Ethereum:

Ethereum — What is Ethereum (The proposition behind the whitepaper)

Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps) through the use of its native cryptocurrency, Ether. The Ethereum platform was first proposed in 2013 by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine, as a way to expand the capabilities of the original Bitcoin blockchain beyond just being a platform for digital currency.

The proposition behind the Ethereum whitepaper is to create a decentralized platform that allows for the creation of smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This would allow for the automation of complex, time-consuming, and error-prone processes that are currently handled by lawyers and other intermediaries. The use of smart contracts on the Ethereum platform would also enable the creation of DApps, which are decentralized applications that are not controlled by any single entity and can run on the Ethereum network without the possibility of censorship, downtime, or interference from a third party.

Ethereum aims to provide a blockchain-based platform that allows for the creation and execution of smart contracts and DApps, enabling a more efficient, secure, and decentralized way of conducting business online.

What is Turing complete?

A Turing complete system is a system in which a program can be written that will solve any computational problem, given sufficient time and memory. This means that a Turing complete system is capable of expressing any computation that can be performed by a computer.

The concept of Turing completeness is named after Alan Turing, the mathematician and computer scientist who first proposed the idea of a universal computing machine that could perform any computation that could be performed by a human using a pencil and paper. This concept is the foundation of modern computing, and the ability of a system to be Turing complete is a measure of its computational power and expressiveness.

In practical terms, a Turing complete system is one that can be used to solve any computational problem, no matter how complex or difficult. This is in contrast to systems that are not Turing complete, which may be unable to solve certain types of problems or may require the use of specialized algorithms or hardware.

Turing Complete — Expressiveness of the programming language.

A Turing complete programming language is a language that can be used to solve any computational problem that can be solved by a computer. This means that a Turing complete language is capable of expressing any computation that can be performed by a computer, given sufficient time and memory.

In contrast, a language that is not Turing complete is limited in its expressiveness and cannot be used to solve all computational problems. This means that some problems cannot be expressed or solved using a non-Turing complete language, even if an equivalent solution exists in a Turing complete language.

The concept of Turing completeness is named after Alan Turing, the mathematician and computer scientist who first proposed the idea of a universal computing machine that could perform any computation that could be performed by a human using a pencil and paper. This concept is the foundation of modern computing, and the ability of a programming language to be Turing complete is a measure of its power and expressiveness.

Turing Complete — Smart Contracts, Decentralized Applications, Rules, and States.

Turing complete refers to the ability of a system to solve any computational problem, given sufficient time and memory. In the context of smart contracts and decentralized applications, this means that a Turing complete system is capable of executing any set of rules or states that can be expressed in code.

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These contracts are executed automatically on the blockchain, which makes them transparent, immutable, and secure. A Turing complete system is required for the creation of smart contracts, as it allows for the expression of arbitrary rules and states in code.

Decentralized applications, or DApps, are applications that run on a decentralized network, such as the Ethereum blockchain. DApps are not controlled by any single entity and can run on the network without the possibility of censorship, downtime, or interference from a third party. Like smart contracts, DApps require a Turing complete system in order to express their rules and states in code and be executed on the blockchain.

Turing complete is a term that refers to the ability of a system to solve any computational problem. In the context of smart contracts and decentralized applications, this means that a Turing complete system is capable of executing any set of rules or states that can be expressed in code, enabling the creation of these applications on the blockchain.

Infrastructure:

Everything is Open-source (Protocol & Code)

The protocol and code of the Ethereum blockchain are publicly available and can be freely accessed, modified, and distributed by anyone. Open-source refers to the practice of making the source code of a software program available to the public, allowing anyone to inspect, modify, and enhance the code.

In the case of Ethereum, the open-source nature of the platform means that the protocol and code that powers the Ethereum blockchain are publicly available and can be accessed by anyone. This allows developers to build upon the existing Ethereum infrastructure and create new applications, such as smart contracts and decentralized applications (DApps), without needing to start from scratch.

The open-source nature of Ethereum also ensures that the platform is transparent and allows for collaboration and innovation from the broader community. Anyone can contribute to the development of the Ethereum platform and suggest improvements or new features, which can be implemented if they are accepted by the community.

Blockchain.

Infrastructure refers to the underlying structure or framework that supports the operation of a system or organization. In the context of blockchain technology, infrastructure refers to the network of computers, servers, and other hardware and software components that enable the decentralized, distributed ledger system to function. This infrastructure includes the hardware and software that enable the creation, storage, and transmission of digital transactions, as well as the protocols and algorithms that govern the validation and authentication of these transactions. Blockchain infrastructure is typically decentralized, meaning that it is not controlled by any single entity, but is instead maintained by a network of participating nodes or users. This decentralized structure allows for greater security and resilience, as well as increased transparency and trust in the system.

Native currency: ether (used to Meter & Constrain)

As the popularity and adoption of blockchain technology continues to grow, one of the key aspects of this technology that has garnered attention is the use of native currencies. Native currencies are digital assets that are created and used within a specific blockchain network, and they serve a variety of purposes, including as a means of payment, a store of value, and a way to incentivize and reward participants in the network.

One of the most well-known native currencies is ether, the native currency of the Ethereum blockchain. Ether is a decentralized, open-source platform that allows for the creation and execution of smart contracts, enabling developers to build and deploy decentralized applications (dApps) on the Ethereum network.

But what exactly is ether, and how does it play a role in the Ethereum network? Let’s take a closer look at ether and its use as a native currency on the Ethereum network.

What is ether?

At its core, ether is a digital asset that is created and used within the Ethereum network. It is a token that represents the value of the network, and it is used to incentivize and reward participants for contributing their computing power to the network.

But ether is much more than just a digital currency. It is also the fuel that powers the Ethereum network, and it is required to pay for the execution of smart contracts and other actions on the network. In this way, ether acts as a form of “metering” and “constraining” the use of the network’s resources, ensuring that the network remains scalable and efficient.

