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How Ethereum Works Medium

Ethereum, Gas, Fuel, & Fees Consensys Media

Ethereum, Gas, Fuel, & Fees Consensys Media

A blockchain venture production studio building decentralized applications on Ethereum. Go to www.consensys.net and subscribe to our newsletter. Ethereum is a platform for decentralized and truthful applications that run on a global, peer-to-peer network without any administrators or a single point of failure. These applications have zero downtime and anyone can create them: it is permissionless innovation. The applications are truthful, immutable and always interoperate as they are coded. From this perspective, the terminology of smart contracts is reasonable in that they are the ultimate in contracts that always follow the terms set at their creation. The core of what makes this possible is effectively a World Computer. Technically called the Ethereum Virtual Machine (EVM), it includes operations for computation and data storage. A transaction represents a single session within the World Computer. It is the unit of interaction, similar to how a sentence is the unit of grammatical meaning, even though a single sentence can contain many words. Gas is the metering unit for use of the World Computer. As an analogy, electricity is metered by kilowatt hours. Using more computation and storage in Ethereum means that more gas is used. One fundamental reason for metering is that it provides an incentive for people (miners) to operate the World Computer. These miners get a fee for processing transactions, which is determined by the metering scheme: gas. Each operation in the EVM consumes gas. For example, a multiplication (MUL) consumes 5 gas and an addition (ADD) consumes 3 gas. Here is a spreadsheet of Ethereums operations and their gas consumption . Metering is different from fees and gas is different from Ether. To help clarify this, consider gas to be synonymous with fuel Continue reading >>

Ethereum

Ethereum

use the following search parameters to narrow your results: include (or exclude) results marked as NSFW Welcome to r/Ethereum , the front page of the Web 3. No inappropriate behavior. This includes, but is not limited to: personal attacks, threats of violence, gossip, slurs of any kind, posting people's private information. Keep price discussion and market talk, memes & exchanges to subreddits such as /r/ethtrader Keep plain ICO advertisements to subreddits such as r/ethinvestor . Keep mining discussion to subreddits such as /r/EtherMining . No creating multiple accounts to get around Reddit rules. English language only. Please provide accurate translations where appropriate. Posts and comments must be made from an account at least 10 days old with a minimum of 20 comment karma. Exceptions may be made on a discretionary basis. 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 >>

Understanding Ethereuma Fullguide

Understanding Ethereuma Fullguide

Interested in the challenges between blockchains and the law founder of www.lawandblockchain.eu Ethereum is the subject of a lot of hype lately. It is praised by some as the new internet or the worlds computer and criticised by others as a platform that enables widespread scams and ponzi schemes to thrive. I see badly informed articles about Ethereum, smart contracts, DApps, DAOs, ICOs and tokens on the daily so it is time to analyse the subject. I will present the argument that Ethereum might form the main protocol enabling the internet of value. It is time to take a closer look at what Ethereum is, what it enables and what role it could play in the future. But first, we have to backtrack a bit. Time for a small reminder about the value of distributed ledger technologies. To put it briefly, a blockchain is a database that is secured and maintained by a large number of nodes worldwide. Data is stored in blocks, which are time-stamped and linked to each other to form a chain. The blockchain makes sure that all data stored in the chain is secure and immutable forever, which is what makes the blockchain so interesting. Through its consensus mechanism, the blockchain is trustless , which means that one does not have to rely on the trustworthiness of a counterparty. For the first time, the blockchain enabled a safe way to send value on the internet without needing a trusted third party. This led to the rise of Bitcoin and other cryptocurrencies. In essence, a Bitcoin transaction is just the execution of a piece of code stating that person A sent X amount of Bitcoin to person B. This transaction is self-enforcing. To execute, it first checks if there is enough Bitcoin in person As digital wallet and then sends the money to Bs wallet. In itself, this transaction is a piece of Continue reading >>

