How To Build A Blockchain In Python

How To Build A Blockchain In Python

Blockchain is a shared, immutable ledger that simplifies the method of recording transactions and tracking assets in a network. It's a constantly growing list of records known as a block. These blocks are connected, creating a chain known as a blockchain.

The fundamental feature of blockchain :

  • Immutable and Unhackable records

  • Distributed ledger technology

  • Persistent in storing data (no loss of data)

Setting up Virtualenv & Installing Dependencies 🔌

create a virtualenv, using python's built-in module called venv. Here env is the name of the environment.

python3 -m venv env

for activating this virtualenv, we need to source it.

source ./env/bin/activate

Installing Dependencies

we need flask as a dependency for serving our blockchain

pip install Flask==2.2.2

Setting up Folder Structure 🗂

  • create a base folder, and name it blockchain

  • inside this folder create a file called blockchain.py which will hold our blockchain code.

  • create another file called server.py this will contain our server code, to server our blockchain.

Creating ⚒️ a Blockchain

Import Dependencies


import datetime
import json
import hashlib
import time

Now, create a class called blockchain, which will hold all our logic and chain itself. Inside this blockchain class, we will have some functions.

  • init: initialize the blockchain, and creates a Genius Block

    Genius Block is the name given to the first block that is created or mined when any block is initialized.


    def __init__(self) -> None:
        """
        initialize the blockchain
        """
        self.chain = []
        # create the genesis block
        self.create_block(proof=1, previous_hash="0")
  • create_block: this function creates a new block and adds it to the blockchain, it takes proof and the previous hash as an argument
    def create_block(self, proof, previous_hash):
        """
        add a new block to the blockchain
        """
        block = {}
        block["index"] = len(self.chain) + 1
        block["timestamp"] = str(datetime.datetime.now())
        block["proof"] = proof
        block["previous_hash"] = previous_hash
        self.chain.append(block)
        return block
  • get_previous_block: This function gets the previous block, which is added to the blockchain
    def get_previous_block(self):
        """
        get the previous block
        """
        return self.chain[-1]
  • proof_of_work: proof of work is a Consensus Protocol in blockchain used to define finding a number such that the hash of the number, is hard to find because it takes a lot of time, and computing power.

    in this case, we are using the sha256 hash function, and we are looking for a number such that the hash of the number starts with 4 zeros. if the hash of the new proof and the previous proof starts with 4 zeros, then the proof is valid and we can add it to the blockchain.

  def proof_of_work(self, previous_proof):
        start_time = time.time()
        new_proof = 1
        check_proof = False
        while check_proof is False:
            hash_operation = hashlib.sha256(
                str(new_proof**2 - previous_proof**2).encode()
            ).hexdigest()
            if hash_operation[:4] == "0000":
                check_proof = True
            else:
                new_proof += 1
        elapsed = time.time() - start_time
        print(' time take to get new_proof using pow : ', elapsed)
        return new_proof
  • hash: hash function takes a block and converts it into hash using sha256, and returns the hash
    def hash(self, block) -> str:
        """
        hash the block using sha256, and return the hash
        """
        encoded_block = str(json.dumps(block, sort_keys=True)).encode('utf-8')
        hash = hashlib.sha256(encoded_block).hexdigest()
        return hash
  • is_chain_valid: check if the blockchain is valid
   def is_chain_valid(self, chain):
        """
        check if the blockchain is valid
        """
        if chain == [] or chain == None:
            # if the chain is empty or None, then the chain is not passed as a parameter
            chain = self.chain

        previous_block = chain[0]
        block_index = 1
        while block_index < len(chain):
            block = chain[block_index]
            if block["previous_hash"] != self.hash(previous_block):
                return False
            previous_proof = previous_block["proof"]
            proof = block["proof"]
            hash_operation = hashlib.sha256(
                str(proof**2 - previous_proof**2).encode()
            ).hexdigest()
            if hash_operation[:4] != "0000":
                return False
            previous_block = block
            block_index += 1
        return True

Creating ⚒️ a web server

Creating a Flask web server

import os
from flask import Flask, jsonify

# env
PORT = os.getenv('PORT', 8080)
DEBUG = os.getenv('DEBUG', True)

app = Flask(__name__)

@app.route('/', methods=['GET'])
def home():
    return "<h1>Welcome to the Blockchain</h1>", 200




if __name__ == "__main__":
  app.run(host="0.0.0.0", port=PORT, debug=DEBUG)

Importing our blockchain

importing and initializing blockchain will create Genius Block

from blockchain import Blockchain
blockchain = Blockchain()

Adding mine_block function

This mine_block function helps used to mine a block in a given blockchain

@app.route('/mine_block', methods=['GET'])
def mine_block():
    previous_block = blockchain.get_previous_block()
    previous_proof = previous_block['proof']
    proof = blockchain.proof_of_work(previous_proof)
    previous_hash = blockchain.hash(previous_block)
    block = blockchain.create_block(proof, previous_hash)
    response = {}
    response['message'] = "Blocked is just mined !!"
    response['index'] = block['index']
    response['timestamp'] = block['timestamp']
    response['previous_hash'] = block['previous_hash']
    response['proof'] = block['proof']

    return jsonify(response), 201

Adding get_chain function

This get_chain function will return a JSON list of blocks and its attribute.

@app.route('/get_chain', methods=['GET'])
def get_chain():
    blockchain_clone = blockchain.get_chain()
    return jsonify(blockchain_clone), 200

Adding is_valid function

This function checks if the current blockchain Is valid or not

@app.route('/is_valid', methods=['GET'])
def is_valid():
    is_valid = blockchain.is_chain_valid(blockchain.chain)
    if is_valid:
        response = {}
        response['message'] = "Blockchain is valid"
        return jsonify(response), 200
    else:
        response = {}
        response['message'] = "Blockchain is not valid"
        return jsonify(response), 200

Starting ⚙️ webserver

To start the web server, we will execute the server.py

python3 server.py

All codes with docker files are present on GitHub

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