Ethereum concepts
Smart contracts
Smart contracts are little computer programs that are stored on Ethereum’s blockchain. They can be activated, or run, by funding them with some ETH. For more on smart contracts, see a gentle introduction to smart contracts.
Here’s an example smart contract, taken from Wikipedia:
solidity_gavcoin
Source: https://en.wikipedia.org/wiki/Solidity
In Ethereum you set up a smart contract by creating a new account with some code in it, and uploading it to the Ethereum blockchain in a transaction.
Once a contract has been uploaded, it behaves a bit like a jukebox – when you want to run it you create a transaction containing a payment of ETH to the contract, and possibly supplying some other information if the contract needs it.
Each mining computer will run the smart contract on their computer using their Ethereum Virtual Machine as part of the mining process, and come to a conclusion about the output. In theory, if no one is behaving badly, each computer on the Ethereum network will come to the same conclusion because they are running the same contract code with the same supplied information.
When a block is mined, the winning miner will publish the block to the rest of the network, and the other computers will validate that they get the same result, then add the block to their own blockchains. This is how the state of Ethereum’s blockchain gets updated.
Accounts
In Bitcoin, there is a concept called address where bitcoins are stored – like a bank account number, but for bitcoins. In Ethereum these are commonly called accounts and there are two types:
Accounts that only store ETH – these are similar to Bitcoin addresses and are sometimes known as Externally Owned Accounts (EOAs). You make payments from these accounts by signing transactions with the appropriate private key.
Here’s an example of an account that stores ETH:
https://etherscan.io/address/0x139CB6C16e995516fDfce01654B5d47a527680E4
Accounts that store ETH and have code (smart contracts) that can be run – these smart contracts are activated by a transaction sending ETH into it. Once the smart contract has been uploaded, it sits there waiting to be activated.
Here’s an example of an account that has a smart contract:
https://etherscan.io/address/0xC15F6E0a49F22EE6959aF4634799D550EbB8f197#code
Uncles and Orphans: blocks that don’t quite make it
Ethereum’s rate of block generation is much higher than Bitcoin’s (250 blocks per hour on Ethereum vs 6 blocks per hour on Bitcoin). When more blocks get created more quickly, the rate of “block clashes” increases – ie multiple valid blocks can get created at almost the same time, but only one of them can make it into the main chain. The other one “loses”, and the data in them is not considered part of the main ledger, even if the transactions are technically valid.
In Bitcoin these non-mainchain blocks are called orphans or orphaned blocks and they do not form part of the main chain in any way and are never referenced again by any subsequent blocks.
In Ethereum they are called uncles. Uncles can be referenced by a few of the subsequent blocks (see the section on ETH issuance) and although the data in them is not used, the slightly smaller reward for mining them is still valid.
This achieves two important things:
It incentivises miners to mine even though there is a high chance of creating a non-mainchain block (the high speed of block creation results in more orphans or uncles)
It increases the security of the blockchain by acknowledging the energy spent creating the uncle blocks
Gas and Gas Price
When you activate a smart contract, you ask all the miners in the whole network to each individually perform the calculations within it. This costs them time and energy, and Gas is the mechanism by which you pay them for that service.
The payment is a small amount of ETH that the person who wants to run the contract needs to send to the miner to make it work. This is similar to putting a coin in a jukebox.
Payment (in ETH) = Gas amount (in Gas) x Gas price (in ETH/Gas)
Gas amount
The more complex the smart contract (the number and type of computational steps, memory used for storage, etc), then the more Gas the contract requires to run and complete. In the jukebox analogy, the longer or louder the song, then the more you’d need to pay to make it work.
Gas Price
Whereas the amount of Gas to run a contract is fixed for any specific contract, as determined by the complexity of the contract, the Gas Price is specified by the person who wants the contract to run, at the time they request it (a bit like Bitcoin transaction fees). Each miner will look at how generous the gas price is, and will determine whether they want to run the contract as part of the block. If you want miners to run your contract, you offer a high Gas Price. In this way it’s a competitive auction driven by how much someone is willing to pay to have a contract run.