Why is ether used on the Ethereum network?

The use of ether as a native currency on the Ethereum network serves several key purposes. First and foremost, it is used as a means of payment and incentive for participating nodes to contribute their computing power to the network. Nodes that contribute their computing power are rewarded with ether, which provides a financial incentive for users to participate in the network and help maintain its security and stability.

Additionally, the use of ether helps to align the interests of users with the overall health and stability of the network. In order to access and use the network’s resources, users must hold and use ether, which creates an incentive for users to act in the best interests of the network.

Furthermore, the use of ether helps to meter and constrain the use of the network’s resources, ensuring that the network remains scalable and efficient. By requiring users to pay for the execution of smart contracts and other actions on the network, the use of ether helps to prevent overuse and abuse of the network’s resources, ensuring that the network can continue to support a growing number of users and applications.

Ether is a crucial component of the Ethereum network, serving as both a native currency and a means of metering and constraining the use of the network’s resources. Its use helps to incentivize and reward participants, align the interests of users with the network, and ensure the network’s scalability and efficiency. As the Ethereum network continues to grow and evolve, the role of ether will continue to be an important factor in its success.

The World Computer.

Ethereum is called the world computer because it is a decentralized, open-source platform that allows for the creation and execution of smart contracts. This enables developers to build and deploy decentralized applications (dApps) on the Ethereum network, creating a global, decentralized network of computing power and resources.

The use of smart contracts on the Ethereum network allows for the automation of complex and secure transactions, enabling a wide range of applications and use cases. This, combined with the decentralized and distributed nature of the Ethereum network, has led to it being referred to as the world computer.

In addition, the use of the Ethereum Virtual Machine (EVM) enables the creation of a global, decentralized network of computing power and resources. The EVM is a Turing-complete virtual machine that executes smart contracts on the Ethereum network, allowing for the creation of complex and powerful applications.

The combination of smart contracts, decentralized applications, and the EVM makes the Ethereum network a powerful and flexible global computing platform, earning it the nickname of the world computer.

Properties:

Permissionless Apps, Built-in Economics.

Ethereum is a decentralized platform for applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These applications are often referred to as “smart contracts”.

One of the key properties of Ethereum is that it is “permissionless”, meaning that anyone can use it without needing to obtain permission from any central authority. This allows for the creation of decentralized applications, or “dApps”, which can be built on top of the Ethereum platform.

Another important property of Ethereum is its built-in economics. The Ethereum platform includes a virtual currency called “Ether” which is used to pay for transactions and services on the network. This provides an incentive for people to contribute to the network and helps to ensure that it remains secure and decentralized.

The combination of these properties makes Ethereum a powerful platform for creating and running decentralized applications.

High Availability, High Auditability.

In the context of the Ethereum blockchain, “high availability” refers to the ability of the network to remain operational and accessible at all times. This is important because decentralized applications, or “dapps”, that are built on top of the Ethereum platform rely on the network to function properly. If the network becomes unavailable, the dapps built on top of it will also be unable to function.

“High auditability” means that the Ethereum blockchain is able to provide a high level of transparency and accountability. This is achieved through the use of cryptographic techniques, which allow the network to maintain a secure and tamper-evident record of all transactions that take place on it. This allows anyone to easily verify the accuracy and integrity of the data on the blockchain, making it a highly auditable platform.

The combination of high availability and high auditability makes the Ethereum blockchain a reliable and secure platform for building decentralized applications.

High Transparency, Neutrality.

Transparency in Ethereum refers to the ability of anyone to view and verify the transactions and activities on the Ethereum network. This means that all transactions and smart contracts on the Ethereum network are publicly available and can be viewed by anyone.

Neutrality in Ethereum refers to the fact that the network is not controlled by any single entity or individual. This means that no one person or organization has the ability to alter the rules or operation of the Ethereum network, ensuring that it remains fair and impartial for all users.

Together, these two qualities of Ethereum — transparency and neutrality — provide users with confidence and trust in the network and its ability to securely and accurately facilitate transactions and smart contracts.

Censorship Resistant, Lower Counter-party Risk.

Censorship resistance in Ethereum refers to the ability of the network to resist attempts by third parties to censor or prevent certain transactions or activities from taking place. This means that no one, including governments or other organizations, can block or restrict the use of the Ethereum network for any reason.

Lower counter-party risk in Ethereum refers to the reduced risk of one party in a transaction failing to fulfill their obligations. In traditional financial transactions, there is often a risk that one party will not fulfill their part of the deal, resulting in financial loss for the other party. However, the use of smart contracts in Ethereum can help to reduce this risk by automatically executing the terms of a contract without the need for trust between the parties.

Together, these qualities of Ethereum — censorship resistance and lower counter-party risk — make it a highly secure and reliable platform for conducting transactions and executing smart contracts.

Purpose:

Not Currency, Not Payment Network.

Ethereum is not primarily designed as a currency or payment network like Bitcoin. While Ethereum does have its own digital currency, called Ether, this is not the main focus or goal of the Ethereum network.

Instead, Ethereum is a decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). This allows developers to build and run applications on the Ethereum network without the need for a central authority or server.

In this way, Ethereum goes beyond the capabilities of a traditional currency or payment network, offering a wider range of potential uses and applications. This is one of the reasons why Ethereum is often referred to as a “world computer” — because it has the potential to host and run a wide range of applications and programs.

Ether (Operation, Necessary & Integral, Utility Token => Using Ethereum goes with paying with ether).

Ether is the native digital currency of the Ethereum network. It is often referred to as the fuel or “gas” that powers the Ethereum network, as it is used to pay for the computational resources required to run applications and execute smart contracts on the network.

In this way, ether is both a necessary and integral part of the Ethereum network. Without ether, it would not be possible to use the network or run applications on it.

Ether is also considered a utility token, meaning that it has a specific use or utility within the Ethereum network. In this case, the use of ether is to pay for the computational resources required to run applications and execute smart contracts on the Ethereum network.

