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Ethereum State

The Current State Of Bitcoin And Ethereum

The Current State Of Bitcoin And Ethereum

The current state of Bitcoin and Ethereum While Bitcoin currently bears more resemblance to digital gold than digital cash with its congested pending transactions log rendering it practically useless as a currency since the cancelled fork two weeks ago the Ethereum network is looking healthier than ever and in a good position to come out of the ongoing currency war successful. Bitcoin has been dominating both crypto and mainstream news lately, even more so than usual, with mad volatility due to its continuous fork drama and rumours of free money for anyone holding it. Bitcoin breaking new all-time highs almost on a daily basis certainly doesnt do anything to decrease the attention. With this one-sided media coverage, its no wonder no one outside the small crypto community knows that Ethereum is regularly handling around twice the daily transactions of Bitcoin, and more than most other leading cryptos combined , that Ethereums transfers are extremely fast compared to Bitcoins, or that its median transaction fees are nearly 59 times cheaper . Some Bitcoin maximalists are calling the high transaction fees a feature. Some also say that the fact that BTC collects $1.5 million a day in fees, against ETHs measly $200,000, is a clear indicator of real world value as it shows that people are willing to spend more money to get onto the BTC blockchain. However, there is a difference in being willing to spend more money and being forced to. Lately, Bitcoin has lived up to its name as a great store of value, although not for the right reasons. Since the cancellation of Segwit2x, people have simply been unable to move their funds in or out. With a ridiculous number of transactions constantly waiting to be mined, you better be prepared to pay up if you want to get your transaction th Continue reading >>

State Tests Ethereum Homestead 0.1 Documentation

State Tests Ethereum Homestead 0.1 Documentation

Found in /StateTest, the state tests aim is to test the basic workings of the state in isolation. It is based around the notion of executing a single transaction, described by the transaction portion of the test. The overarching environment in which it is executed is described by the env portion of the test and includes attributes of the current and previous blocks. A set of pre-existing accounts are detailed in the pre portion and form the world state prior to execution. Similarly, a set of accounts are detailed in the post portion to specify the end world state. Since the data of the blockchain is not given, the opcode BLOCKHASH could not return the hashes of the corresponding blocks. Therefore we define the hash of block number n to be SHA256("n"). The log entries (logs) as well as any output returned from the code (output) is also detailed. It is generally expected that the test implementer will read env, transaction and pre then check their results against logs, out, and post. { "test name 1": { "env": { ... }, "logs": { ... }, "out": { ... }, "post": { ... }, "pre": { ... }, "transaction": { ... }, }, "test name 2": { "env": { ... }, "logs": { ... }, "out": { ... }, "post": { ... }, "pre": { ... }, "transaction": { ... }, }, ...} Continue reading >>

The State Of Ethereum Scaling, March2018

The State Of Ethereum Scaling, March2018

The State of Ethereum Scaling, March2018 Highlights from EthCC on Plasma Cash, Minimum Viable Plasma, andMore From the 8th to the 10th of March 2018, Paris got flooded with Ethereum professionals, researchers, investors and enthusiasts from all over the world for the Ethereum Community Conference ( EthCC ). EthCC is organized by Asseth which is a French non-profit organization that has been promoting and sharing knowledge on Ethereum and its ecosystem since early 2016. In total, more than 800 people attended (hint: metoo!). The metrics during the final talk on ScalingEthCC Over 100 talks were given over the 3 days of the conference, on topics ranging from Governance, Security and Privacy to DApp development, Gaming and Decentralized Exchanges. You can find most of the talks in the following spreadsheet. Describing each talk is out of scope of this article. So since our focus at Loom Network is on scalability , in this article well focus on covering the scalability talks of EthCC. On Day 2, Karl Floersch presented the latest progress on Plasma & Sharding. The talk is a slightly more detailed version of the Plasma explanatory video he uploaded last week . This was probably my favorite talk, primarily due to Karls energy and enthusiasm about the concepts he described. At the moment, Plasma is designed for simple token transfers (ERC20/Ether), but it is extensible for more complex tokens such as ERC721 or even more general state transitions. It should be understood that Plasma is not a protocol, it is a design pattern, a technique. The main requirement is that a Plasma Chain must be as secure as the rootchain. The main security mechanism behind the Plasma technique is Plasma exits, which is the process that allows a user who participates in a Plasma Chain to stop participa Continue reading >>