Crypto Canon Andreessen Horowitz

Crypto Canon Andreessen Horowitz

by Sonal Chokshi , Chris Dixon , Denis Nazarov , Jesse Walden , and Ali Yahya Heres a list building on and including Chris last roundup of crypto readings and resources. Its organized frombuilding blocks and basics; foundations (& history); andkey concepts followed by specific topics such asgovernance; privacy and security; scaling; consensus; cryptoeconomics and investing; fundraising and token distribution; decentralized exchanges; stablecoins; and cryptoeconomic primitives (crytocollectibles, curation markets, games). We also included a section with developer tutorials, practical guides, and maker stories as well as other resources, such as newsletters and courses, at the end. Well soon be updating this regularly at crypto.a16z.com, for now well keep it updated here. You can also find most of a16zs writings, posts, and videos on the topic at a16z.com/crypto. WTF is the blockchain? understanding the problem it solves before defining it Ever wonder how bitcoin (and other cryptocurrencies) actually work? What are cryptonetworks and why are tokens fundamental? with full deck Why its hard to get bitcoin: the blockchain spectrum Money, blockchains, and social scalability What do we mean by blockchains are trustless? Why decentralization matters from eras of the internet to cryptonetworks The meaning of decentralization but what does that actually mean? nuances, depth Quantifying decentralization we must be able to measure blockchain decentralization before we can improve it The truth about blockchain framework for adoption to helpbig company executives understand state of development; strategic investments; challenges, resources, processes to facilitate adoption Vitalik Buterin, creator of Ethereum Unchained: big ideas from the worlds of blockchain and cryptocurrency The Continue reading >>

Ethereum - Wikipedia

Ethereum - Wikipedia

This article has multiple issues. Please help improve it or discuss these issues on the talk page . This article relies too much on references to primary sources . Please improve this by adding secondary or tertiary sources . Some of this article's listed sources may not be reliable . Please help this article by looking for better, more reliable sources. Unreliable citations may be challenged or deleted. The Ethereum Project's logo, first used in 2014 Ethereum is an open-source , public, blockchain -based distributed computing platform featuring smart contract (scripting) functionality. [2] It provides a decentralized Turing-complete virtual machine , the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed. [3] "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network. [2] [4] Ethereum was proposed in late 2013 by Vitalik Buterin , a cryptocurrency researcher and programmer. Development was funded by an online crowdsale between July and August 2014. [5] The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale. [6] This accounts for approximately 13 percent of the total circulating supply. In 2016, as a result of the collapse of The DAO project, Ethereum was forked into two separate blockchains - the new forked version became Ethereum (ETH), and the original continued as Ethereum Classic (ETC). [7] [8] [9] Ethereum was initially described in a white paper by Vitalik Buterin , [10] a programmer involved with Bitcoin Magazine , in late 2013 with a goal of buildin Continue reading >>

How Does Ethereum Work? Michele D'aliessi Medium

How Does Ethereum Work? Michele D'aliessi Medium

The logic and mechanics behind Ethereum explained in simple words. Ethereum is a platform on which anyone can build unstoppable, decentralised applications. If you have never heard of Ethereum or if you dont know what it can be used for, I would strongly recommend to read What is Ethereum? before digging deeper and exploring how it works in this article. The ultimate guide to understand Ethereum in simple words.medium.com The purpose of this article is to explain how Ethereum works by providing a general and non-technical overview of its logic and inner mechanics. Please keep in mind that what is described below is a simplified version of what actually happens, but it should be technical enough to give you a general understanding of how it works. Should you have any questions please write them as comments or private notes, it would help me refine this article over time and make it much clearer for future readers. We can see Ethereum as a stack of few layers built on top of each other. The first, basic layer that makes everything else possible is a large network of computers that process transactions and keep a shared database updated over time (the Ethereum blockchain). The second, is the software layer that allows developers to run programs called smart contracts on the Ethereum blockchain, using a programming language called Solidity . The third layer is made of applications that offer different services (from governance to identity management) to Ethereum users. The remarkable feature of this platform is that by leveraging the Ethereum hardware and software layers these applications are decentralised, lack a central point of failure and are somehow unstoppable. You just cant switch them off. Lets explore each of these layers in detail. Fig. 1 - The different layers Continue reading >>

A Beginners Guide Toethereum

A Beginners Guide Toethereum

According to the Ethereum website , Ethereum is a decentralized platform that runs smart contracts. This is an accurate summary but in my experience when first explaining Ethereum to friends, family, and strangers it helps to compare Ethereum to Bitcoin since a lot of people have at least heard about Bitcoin before. This beginners guide should help those who are new to Ethereum to understand the high level differences between the two. Simply put, Bitcoin can be described as digital money. Bitcoin has been around for eight years and is used to transfer money from one person to another. It is commonly used as a store of value and has been a critical way for the public to understand the concept of a decentralized digital currency. Ethereum is different than Bitcoin in that it allows for smart contracts which can be described as highly programmable digital money. Imagine automatically sending money from one person to another but only when a certain set of conditions are met. For example an individual wants to purchase a home from another person. Traditionally there are multiple third parties involved in the exchange including lawyers and escrow agents which makes the process unnecessarily slow and expensive. With Ethereum, a piece of code could automatically transfer the home ownership to the buyer and the funds to the seller after a deal is agreed upon without needing a third party to execute on their behalf. The potential for this is incredible! Think of the numerous applications that act as a third party to connect you with others based on some set logic (e.g. Uber, Airbnb, eBay). Many of the centralized systems we use today could be built in a decentralized manner on Ethereum. With Ethereum you can make these transactions trustless which opens up an entire world of dec Continue reading >>

How Does Ethereum Work, Anyway?

