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Blockchain

Blockchain is a public database updated across a network of computers, where data is stored in sequential blocks that reference each other cryptographically. Ethereum, utilizing a proof-of-work consensus mechanism, allows users to mine new blocks and supports decentralized applications (dapps) that combine smart contracts with user interfaces. Key components of Ethereum include accounts, transactions, gas fees for executing operations, and smart contracts that automate and enforce rules on the network.

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9 views2 pages

Blockchain

Blockchain is a public database updated across a network of computers, where data is stored in sequential blocks that reference each other cryptographically. Ethereum, utilizing a proof-of-work consensus mechanism, allows users to mine new blocks and supports decentralized applications (dapps) that combine smart contracts with user interfaces. Key components of Ethereum include accounts, transactions, gas fees for executing operations, and smart contracts that automate and enforce rules on the network.

Uploaded by

Harry
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Blockchain

A blockchain is best described as a public database that is updated and shared across many
computers in a network.

"Block" refers to the fact that data and state is stored in sequential batches.

"Chain" refers to the fact that each block cryptographically references its parent. A block's data
cannot be changed without changing all subsequent blocks, which would require the consensus of
the entire network.

Each new block and the chain as a whole must be agreed upon by every node in the network. This is
so everyone has the same data. For this to work, blockchains need a consensus mechanism.

Ethereum currently uses a proof-of-work consensus mechanism. This means that anyone who wants
to add new blocks to the chain must solve a difficult puzzle that you need a lot of computing power
to work on. Solving the puzzle "proves" that you have spent the computational resources. Doing this
is known as mining. Mining can be trial and error but adding a block successfully is rewarded in Eth.

New blocks are broadcast to the nodes in the network, checked and verified, updating the state for
everyone.

DAPP
A decentralized application (dapp) is an application built on a decentralized network that combines a
smart contract and a frontend user interface. Note, in Ethereum smart-contracts are accessible and
transparent

WEB3
Many Web3 developers have chosen to build dapps because of Ethereum's inherent
decentralization:

 Anyone who is on the network has permission to use the service – or in other words,
permission isn't required.
 No one can block you or deny you access to the service.
 Payments are built in via the native token, ether (ETH).
 Ethereum is turing-complete, meaning you can pretty much program anything

Accounts
An Ethereum account is an entity with an ether (ETH) balance that can send transactions on
Ethereum. Accounts can be user-controlled or deployed as smart contracts.

 Externally-owned – controlled by anyone with the private keys


 Contract – a smart contract deployed to the network, controlled by code.
Transactions
Transactions are cryptographically signed instructions from accounts. An account will initiate a
transaction to update the state of the Ethereum network. The simplest transaction is transferring
ETH from one account to another.

Block
Blocks are batches of transactions with a hash of the previous block in the chain. This links blocks
together (in a chain) because hashes are cryptographically derived from the block data.

The Ethereum protocol itself exists solely for the purpose of keeping the continuous, uninterrupted,
and immutable operation of this special state machine; It's the environment in which all Ethereum
accounts and smart contracts live.

GAS
Gas is essential to the Ethereum network. It is the fuel that allows it to operate, in the same way that
a car needs gasoline to run

Gas refers to the unit that measures the amount of computational effort required to execute specific
operations on the Ethereum network.

Since each Ethereum transaction requires computational resources to execute, each transaction
requires a fee. Gas refers to the fee required to successfully conduct a transaction on Ethereum.

Smart contract
A "smart contract" is simply a program that runs on the Ethereum blockchain. It's a collection of
code (its functions) and data (its state) that resides at a specific address on the Ethereum blockchain.

Smart contracts are a type of Ethereum account. This means they have a balance and they can send
transactions over the network. However they're not controlled by a user, instead they are deployed
to the network and run as programmed.

User accounts can then interact with a smart contract by submitting transactions that execute a
function defined on the smart contract. Smart contracts can define rules, like a regular contract, and
automatically enforce them via the code

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