Therefore, using Ethereum typically involves paying with ether in order to access and use the network and its services. This is similar to how one might pay for electricity in order to use a device or appliance.

Vs:

Bitcoin Script — Limited scripting language (compared to Ethereum supporting the virtual machine EVM which is able to run compiled General Purpose programming languages like Solidity, so the complexity is unbounded).

Bitcoin uses a scripting language called Bitcoin Script to enable certain functions and features on its network. This scripting language is limited in terms of its capabilities and flexibility and is specifically designed for the needs of the Bitcoin network.

In contrast, Ethereum uses a virtual machine called the Ethereum Virtual Machine (EVM) to run smart contracts and decentralized applications (dApps). The EVM is able to run compiled, general-purpose programming languages like Solidity, which allows for greater complexity and flexibility in the types of applications that can be built on the Ethereum network.

Therefore, compared to Bitcoin, Ethereum has a much more powerful and versatile platform for building and running applications. This is one of the reasons why Ethereum is often seen as a more flexible and adaptable platform than Bitcoin.

Bitcoin Blockchain — Bitcoin Blockchain is Ownership focused (Bitcoin UTX0, Transfer -> Transition.

The main focus of the Bitcoin blockchain is tracking and verifying the ownership of the digital currency, Bitcoin. This is accomplished through the use of unique addresses for each user on the network, and the recording of every transaction made using these addresses on the blockchain.

The term “Bitcoin UTXO” refers to an “unspent transaction output” on the Bitcoin blockchain. This is a record of a transaction on the blockchain that has not yet been spent, and therefore represents a certain amount of Bitcoin that is owned by a specific user.

The “transfer” in this context refers to the process of transferring ownership of Bitcoin from one user to another. This is done by creating a transaction on the network that specifies the addresses of the sender and receiver, as well as the amount of Bitcoin being transferred. This transaction is then added to a block on the blockchain, and the ownership of the Bitcoin is transferred from the sender to the receiver. This process is known as a “transition” on the Bitcoin blockchain.

Bitcoin Blockchain — Ethereum Blockchain: General-purpose State.

One of the main differences between the Bitcoin blockchain and the Ethereum blockchain is their focus and purpose. The Bitcoin blockchain was primarily designed as a platform for tracking and verifying the ownership of the digital currency, Bitcoin. It uses a limited scripting language called Bitcoin Script to enable certain functions and features on the network.

In contrast, the Ethereum blockchain was designed as a general-purpose platform that can be used to build and run a wide range of applications and programs. It uses a virtual machine called the Ethereum Virtual Machine (EVM) to run compiled, general-purpose programming languages like Solidity. This allows for greater flexibility and adaptability in the types of applications that can be built on the Ethereum network.

Another key difference between the two blockchains is their use of “state.” In the context of blockchain technology, “state” refers to the current status or data associated with a particular address or transaction on the network. The Bitcoin blockchain only tracks the current state of individual Bitcoin addresses, whereas the Ethereum blockchain can track the state of any data or application stored on the network. This allows for greater complexity and versatility in the types of applications that can be built on the Ethereum blockchain.

Bitcoin is UTX0-based (Transfer -> Transition) and Ethereum is State or Account-based (State -> Transition).

The terms “UTXO-based” and “state or account-based” refers to the way that transactions and data are tracked and stored on a blockchain network.

The Bitcoin blockchain is UTXO-based, which stands for “unspent transaction output.” This means that the blockchain only tracks the current state of individual Bitcoin addresses, and does not store any other data or information. When a user wants to transfer their Bitcoin to another user, they create a transaction on the network that specifies the addresses of the sender and receiver, as well as the amount of Bitcoin being transferred. This transaction is then added to a block on the blockchain, and the ownership of the Bitcoin is transferred from the sender to the receiver. This process is known as a “transition” on the Bitcoin blockchain.

In contrast, the Ethereum blockchain is state or account-based, which means that it can track and store the current state of any data or application stored on the network. This allows for greater flexibility and adaptability in the types of applications that can be built on the Ethereum network. When a user wants to make a change to the state of a particular data or application on the Ethereum network, they create a transaction on the network that specifies the changes they want to make. This transaction is then added to a block on the blockchain, and the state of the data or application is updated accordingly. This process is also known as a “transition” on the Ethereum blockchain.

Core components:

P2P Network (DEVp2p on TCP Port 30303).

The Ethereum network is a decentralized, peer-to-peer (P2P) network that is made up of thousands of nodes, or computers, that are connected to each other. These nodes work together to verify and process transactions on the network and to maintain the integrity and security of the Ethereum blockchain.

One of the core components of the Ethereum network is the DEVp2p protocol, which is used for communication and data transfer between nodes on the network. DEVp2p is a P2P protocol that is built on top of the Transmission Control Protocol (TCP) and uses TCP port 30303 for communication between nodes.

The use of a P2P network and the DEVp2p protocol are essential for the decentralized nature of the Ethereum network. They allow for the distributed and decentralized storage and verification of transactions and data on the network, without the need for a central authority or server.

Transaction (Sender, Recipient, Value, Data).

A transaction is a fundamental concept in the Ethereum network and is used to transfer value or data between two or more parties on the network. A transaction consists of several key components, including the sender, the recipient, the value, and the data.

The sender is the address of the user or entity that is initiating the transaction. The recipient is the address of the user or entity that is receiving the value or data in the transaction. The value is the amount of Ether (ETH), the digital currency of the Ethereum network, that is being transferred in the transaction. And the data is any additional information or data that is being included in the transaction.

Together, these components make up a transaction on the Ethereum network. When a transaction is created, it is broadcast to the network and added to the Ethereum blockchain, where it can be verified and processed by the network’s nodes. This allows for the secure and transparent transfer of value and data on the Ethereum network.

State Machine (EVM, running High-Level Languages like Solidity compiled into Bytecode).

