Ethereum
Introduction to Ethereum
Ethereum is an open source, decentralized distributed computing platform that uses blockchain technology to support the development and operation of smart contracts and decentralized applications (DApps). Ethereum was officially released in 2015 and is currently one of the most popular smart contract platforms.
The core technology of Ethereum is the Ethereum Virtual Machine (EVM), which is the operating environment on the Ethereum platform and can execute smart contract code. Ethereum's smart contracts are written in programming languages such as Solidity and can run on the Ethereum Virtual Machine.
The Ethereum platform uses Ether (ETH) as its internal transaction medium and cryptocurrency. Users can use Ether to pay transaction fees, purchase digital assets and support the operation of DApps.
Features of Ethereum include:
1. Decentralization: The design concept of Ethereum is decentralization, with no centralized organization or institutional control platform. All decisions are made jointly by the community, and users can freely participate in the development and operation of the platform.
2. Smart Contract: Ethereum’s smart contract is an automated, programmable contract that can execute transactions without third-party intervention. Smart contracts can be used in various application scenarios, such as digital identity, supply chain management, voting and financial transactions.
3. Decentralized Applications (DApps): Ethereum supports the development and operation of DApps. DApps are applications based on blockchain technology that can achieve decentralized transactions and data storage.
4. Open source: Ethereum is open source, and anyone can view and modify the code of Ethereum. This makes Ethereum more transparent and trustworthy.
In short, Ethereum is a decentralized distributed computing platform that uses technical means such as smart contracts and decentralized applications to achieve innovation in application scenarios such as digital identity, supply chain management, voting and financial transactions. Ethereum’s open source, smart contracts and support for DApps have made it one of the important representatives of blockchain technology.
The role of Ethereum Ethereum
is a decentralized distributed computing platform that uses blockchain technology to support the development and operation of smart contracts and decentralized applications (DApps). The role of Ethereum is mainly reflected in the following aspects:
1. Smart Contract: Ethereum’s smart contract is an automated, programmable contract that can execute transactions without third-party intervention. Smart contracts can be used in various application scenarios, such as digital identity, supply chain management, voting and financial transactions. Ethereum’s smart contract capabilities make it a groundbreaking computing platform.
2. Decentralized Applications (DApps): Ethereum supports the development and operation of DApps. DApps are applications based on blockchain technology that can achieve decentralized transactions and data storage. Ethereum's DApps function makes it a decentralized computing platform.
3. Digital currency: Ethereum uses Ether (ETH) as its internal transaction medium and cryptocurrency. Users can use Ether to pay transaction fees, purchase digital assets and support the operation of DApps. Ethereum’s digital currency functionality makes it a trusted digital asset trading platform.
4. Decentralized identity authentication: Ethereum’s identity authentication mechanism can achieve decentralized identity authentication, which means that users can use their own identity information for transactions and verification without relying on a central agency. Ethereum’s decentralized identity authentication function makes it a secure, transparent and decentralized identity verification platform.
In short, the role of Ethereum is mainly reflected in smart contracts, decentralized applications, digital currency and decentralized identity authentication. Ethereum's innovation and openness make it a distributed computing platform with broad application prospects.
Ethereum workflow
Ethereum is a decentralized distributed computing platform that uses blockchain technology to support the development and operation of smart contracts and decentralized applications (DApps). The workflow of Ethereum mainly includes the following steps:
1. Create and broadcast transactions: Users can use the Ethereum wallet to create and broadcast transactions. The transaction contains information such as the sender, receiver, transaction amount, and transaction fees. Transactions are broadcast to nodes in the Ethereum network, waiting to be packaged into blocks.
2. Block packaging: Miners in the Ethereum network compete to package transactions and package them into blocks. Miners who package transactions can receive a certain amount of Ether rewards and transaction fees. The packaged block contains multiple transactions and a block header. The block header contains information such as the hash value of the previous block, the hash value of the current block, timestamp, and random number.
