeking to confidently navigate distributed ledger and blockchain technologies and understand digital asset coding and security.
Key concepts
- Distributed ledger architectures — Structures of systems for recording transactions across multiple locations.
- Digital assets — Identifiable entities on a ledger, including those developed on various platforms.
- Cryptographically secured — Possessing security measures based on cryptographic principles.
- Decentralized — Lacking a central authority or single point of control.
- Layer 2 (“smart”) contracts — Contracts executed on secondary frameworks built on top of a blockchain.
- Vulnerabilities — Weaknesses in technology that can be exploited by malicious actors.