The Ethereum state machine is a core component of the Ethereum network and is responsible for the execution and management of transactions and smart contracts on the network. It is implemented using the Ethereum Virtual Machine (EVM), which is a decentralized, virtual machine that can run compiled, high-level programming languages like Solidity.

The EVM is an integral part of the Ethereum network and is responsible for executing the instructions and code contained in smart contracts and other applications on the network. When a user creates a smart contract on the Ethereum network, the code is compiled into a low-level, binary code called “bytecode” that can be executed by the EVM. This bytecode is then stored on the Ethereum blockchain and can be executed by the EVM whenever it is needed.

In this way, the Ethereum state machine and the EVM are essential for the execution and management of transactions and smart contracts on the Ethereum network. They provide the underlying infrastructure and capabilities that allow for the creation and execution of complex, decentralized applications on the Ethereum network.

Data Structures — Merkle Patricia Tree.

There are many common ones but this one is specific and used to optimize the way Ethereum handles the state in the context of the blockchain.

A data structure is a way of organizing and storing data in a computer system and is an essential component of many software applications. In the context of the Ethereum blockchain, one of the core data structures used is the Merkle Patricia tree (MPT).

The MPT is a type of data structure that is used to optimize the way that Ethereum handles the state of the blockchain. The state of the Ethereum blockchain refers to the current data and information stored on the network, including the balances of user accounts, the code and data of smart contracts, and the state of any other applications or programs running on the network.

The MPT is specifically designed to efficiently store and retrieve this state data on the Ethereum blockchain. It uses a tree-like structure to organize the data and includes a number of unique features and optimizations that allow it to efficiently handle the large amounts of data and transactions on the Ethereum network.

The use of the MPT is an essential part of the Ethereum blockchain and is critical for the efficient and effective management of the network’s state data.

Consensus Algorithm used: Nakamoto Consensus (same one as Bitcoin), based upon the Proof of Work (PoW) (Everyone on the Ethereum blockchain should agree upon what’s the 1 canonical blockchain used in the future, on which entity should add the next block, and the Consensus Algorithm determines which is the longest chain so far).

The consensus algorithm used by the Ethereum blockchain is called Nakamoto consensus, which is the same algorithm used by the Bitcoin blockchain. Nakamoto consensus is a type of consensus algorithm that is based on the concept of proof of work (PoW).

In the context of blockchain technology, consensus refers to the process of achieving agreement among the nodes on the network about the state of the blockchain. This is necessary because, in a decentralized network like Ethereum, there is no central authority or server that can enforce the rules and ensure that everyone is in agreement.

The Nakamoto consensus algorithm is a way of achieving consensus on the Ethereum network through the use of PoW. In this algorithm, the nodes on the network compete to solve complex mathematical puzzles in order to add new blocks of transactions to the blockchain. The first node to solve a puzzle and add a new block is rewarded with a certain amount of Ether, the digital currency of the Ethereum network.

In this way, the Nakamoto consensus algorithm is used to determine which entity should add the next block to the Ethereum blockchain, and to ensure that everyone on the network agrees on the longest chain of blocks so far. This is an essential part of the Ethereum network, as it helps to maintain the security and integrity of the blockchain.

Pow -> PoS (Proof of Work to be replaced by Proof of State in Ethereum 2.0 or Serenity).

The proof of work (PoW) consensus algorithm used by the Ethereum blockchain is currently being replaced by a new algorithm called proof of stake (PoS). This change is part of the Ethereum 2.0 or Serenity upgrade, which is a major upgrade to the Ethereum network that is currently being developed.

In the PoW consensus algorithm, the nodes on the network compete to solve complex mathematical puzzles in order to add new blocks of transactions to the blockchain. This requires a significant amount of computing power and can be energy-intensive.

In contrast, the PoS consensus algorithm uses a different approach to achieve consensus on the network. Instead of using computational power, PoS relies on the concept of “staking,” where users lock up a certain amount of their Ether as collateral in order to participate in the consensus process. The nodes that have staked the most Ether have the highest probability of adding the next block to the blockchain and are rewarded with a portion of the transaction fees for doing so.

The switch from PoW to PoS is intended to improve the scalability and efficiency of the Ethereum network and to make it more sustainable in the long term. The PoS algorithm is expected to be implemented as part of the Ethereum 2.0 upgrade, which is currently in development.

Economic Security aspect of Crypto: PoW -> Ethash. Mention of the critical 51% attack, which can break the immutability of the blockchain.

One of the core components of the Ethereum network is its economic security model, which is designed to ensure the integrity and security of the blockchain. This economic security model is based on the proof of work (PoW) consensus algorithm, which uses a specialized hashing algorithm called Ethash to secure the network.

In the PoW consensus algorithm, the nodes on the network compete to solve complex mathematical puzzles in order to add new blocks of transactions to the blockchain. This requires a significant amount of computing power and can be energy-intensive.

The use of the Ethash hashing algorithm is an essential part of this process, as it helps to ensure that the network is secure and resistant to attacks. One of the key vulnerabilities of blockchain networks is the so-called “51% attack,” where a group of malicious actors gains control of more than half of the computing power on the network, allowing them to manipulate the blockchain and potentially break its immutability.

The Ethash algorithm is designed to be resistant to this type of attack, by making it difficult and expensive for an attacker to gain control of a sufficient amount of computing power on the network. This helps to ensure the integrity and security of the Ethereum blockchain and is an important aspect of its overall economic security model.

Sybil attack.

A Sybil attack is a type of attack on a decentralized network, such as a blockchain network, where a malicious actor creates multiple fake identities or “nodes” on the network. The goal of this attack is to gain a disproportionate amount of influence or control over the network, by creating multiple fake nodes that can be used to manipulate the network or its consensus process.

In the context of a blockchain network, a Sybil attack can be used to disrupt the network’s consensus mechanism or to gain an unfair advantage in the mining or staking process. For example, an attacker could create multiple fake nodes that are all controlled by the attacker, and use these nodes to gain a majority of the network’s mining or staking power. This could allow the attacker to manipulate the network and potentially compromise its security and integrity.