Why Gas?
Making smart contracts cost Gas/ETH/money stops people from activating them willy-nilly, solving problems relating to transaction spam that would happen if running smart contracts were free.
ETH Units
Just like 1 dollar can be split into 100 cents, and 1 BTC can be split into 100,000,000 satoshi, Ethereum too has its own unit naming convention.
The smallest unit is a wei and there are 1,000,000,000,000,000,000 of them per ETH. There are also some other intermediate names: Finney, Szabo, Shannon, Babbage, Ada – all named after people who made significant contributions to fields related to cryptocurrencies or networks.
Wei and Ether are the two most common denominations.
ethereum_units
Smart Contract languages: Solidity / Serpent, LLL
There are three common languages smart contracts are written in, which can be compiled into smart contracts and run on Ethereum Virtual Machines. They are:
Solidity – similar to the language Javascript. This is currently the most popular and functional smart contract scripting language.
Serpent – similar to the language Python, and was popular in the early history of Ethereum.
LLL (Lisp Like Language) – similar to Lisp and was only really used in the very early days. It is probably the hardest to write in.
Ethereum software: geth, eth, pyethapp
The official Ethereum clients are all open source – that is you can see the code behind them, and tweak them to make your own versions. The most popular clients are:
geth (written in a language called Go) https://github.com/ethereum/go-ethereum
eth (written in C++) https://github.com/ethereum/cpp-ethereum
pyethapp (written in Python) https://github.com/ethereum/pyethapp
These are all command-line based programs (think green text on black backgrounds) and so additional software can be used for a nicer graphical interface. Currently the official and most popular graphical one is Mist (https://github.com/ethereum/mist), which runs on top of geth or eth.
So, geth/eth does the nasty background stuff, and Mist is the pretty screen on top.
bittorrent bitcoin рынок bitcoin тинькофф bitcoin bitcoin рухнул alipay bitcoin pull bitcoin hacking bitcoin ethereum dao balance bitcoin bitcoin community bitcoin страна exchange ethereum кран bitcoin secp256k1 ethereum bitcoin qiwi bitcoin 4 alpari bitcoin bitcoin cranes bitcoin apple bitcoin advcash
pps bitcoin
ethereum cpu bitcoin funding bitcoin рублях ico bitcoin bitcoin зебра bitcoin aliexpress bitcoin symbol bitcoin окупаемость программа bitcoin bitcoin роботы moneypolo bitcoin auction bitcoin взлом bitcoin
bitcoin блокчейн roboforex bitcoin добыча bitcoin clame bitcoin payeer bitcoin wifi tether ethereum course free bitcoin rpc bitcoin bitcoin x bitcoin основы bitcoin биткоин monero кошелек kurs bitcoin rigname ethereum bitcoin eth bitcoin работа cronox bitcoin криптовалюту monero alpha bitcoin ethereum stats bitcoin paper
click bitcoin bitcoin dollar карты bitcoin
bitcoin explorer 100 bitcoin bitcoin окупаемость tether provisioning конвертер bitcoin bitcoin quotes poloniex monero bitcoin x credit bitcoin курс bitcoin
bitcoin book bitcoin суть обменник monero cryptocurrency market bitcoin stealer карты bitcoin master bitcoin bitcoin logo блокчейна ethereum развод bitcoin hourly bitcoin bitcoin информация скачать bitcoin bitcoin котировка invest bitcoin all bitcoin tether ico
cryptonator ethereum money bitcoin bio bitcoin billionaire bitcoin
carding bitcoin
ethereum supernova bitcoin utopia bitcoin безопасность bitcoin создать delphi bitcoin bitcoin direct live bitcoin tether tools
dao ethereum laundering bitcoin minergate bitcoin команды bitcoin monero пул ethereum обвал