State Tree Pruning - Ethereum Blog

State Tree Pruning - Ethereum Blog

One of the important issues that has been brought up over the course of the Olympic stress-net release is the large amount of data that clients are required to store; over little more than three months of operation, and particularly during the last month, the amount of data in each Ethereum clients blockchain folder has ballooned to an impressive 10-40 gigabytes, depending on which client you are using and whether or not compression is enabled. Although it is important to note that this is indeed a stress test scenario where users are incentivized to dump transactions on the blockchain paying only the free test-ether as a transaction fee, and transaction throughput levels are thus several times higher than Bitcoin, it is nevertheless a legitimate concern for users, who in many cases do not have hundreds of gigabytes to spare on storing other peoples transaction histories. First of all, let us begin by exploring why the current Ethereum client database is so large. Ethereum, unlike Bitcoin, has the property that every block contains something called the state root: the root hash of a specialized kind of Merkle tree which stores the entire state of the system: all account balances, contract storage, contract code and account nonces are inside. The purpose of this is simple: it allows a node given only the last block, together with some assurance that the last block actually is the most recent block, to synchronize with the blockchain extremely quickly without processing any historical transactions, by simply downloading the rest of the tree from nodes in the network (the proposed HashLookup wire protocol message will faciliate this), verifying that the tree is correct by checking that all of the hashes match up, and then proceeding from there. In a fully decentralized co Continue reading >>

Introduction To Smart Contracts

Introduction To Smart Contracts

Let us begin with the most basic example. It is fine if you do not understand everythingright now, we will go into more detail later. pragma solidity ^0.4.0;contract SimpleStorage { uint storedData; function set(uint x) public { storedData = x; } function get() public constant returns (uint) { return storedData; }} The first line simply tells that the source code is written forSolidity version 0.4.0 or anything newer that does not break functionality(up to, but not including, version 0.5.0). This is to ensure that thecontract does not suddenly behave differently with a new compiler version. The keyword pragma is called that way because, in general,pragmas are instructions for the compiler about how to treat thesource code (e.g. pragma once ). A contract in the sense of Solidity is a collection of code (its functions) anddata (its state) that resides at a specific address on the Ethereumblockchain. The line uint storedData; declares a state variable called storedData oftype uint (unsigned integer of 256 bits). You can think of it as a single slotin a database that can be queried and altered by calling functions of thecode that manages the database. In the case of Ethereum, this is always the owningcontract. And in this case, the functions set and get can be used to modifyor retrieve the value of the variable. To access a state variable, you do not need the prefix this. as is common inother languages. This contract does not do much yet (due to the infrastructurebuilt by Ethereum) apart from allowing anyone to store a single number that is accessible byanyone in the world without a (feasible) way to prevent you from publishingthis number. Of course, anyone could just call set again with a different valueand overwrite your number, but the number will still be stored in the Continue reading >>

Raiden Network - Fast, Cheap, Scalable Token Transfers For Ethereum

Raiden Network - Fast, Cheap, Scalable Token Transfers For Ethereum

Fast, cheap, scalable token transfers for Ethereum The Raiden Network is an off-chain scaling solution, enabling near-instant, low-fee and scalable payments. Its complementary to the Ethereum blockchain and works with any ERC20 compatible token. The Raiden project is work in progress . Its goal is to research state channel technology, define protocols and develop reference implementations. Scales linearly with the number of participants Transfers can be confirmed within a subsecond Individual transfers dont show up in the global shared ledger Works with any token that follows Ethereums standardized token API (ERC20) Transfer fees can be orders of magnitude lower than on the blockchain Low transaction fees allow to efficiently transfer tiny values The Raiden Network is an infrastructure layer on top of the Ethereum blockchain. While the basic idea is simple, the underlying protocol is quite complex and the implementation non-trivial. Nonetheless the technicalities can be abstracted away, such that developers can interface with a rather simple API to build scalable decentralized applications based on the Raiden. Blockchains dont scale well because there needs to be global consensus on the order and outcome of all transfers. Every participant needs to learn about all updates to the shared ledger. Hardware and bandwidth constraints set a limit on the number of updates per second that can be shared in a decentralized network. The basic idea of the Raiden Network is to avoid the blockchain consensus bottleneck. This is done by leveraging a network of payment channels which allow to securely transfer value off-chain, i.e without involving the blockchain for every transfer. To learn more, read the Raiden Network 101 , take a look at the current specification or check out the c Continue reading >>

Why Non-state Governance For Bitcoin, Ethereum And Other Cryptocurrencies Is So Hard

Why Non-state Governance For Bitcoin, Ethereum And Other Cryptocurrencies Is So Hard