3. Block verification and synchronization: The packaged block will be propagated to the entire Ethereum network, and other nodes will verify the transaction and block header in the block. If the verification is passed, it will be synchronized to the local blockchain. Blocks that pass verification will be added to the local blockchain and become the latest block.
4. Contract execution and status update: If the transaction contains a smart contract, the miners in the block will execute the smart contract and update the status. The execution results of the smart contract will be added to the block and become part of the block.
5. Blockchain storage and synchronization: Nodes in the entire Ethereum network store the complete blockchain, which contains all transactions and smart contract execution results. Blockchains are synchronized regularly between nodes to ensure that each node has the same blockchain.
6. Operation of DApps: Using smart contracts and blockchain technology, Ethereum supports the development and operation of DApps. DApps can run on the Ethereum platform and enable decentralized transactions and data storage.
In short, the workflow of Ethereum includes steps such as creating and broadcasting transactions, block packaging, block verification and synchronization, contract execution and status updates, blockchain storage and synchronization, and running of DApps. Ethereum uses blockchain technology to achieve decentralized and anonymous transactions, automated execution of smart contracts, and the development and operation of DApps, becoming a distributed computing platform with broad application prospects.
Ethereum Public and Private Keys
Ethereum public and private keys are key elements used for authentication and transaction signing. Public keys and private keys appear in pairs, and there is a close relationship between them.
The Ethereum public key is a long string, usually starting with "0x", which is generated from the private key through the elliptic curve encryption algorithm. The public key can be made public and used for authentication and receiving Ethereum or other tokens.
The Ethereum private key is a randomly generated 64-digit hexadecimal string. It is a secret kept by the user and should not be leaked to others. Private keys are used to digitally sign transactions to prove their legitimacy and authenticity.
The following functions can be achieved using Ethereum public and private keys:
1. Identity verification: Verify the user's identity through the public key to determine whether he or she has the authority to conduct transactions and operations.
2. Digital signature: Use the private key to digitally sign the transaction to prove its authenticity and legality.
3. Digital encryption: Use public keys to encrypt information to ensure the security of information during transmission.
Since the Ethereum public key and private key appear in pairs, users should keep the private key properly to avoid leakage and loss. If the private key is leaked or lost, users will be unable to access the assets in their Ethereum account. Therefore, users should choose secure storage methods, such as using a hardware wallet or storing private keys in an offline device.
Introduction to Bitcoin
Bitcoin
(Bitcoin) is a decentralized digital currency invented by Satoshi Nakamoto in 2009. It is currently one of the most well-known and popular cryptocurrencies. Bitcoin is characterized by decentralized and anonymous transactions based on blockchain technology, making it highly secure and non-tamperable.
Bitcoin transactions and records are implemented through blockchain technology. Blockchain is a distributed database technology that consists of many nodes, each of which has an identical copy of the ledger and uses a consensus mechanism to reach agreement. Bitcoin transactions are recorded on the blockchain and verified and recorded by nodes in the network.
Features of Bitcoin include:
1. Decentralization: Bitcoin is a decentralized digital currency. There is no central organization controlling the issuance and transaction of Bitcoin. All transactions and records are completed by nodes in the network.
2. Anonymity: Bitcoin transactions are anonymous, and users can use Bitcoin addresses to conduct transactions without providing personally identifiable information.
3. Security: Bitcoin transactions and records are realized through blockchain technology. The non-tamperability and decentralization characteristics of the blockchain make Bitcoin transactions highly secure.
4. Limited supply: The total amount of Bitcoin is limited, and only 21 million Bitcoins can be issued at most. This makes Bitcoin a digital asset with limited scarcity.
In short, Bitcoin is a decentralized digital currency with the characteristics of anonymity, security and limited supply. Bitcoin transactions and records are implemented through blockchain technology, making it highly non-tamperable and decentralized.
The role of Bitcoin
Bitcoin is a decentralized digital currency that uses blockchain technology to achieve decentralized and anonymous transactions, making it an important digital asset and payment method.