Sybil attacks are a major concern in decentralized networks and can be difficult to detect and prevent. Some blockchain networks, such as Ethereum, use various measures to try to mitigate the risk of Sybil attacks, but they remain a potential threat to the security and integrity of the network.

What can be done to prevent Sybil attacks?

There is no “cure” for Sybil attacks, as they are a fundamental weakness of decentralized networks. However, there are various measures that can be taken to mitigate the risk of Sybil attacks and to make it more difficult for attackers to carry out such attacks successfully.

One of the most common measures used to mitigate the risk of Sybil attacks is the use of cryptographic techniques, such as digital signatures and public key cryptography, to verify the identities of nodes on the network. This can help to make it more difficult for attackers to create fake nodes and can make it easier to identify and remove any fake nodes that are detected on the network.

Another measure that can be taken to mitigate the risk of Sybil attacks is to use a proof of stake (PoS) consensus algorithm, rather than a proof of work (PoW) algorithm. In a PoS system, nodes must “stake” a certain amount of the network’s digital currency in order to participate in the consensus process. This can make it more expensive for attackers to create fake nodes, as they would need to stake a large amount of the network’s currency in order to gain a significant amount of influence on the network.

There is no single solution to the problem of Sybil attacks, and different networks may use different approaches to try to mitigate the risk of such attacks.

Clients: Geth, Erigon, Nethermind, OpenEthereum.

The Ethereum network is made up of thousands of nodes, or computers, that are connected to each other and work together to verify and process transactions on the network. These nodes run special software called “clients” that enable them to connect to the network and participate in its operation.

There are several different clients available for the Ethereum network, each of which has its own features and capabilities. Some of the most commonly used Ethereum clients include:

• Geth: This is the most popular Ethereum client, and is written in the Go programming language. It is an open-source client that is maintained by the Ethereum Foundation and is available for a wide range of platforms, including Windows, macOS, and Linux.

• Erigon: This is another popular Ethereum client, written in the Rust programming language. It is an open-source client that is designed to be lightweight and fast and is optimized for use on low-powered devices.

• Nethermind: This is an open-source Ethereum client that is written in the C# programming language. It is known for its high performance and reliability and is used by many large-scale Ethereum projects and applications.

• OpenEthereum: This is an open-source Ethereum client that is written in the Rust programming language. It is a fork of the popular Parity Ethereum client and is designed to be modular and easy to use.

These are just a few examples of the many different Ethereum clients that are available. There are many other clients available, each with its own unique features.

Halting Problem:

Turing Complete (inherent).

The halting problem, also known as the halting theorem, is a fundamental concept in computer science. It states that it is impossible for any program or algorithm to determine, in general, whether a given program will run forever or will eventually stop. This is known as the inherent undecidability of the halting problem.

The halting problem is closely related to the concept of Turing completeness, which is a property of some programming languages and systems. A Turing complete system is one that is able to simulate the behavior of any other system and is therefore capable of solving any computable problem.

However, the halting problem shows that even Turing complete systems are unable to determine, in general, whether a given program will halt or run forever. This is because there are certain types of programs that are designed to run forever, and it is impossible to predict in advance whether a given program will be one of these.

The halting problem is an important concept in computer science and has implications for the design and implementation of programming languages and algorithms. It demonstrates the inherent limitations of computation and shows that some problems are simply not solvable by any algorithm or program.

With Arbitrary inputs, we cannot predict if it can be halted.

The statement “Halting Problem — With Arbitrary inputs, we cannot predict if it can be halted” is a statement about the inherent limitations of computation. It refers to the halting problem, a fundamental concept in computer science that states that it is impossible for any program or algorithm to determine, in general, whether a given program will run forever or will eventually stop.

One of the key aspects of the halting problem is that it applies to any program or algorithm, regardless of the specific inputs or initial conditions. In other words, even if you have a program that is designed to halt in certain circumstances, it is impossible to predict in advance whether it will halt or run forever when given arbitrary inputs.

This is because the behavior of a program or algorithm is determined by both its code and its inputs. Given a specific program and a specific set of inputs, it may be possible to determine whether the program will halt or run forever. But in general, it is impossible to predict the behavior of a program with arbitrary inputs, and therefore it is impossible to determine whether it will halt or run forever.

As discussed before the halting problem is an important concept in computer science, and has implications for the design and implementation of algorithms and programs. It highlights the inherent limitations of computation and shows that some problems are simply not solvable by any algorithm or program.

Smart Contracts & Resources Constrain with the concept of Gas Metering.

In the context of Ethereum, the halting problem is relevant to the use of smart contracts. A smart contract is a program that is executed on the Ethereum blockchain and is used to encode certain rules and conditions that govern the behavior of the contract.

However, the halting problem means that it is impossible to predict in advance whether a given smart contract will run forever or will eventually stop. This can be a problem, as running a smart contract indefinitely can consume a large amount of resources on the Ethereum network, potentially impacting the performance and security of the network.

To address this issue, Ethereum uses a concept called “gas metering” to limit the number of resources that a given smart contract can consume. When a smart contract is executed on the Ethereum network, it is assigned a certain amount of gas, which represents the maximum amount of resources that the contract is allowed to use. If the contract exceeds this gas limit, it is automatically stopped and the transaction is reverted.

In this way, gas metering is used to constrain the behavior of smart contracts on the Ethereum network, and to help prevent the potential negative impacts of the halting problem.

Gas Mechanism:

Gas Metering — EVM -> Smart Contract, Instruction implies Gas usage (the transaction of a contract includes a specific amount of gas, and there’s a limit to it. If the gas exceeds the limit, the transaction will fail).

Gas metering is a system used on the Ethereum network to limit the amount of resources that a given smart contract can consume. It is an important aspect of the Ethereum Virtual Machine (EVM), which is the runtime environment for smart contracts on the Ethereum network.