Why Non-State Governance for Bitcoin, Ethereum and other Cryptocurrencies is so hard This is Part 1/chapter 10 in The Blockchain Economy serialised book. A lot of early cryptocurrency enthusiasts have views typically labelled anarchist or libertarian or anti-state. What Satoshi Nakamoto enabled was asset exchange regardless of geography/jurisdiction without going through an institution licensed by a nation state. In an earlier chapter/post we looked at how Governments are reacting to this and why Some Governments Want To Shut Down Bitcoin But They Don't Know How. This chapter/post looks at why non-state governance is difficult. The cryptocurrency mantra is that code is law, which is true but there are two inconvenient truths: 1. Humans write the code that is law and humans are not omniscient and perfect code is impossible. 2. Humans are needed if something comes up that the code developers did not envisage and a dispute has to be settled. This chapter/post shines a light on the issues that make non-state governance so difficult : Code-enforced Monetary policy. The critical difference between Satoshi Nakamoto and Vitalik Buterin. Who decides what to do after a big fraud breach? What we learned from the Bitcoin civil war around the block size The Tezos debacle for irony aficionados This is the easy part. The code enforces a monetary policy. This can be a totally fixed supply like Bitcoin or a more nuanced gradual inflation policy like Ethereum. Which monetary policy is better can be debated by economists for a long time. What is certain is that the idea of a stateless code-enforced Monetary policy is fundamentally new. Think of the code-enforced Monetary policy like a Central Bank where the Governor has no decision-making leeway. This is more complex than it sounds if th Continue reading >>

Ethereum - Consensys

Ethereum - Consensys

Ethereum is how the Internet was supposed to work. There are four core technological building blocks that are coordinated to enable the Ethereum decentralized application platform to operate: 1) Cryptographic Tokens and Addresses: a mathematically secure unique voucher system that can act as numeraire and be used pay for goods, services or assets, and can also be used to represent a mathematically secure, pseudonymous identity; 2) Peer-to-peer Networking: individual users connect their computers together forming a network to exchange data without a central server (both Bitcoin and Ethereum run on P2P networks); 3) Consensus Formation Algorithm: this algorithm permits users of the blockchain to reach consensus about the current state of the blockchain (the Bitcoin blockchain reaches consesus on a global state change every 10 minutes on average whereas the Ethereum blockchain reaches consensus approximately every 15 seconds). 4) Turing Complete Virtual Machine: a virtual machine is a computer that exists as software, and can be run at a layer of abstraction above the underlying hardware; Turing complete means that this software computer can run any computer program one defines and is powerful enough to implement any program defined in any similarly computationally complete system (as opposed to Bitcoin, which has a virtual machine but can only run a much simpler class of programs); These 4 pillars of decentralized application technology are designed to enable smart contracts. Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of some sort of agreement (e.g. a legal contract emulating the logic of contractual clauses or a financial contract specifying responsibilities of the counterparts and automated flows of value). Continue reading >>

An Introduction To Ethereum And Smart Contracts: A Programmable Blockchain

An Introduction To Ethereum And Smart Contracts: A Programmable Blockchain

An Introduction to Ethereum and Smart Contracts: a Programmable Blockchain Bitcoin took the world by surprise in the year 2009 and popularized the idea of decentralized secure monetary transactions. The concepts behind it, however, can be extended to much more than just digital currencies. Ethereum attempts to do that, marrying the power of decentralized transactions with a Turing-complete contract system. In this post we will take a closer look at how Ethereum works and what makes it different from Bitcoin and other blockchains. Read on! In our previous post , we took a closer look at what blockchains are and how they help in making distributed, verifiable transactions a possibility. Our main example was Bitcoin: the world's most popular cryptocurrency. Millions of dollars, in the form of bitcoins, are traded each day, making Bitcoin one of the most prominent examples of the viability of the blockchain concept. Have you ever found yourself asking this question: "what would happen if the provider of this service or application disappeared?" If you have, then learning about Ethereum can make a big difference for you. Ethereum is a platform to run decentralized applications: applications that do not rely on any central server. In this post we will explore how Ethereum works and build a simple PoC application related to authentication. A blockchain is a distributed, verifiable datastore. It works by marrying public-key cryptography with the nobel concept of the proof-of-work. Each transaction in the blockchain is signed by the rightful owner of the resource being traded in the transaction. When new coins (resources) are created they are assigned to an owner. This owner, in turn, can prepare new transactions that send those coins to others by simply embedding the new owner Continue reading >>

