VISVESARAYA TECHNOLOGICAL UNIVERSITY

“Jnana Sangama”,Belagavi-560014,Karnataka

A SUBJECT SEMINAR REPORT ON

“ETHEREUM BLOCKCHAIN”

Submitted in partial fulfillment of the requirements for the Seminar

Bachelor of Engineering
In
Computer Science and Engineering

Submitted By
NAME: DHARANESH H M
USN:1SV22CS029

Under the guidance of

Dr.Bhargav H. K.MTech,PhD,MISTE
Associate Professor,

Dept. of.CSE.

Department of Computer Science and Engineering

SHRIDEVI INSTITUTE OF ENGINEERING AND TECHNOLOGY

(Affiliated To Visvesvaraya Technological University)
Sira Road,Tumkur-572106,Karnataka
2024/2025
 Department of Computer Science and Engineering

CERTIFICATE

Certified that the Subject Seminar entitled

“ETHEREUM BLOCKCHAIN”

Carried out by

DHARANESH H M[1SV22CS029]

A Bonafide Student of Shridevi Institute of Engineering and Technology has successfully carried
out a Subject Seminar on BLOCKCHAIN TECHNOLOGY(BCS613A) in VI semester, Bachelor
of Engineering in CSE, VTU, Belagavi during 2024-25. All the corrections indicated for the internal
assessments have been incorporated in the report. The subject seminar has been approved as it
satisfies the academic requirements regarding the Seminar work.

Signature of Course Instructor Signature of HOD

Dr.Bhargav H. K.MTech,PhD,MISTE Dr.Basavesha D B.E,MTech, PhD,MISTE
Associate Prof, Dept. Of. CSE Professor & HOD, Dept. Of.CSE
DECENTRALIZATION USING BLOCKCHAIN 2024-2025

ETHEREUM BLOCKCHAIN

Introduction to Ethereum blockchain

o Blockchain technology is a decentralized ledger system used for recording transactions in a secure,
transparent, and immutable way.

o Ethereum is a popular open-source blockchain platform introduced in 2015 by Vitalik Buterin.

o It uses a native cryptocurrency called Ether (ETH) to power transactions and computations.

o Ethereum has its own virtual environment called the Ethereum Virtual Machine (EVM) that
executes smart contracts securely.

o The platform promotes decentralization, transparency, and programmability of contracts without

the need for third-party intermediaries.

o Ethereum serves as a backbone for innovations like DeFi (Decentralized Finance), NFTs (Non-
Fungible Tokens), and various Web3 applications.

What is Ethereum?

Ethereum is an open-source, decentralized blockchain platform that was launched in 2015 by Vitalik
Buterin and a group of developers. Unlike Bitcoin, which is primarily designed as a digital currency,
Ethereum was created to support smart contracts and decentralized applications (DApps). Smart
contracts are self-executing programs that run on the blockchain, allowing transactions and
agreements to be carried out automatically without the need for intermediaries. Ethereum uses its
native cryptocurrency, Ether (ETH), to power these operations by covering transaction fees and
computational costs.
Ethereum plays a central role in the development of decentralized finance (DeFi), non-fungible
tokens (NFTs), blockchain-based gaming, and other Web3 technologies. With its ability to create
programmable and decentralized systems, Ethereum is considered a foundational platform for the
future of the internet.

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DECENTRALIZATION USING BLOCKCHAIN 2024-2025

Key Features of Ethereum

 Smart Contracts:
Ethereum enables the creation and execution of smart contracts—self-executing agreements with
code-based terms that run automatically when conditions are met.
 Ethereum Virtual Machine (EVM):
A decentralized computing environment that ensures all smart contracts execute consistently and
securely across all network nodes.
 Ether (ETH):
The native cryptocurrency of Ethereum, used for paying transaction fees, deploying smart
contracts, and incentivizing network participants.
 Gas Fees:
A fee system that charges users based on the computational resources required for transactions or
contract executions, helping to allocate resources and prevent spam.
 Decentralized Applications (DApps):
Ethereum allows developers to build and deploy open, censorship-resistant applications that run
on the blockchain.
 Token Standards (ERC-20&ERC-721):
Ethereum supports the creation of custom tokens using well-established standards like ERC-20
(for fungible tokens) and ERC-721 (for NFTs).
 Proof-of-Stake (PoS) Consensus:
Following the Ethereum 2.0 upgrade, Ethereum uses PoS for validating transactions, reducing
energy consumption and enhancing scalability.
 Open Source and Developer-Friendly:
Ethereum is open source, with extensive documentation and tools that encourage innovation and a
large, active developer community.
 Interoperability:
Ethereum supports integration with other blockchains and protocols, making it a flexible platform
for diverse use cases.

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Ethereum Architecture

1. Blockchain Layer:
o Ledger of all transactions and smart contract executions.
o Proof-of-Stake (PoS) consensus mechanism (after Ethereum 2.0 upgrade).
2. Consensus Layer:
o Initially used Proof-of-Work (PoW).
o Transitioned to PoS in the Ethereum 2.0 upgrade, reducing energy consumption and
improving scalability.
3. EVM (Ethereum Virtual Machine):
o Executes smart contracts in a secure and isolated environment.
o Supports multiple programming languages like Solidity and Vyper.
4. Smart Contracts:
o Written in high-level languages (e.g., Solidity).
o Deployed to the blockchain and executed by EVM.