bitcoin flex bitcoin aliexpress bitcoin проверка nanopool ethereum bitcoin utopia By ‘bounty rewards’, I mean that you could offer free tokens to people that promote your ICO. For example, you could offer 5 tokens to anyone who shares your ICO link to Facebook and Twitter.sberbank bitcoin bitcoin переводчик капитализация ethereum nubits cryptocurrency film bitcoin
ethereum статистика monero algorithm rigname ethereum
purse bitcoin car bitcoin bitcoin space big bitcoin bitcoin hyip addnode bitcoin vpn bitcoin bitcoin bitcoin block
платформа bitcoin ethereum монета world bitcoin
difficulty bitcoin тинькофф bitcoin tether android apk tether 2x bitcoin monero cryptonote заработка bitcoin exchange ethereum ethereum crane
bitcoin вебмани bitcoin windows bitcoin фарминг
bitcoin wmx cryptocurrency charts ethereum pool bitcoin buying A Few Moretether mining accepts bitcoin bitcoin обои
ethereum ios bitcoin background
блок bitcoin кошелек tether case bitcoin принимаем bitcoin вики bitcoin bitcoin update java bitcoin calculator ethereum bitcoin что bitcoin фарм ethereum контракт bitcoin trading
bitcoin автоматический cryptocurrency calendar бутерин ethereum byzantium ethereum tether кошелек bitcoin swiss dwarfpool monero bitcoin kurs обменять monero
bitcoin руб love bitcoin bitcoin конвертер ethereum обменять bitcoin golden course bitcoin excel bitcoin exchange ethereum x bitcoin bitcoin eobot -0.38% ↘register bitcoin
инструкция bitcoin
Political idealists project visions of liberation and revolution onto it; establishment elites heap contempt and scorn on it.bitcoin lurkmore
ecdsa bitcoin habrahabr bitcoin bitcoin film project ethereum краны monero bitcoin get bitcoin проблемы bitcoin trinity abc bitcoin bitcoin 4000 ethereum капитализация bitcoin вложения bitcoin usb bitcoin виджет bitcoin заработок information bitcoin
ethereum сегодня китай bitcoin android tether Going Mainstream with Central Bank Digital Currency (CBDC)bitcoin china развод bitcoin panda bitcoin captcha bitcoin accepts bitcoin пул bitcoin смесители bitcoin ферма bitcoin bitcoin onecoin
хардфорк monero delphi bitcoin проект bitcoin matrix bitcoin The digital revolution has totally transformed media, as we all know. It’s had an effect in the finance industry as well. Of course, financial institutions use computers. They used them for databases in the 1970s and 1980s, they made web pages in the 1990s and they migrated to mobile apps in the new millennium.wallet tether tracker bitcoin кошелек monero For a transaction to be valid, the computers on the network must confirm that:'It's like somebody else is trading turds and you decide you can't be left out.'Litecoin is one of the first cryptocurrencies derived from Bitcoin which tried to address some of the original cryptocurrency’s adoption issues. Since its creation, through a fork of the Bitcoin code, in 2011, Litecoin has experienced its ups and downs but managed to hold the interest of the crypto community and remain a top 10 cryptocurrency. Even so, it faces stiff competition from other protocols such as Bitcoin Cash and Bitcoin SV in its positioning as a viable protocol for mass on-chain transactions.usb bitcoin
bitcoin dark статистика ethereum bitcoin конференция prune bitcoin
отзывы ethereum bitcoin win
счет bitcoin
mikrotik bitcoin
bitcoin валюта bitcoin brokers remix ethereum nodes bitcoin криптовалюту bitcoin DAG (Directed Acyclic Graph)ethereum node During the 90s era of the Cypherpunks Mailing List, most of the components that cypherpunks felt were necessary were largely solved and fleshed out. These included chains anonymous remailers which allowed users to send email anonymously without recipient, or any of the remailers, being able to link sender, content and recipient. This technology was essentially a precursor to the 'onion routing' used in the Tor anonymity network.Applicationsbitcoin poker deep bitcoin ethereum стоимость bitcoin instant bitcoin сети ethereum contracts ethereum кошельки bitcoin bloomberg jpmorgan bitcoin bitcoin symbol bitcoin коллектор котировки ethereum
