Function and Utility of the most commonly used Blockchains — Ethereum- PURPOSE SERIES
Ethereum is one of the most used blockchains in the modern world and has been applied to a wide range of different applications since its initial release in 2015. It is one of the most popular platforms for building decentralized apps (dApps). In simple terms, Ethereum allows developers to build any kind of application that can be run on a decentralized platform
FUNCTIONS
Third-party or entity is not in charge of Ethereum. They are managed by codes instead. Several pieces come together to ensure that Ethereum is functioning accordingly
1. Smart Contracts
- Smart contracts are what force Ethereum to have a system where code, not a third party, controls everything
- When specific criteria are met, smart contracts autonomously carry out their stated actions without assistance from any outside entity
- Any cryptocurrency involves smart contracts
- Although they are not limited to Ethereum and can be utilized elsewhere, their use of Ethereum is what makes them well-known
2. Ethereum Blockchain
- This is where the history of every smart contract that has been performed is kept
- A copy of the full blockchain is kept on hundreds of nodes throughout the globe
- Every time a smart contract is performed, thousands of computers check that all the specified rules were followed
- The nodes contain more than just transactional information
3. Ethereum Virtual Machine (EVM)
- The smart contracts are carried out via the Ethereum virtual machine
- It facilitates the conversion of smart contracts written in a language that computers cannot understand into a language (bytecode) that computers can
- At least 140 distinct programs with specified tasks can be executed by the EVM
4. Ether
- Ether is the native coin of Ethereum, as was already mentioned
- There are two different sorts of accounts where ether is kept
- Users keep and transfer Ether using accounts that are externally owned, while contracts are stored in accounts called contract accounts
5. Proof-of-Work
- Miners attempt to obtain the right value of a block after a transaction’s block has been established by generating values up until they do
- When the miner finds a hash value, it is then transmitted over the network for the nodes to confirm
- The miner gets the Ether unlocked when it found the hash if it is accepted
- A new method dubbed proof-of-stake, which is anticipated to use less processing power and electricity than proof-of-work is however planned to replace the current one
UTILITY
Blockchain has a decentralized public ledger since it is not kept in a single location. On thousands of volunteer computers throughout the world, each of which is referred to as a node, the public ledger is kept. Before being certified correct, the data stored on the blockchain is verified by more than half of the nodes. The blockchain network uses cryptography to validate transactions and to keep them safe. Complex mathematical problems are solved by computers, allowing for the addition of new blocks to the chain and the confirmation of network transactions. Ether can be used as a digital currency in financial transactions, just like any other cryptocurrency. Users can complete any task on Ethereum using ether as a form of exchange
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