Ethereum

Ethereum -Construction
 Ethereum is a decentralized, open-source blockchain featuring smart contract
functionality.

 Ether is the native cryptocurrency of the platform.

 It is the second-largest cryptocurrency by market capitalization, after Bitcoin.

Ethereum is the most actively used blockchain.

 Ethereum was first proposed in 2013 by developer Vitalik Buterin, who was 19 at
the time, and was one of the pioneers of the idea of expanding the technology
behind Bitcoin, blockchain, to more use cases than transactions.

 Ethereum represents an open software platform that allows a user to develop

applications, to build them, and extend the developed decentralized applications
on the platform.
Essentials
Browsers, wallets, and must-have utilities to engage with Ethereum.
MetaMask: Web browser plug-in that connects your device to the Ethereum network.
MetaMask also enables peer-to-peer sharing and token swapping.
Brave: A web and mobile browser integrated with BAT and ERC-20 tokens.
Ethereum Name Service: Create a personalized and straightforward ETH wallet
address.
3box: All-in-one sign-in, profile, and cloud storage on Ethereum.
Civic: Secure identity and data management on the blockchain.
MyEtherWallet: A free, open-source, client-side interface for generating Ethereum
wallets and more.
MyCrypto Wallet: Swap, send, and buy crypto with your favorite wallets with this
Ethereum wallet manager.
Art Marketplaces
Mint, buy, and trade non-fungible digital art.
Rarible: The first community-owned NFT marketplace.
Zora: Universal market protocol for NFTs with an innovative creator share for artist royalties on
resales.
Foundation: Invest in unique editions of digital artwork and trade pieces with other buyers.
SuperRare: A marketplace to collect and trade unique, single-edition digital artworks.
Bitski: Create, sell, and display NFTs.
Nifty Gateway: Access some of today’s most sought-after fine art and collectibles.
Ephemera: A marketplace for lens-based artists and galleries.
Async Art: Create, collect, and trade programmable art.
Cent: A social network turned NFT marketplace.
MakersPlace: a marketplace for sharing and collecting rare digital creations
Mintable: A platform that lets you mint, manage, and browse digital items on the blockchain.
OpenSea: A peer-to-peer trading market for crypto-collectibles and rare digital items.
Music
Want to pay musicians directly for their work? Check out these apps
Catalog: A platform to collect, trade, and listen to provably authentic
works. Artists receive 100% on their initial sale and also set a percentage
fee upfront that they’ll receive on every resale.
Audius: a music streaming and sharing platform that puts the power
back into content creators’ hands.
 Decentralized Finance
Lending and Borrowing
Oasis Borrow: Put your assets to work. Lock your tokens as collateral to generate DAI.
Compound Finance: Open source protocol for algorithmic, efficient money markets on the
Ethereum network.
AAVE: is an open source, non-custodial protocol to earn interest on deposits and borrow assets.
Yearn.Finance: a decentralized yield aggregator that optimizes your token lending.

Pooling and Investments

Pool Together: A lottery you can’t lose. Earn prizes every week.
Index Coop: A crypto index fund which gives your portfolio exposure to top DeFi tokens.
Token Sets: an asset management platform with tokenized trading strategies.
Dharma: A suite of smart contracts and developer tools that make it possible to borrow and lend crypto-
assets on blockchains like Ethereum
Lendoit: A decentralized peer-to-peer lending platform that connects borrowers and lenders.
InstaDApp: A decentralized bank built on top of the MakerDAO protocol.
Nexus Mutual: A decentralized alternative to insurance. Ensure your smart contracts with a risk-sharing
pool.
Etherisc: A decentralized insurance protocol to collectively build risk transfer solutions. Products include
flight delay insurance, hurricane protection, crypto wallet insurance, collateral protection for crypto-backed
loans, crop insurance, and social insurance.
dYdX: A decentralized margin trading platform. Open short or leveraged positions with leverage up to 10x.
Lend and borrow as well.
Synthetix: A protocol for the issuance of on-chain synthetic assets that track the value of real-world assets
Portfolios
Zapper: Track and visualize your DeFi assets and liabilities on a simple dashboard.
Rotki: An open source portfolio tracking, analytics, and crypto accounting platform.
Zerion: Build and manage your entire DeFi portfolio from one place.
Token Exchanges
Decentralized exchanges and peer-to-peer options for buying, storing, and trading
digital currencies.
1inch: DEX aggregator and a single point of entry for DeFi
AirSwap: A decentralized token marketplace.
LocalEthereum: A safe, fast and private way to buy and sell ETH through various
methods.
IDEX: A decentralized exchange with real-time trading and high transaction
throughput.
DAOs
DAOs (Decentralized Autonomous Organizations) are becoming the primary DeFi
governance mediums in crypto and conservatively oversee more than $480 million.

MakerDAO: A multifaceted DAO that features the OasisDEX exchange, investment

products, and the DAI stablecoin.
Badger: A single purpose DAO: build the products and infrastructure necessary to
accelerate Bitcoin as collateral across other blockchains.
Aragon: Dis-intermediates the formation and management of organizations.