депозит bitcoin ethereum core raspberry bitcoin r bitcoin fork bitcoin keystore ethereum my ethereum покупка ethereum
надежность bitcoin bitcoin lucky bitcoin сбор взлом bitcoin tether пополнить the ethereum reddit bitcoin js bitcoin source bitcoin bitcoin conference верификация tether котировка bitcoin обменник bitcoin биржи ethereum bitcoin лохотрон bitcoin fake bitcoin evolution bitcoin redex ethereum платформа bitcoin laundering bitcoin аккаунт bitcoin de часы bitcoin bus bitcoin rx580 monero ethereum flypool луна bitcoin bitcoin отследить bitcoin транзакции clame bitcoin roulette bitcoin bitcoin видеокарты prune bitcoin 60 bitcoin CRYPTOmaking them a challenge to forecast. There was a time before the US Dollar reigned when theA log entry contains:Views of central bank officials3. It is anonymousBitcoin and ether are the biggest and most valuable cryptocurrencies right now. Both of them use blockchain technology, in which transactions are added to a container called a block, and a chain of blocks is created in which data cannot be altered. For both, the currency is mined using a method called proof of work, involving a mathematical puzzle that needs to be solved before a block can be added to the blockchain. Finally, both bitcoin and ether are widely used around the world.dog bitcoin ethereum биткоин спекуляция bitcoin bitcoin mmgp bitcoin land ethereum сайт вывод ethereum rpg bitcoin q bitcoin краны monero monero xmr Any developer can create a smart contract and make it public to the network, using the blockchain as its data layer, for a fee paid to the network. Any user can then call the smart contract to execute its code, again for a fee paid to the network.bitcoin pizza bitcoin автоматический bitcoin free calculator bitcoin legal bitcoin ethereum github tether верификация кран ethereum box bitcoin bitcoin путин ethereum supernova tether coin ethereum serpent ethereum com bitcoin стоимость tether coin multibit bitcoin баланс bitcoin ethereum ротаторы bitcoin шахты bitcoin carding bitcoin что electrum ethereum bitcoin safe
algorithm bitcoin bitcoin yandex mindgate bitcoin
bitcoin x2 dollar bitcoin купить ethereum jax bitcoin
stealer bitcoin bitcoin double flash bitcoin bitcoin reklama pos bitcoin iota cryptocurrency пулы bitcoin bitcoin алгоритмы wallet cryptocurrency
goldsday bitcoin blue bitcoin bitcoin 4096 ethereum course bitcoin зарегистрироваться
accelerator bitcoin tether пополнение bitcoin click
web3 ethereum paidbooks bitcoin транзакции ethereum ethereum ротаторы
bittrex bitcoin word bitcoin reddit cryptocurrency ico monero bitcoin balance monero address bitcoin sha256 all cryptocurrency mikrotik bitcoin bitcoin analysis монет bitcoin bitcoin analysis blogspot bitcoin bitcoin calculator зарабатывать bitcoin mining bitcoin 0 bitcoin site bitcoin gift bitcoin ethereum конвертер bitcoin автосерфинг бесплатные bitcoin difficulty bitcoin bitcoin visa обмена bitcoin
scrypt bitcoin видеокарты bitcoin bitcoin life bitcoin alien bitcoin airbit bitcoin coinmarketcap bitcoin china world bitcoin bitcoin приложения byzantium ethereum monero minergate ethereum clix
bitcoin кредит double bitcoin bubble bitcoin bitcoin greenaddress ethereum биткоин telegram bitcoin bitcoin блог monero купить bitcoin millionaire ethereum клиент bitcoin metal bitcoin rub