Stock Trading App Robinhood To Launch Bitcoin, Ethereum Trading In Five States

Stock Trading App Robinhood To Launch Bitcoin, Ethereum Trading In Five States

Still, "I wouldn't call it a shift," Tenev said. "We're not seeing significant impact from cryptos on the size of the equity market. Marketwide, trading is increasing, investing is increasing." Vlad Tenev and Baiju Bhatt, who co-founded Robinhood. Robinhood's app launched about three years ago as a way for customers, mostly younger investors, to trade stocks through their smartphones for free. Robinhood also has a premium paid service, and in December launched options trading. The company now has more than 3 million users, with 78 percent falling into the so-called millennial age category of 18 to 35 years old. For cryptocurrency trading, Robinhood will have no investment minimums or maximums, and no withdrawal limits. The start-up will hold most of the digital coins offline in what is called cold storage. The practice prevents hackers from stealing the coins. "We will connect to many exchanges, up to a dozen or more, over the next several months," Tenev said. "We want to break even on this business, not to profit from it. We view this as an opportunity to expand our customer base and give our customers more access to functionality." List of digital coins Robinhood users can view But with just five states at launch Robinhood will not likely pose a significant threat to Coinbase, the leading U.S. cryptocurrency exchange. Coinbase has more than 13 million customers around the world and has money transmitter licenses in 36 states, including New York. The February rollout of cryptotrading to five states will be in phases, and Robinhood said it hopes to offer cryptocurrency trading to New York residents in the future, but noted that the state and others may require specific licensing and approvals. Both fintech start-ups and more traditional players have been far more cauti Continue reading >>

The Ethereum-blockchain Size Will Not Exceed 1tb Anytime Soon | Hacker News

The Ethereum-blockchain Size Will Not Exceed 1tb Anytime Soon | Hacker News

That just prevents anyone except miners from messing with the state. One of the nice properties of Bitcoin is that even miners can't magic more coins into existence than allowed by the protocol or spend other people's money. You lose that a little with this kind of fast sync. It's probably worth it from a usability standpoint though. Miners could mess with very recent state, but if you download enough blocks with full state to be confident of finality for the earliest one, and verify just those transitions, you're still safe. If the incorrect blocks were published on the network, they'd be rejected by other miners, so you don't have to look far back unless (1) there's a sustained 51% attack on the whole network, or (2) you're a very juicy target and a huge miner can take over your internet connection, and you don't notice a large drop in difficulty. I'm not trolling: I have 50Mbit connection and specd out macbook - probably most powerful laptop you can expect from a user. Maybe if i tweak or use light client it would, but as a user I don't care. Yea I gave up on eth wallets as well. I just ended up dumping my coins onto coinbase and hope they don't get hacked or something... I looked into hot wallets, but so many people have theirs keys stolen somehow. Figured it was last risk to leave it on an exchange. I have a Dell laptop that I bought for ~$500 in 2014, upgraded to 16GB RAM and SSD, it holds ETH, LTC and BTC blockchain. It's constant network transfer is 4MB/s, avg. CPU usage 70%. Run Arch. What problem are you having? Is this for Bitcoin or for Ethereum? I thought the former has UTXOs and the latter has accounts. So the issue is, if you want to validate a transaction, I would have to find the block in which the input was made, and confirm all the blocks from that o Continue reading >>

Venezuela To Become The Worlds First State To Issue A Currency On Ethereums Blockchain

Venezuela To Become The Worlds First State To Issue A Currency On Ethereums Blockchain

The Venezuelan government has revealed they are hoping to raise around $5 billion by issuing an Ethereum Based ECR20 token called Petro in an ICO. In a whitepaper that follows the same sort of structure and focus as other ICO whitepapers, the Venezuelan government says: Petro will be a sovereign crypto asset backed by oil assets and issued by the Venezuelan State as a spearhead for the development of an independent, transparent and open digital economy open to direct participation of citizens. It will also serve as a platform for the growth of a fairer financial system that contributes to development, autonomy and trade between emerging economies. How exactly the token will be backed by their oil reserves which are the biggest in the world they do not clarify with it so planned to be tradable on exchanges as well as them stating the token will have the necessary characteristics to carry out direct exchanges (Atomic Swaps). What they do clarify is in some ways its legal status through which they might manage a peg of sorts as this will be a fully backed state issued government token running on top of Ethereum: The Bolivarian Republic of Venezuela guarantees that it will accept Petros as a form of payment of national taxes, fees, contributions and public services, taking as a reference the price of the barrel of the Venezuelan basket of the previous day with a percentage discount of Dv. In this wat [sic], it is guaranteed that the purchaser always has a recovery value adjusted to the investment. The Venezuelan government says they will promote Petros use within the country and outside while also allowing its citizens to accept benefits in Petros: The Venezuelan government is committed to promoting the use of Petro in the domestic market and making efforts to stimulate it Continue reading >>