How Does Ethereum Work, Anyway?

Here's a great in depth introduction on how Ethereum works. Basic concepts like state, accounts, transactions, blocks, gas, mining etc. are explained. It is a quite long read but as someone who is just getting into this field I really enjoyed it. Continue reading >>

Life Cycle Of An Ethereum Transaction

Life Cycle Of An Ethereum Transaction

Learn How an Ethereum Transaction is Created and Propagated to theNetwork Transactions are at the heart of the Ethereum blockchain (or any blockchain for that matter). When you interact with the Ethereum blockchain, you are executing transactions and updating its state. Have you ever wondered what exactly happens when you execute a transaction in Ethereum? Lets try to understand it by looking at an example transaction. In this post, we will cover the following. An end to end traversal of an Ethereum transaction starting from your browser/console to the Ethereum network and back to your browser/console Understand how transactions work when you use a plugin such as Metamask or Myetherwallet instead of running your own node What to do if you are too paranoid and dont trust any plugins to execute your transaction? This post assumes that you have a basic understanding of Ethereum and its components such as accounts, gas and contracts. Here is a good explanation of these concepts. If you are a developer new to Ethereum, you might find this helpful. You can also learn to build a simple dapp here . This post will make more sense if you have executed few transactions yourself. An example of a transaction is you sending some ether to another person or a contract. Another example is if you have interacted with a dapp. For example, if you go here and buy some tokens, that would be a transaction. If you vote for a candidate, that would be another transaction. 1. End to end overview of an Ethereum transaction Lets take the following contract call as an example and traverse through the entire flow of how this function call/transaction gets executed and gets permanently stored on the blockchain. You can find the entire contract here . At a high level, its a voting contract where you i Continue reading >>

What Does It Mean To Issue A Token On Top Of Ethereum?

What Does It Mean To Issue A Token On Top Of Ethereum?

What does it mean to issue a token on top of Ethereum? Understanding how Ethereum-based tokens work and their relationship to Ether. Even for those with an understanding of cryptocurrencies, Ethereum and other advanced open blockchain networks can be confusing, especially when people start talking about launching their new cryptocurrency or token on top of Ethereum. How can one valuable digital item run or be launched on top of another valuable digital item? This backgrounder will answer that question, but first we need to cover a fair amount of background material. Much of the confusion stems from the cryptocurrency communitys unfortunate habit of using the same name to describe multiple different things; so, to start, well try to disambiguate a few terms. Bitcoin is a peer-to-peer network. Bitcoin is a computer protocol for electronic cash. Bitcoin is a provably scarce token that will have a positive value if there is demand for it. All of these are true statements, which means that Bitcoin, the word, is used to describe three different things: (1) a group of networked computers on the Internet, (2) a set of rules and procedures for passing data between computers, and (3) valuable tokens that exist as a consequence of these networked computers running that Bitcoin protocol software. Those valuable tokens, bitcoins, in turn perform at least three functions: (1) people who dedicate computing resources to making the network work (i.e. miners) are rewarded with bitcoins, (2) users of the network can send bitcoins to other users as a payment medium, and (3) users can (and often must) pay fees in bitcoin in order to use the network. Many people interested in open blockchain networks started with Bitcoin and never had this distinction entirely spelled-out for them. So, when Continue reading >>

React & Ethereum: Getting Started With The Minimum Toolset Requiredpart 1 Of4

React & Ethereum: Getting Started With The Minimum Toolset Requiredpart 1 Of4

Blockchain Engineer - Ethereum <> React. Context dependent being. Enjoyer of essences. React & Ethereum: Getting Started With The Minimum Toolset Required Part 1 of4 Learn how to create a smart contract and deploy it to the Ethereum blockchain, using the minimum toolset required: Remix, Metamask, and any text editor. Pixabay image, released under Creative CommonsCC0 . The essence of this post is to show how React can talk with the Ethereum blockchain. Only three tools will be used, so therell be a minimum learning curve. The project will be broken down into five phases so it can be easily followed. Intended audience: Students / beginners / intermediate beginners, and anyone with curiosity. Prerequisites: Basic familiarity with JavaScript, React, npm, and the command line. Simple knowledge of ether and gas. Solidity will be used to write our smart contract , though familiarity with it is not needed. Ill do my best to explain whats happening, and Ill link relevant key words to the Solidity documentation for easy reference. Design note: Im designing this post to be a learning experience which aims to deliver a simple and detailed understanding of the toolset used and the Solidity programming language. Practicing, recalling from memory, and following processes are part of this experience. GitHub repository : If youd like, you can code along with my repository. Ive added comments as a guide. Personal process note: I would like to mention that even though these posts appear linear, my process of learning and coding this example was far from it. It was non-linear, a bit like a spiral or a helix. I applied a rapid-prototyping / rapid-iteration process that I learned while attending Stanford University, one where I tried something small, debugged it, tried again, debugged again Continue reading >>

