Open Analytics Bounty: (ETH)
What is Ethereum?
- Ethereum is a decentralized and completely anonymous network that is not controlled by anyone. In fact, the Ethereum network is managed by thousands of computer systems around the world, each of which voluntarily performs the network's activities and receives rewards from the network in return. Another feature of Ethereum is its distributed nature. This means that the network's information is available to all network members, and this issue precludes the possibility of information modification and manipulation.
- So, if we want to define Ethereum in simple language, we have to say that Ethereum is a network based on blockchain technology that allows the creation of decentralized applications. These decentralized programs are created using contracts called smart contracts and are characterized by the absence of fraud, censorship, failure, and third-party interference.
What is a smart contract?
- Now that you are familiar with the basic concepts of Ethereum, it is good to familiarize yourself with one of the most important elements of the Ethereum network: the smart contract. A smart contract is simply a protocol used to set up a contract without an intermediary. With the help of a smart contract, you can set a mechanism for the transaction you want to make and be sure that it cannot be changed or compromised. The advantage of smart contracts is that you and your counterparty do not need to involve third parties in the transaction. It can be said that the biggest differentiator between Ethereum and Bitcoin are these smart contracts.
- The Ethereum blockchain allows for the creation of smart contracts. That is, you can write a smart contract on the Ethereum blockchain platform using the Solidity programming language. This smart contract can be designed to provide any functionality you want. In fact, the Ethereum blockchain is a suitable platform for people who want to implement their ideas in the form of decentralized applications.
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Features of the Ethereum blockchain
- Currently, Ethereum uses the same protocol that is implemented in the Bitcoin blockchain, which, as mentioned earlier, is in an early stage of change. However, the major difference between these two blockchains lies in their design for different applications. The Ethereum blockchain is designed to support decentralized financial systems. Both the Bitcoin blockchain and the Ethereum blockchain store a history of transactions. But the Ethereum blockchain, meanwhile, can do more. All active nodes in the Ethereum network must not only store the history of all transactions, but also download the current state of all smart contracts in the network, the account balance of all users, and the code of all smart contracts and their storage. Location.
- There are millions of transactions on the Ethereum blockchain, and these transactions are stored in blocks in a specific order, and each new block maintains the structure of the blockchain by connecting to the previous block and continuing the blockchain. However, before any of these blocks are added to the blockchain, they must be verified by the network's miners. As you know, mining is a process that requires miners to solve complex mathematical equations and add new blocks to the blockchain. Miners are rewarded for this, and the reward for mining Ether is currently 2 Ether. Of course, it is important to remember that Ethereum is currently being transitioned to the Proof of Stake algorithm, and once this transition is complete, it will no longer be possible to mine Ethereum.
Ethereum Price
- The best year for digital currencies was 2017, when most digital currencies experienced a huge price increase, and in the meantime, Ethereum also grew by 10,000% and had a price increase of about 100 times compared to the end of 2016. However, this dream state has come true. It does not remain constant, and in 2018, the price of Ethereum and other digital currencies experienced a sharp decline, and the price of Ethereum in 2017, which was at its peak, fell from about $1400 to about $158. Acknowledgement.
- Some people believe that the price of Ethereum follows the price of Bitcoin, and that the situation of the price of Bitcoin determines the price of Ether. But you should know that this point is not true and issues like the supply and demand of each currency and the way whales act in the market determine its price.
- But in 2020, with the boom of DeFi projects based on Ethereum, the price of Ethereum also got a new life and returned to its peak times.
What is the Ethereum margin update?
- The Ethereum network is planning to switch from a Proof of Work (PoW) consensus algorithm to a Proof of Stake (PoS). When this transition is complete, the name of the network will change to what is commonly referred to as Ethereum 2. The Ethereum Foundation recently stopped using the name Ethereum 2 to avoid confusion. According to this foundation's announcement, Ethereum will include two layers of execution and consensus after the merger. The integration process calls for taking the execution logic of the current Ethereum network and combining it with the Chinese Beacon consensus process. Planning for this hard fork has been underway for several years, and the transfer will be gradual and phased. The last major upgrade of this network was Beacon Chain or Phase Zero, which was implemented on December 1, 2020 and introduced the PoS system to the network. With the introduction of the Beacon update, the network began to operate as hybrid or dual (PoS/PoW). China Beacon currently operates separately from the Ethereum mainnet. But the information processed in the mainnet is also recorded in the Beacon network. Before the Beacon chain, there were many forks and updates to the network that paved the way for the launch of Ethereum 2.
- The Ethereum network has been working on the transition from Proof-of-Work to Proof-of-Stake for several years. Along the way, many hard forks and soft forks have been performed to pave the way for this transition. The reason is that this type of transition causes a total change in the infrastructure of a network and cannot be done easily and quickly.
- As mentioned at the beginning of the article, the Beacon Chain was an update that introduced the Proof of Stake algorithm to the Ethereum network (which previously used the Proof of Work algorithm). It can be said that the Beacon Chain was the most tangible update towards PoS in recent years. With the introduction of the Beacon Chain, users can both mine Ether (using the Proof-of-Work algorithm) and stake Ether (using the Proof-of-Stake algorithm), and the network works in a hybrid way.
- Marj is expected to be updated about 2-3 months after this article is written (August 2022 or August/September 1401). The merge phase itself has two hard forks, in the first fork miners will be removed from the network and stickers will take their place and start processing Ethereum main network transactions, and the second fork will be implemented about a month later, in this phase the possibility will be opened to withdraw the 32 Ether that validators had deposited into the Ethereum 2 smart contract in the China Beacon phase.
- As the timing of Marj approaches, there are rumors that Ethereum will be forked and a proof-of-work version will be created, with major miners resisting Marj updates due to financial incentives. Therefore, it looks like one or more forks of the Ethereum network will emerge in the future, which will increase the risk of a replay attack.
Conclusion
- A full explanation about Ethereum and the creation of this token has been provided at the top of this dashboard, and we have attempted to fully explain it in one article. We have also attempted to provide details about Ethereum using programming and graphing techniques, including: (transactions by time, failed transactions, daily and weekly transactions, average transactions by blocks, block time) and about you also provided explanations.