When a smart contract is executed on the Ethereum network, it is assigned a certain amount of gas, which represents the maximum amount of resources that the contract is allowed to use. As the contract runs, each instruction that it executes consumes a certain amount of gas. If the contract reaches the gas limit, it is automatically stopped and the transaction is reverted.

This ensures that no single contract can consume an unlimited amount of resources on the Ethereum network, and helps to prevent the potential negative impacts of the halting problem. It also allows users to control the cost of running a contract, by specifying the amount of gas that they are willing to pay for the execution of the contract.

Gas metering is an important aspect of the Ethereum network, and helps to ensure the efficient and secure operation of the network by limiting the resource usage of smart contracts. It is a key component of the EVM and is essential for the successful execution of smart contracts on the Ethereum network.

The price of Gas is measured in ether. It’s not fixed but depends on supply & depend. The underlying mechanism of Gas is currently changing for Ethereum.

The gas mechanism is a system used on the Ethereum network to limit the amount of resources that a given smart contract can consume. It is an important aspect of the Ethereum Virtual Machine (EVM), which is the runtime environment for smart contracts on the Ethereum network.

In the gas mechanism, the price of gas is measured in ether, the native digital currency of the Ethereum network. The price of gas is not fixed, but rather it is determined by supply and demand. When demand for gas is high, the price of gas tends to increase, and when demand is low, the price of gas tends to decrease.

The underlying mechanism of the gas mechanism is currently undergoing changes on the Ethereum network. As the network continues to evolve and grow, the gas mechanism is being updated to improve its efficiency and scalability. These changes are outside the scope of this course, but they are an important aspect of the ongoing development of the Ethereum network.

The gas mechanism is an essential component of the Ethereum network and plays a critical role in limiting the resource usage of smart contracts. It is an important aspect of the EVM and is essential for the successful execution of smart contracts on the Ethereum network.

Gas is purchased in ether and the Transaction is executed if there’s enough gas and the remaining is refunded.

Gas is an essential aspect of the Ethereum network, and is used to limit the amount of resources that a given smart contract can consume. When a smart contract is executed on the Ethereum network, it is assigned a certain amount of gas, which represents the maximum amount of resources that the contract is allowed to use.

To purchase gas, users must pay for it using ether, the native digital currency of the Ethereum network. When a transaction is submitted to the network, it must include a specific amount of gas, which will be used to execute the transaction. If the transaction includes enough gas to complete the execution of the contract, it will be executed and the remaining gas will be refunded to the user.

In this way, gas is purchased in ether and is used to execute transactions on the Ethereum network. If a transaction includes enough gas, it will be executed and any remaining gas will be refunded to the user. This helps to ensure the efficient and secure operation of the Ethereum network, by limiting the resource usage of smart contracts and allowing users to control the cost of running a contract.

Dapp — Decentralized Application:

Web App + P2P Infrastructure for Compute/Storage/Network, so Web App + Smart Contract.

A decentralized application (dapp) is a type of software application that is built on top of a decentralized network, such as the Ethereum blockchain. A dapp typically consists of two main components: a web application and a smart contract.

The web application is a software application that is accessed via a web browser and is typically used to provide a user interface for interacting with the dapp. The web application is responsible for displaying information to the user, and for receiving and processing user input.

To support the operation of the web application, a dapp also relies on a peer-to-peer (P2P) infrastructure for computing, storage, and networking. This P2P infrastructure is provided by the decentralized network on which the dapp is built, and is used to facilitate the communication and data sharing between the different nodes on the network.

In addition to the web application, a dapp also includes a smart contract, which is a program that is executed on the decentralized network. The smart contract is used to encode the rules and conditions that govern the behavior of the dapp and is responsible for storing and managing data, and for enforcing the rules and conditions of the dapp.

Together, these two components — the web application and the smart contract — form a dapp, which is a decentralized application that combines the capabilities of a web application with the security and immutability of a decentralized network. A dapp is often used to provide a decentralized alternative to traditional web applications and is designed to be resistant to censorship and other forms of interference.

Web 2.0 vs Web 3.0

Web 2.0 and Web 3.0 are two different generations of the World Wide Web, and they represent different approaches to the design and development of web-based applications.

Web 2.0

Web 2.0 refers to the second generation of the World Wide Web, which emerged in the early 2000s and is characterized by the widespread use of social media, user-generated content, and other web-based services. Web 2.0 applications are typically centrally managed, and are often offered on a freemium or ad-supported business model. They are built on top of the existing client-server infrastructure and are designed to be accessed and used through web browsers.

Web 3.0

Web 3.0, on the other hand, refers to the third generation of the World Wide Web, which is currently under development. Web 3.0 applications are designed to be decentralized and incentivized, and are built on top of peer-to-peer (P2P) compute storage, and networking infrastructure. Web 3.0 applications are often powered by crypto-economics, which uses digital currencies and other blockchain-based technologies to incentivize participation and collaboration in decentralized networks.

The key difference between Web 2.0 and Web 3.0 is the way in which they are designed and the infrastructure on which they are built. Web 2.0 applications are centrally managed and built on top of the existing client-server infrastructure, while Web 3.0 applications are decentralized and built on top of P2P infrastructure. Web 3.0 represents a return to the original vision of the web as a decentralized and open platform for collaboration and communication.

Centrally managed Freemium/Ads Client-Server Models (existing infra) vs Decentralized Incentivized Participation (Crypto Economics) P2P Compute/Storage/Network (the original vision of the web).

Centrally managed freemium/ads client-server models and decentralized incentivized participation are two different approaches to the design and development of web-based applications. These approaches are typically associated with Web 2.0 and Web 3.0, respectively, which are two different generations of the World Wide Web.