18 Blockchain Predictions For2018

18 Blockchain Predictions For2018

Everything changes. Everything is connected. Pay Attention. 1.Bitcoin is the generation 0 of blockchain technology the opening act the gateway drug the first inning MySpace. We must thank her for her work, as none of the following technology would be available without Satoshis Bitcoin, but were about to go much, much, further. While Satoshi converged a database structure with peer-to-peer networking, cryptographic tokenization, consensus formation algorithms, and game theoretical economic incentivization to create a means for trustless digital storage and transmission of value, the Digital Gold use case, is only one use case. Bitcoin as a digital store of value is the least interesting use of blockchain There, I said it. Far more interesting are programmable money, programmable asset transfer, and shared, tamper-resistant business logic. People fixated on Bitcoin are missing the fact that were verging upon the next generation of the world-wide-web. The Bitcoin protocol is the worlds largest modern-day abacus; it only enables us to move a bead (or coin) from one side to the other. The ability to do this on a global, permissionless substrate is not trivial. But I cant overemphasize the limited scope of this initial design, due to its use of a virtual machine which isnt Turing-complete. scriptPubKey: OP_DUP OP_HASH160 OP_EQUALVERIFY OP_CHECKSIG The above script should serve to explain the inherent limitations of the Bitcoin scripting language. Ethereum can be thought of as Bitcoin + everything else , with a high level software language reminiscent of Javascript. While still being able to store and transmit value (the single Bitcoin use case), were also able to program our agreements using Ethereum. Here are two examples of typical agreements that are now easily codified u Continue reading >>

Ethereum, Ether And The Blockchain Ecosystem!

Ethereum, Ether And The Blockchain Ecosystem!

Blockchain is a new way of digital communication and transaction where everyone is powerful, and accountable, thus giving birth to the powerful democratic ecosystem for humans to thrive. This NoTrust System is really trustworthy and a new decentralized internet for the masses to go mainstream. A group of people known by pseudonym Satoshi Nakamato gave this world a truly game changing technology, which now the world knows by the name The Blockchain: A chain of decentralized public ledger or database blocks. A Blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as completed blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically. Don & Alex Tapscott, authors Blockchain Revolution (2016) says: The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything ofvalue. This brilliant innovation has powered many blockchain system like bitcoin, litecoin, NEO, Ripple and many more digital currency. Today we will cover in detail about Ethreuem: A Comprehensive Blockhain Ecosystem which is empowering many blokchain powered innovative idea to capture the imagination of ingenious minds and the world as a whole. We will uncover our journey in the following phases: How To Invest in Ethereum & Market Stats? As an open blockchain platform that lets anyone build and use decentralized applications that run on blockchain technology. Like Bitcoin, no one controls or owns Ethereum it Continue reading >>

Ethereum Project

Ethereum Project

You are responsible for your own computer security. If your machine is compromised you will lose your ether, access to any contracts and possibly more. You are responsible for your own actions. If you mess something up or break any laws while using this software, it's your fault, and your fault only. You are responsible for your own karma. Don't be a jerk and respect the rights of others. What goes around comes around. The user expressly knows and agrees that the user is using the Ethereum platform at the users sole risk. The user acknowledges that the user has an adequate understanding of the risks, usage and intricacies of cryptographic tokens and blockchain-based open source software, eth platform and ethereum The user acknowledges and agrees that, to the fullest extent permitted by any applicable law, the disclaimers of liability contained herein apply to any and all damages or injury whatsoever caused by or related to risks of, use of, or inability to use, ethereum or the Ethereum platform under any cause or action whatsoever of any kind in any jurisdiction, including, without limitation, actions for breach of warranty, breach of contract or tort (including negligence) and that neither Stiftung Ethereum (i.e. Ethereum Foundation) nor Ethereum team shall be liable for any indirect, incidental, special, exemplary or consequential damages, including for loss of profits, goodwill or data that occurs as a result. Some jurisdictions do not allow the exclusion of certain warranties or the limitation or exclusion of liability for certain types of damages. Therefore, some of the above limitations in this section may not apply to a user. In particular, nothing in these terms shall affect the statutory rights of any user or exclude injury arising from any willful misconduct Continue reading >>

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