Building a Simple Cryptocurrency Blockchain In Node.js

npm install --save crypto-js

After running the above command, the node modules directory, which contains the library and other essential files, will be added to your project’s folder.

How To Create A Blockchain #

As earlier explained, the blockchain technology is based on the concept that all the blocks are chained to one another. So, let’s create a CryptoBlockchain class that will be responsible for handling the operations of the entire chain. This is where the rubber is going to meet the road.

The CryptoBlockchain class will maintain the operations of the blockchain using helper methods that accomplish different tasks, such as creating new blocks and adding them to the chain.

Here is the code for the CryptoBlockchain class:

class CryptoBlockchain{
    constructor(){
        this.blockchain = [this.startGenesisBlock()];     
    }
    startGenesisBlock(){
        return new CryptoBlock(0, "01/01/2020", "Initial Block in the Chain", "0");
    }
    obtainLatestBlock(){
        return this.blockchain[this.blockchain.length - 1];
    }
    addNewBlock(newBlock){
        newBlock.precedingHash = this.obtainLatestBlock().hash;
        newBlock.hash = newBlock.computeHash();        
        this.blockchain.push(newBlock);
    }
}

Let me talk about the roles of each of the helper methods that constitute the CryptoBlockchain class.

1. CONSTRUCTOR METHOD #

This method instantiates the blockchain. Inside the constructor, I created the blockchain property, which refers to an array of blocks. Notice that I passed to it the startGenesisBlock() method, which creates the initial block in the chain.

2. CREATING THE GENESIS BLOCK #

In a blockchain, the genesis block refers to the first-ever block created on the network. Whenever a block is integrated with the rest of the chain, it should reference the preceding block.

Conversely, in the case of this initial block, it does not have any preceding block to point to. Therefore, a genesis block is usually hardcoded into the blockchain. This way, subsequent blocks can be created on it. It usually has an index of 0.

I used the startGenesisBlock() method to create the genesis block. Notice that I created it using the afore-created CryptoBlock class and passed the index, timestamp, data, and precedingHash parameters.

3. OBTAINING THE LATEST BLOCK #

Getting the latest block in the blockchain assists in ensuring the hash of the current block points to the hash of the previous block — thus maintaining the chain’s integrity.

I used the obtainLatestBlock() method to retrieve it.

4. ADDING NEW BLOCKS #

I used the addNewBlock() method to add a new block to the chain. To accomplish this, I set the previous hash of the new block to be equal to the hash of the last block in the chain — thus ensuring the chain is tamper-proof.

Since the properties of the new block get changed with every new calculation, it’s important to calculate its cryptographic hash again. After updating its hash, the new block is pushed into the blockchain array.

In reality, adding a new block to a blockchain is not that easy because of the several checks that have been placed. Nonetheless, for this simple cryptocurrency, it’s enough to demonstrate how a blockchain actually works.

Testing The Blockchain #

Now, let’s test our simple blockchain and see if it works.

Here is the code:

let smashingCoin = new CryptoBlockchain();
smashingCoin.addNewBlock(new CryptoBlock(1, "01/06/2020", {sender: "Iris Ljesnjanin", recipient: "Cosima Mielke", quantity: 50}));
smashingCoin.addNewBlock(new CryptoBlock(2, "01/07/2020", {sender: "Vitaly Friedman", recipient: "Ricardo Gimenes", quantity: 100}) );
console.log(JSON.stringify(smashingCoin, null, 4));

As you can see in the code above, I created a new instance of the CryptoBlockchain class and named it as smashingCoin. Then, I added two blocks into the blockchain using some arbitrary values. In the data parameter, I used an object and added sender details, recipient’s details, and quantity transacted.

If I run the code on the terminal, here is the output I get:

That’s what the smashingCoin looks like! It’s an object that contains the blockchain property, which is an array containing all the blocks in the chain. As you can see in the image above, each block references the hash of the previous block. For example, the second block references the hash of the first block. After testing and seeing that our blockchain works, let’s add some more functionalities to enhance the features of the smashingCoin.

How To Verify The Blockchain’s Integrity #

As earlier mentioned, a key characteristic of a blockchain is that once a block has been added to the chain, it cannot be changed without invalidating the integrity of the rest of the chain.

Therefore, to verify the integrity of the blockchain, I’ll add a checkChainValidity() method to the CryptoBlockchain class.

Hashes are critical for ensuring the validity and security of a blockchain because any change in the contents of a block will result in the production of an entirely new hash, and invalidating the blockchain.

As such, the checkChainValidity() method will make use of if statements to verify whether the hash of every block has been tampered with. Starting from the first created block, it’ll loop over the entire blockchain and check for its validity. Note that since the genesis block was hardcoded, it’ll not be checked.

Also, the method will verify whether the hashes of each two consecutive blocks are pointing to one another. If the integrity of the blockchain has not been compromised, it returns true; otherwise, in case of any anomalies, it returns false.