Centrally managed freemium/ads client-server models are typically used for Web 2.0 applications, which emerged in the early 2000s and are characterized by the widespread use of social media, user-generated content, and other web-based services. In this model, web applications are centrally managed, and are often offered on a freemium or ad-supported business model. They are built on top of existing client-server infrastructure and are designed to be accessed and used through web browsers.

Decentralized incentivized participation, on the other hand, is typically used for Web 3.0 applications, which are currently under development. In this model, web applications are decentralized and incentivized, and are built on top of peer-to-peer (P2P) computing, storage, and networking infrastructure. These applications are often powered by crypto-economics, which uses digital currencies and other blockchain-based technologies to incentivize participation and collaboration in decentralized networks.

The key difference between these two approaches is the way in which they are designed and the infrastructure on which they are built. Centrally managed freemium/ads client-server models are typically used for Web 2.0 applications, while decentralized incentivized participation is typically used for Web 3.0 applications. Web 3.0 represents a return to the original vision of the web as a decentralized and open platform for collaboration and communication.

Ethereum Triad:

Ethereum: Compute, Swarm: Storage, Whisper/Waku: Network.

The Ethereum triad is a concept that refers to the three main components of the Ethereum ecosystem: Ethereum, Swarm, and Whisper/Waku. These components are used to provide computing, storage, and networking capabilities for decentralized applications (dapps) on the Ethereum network.

Ethereum is the core component of the Ethereum triad and is responsible for providing compute capabilities for dapps on the network. It is built on top of the Ethereum Virtual Machine (EVM), which is the runtime environment for smart contracts on the Ethereum network. Ethereum allows dapps to execute complex computations, and to interact with the Ethereum blockchain in order to store and manage data.

Swarm is the storage component of the Ethereum triad, and is responsible for providing decentralized storage capabilities for dapps on the network. Swarm is a distributed file system that allows dapps to store data in a decentralized and secure manner. It is designed to be scalable and fault-tolerant and is used to support the operation of dapps on the Ethereum network.

Whisper/Waku is the networking component of the Ethereum triad, and is responsible for providing messaging and communication capabilities for dapps on the network. Whisper is a peer-to-peer (P2P) messaging protocol that allows dapps to communicate and share data with each other in a decentralized and secure manner. Waku is a more recent addition to the Ethereum triad and is an improved version of Whisper that is designed to be more scalable and efficient.

The Ethereum triad is an important concept in the Ethereum ecosystem and is used to provide the core computing, storage, and networking capabilities for dapps on the Ethereum network. These components are essential for the successful operation of dapps on the Ethereum network and are critical for enabling the decentralized and incentivized participation that is at the heart of the Ethereum vision.

Decentralization:

Definition of the 3 types (Architectural for Hardware, Political for Wetware, Logical for Software).

Decentralization refers to the process of distributing or dispersing power, control, or decision-making authority away from a single central authority or location, and is a key aspect of the Ethereum network and other decentralized systems. Decentralization can take several different forms and is often classified into three main types: architectural decentralization, political decentralization, and logical decentralization.

Architectural decentralization refers to the physical distribution of hardware and infrastructure in a decentralized system. In the context of Ethereum, architectural decentralization refers to the distributed nature of the Ethereum network, which is composed of thousands of nodes that are located all around the world. This decentralized architecture allows Ethereum to operate in a decentralized manner and helps to prevent the network from being controlled by a single authority or location.

Political decentralization refers to the distribution of decision-making authority or power in a decentralized system. In the context of Ethereum, political decentralization refers to the fact that decisions about the operation of the network are made by the collective actions of all of the participants on the network, rather than by a single central authority. This decentralized governance model allows Ethereum to operate in a decentralized and open manner and helps to prevent the network from being controlled by a small group of powerful entities.

Logical decentralization refers to the distribution of software or data in a decentralized system. In the context of Ethereum, logical decentralization refers to the fact that the Ethereum blockchain is distributed across all of the nodes on the network, and is not controlled by a single entity. This decentralized data model allows Ethereum to operate in a decentralized and secure manner and helps to prevent the network from being shut down or censored by a single entity.

Decentralization is a key aspect of the Ethereum network and is used to enable the decentralized and open operation of the network. Decentralization is achieved through the use of decentralized architecture, governance, and data models, and is essential for the successful operation of Ethereum and other decentralized systems.

Native Currency:

Ether has 18 decimals and the smallest unit is a Wei (10¹⁸ Wei = 1 Ether).

Ether, the native digital currency of the Ethereum network, is a decentralized and open-source cryptocurrency that is used to facilitate transactions on the Ethereum network. One of the key features of Ether is that it is divisible, which means that it can be divided into smaller units in order to allow for greater precision and flexibility in transactions.

Ether has 18 decimals, which means that it can be divided into 1 quintillion (1 followed by 18 zeroes) smaller units. The smallest unit of Ether is called a wei, and it is equivalent to 1/1 quintillionth (10^-18) of an Ether. This means that 1 wei is a very small unit of Ether, and it is typically used for transactions that involve very small amounts of Ether.

In addition to wei, there are several other units of Ether that are commonly used to represent different amounts of Ether. For example, the kwei, mwei, and gwei units are used to represent 1,000, 1,000,000, and 1,000,000,000 wei, respectively. These units are often used to represent larger amounts of Ether and are typically used in transactions that involve larger amounts of Ether.

The fact that Ether is divisible and has 18 decimals is an important feature of the cryptocurrency and is one of the reasons why it is widely used on the Ethereum network. This divisibility allows for greater precision and flexibility in transactions and helps to make Ether an effective and useful digital currency for facilitating transactions on the Ethereum network.

10³ Wei = 1 Babbage.

The Babbage is a unit of Ether, the native digital currency of the Ethereum network. It is named after the mathematician and the computer pioneer Charles Babbage, who is credited with the invention of the first mechanical general-purpose computer.

The Babbage is a unit of Ether that is equal to 10³ (1,000) wei. This means that 1 Babbage is equal to 1,000 wei, which is the smallest unit of Ether. The Babbage unit is often used to represent larger amounts of Ether and is typically used in transactions that involve larger amounts of Ether.