Applications of Ethereum

 Decentralized Finance (DeFi): Lending, borrowing, and trading without intermediaries.

 Non-Fungible Tokens (NFTs): Unique digital assets representing ownership of content or property.

 Gaming and Metaverse: Play-to-earn games and virtual real estate platforms.

 Supply Chain Management: Enhancing transparency and traceability.

 Voting Systems: Secure and tamper-proof digital voting platforms.

Advantages of Ethereum
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DECENTRALIZATION USING BLOCKCHAIN 2024-2025

 Decentralization:
Ethereum operates without a central authority, ensuring that data and applications are resistant to
censorship and single points of failure.
 Smart Contract Functionality:
Automates processes by allowing contracts to self-execute when predefined conditions are met,
reducing the need for third-party intermediaries.
 Transparency and Trust:
All transactions and smart contracts are recorded on a public ledger, which can be audited by
anyone, increasing trust and accountability.
 Security:
Built on cryptographic principles, Ethereum offers high levels of security, making it difficult to
alter or tamper with transaction data.
 Support for DApps:
Developers can build decentralized applications across a wide range of industries, including
finance, healthcare, gaming, and logistics.
 Interoperability:
Ethereum's token standards (e.g., ERC-20, ERC-721) allow seamless interaction between different
applications and tokens on the network.
 Global Accessibility:
Anyone with an internet connection can access and participate in the Ethereum network, promoting
financial and digital inclusion.
 Active Development Community:
A large and vibrant community contributes to constant improvements, security patches, and
innovation on the platform.
 Programmability:
Ethereum allows developers to program complex logic into smart contracts, enabling the creation
of advanced decentralized systems.
 Ongoing Upgrades (Ethereum 2.0):
With the shift to Proof-of-Stake, Ethereum is becoming more energy-efficient, scalable, and
suitable for mass adoption.

Challenges and Limitations of Ethereum

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DECENTRALIZATION USING BLOCKCHAIN 2024-2025

 Scalability Issues:
Ethereum currently handles a limited number of transactions per second, leading to congestion
during high demand.
 High Gas Fees:
Transaction costs (gas fees) can become very expensive during network congestion, making
Ethereum less accessible to users with smaller budgets.
 Smart Contract Vulnerabilities:
Bugs or poorly written code in smart contracts can be exploited by attackers, leading to financial
losses (e.g., DAO hack).
 Energy Consumption (Pre-Ethereum 2.0):
Before transitioning to Proof-of-Stake, Ethereum’s Proof-of-Work model was energy-intensive,
drawing criticism for its environmental impact.
 Complexity for New Developers:
Building smart contracts and DApps requires knowledge of specialized programming languages
like Solidity, which may have a steep learning curve.
 Regulatory Uncertainty:
Global legal frameworks for blockchain and cryptocurrencies are still evolving, which may affect
Ethereum’s adoption and use.
 Network Congestion:
Popular applications (e.g., DeFi and NFTs) can overload the network, slowing down transactions
and increasing costs.
 Data Privacy Limitations:
Since Ethereum is a public blockchain, all transaction data is visible to everyone, which may not
be suitable for privacy-sensitive applications.
 Upgradability Challenges:
Making changes to the Ethereum protocol requires broad consensus, which can slow innovation
or delay important fixes.
 User Experience:
Interacting with Ethereum-based applications can be complex and intimidating for non-technical
users due to wallet setups, gas fees, and key management.

Conclusion
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DECENTRALIZATION USING BLOCKCHAIN 2024-2025

Ethereum has emerged as a leading blockchain platform that goes beyond simple cryptocurrency
transactions by enabling smart contracts and decentralized applications. Its flexibility, transparency, and
decentralized nature make it a powerful tool for building the next generation of digital services, including
finance, gaming, supply chain management, and identity systems. The transition to Proof-of-Stake with
Ethereum 2.0 marks a significant step toward scalability, sustainability, and improved efficiency.
Despite challenges such as high gas fees, scalability issues, and regulatory uncertainties, Ethereum
continues to evolve rapidly, supported by a large and active developer community. As a foundational
layer for Web3, Ethereum holds the potential to redefine how people interact with technology, data, and
value in a decentralized world.

References

1. Ethereum Official Website: https://ethereum.org

2. Vitalik Buterin (2013). Ethereum Whitepaper: https://ethereum.org/en/whitepaper
3. Wood, G. (2014). Ethereum: A Secure Decentralised Generalised Transaction Ledger.
4. Antonopoulos, A.M., & Wood, G. (2018). Mastering Ethereum: Building Smart Contracts and
DApps. O'Reilly Media.
5. Binance Academy – Ethereum Explained: https://academy.binance.com/en/articles/what-is-
ethereum
6. ConsenSys – Ethereum 2.0 Explained: https://consensys.net/knowledge-base/ethereum-2
7. CoinDesk – Ethereum News and Updates: https://www.coindesk.com/tag/ethereum

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