Here is the code:

checkChainValidity(){
        for(let i = 1; i < this.blockchain.length; i++){
            const currentBlock = this.blockchain[i];
            const precedingBlock= this.blockchain[i-1];

          if(currentBlock.hash !== currentBlock.computeHash()){
              return false;
          }
          if(currentBlock.precedingHash !== precedingBlock.hash)
            return false;
        }
        return true;
    }

How To Add Proof Of Work #

As earlier mentioned, proof of work is the concept applied to increase the difficulty entailed in mining or adding new blocks to the blockchain.

In the case of smashingCoin, I’ll employ a simple algorithm that deters people from generating new blocks easily or spamming the blockchain.

So, in the CryptoBlock class, I’ll add another method called proofOfWork().Essentially, this simple algorithm identifies a number, passed as a difficulty property, such that the hash of every block contains leading zeros that correspond to this difficulty level.

Ensuring the hash of every block begins with the number of zeros as set in the difficulty level requires a lot of computing power. The higher the difficulty level, the more time it takes to mine new blocks.

Furthermore, I’ll add a random nonce value to every hashed block such that, when rehashing takes place, the difficulty level restrictions can still be met.

Here is the code:

proofOfWork(difficulty){
      while(this.hash.substring(0, difficulty) !==Array(difficulty + 1).join("0")){
          this.nonce++;
          this.hash = this.computeHash();
      }        
  }

And, here is the updated computeHash() method with the nonce variable included:

computeHash(){
        return SHA256(this.index + this.precedingHash + this.timestamp + JSON.stringify(this.data)+this.nonce).toString();
    }

Additionally, to implement the proof of work mechanism in the generation of new blocks, I’ll include it in the addNewBlock() method:

addNewBlock(newBlock){
      newBlock.precedingHash = this.obtainLatestBlock().hash;
      //newBlock.hash = newBlock.computeHash(); 
      newBlock.proofOfWork(this.difficulty);       
      this.blockchain.push(newBlock);
  }

Wrapping Up #

Here is the entire code for building the smashingCoin cryptocurrency using Node.js:

const SHA256 = require("crypto-js/sha256");
class CryptoBlock {
  constructor(index, timestamp, data, precedingHash = " ") {
    this.index = index;
    this.timestamp = timestamp;
    this.data = data;
    this.precedingHash = precedingHash;
    this.hash = this.computeHash();
    this.nonce = 0;
  }

  computeHash() {
    return SHA256(
      this.index +
        this.precedingHash +
        this.timestamp +
        JSON.stringify(this.data) +
        this.nonce
    ).toString();
  }

  proofOfWork(difficulty) {
    while (
      this.hash.substring(0, difficulty) !== Array(difficulty + 1).join("0")
    ) {
      this.nonce++;
      this.hash = this.computeHash();
    }
  }
}

class CryptoBlockchain {
  constructor() {
    this.blockchain = [this.startGenesisBlock()];
    this.difficulty = 4;
  }
  startGenesisBlock() {
    return new CryptoBlock(0, "01/01/2020", "Initial Block in the Chain", "0");
  }

  obtainLatestBlock() {
    return this.blockchain[this.blockchain.length - 1];
  }
  addNewBlock(newBlock) {
    newBlock.precedingHash = this.obtainLatestBlock().hash;
    //newBlock.hash = newBlock.computeHash();
    newBlock.proofOfWork(this.difficulty);
    this.blockchain.push(newBlock);
  }

  checkChainValidity() {
    for (let i = 1; i < this.blockchain.length; i++) {
      const currentBlock = this.blockchain[i];
      const precedingBlock = this.blockchain[i - 1];

      if (currentBlock.hash !== currentBlock.computeHash()) {
        return false;
      }
      if (currentBlock.precedingHash !== precedingBlock.hash) return false;
    }
    return true;
  }
}

let smashingCoin = new CryptoBlockchain();

console.log("smashingCoin mining in progress....");
smashingCoin.addNewBlock(
  new CryptoBlock(1, "01/06/2020", {
    sender: "Iris Ljesnjanin",
    recipient: "Cosima Mielke",
    quantity: 50
  })
);

smashingCoin.addNewBlock(
  new CryptoBlock(2, "01/07/2020", {
    sender: "Vitaly Friedman",
    recipient: "Ricardo Gimenes",
    quantity: 100
  })
);

console.log(JSON.stringify(smashingCoin, null, 4));

If I run the code on the terminal, here is the output I get:

As you can see on the image above, the hashes now start with four zeros, which correspond with the difficulty level set in the proof of work mechanism.

Conclusion #

That’s it! That’s how you can build a simple cryptocurrency blockchain using Node.js.

Of course, the smashingCoin cryptocurrency is far from complete. In fact, if you release it without making more improvements, it is unlikely to meet the current market demands for a secure, reliable, and intuitive digital currency — making you the only one using it!

Nonetheless, I hope that this tutorial has equipped you with some basic skills to get your feet wet in the thrilling world of cryptos.

This article has been published from the source link without modifications to the text. Only the headline has been changed.

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