In addition to the Babbage unit, there are several other units of Ether that are commonly used to represent different amounts of Ether. For example, the Shannon, Szabo, and Finney units are used to represent 10⁶ (1,000,000), 10⁹ (1,000,000,000), and 10¹² (1,000,000,000,000) wei, respectively. These units are often used to represent even larger amounts of Ether and are typically used in transactions that involve even larger amounts of Ether.

The Babbage unit is an important unit of Ether and is used to represent larger amounts of Ether in transactions on the Ethereum network. This unit is named after Charles Babbage, who is an important figure in the history of computing and is an example of the way in which the Ethereum network pays tribute to its pioneers and pioneers in the field of computing.

10⁶ Wei = 1 Lovelace.

Like Babbage, the Lovelace is also a unit of Ether, the native digital currency of the Ethereum network. It is named after Ada Lovelace, who is widely considered to be the world’s first computer programmer.

The Lovelace is a unit of Ether that is equal to 10⁶ (1,000,000) wei. This means that 1 Lovelace is equal to 1,000,000 wei, which is the smallest unit of Ether. The Lovelace unit is often used to represent larger amounts of Ether and is typically used in transactions that involve larger amounts of Ether.

In addition to the Lovelace unit, there are several other units of Ether that are commonly used to represent different amounts of Ether. For example, the Shannon, Szabo, and Finney units are used to represent 10³ (1,000), 10⁹ (1,000,000,000), and 10¹² (1,000,000,000,000) wei, respectively. These units are often used to represent even larger amounts of Ether and are typically used in transactions that involve even larger amounts of Ether.

The Lovelace unit is an important unit of Ether and is used to represent larger amounts of Ether in transactions on the Ethereum network. This unit is named after Ada Lovelace, who was an important figure in the history of computing and is an example of the way in which the Ethereum network pays tribute to its pioneers and pioneers in the field of computing.

Cryptography:

Digital Signature powered by Public Key Cryptography.

Cryptography is the science of encoding and decoding information in order to secure it from unauthorized access or tampering. Digital signatures are a common application of cryptography and are used to verify the authenticity and integrity of digital documents and messages. Digital signatures are typically powered by public key cryptography, which is a cryptographic system that uses a pair of mathematically-related keys to encrypt and decrypt information.

In public key cryptography, each user has a pair of keys: a public key and a private key. The public key is widely available and can be shared with anyone. The private key, on the other hand, is kept secret and is known only to the owner of the key pair.

When a user wants to digitally sign a document or message, they use their private key to create a unique digital signature for the document. This signature is then attached to the document and can be verified by anyone using the user’s public key.

In order to verify the digital signature, the recipient of the signed document uses the sender’s public key to decrypt the signature. If the signature is valid, it will match the original document, and the recipient can be confident that the document is authentic and has not been tampered with.

Digital signatures are an important application of cryptography and are used to provide authentication and integrity for digital documents and messages. Public key cryptography is the underlying technology that powers digital signatures and is essential for the successful operation of this important cryptographic application.

ECDSA — The Digital Signature Algorithm used is the same as Bitcoin: the Elliptic Curve Digital Signature Algorithm. The Elliptic-curve Cryptography (ECC) used is SECP-256K1.

ECDSA, or the Elliptic Curve Digital Signature Algorithm, is a cryptographic algorithm that is used to create and verify digital signatures. Digital signatures are used to verify the authenticity and integrity of digital documents and messages and are an important application of cryptography.

ECDSA is the same digital signature algorithm that is used by Bitcoin and is based on elliptic curve cryptography (ECC). ECC is a type of public key cryptography that is based on the algebraic structure of elliptic curves over finite fields. It is a relatively new and efficient type of cryptography and is considered to be more secure than many other cryptographic algorithms.

The specific ECC curve that is used by ECDSA in Bitcoin and Ethereum is known as SECP-256K1. This curve was chosen for its security and efficiency and has been widely adopted by many other cryptocurrencies and blockchain networks.

ECDSA is an important cryptographic algorithm that is used to create and verify digital signatures. It is the same digital signature algorithm that is used by Bitcoin and is based on the efficient and secure elliptic curve cryptography (ECC) curve known as SECP-256K1.

Private Key — A 256-bit secret (Random number) matching with a Public Key which matches with an Address/Account.

A private key is a secret, randomly-generated number that is used in the process of generating a digital signature. In cryptography, a digital signature is a mathematical scheme that is used to verify the authenticity and integrity of a digital document or message. Digital signatures are an important application of cryptography and are used to ensure the security and integrity of digital communications.

A private key is typically a 256-bit number, which means that it is a very large and complex number that is difficult to guess or crack. This is important, because a private key is used to generate a digital signature, and it is essential that the private key be kept secret and secure in order to prevent unauthorized access to the digital signature.

A private key is associated with a public key, which is a number that is generated using the private key. The public key is not kept secret and can be shared with anyone. The public key is used to verify a digital signature that was generated using the corresponding private key.

In the context of the Ethereum network, a private key is associated with an Ethereum address or account. This means that the private key is used to generate a digital signature for transactions that are performed using the corresponding Ethereum address or account.

A private key is a secret, randomly-generated number that is used to generate a digital signature. It is associated with a public key and is used to verify the authenticity and integrity of a digital document or message. In the context of the Ethereum network, a private key is associated with an Ethereum address or account and is used to securely perform transactions on the Ethereum network.

This is actually my note on Secureum BootCamp and in this blog, I have taken the topics from the Secureum BootCamp and organized them in my own style. If you are already familiar with the Secureum BootCamp, this blog post can serve as a useful supplement to your knowledge. However, if you are not familiar with the Secureum BootCamp, I strongly recommend that you check it out, as it is a valuable resource for learning about Ethereum and blockchain Security.

Please feel free to correct me if I understood something wrong.