The main functions of Bitcoin include:
1. Digital assets: Bitcoin is a limited and scarce digital asset. Its total amount is limited and only 21 million Bitcoins can be issued at most. Since the supply of Bitcoin is limited, it has become a scarce digital asset and can be used as an investment.
2. Huobi: Bitcoin can be used to pay for goods and services, making it a global payment method. Because Bitcoin transactions are decentralized and anonymous, it enables fast, low-cost cross-border payments around the world.
3. Speculation: Due to the large price fluctuations of Bitcoin, many speculators use it as a speculative variety. Investors can make profits by buying and selling Bitcoin, making Bitcoin an investment with high risk and high return potential.
4. Risk protection tool: Because Bitcoin’s price fluctuations are different from traditional assets, it can be used as a risk protection tool. During times of economic instability or high inflation, Bitcoin can serve as a hedging tool to help investors protect the value of their assets.
In short, the role of Bitcoin is mainly reflected in digital assets, payment methods, speculation and risk resistance tools. Bitcoin's decentralized and anonymous transaction characteristics make it a digital asset and payment method with wide application prospects and investment value.
smart contract
Smart Contract is an automatically executed computer program that uses blockchain technology to achieve decentralized transactions and contract execution. Smart contracts can automatically execute contract terms and realize automatic deductions, automatic transfers, automatic triggering and other functions, thus reducing the intermediate links and costs of traditional contract execution.
Smart contracts are programmable contracts that can be written and customized according to different needs. Smart contracts usually include components such as conditional statements, loop statements, event triggers, and state variables, which can be stored, verified, and executed on the blockchain. Smart contracts can be decentralized through blockchain technology, which means that no central authority can modify or interfere with the execution of the contract.
Smart contracts can be used in various scenarios, such as digital identity, supply chain management, voting, and financial transactions. Ethereum is a blockchain platform that supports smart contracts. It provides a programming language Solidity based on smart contracts, allowing developers to write and deploy smart contracts and implement various application scenarios.
Features of smart contracts include:
1. Automated execution: Smart contracts can automatically execute contract terms, thereby realizing automatic deductions, automatic transfers, automatic triggering and other functions, reducing the intermediate links and costs of traditional contract execution.
2. Decentralization and anonymity: The execution of smart contracts is achieved through blockchain technology, which means that no central organization can modify or interfere with the execution of the contract, while the anonymization of transactions and records protects the privacy of contract participants .
3. Security: The execution of smart contracts is achieved through blockchain technology, which is highly secure and non-tamperable, and can prevent risks such as fraud and double payments.
In short, a smart contract is an automatically executed computer program that uses blockchain technology to achieve decentralized transactions and contract execution. Smart contracts can be used in various application scenarios, such as digital identity, supply chain management, voting and financial transactions, etc., and have the characteristics of automated execution, decentralization and anonymity, and high security.
consensus mechanism
Consensus Mechanism is an important mechanism in blockchain technology, used to solve trust and collaboration issues between nodes in distributed systems. The purpose of the consensus mechanism is to allow all nodes in the blockchain system to agree on a specific issue, thereby ensuring the security and stability of the system.
Different consensus mechanisms have different implementation methods and characteristics. Common consensus mechanisms include:
1. Proof of Work (PoW): PoW is the earliest consensus mechanism, which requires nodes to compete for the right to produce blocks by calculating hash values. PoW requires a lot of computation and energy consumption, so it is less efficient, but more secure. Blockchain systems such as Bitcoin and Ethereum adopt the PoW consensus mechanism.
2. Proof of Stake (PoS): PoS is an equity-based consensus mechanism that requires nodes to compete for the right to produce blocks by holding a certain number of tokens. PoS is more efficient than PoW, but is not as secure as PoW. Ethereum is gradually switching to the PoS consensus mechanism.
