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Hands-On
Smart Contract
Development
with Solidity & Ethereum
From Fundamentals to Deployment

Kevin Solorio,
Randall Kanna
& David H. Hoover
 Hands-On Smart Contract
Development with Solidity and
Ethereum
From Fundamentals to Deployment

Kevin Solorio, Randall Kanna, and David H. Hoover

Beijing Boston Farnham Sebastopol Tokyo

Hands-On Smart Contract Development with Solidity and Ethereum
by Kevin Solorio, Randall Kanna, and David H. Hoover
Copyright © 2020 Kevin Solorio, Randall Kanna, and David H. Hoover. All rights reserved.
Printed in the United States of America.
Published by O’Reilly Media, Inc., 1005 Gravenstein Highway North, Sebastopol, CA 95472.
O’Reilly books may be purchased for educational, business, or sales promotional use. Online editions are
also available for most titles (http://oreilly.com). For more information, contact our corporate/institutional
sales department: 800-998-9938 or [email protected].

Editor: Michelle Smith Indexer: Ellen Troutman-Zaig

Production Editor: Kristen Brown Interior Designer: David Futato
Copyeditor: nSight, Inc. Cover Designer: Karen Montgomery
Proofreader: Charles Roumeliotis Illustrator: Rebecca Demarest

December 2019: First Edition

Revision History for the First Edition

2019-11-25: First Release

See http://oreilly.com/catalog/errata.csp?isbn=9781492045267 for release details.

The O’Reilly logo is a registered trademark of O’Reilly Media, Inc. Hands-On Smart Contract Development
with Solidity and Ethereum, the cover image, and related trade dress are trademarks of O’Reilly Media,
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The views expressed in this work are those of the authors, and do not represent the publisher’s views.
While the publisher and the authors have used good faith efforts to ensure that the information and
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licenses or the intellectual property rights of others, it is your responsibility to ensure that your use
thereof complies with such licenses and/or rights.

978-1-492-04526-7
[LSI]
 Table of Contents

Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Part I. Intro to the Ethereum Blockchain

1. Blockchain Concepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A Brief History 4
The Character of a Blockchain 5
Decentralized Networks 5
Consensus Protocols 6
Transaction Processing 9
Transaction Finality 11
Hard Forks 13
Ethereum Fundamentals 14
Ether and Gas 14
Accounts 17
Contracts 17
Blocks and Transactions 18
What Time Is It? 19
Signing Transactions 21
Summary 22

2. Decentralized Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Tokens 23
ERC-20 23
Non-Fungible Token (ERC-721) 25
Supply Chain 26
Permanent Records 28

iii
 Evaluating Blockchain for Your Application 29
Verifiable 29
Transparent 29
Resilient 29
Summary 30

3. Before We Get Started. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Ethereum Clients 31
Installing Parity 32
Installing MetaMask 33
Installing Node.js 42
Ubuntu Installation (Including Windows WSL Ubuntu) 42
Mac Installation 43
Installing the Truffle Suite 44
Truffle 44
Ganache 45
Summary 46

Part II. Developing Smart Contracts

4. Our First Smart Contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Setup 49
Our First Test 50
Saying Hello 54
Making Our Contract Dynamic 56
Making the Greeter Ownable 62
Summary 69

5. Deploying and Interacting with Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Contract Compilation and Deployment 71
Deployment Process 72
Setting Up the UI 73
Deploying to Ganache 74
Deploying to Goerli with Parity 80
Deploying to Rinkeby with Infura 84
Summary 86

6. The Fundraiser Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Application Overview 87
Creating the Project 91
Initializing Fundraisers 93

iv | Table of Contents
 Setting the Beneficiary and Custodian 101
Editing the Beneficiary 104
Making Donations 109
Structs 111
Mappings 112
Donation Tests 112
myDonations 116
Fundraiser Totals 119
Events 124
Withdrawing Funds 126
Fallback Functions 131
Summary 134

7. FundraiserFactory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Migrating Our FundraiserFactory 135
Creating Fundraisers 137
Viewing Available Fundraisers 142
Testing Pagination When Empty 142
Testing the Limit 144
Testing the Offset 147
Setting Up the UI 151
Summary 152

Part III. Interacting with Our Smart Contracts Through Web3

8. What Is Web3?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
The Frontend, Web3, and the Blockchain 155
Web3 Methods 156
getAccounts() 156
getBlockNumber() 156
getBalance() 156
sendTransaction() 157
Providers 158
Promises with Web3 158
MetaMask for Web3 Injection 160
Send (State Updates/Write) 160
Call (Reads) 160
Summary 161

9. Connecting the UI to Our Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

Why React? 163

Table of Contents | v
 Dev Setup 164
Truffle 165
React Truffle Box Setup 166
Importing our Greeter Contracts 172
Adding Our Greeter Contract Functionality 173
Setting Our Greeting Through React 175
Summary 176

10. Our Larger DApp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

Starting with React Truffle Box 179
Fundraiser Setup 182
React Routing 185
React and Material UI 189
Creating Our New Fundraiser Page View 191
Displaying the Current Fundraisers List 195
Summary 201

11. Finishing Our Fundraiser UI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

Adding Detailed Information About Each Fundraiser 203
Implementing a Material UI Dialog 205
Accepting a Donation with React 208
Testing a Donation 212
Displaying the Current ETH Exchange Rate 214
Generating a Donation Receipt for Our User 218
Handling a Withdrawal from Our Contract 224
Adding Edit Beneficiary to the Contract 230
Summary 231

Part IV. Securing Your Smart Contracts

12. Smart Contract Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Why Do We Need to Worry About Security? 235
Types of Smart Contract Vulnerabilities 236
Unprotected Function 236
Transaction Ordering Dependence 236
Integer Overflow and Underflow 237
Reentrancy 237
Block Gas Limit 238
Timestamp Dependence 238
And Many More 239
Preparing Your Contract for an External Audit 239

vi | Table of Contents
 External Auditing 240
Auditing Companies 240
Solidified 240
Free Auditing Resources 240
Growing Your Auditing Skills 241
Summary 241

Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

Table of Contents | vii

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