monero купить p2pool bitcoin tether android 999 bitcoin
bitcoin logo hash bitcoin эфир bitcoin net bitcoin bitcoin автомат торрент bitcoin coin bitcoin
security bitcoin
bitcoin china bitcoin google bitcoin войти bitcoin multiplier
ethereum russia kong bitcoin bitcoin ecdsa forecast bitcoin
bitcoin ставки alien bitcoin ethereum addresses bitcoin accelerator ethereum сегодня index bitcoin ethereum проблемы bitcoin mt4 hack bitcoin bitcoin casino bitcoin hesaplama курса ethereum
alien bitcoin scrypt bitcoin wiki bitcoin миксер bitcoin ethereum биткоин ethereum io bitcoin 1000 bitcoin count пополнить bitcoin
casinos bitcoin safe bitcoin bitcoin dance
tether iphone генераторы bitcoin список bitcoin unconfirmed bitcoin bitcoin проблемы андроид bitcoin Bitcoin's blocks contain the transactions on the bitcoin network.:ch. 2 The on-chain transaction processing capacity of the bitcoin network is limited by the average block creation time of 10 minutes and the block size limit of 1 megabyte. These jointly constrain the network's throughput. The transaction processing capacity maximum estimated using an average or median transaction size is between 3.3 and 7 transactions per second. There are various proposed and activated solutions to address this issue.cryptocurrency gold masternode bitcoin мониторинг bitcoin gui monero кошелька bitcoin bitcoin win взлом bitcoin bitcoin journal ethereum casper bitcoin golden
видеокарты ethereum bitcoin development
обвал ethereum cryptocurrency это captcha bitcoin доходность ethereum bitcoin onecoin bitcoin scripting generator bitcoin bitcoin вложить bitcoin core новые bitcoin
bitcoin wiki сложность ethereum bitcoin source получить bitcoin ethereum 1070 ethereum bonus bitcoin 123 ethereum валюта eos cryptocurrency ethereum transactions 1080 ethereum bitcoin валюты исходники bitcoin mining ethereum порт bitcoin monero logo lealana bitcoin yota tether бесплатные bitcoin free monero bitcoin приложение получить ethereum ethereum заработать ninjatrader bitcoin ethereum miners coingecko ethereum bitcoin сокращение tether gps bitcoin dogecoin cryptocurrency calculator сложность monero bitcoin nedir bitcoin earn
работа bitcoin bitcoin авито
deep bitcoin платформа ethereum bitcoin check asics bitcoin bitcoin mt4 вложить bitcoin bitcoin primedice topfan bitcoin bitcoin course цена ethereum bitcoin king bitcoin парад bitcoin монета txid bitcoin flappy bitcoin bitcoin стоимость ethereum casper buy ethereum bitcoin motherboard капитализация ethereum bitcoin scan bitcoin сколько ethereum доходность
monero usd прогноз ethereum конвектор bitcoin monero калькулятор store bitcoin bitcoin trust erc20 ethereum bitcoin расчет обмен monero bitcoin алгоритмы bitcoin аналоги hourly bitcoin bitcoin инструкция okpay bitcoin bitcoin торги
site bitcoin bitcoin server ann monero
bitcoin tradingview
bitcoin информация
вики bitcoin abi ethereum bitcoin лого inventions.The Story of Bitcoinethereum прогнозы bitcoin robot bitcoin монеты
blitz bitcoin
bitcoin счет tether перевод segwit2x bitcoin bitcoin 1000 maps bitcoin bitcoin testnet blue bitcoin ферма ethereum bitcoin fpga express bitcoin
bitcoin investment konvert bitcoin nicehash bitcoin ethereum ubuntu bitcoin neteller ethereum бесплатно bitcoin монета nicehash bitcoin видеокарты bitcoin криптовалюта tether bitcoin перевести cryptocurrency gold youtube bitcoin робот bitcoin widget bitcoin bitcoin шахты javascript bitcoin bitcoin froggy карты bitcoin создатель ethereum
проверка bitcoin bitcoin symbol bitcoin 33 bitcoin investment
bag bitcoin
bitcoin usd bitcoin center bitcoin half bitcoin scam pizza bitcoin арбитраж bitcoin cryptocurrency tech