complete details and the latest information about Ethereum

complete details and the latest information about Ethereum

What is Ethereum?

Ethereum is a decentralized computing platform. You can think of it as a laptop or a PC, but it doesn't work with the same device. Instead, it runs on thousands of devices around the world simultaneously, which means it has no ownership whatsoever.

With Ethereum, just like with Bitcoin and other cryptocurrencies, you can transfer money digitally. But it can do even more: you can use your own code and interact with other users' applications. Since it is very flexible, all kinds of complex programs can be created with Ethereum.

In simple terms, the basic idea of ​​Ethereum is that developers can create and run code that runs on a distributed network instead of a central server. This means that these apps cannot theoretically be blocked or monitored.

What is the difference between Ethereum and Ethereum (ETH)?

This may not be intuitive, but the units used in Ethereum are not called Ethereum or Ethereum. Ethereum is the same protocol but the currency is known as Ethereum (or ETH).

What does Ethereum pricing do?

We came up with the idea that Ethereum could be tokenized on distributed systems. Therefore, the software may not be modified by third parties. They are contained in an Ethereum database (e.g. blockchain) and can be programmed in such a way that the code cannot be edited. In addition, the database is publicly visible, so users can review the code before delving into it.

That means anyone can run applications that aren't accessible offline. Even more surprising is that these applications can get information about cost transfer situations because of their own unit, hh, of storage cost. The applications that make up these programs are called smart contracts. They can usually be set to work without human intervention.

Understandably, the concept of "programmable currency" has attracted consumers, developers, and businesses from around the world.

What is a blockchain?

Blockchain is the heart of Ethereum - it is the database that stores the information used by the protocol. If you read our article "What is Bitcoin?" You have a basic understanding of how blockchain works. The Ethereum blockchain is similar to the Bitcoin blockchain, although the data stored and the way it is stored is different.

It costs to think of the Ethereum blockchain as a book in which you are constantly adding pages. Each page is called a block and is filled with transaction details. If we want to add a new page, we need to set a special value at the top of the page. With this value, everyone should be able to see that a new page was added after the previous page and was not accidentally included in the book.

In fact, it's like a page number that links to the previous page. When you display a new page, you can say with certainty that it is after the previous page. To do this, we use a process called hashing.

A hash takes an item of data - everything from our end in this case - and returns a unique identifier (or hash). The probability that two pieces of data will give us the same hash is astronomically small. This is also a one-way process: you can easily calculate the hash, but it's almost impossible to flip the hash used to get information. We will see in the next chapter why this is so important for Connecting.

We now have a mechanism in place to properly link our pages. Any attempt to rearrange or delete the pages is a clear indication that our book is a fake.

Ethereum vs Bitcoin - What's the Difference?

Bitcoin relies on blockchain technology and financial incentives to create a global digital currency system. It introduces many important new features that allow users around the world to connect without the need for an intermediary. Bitcoin forced each participant to run a program on their computer and allow users to agree on the status of the currency database in an environment of mutual trust.

Bitcoin is often referred to as the first generation of blockchain. It's not overly complicated and beneficial in terms of security. At the base level, security can be deliberately and flexibly prioritized. Of course, the language of bitcoin smart contracts is very limited and not suitable for non-transactional applications.

However, second-generation blockchains have great potential. Next to the Ethereum was the first second-generation blockchain and is still one of the most important blockchains today. It shares things like Bitcoin and can do a lot of similar things. Under the hood, however, the two are very different and each has its own strengths.

How does Ethereum work?

Ethereum can be described as a state machine. This means you always have a snapshot of all your current account balances and smart contracts. The status is updated as a result of an action. That is, each node updates its snapshot to reflect changes.

The smart contracts running on Ethereum are created by transactions (users or other contracts). When a customer submits a transaction for a contract, all the nodes in the network apply the contract code and record the input. It does this using the Ethereum Virtual Machine (EVM), which converts smart contracts into machine-readable instructions.

A special mining method is used to update the state (currently). Mining is done using a proof of work algorithm similar to Bitcoin. We will cover this in more detail soon.

What is a smart contract?

Smart contracts are just lies. In the traditional sense, the code is neither smart nor consensual. However, we call it prudent because in some cases it works on its own and can be considered as an agreement when implementing an agreement between the parties.

An idea he proposed in the late 1990s gave birth to computer scientist Nick Sabo. He explained the concept using a vending machine as an example, which can be seen as a precursor to modern smart contracts. A vending machine follows a simple contract. When the user enters a coin, the machine returns the selected product.

Smart contracts apply this kind of logic in a digital environment. For example, you can specify something simple in your code. B. "Hello, World!" Return when you spend two months on this contract.

In Ethereum, developers code it later to make it readable by EVM. We then publish it and send it to a specific address where we register the contract. Now anyone can use it. And the agreement cannot be terminated unless the developer sets the terms in writing.

This is now the settlement address. To communicate with it, users only need to send 2 ETHs to this address. It enforces the contract code - every computer on the network applies it, checks if the contract has been paid and the output is logged ("Hello, World!").

The above is probably one of the most basic examples you can create with Ethereum. More advanced applications have been created to handle many contracts.

Who made Ethereum?

In 2008, an anonymous developer (or group of developers) published a bitcoin whitepaper under the pseudonym, Satoshi Nakamoto. This changes the landscape of digital currency forever. A few years later, a young programmer, Vitalic Buterin, developed the idea and came up with a way to apply it to all kinds of applications. This concept was finally released on Ethereum.

Ethereum was suggested by Buterin in a 2013 blog post entitled Ethereum: The Ultimate Smart Contract and Decentralized Application Platform. In his post, he described the idea of ​​a towable blockchain. In other words, it is a decentralized computer that can run any application with considerable time and resources.

Over time, the types of applications that can be configured on the blockchain are limited only by the developer's imagination. Ethereum wants to ensure that blockchain technology makes good use of Bitcoin beyond its intended design restrictions.

How was ether distributed?

Ethereum started in 2015 with an initial supply of 72 million ethers. Of these, more than 50 million tokens have been distributed in a public token sale called the Initial Coin Offer (ICO), where those who wish to participate can purchase ether tokens in exchange for Bitcoin or Fiat.

What is DAO and what is Ethereum Classic?

Ethereum is enabling a whole new way of open collaboration on the Internet. For example, decentralized autonomous organizations (DAOs) are organizations that are governed by computer code, such as computer programs.

One of the first and most probable efforts of such an organization is the DAO.

However, long after its creation, dangerous players took advantage of the weakness and withdrew about a third of the DAO funding. It is noteworthy that 14% of DAO's total ether power supply was cut off at that time. Needless to say, this was a catastrophic event on the ever-changing Ethereum network.

After measuring, the chain broke in half. In one case, risky transactions were successfully "converted" to a refund - a link now known as the Ethereum blockchain. The first link, where this transaction has not been changed and where the integrity is maintained, is now known as the Ethereum Classic.

The event was a perfect reminder of the risks of this technology and how dangerous the distribution of independent high-end independent codes is. It is also an interesting example of how joint decision-making in an open space can pose significant challenges. However, ignoring security concerns, the DAO has thoroughly reviewed the potential for smart contracts to make Internet interaction unreliable.