3. Proof of Authority (PoA): PoA is a consensus mechanism based on authority, which requires nodes to participate in consensus by obtaining specific authorization. PoA is more efficient than PoW and PoS, but has lower security and is suitable for scenarios such as alliance chains and private chains.
4. Proof of Contribution (PoC): PoC is a consensus mechanism based on contribution, which requires nodes to compete for the right to produce blocks by contributing to the system (such as providing storage space). PoC is more efficient than PoW and PoS, but has lower security and is suitable for specific scenarios.
5. Delegated Proof of Stake (DPoS): DPoS is a consensus mechanism based on representative power, which requires nodes to participate in consensus by voting for representatives. DPoS is more efficient than PoS, but is not as secure as PoW and PoS and is suitable for specific scenarios.
In short, different consensus mechanisms have different advantages, disadvantages and applicable scenarios. Choosing an appropriate consensus mechanism is an important issue in blockchain system design. In the future, with the continuous development of blockchain technology, new consensus mechanisms and models may emerge to adapt to different application needs and scenarios.
Blockchain security mechanism
The security mechanism of blockchain mainly includes the following aspects:
1. Distributed architecture: The blockchain system adopts a distributed architecture, which disperses data and calculations on multiple nodes in the network, making the system decentralized, resistant to attacks, and fault-tolerant. Even if a node is attacked or fails, the system can still continue to operate.
2. Consensus mechanism: The blockchain system adopts a consensus mechanism to ensure the authenticity and legality of transactions through mutual verification and confirmation between nodes. Different consensus mechanisms have different advantages, disadvantages and applicable scenarios, but they all emphasize trust and collaboration between nodes.
3. Cryptography technology: The blockchain system uses cryptography technology, such as hash function, public and private key encryption, digital signature, etc., to ensure the confidentiality, integrity and non-repudiation of transactions. These technologies prevent transactions from being tampered with or counterfeited.
4. Smart contracts: The blockchain system uses smart contracts, which can automatically execute code logic in transactions, ensure the automatic implementation and execution of transaction rules, and avoid manual intervention and errors.
Due to the existence of the above security mechanisms, blockchain transactions are highly secure. Each transaction is cryptographically encrypted and digitally signed. Only with the correct private key can the transaction be modified or deleted. Each transaction is broadcast to multiple nodes in the network and verified and confirmed through the consensus mechanism to ensure the authenticity and legality of the transaction. At the same time, transaction records are saved on the blockchain and cannot be tampered with or deleted, ensuring the non-repudiation and historical traceability of transactions.
In short, the security mechanism of blockchain is multiple, distributed, and decentralized, which can effectively ensure the security and reliability of blockchain transactions.
Why do blockchain transactions cost extra?
Blockchain transactions require additional fees because verification and confirmation are required during the transaction process, and transaction records need to be added to the blockchain through a consensus mechanism. These processes need to consume the computing and storage resources of nodes, and nodes need to be incentivized to participate in consensus.
Specifically, the additional fees required for blockchain transactions include the following two aspects:
1. Transaction fee: Transaction fee is the fee paid by the transaction initiator to the node to motivate the node to verify and confirm the transaction and add it to the blockchain. The size of the transaction fee depends on the size of the transaction and the degree of network congestion. If the transaction volume is too large, the fee will increase to encourage nodes to prioritize transactions with higher fees.
2. Mining rewards: In some blockchain systems, nodes verify and confirm transactions through mining and add them to the blockchain. The mining process consumes a lot of computing resources and electricity, so nodes need to receive corresponding rewards to encourage them to participate in consensus. Mining rewards are usually automatically issued by the blockchain system and are issued to nodes in the form of blockchain tokens.
In summary, blockchain transactions require an additional fee to incentivize nodes to participate in the verification and confirmation of the transaction and add it to the blockchain. The paid handling fees and mining rewards can ensure the stability and security of the blockchain system, and can also encourage nodes to participate in consensus and maintain the operation of the entire blockchain system.