White Paper Ethereum/wiki Wiki Github

White Paper Ethereum/wiki Wiki Github

Introduction to Bitcoin and Existing Concepts The concept of decentralized digital currency, as well as alternative applications like property registries, has been around for decades. The anonymous e-cash protocols of the 1980s and the 1990s were mostly reliant on a cryptographic primitive known as Chaumian Blinding. [8] Chaumian Blinding provided these new currencies with high degrees of privacy, but their underlying protocols largely failed to gain traction because of their reliance on a centralized intermediary. In 1998, Wei Dai's b-money [9] became the first proposal to introduce the idea of creating money through solving computational puzzles as well as decentralized consensus, but the proposal was scant on details as to how decentralized consensus could actually be implemented. In 2005, Hal Finney introduced a concept of reusable proofs of work, [10] a system which uses ideas from b-money together with Adam Back's computationally difficult Hashcash [11] puzzles to create a concept for a cryptocurrency, but once again fell short of the ideal by relying on trusted computing as a backend. In 2009, a decentralized currency was for the first time implemented in practice by Satoshi Nakamoto, [1c] [1d] combining established primitives for managing ownership through public key cryptography with a consensus algorithm for keeping track of who owns coins, known as "proof of work." The mechanism behind proof of work was a breakthrough because it simultaneously solved two problems. First, it provided a simple and moderately effective consensus algorithm, allowing nodes in the network to collectively agree on a set of updates to the state of the Bitcoin ledger. Second, it provided a mechanism for allowing free entry into the consensus process, solving the political problem of Continue reading >>

Ethereums Scaling Solutions: State Channels, Plasma, And Truebit

Ethereums Scaling Solutions: State Channels, Plasma, And Truebit

Conceptually, there are two ways we might go about solving this problem : I. What if each nodedidnthave to process every operation in parallel? The first approach rejects our premise what if we could build a blockchain where every node didnt have to process every operation? What if, instead, the network was divided into two sections, which could operate semi-independently? Section A could process one batch of transactions, while Section B processed another batch. This would effectively double the transaction throughput of a blockchain, since our limit is now what can be processed bytwonodes at the same time. If we can split a blockchain into many different sections, then we can increase the throughput of a blockchain by many multiples. This is the insight behind sharding, a scaling solution being pursued by Vitaliks Ethereum Research group and others. A blockchain is split into different sections calledshards, each of which can independently process transactions. Sharding is often referred to as aLayer 1scaling solution because it is implemented at the base-level protocol of ethereum itself. If you want to learn more about sharding, I recommend this extensive FAQ and this blog post . II. What if we could squeeze moreuseful operationsout of ethereums existing capacity? The second option goes in the opposite direction: rather than increase the capacity of the ethereum blockchain itself,what if we could domore thingswith the capacity we already have?The throughput of the base-layer ethereum blockchain would be the same, but in practice we would be able to do many more operations that are useful to people and applications like transactions, state updates in a game, or simple computations. This is the insight behind off-chain technologies like state channels , Plasma , and Continue reading >>

How Ethereum Works - Coindesk

How Ethereum Works - Coindesk

CoinDesk Launches 2017 Year in Review Opinion and Analysis Series Now that we've covered what ethereum is, let's dive deeper into how the platform functions under the hood. Consider the online notebook application described in " What is Ethereum? " Using ethereum, the appdoesn't require one entityto store and control its data. To accomplish this, ethereum borrows heavily from bitcoin's protocol and its blockchain design, but tweaks it to support applications beyond money. Ethereum aims to abstract away bitcoin's design, however, so that developers can create applications or agreements that have additional steps, new rules of ownership, alternative transaction formats or different ways to transfer state. The goal of ethereum's 'Turing-complete' programming language is to allow developers to write more programs in which blockchain transactions could govern and automate specific outcomes. This flexibility is perhaps ethereum's primary innovation, as explained in the guide " How Ethereum Smart Contracts Work ". The structure of the ethereum blockchain is very similar to bitcoin's, in that it is a shared record of the entire transaction history. Every node on the network stores a copy of this history. The big difference withethereum is that its nodes store the most recent state of each smart contract, in addition to all of the ether transactions. (This is much more complicated than described, but the text below should help you get your feet wet.) For each ethereum application, the network needs to keep track of the 'state', or the current information of all of these applications, including each user's balance, all the smart contract code and where it's all stored. Bitcoin uses unspent transaction outputs to track who has how muchbitcoin. While it sounds more complex, the id Continue reading >>

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