Prediction Markets
The internet of value, where everything from wisdom to music to computer power and
goods in virtual worlds enter the marketplace.
Augur: A decentralized prediction market for forecasting real-world events.
Golem: A global, open-source, decentralized supercomputer that anyone can utilize.
Gnosis: A protocol and prediction market for digital asset valuation.
 Work
Do stuff, get paid!
Gitcoin: The easiest way to monetize or incentivize work in open-source software.
Ethlance: Find work and get compensated in digital currencies.
Numerai: Earn cryptocurrency in weekly data science competitions.

Collectibles
CryptoPunks: The inspiration for the ERC-721. Collect and trade 10,000 unique
characters.
Avastars: Generate avatars for the increasingly booming metaverse.
Hashmasks: Digital art collectibles with a dynamic value hierarchy.
Games and Virtual WorldsDecentralized games have evolved—from slow, expensive interactions with 2D
cuddly collectibles to conquering planets in a profoundly immersive hidden-information game based on sci-fi
and zkSNARK technology.
Axie Infinity: Earn Small Love Potion (SLP) while you collect, raise, and battle fantasy creatures called Axie.
Brave Frontier Heroes: the crossover of the successful mobile game BRAVE FRONTIER and the #1
blockchain game My Crypto Heroes.
Tokenized Communities
Have you deleted Facebook yet? Join a Tokenized Community and enjoy the bright side
of social media. Users commit tokens to enter, and for the fee, are met with a tighter
vibe and 0 demographics-based slant campaigns.

 $FWB – A private discord server for artists, technologists, and musicians.

$Karma – A telegram-based professional network. Earn or earn $KARMA for good
actions for the community.
 $JAMM – A group of individuals testing out the weird and wacky things in crypto.
$WHISKI – A community for whisky 🥃 & crypto lovers.

Social Networks
Minds: A censorship-resistant social network.
Akasha: A decentralized social network built on Ethereum.
Livepeer: Open source video infrastructure services for live video broadcasting.
Refereum: Earn rewards for playing games, watching streams, and sharing gaming
content with your friends.
VouchForMe: A distributed insurance platform based on social proof built on Ethereum.
 Ethereum -Construction

“Ethereum is a blockchain-based software platform that is primarily

used to support the world’s second-largest cryptocurrency by market
capitalization after Bit coin. Like other cryptocurrencies, Ethereum can
be used for sending and receiving value globally and without a third
party watching or stepping in unexpectedly”.
 Ethereum -Construction

 Ether is the cryptocurrency built on top of the open source Ethereum blockchain, which runs
smart contracts.

 The cryptocurrency acts as a fuel that allows smart contracts to run unlike bitcoin, which is
meant to be a unit of currency on a peer-to-peer payment network.

 Ether’s supply is not capped like that of bitcoin and its supply schedule, often described as
minimum necessary to secure the network, is determined by members of Ethereum’s
community.

 A majority of decentralized applications are based on Ethereum and the cryptocurrency

accounts for the highest percentage of the total funds staked in the DeFi projects.

 Ethereum is scheduled to make a transition to proof-of-stake mechanism from the current

proof-of-work mechanism in the later half of 2020.
 Ethereum features
 Ethereum’s architecture comprises a virtual machine that performs scripts
using an internal node network.

 Another distinct feature is “ether,” the digital coin or token used to make
payments by replacing third parties on the internet.

 Due to its free public accessibility and smart contract functionality,

Ethereum has emerged as a popular choice among all industry players,
from programmers to small and big businesses.
 How is Ethereum different from Bitcoin?

 Ethereum draws inspiration from Bitcoin. They are both

cryptocurrencies.

 Ethereum uses the same technology behind Bitcoin, a blockchain,

which uses a shared, decentralized public ledger to decentralize the
network so it’s not under the control of just one entity.

 But while Bitcoin is used primarily as a store of value, the idea behind
Ethereum is to decentralize other kinds of applications and services,
from social media networks to more complex financial agreements.

 Ethereum permits developers to build whatever interactive

performances they want in their smart contracts
 Ethereum -Construction
 Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation and performance
of some sort of agreement.

 For instance, a smart contract could be used to represent a legal contract emulating the logic of
contractual clauses or a financial contract specifying responsibilities of the counterparts and automated
flows of value.

 A smart contract is pretty much exactly what you think it would be: it’s an auto-executing, programmed
agreement that is recorded on the Ethereum block chain.

 It operates based upon an if, then logic, so that if x action happens, then y action occurs. Here’s a helpful
definition from the Ethereum Foundation:

 “Smart contracts are applications that run exactly as programmed without any possibility of downtime,
censorship, fraud or third-party interference.”

 Let’s break down what all that means:

Downtime: the applications never shut down unexpectedly and can never be switched off.
Censorship: Ethereum nodes (computers running the protocol) are distributed around the world eliminating
censorship from a central authority.
Fraud: the contract cannot be changed, hacked, or manipulated.
Third parties: the contract self-executes and therefore does not require an intermediary.
 Four core technological building blocks of ethereum
•

Cryptographic tokens and addresses: a mathematically secure unique voucher system that allows for
assets to be built on existing blockchains. These act as a standard for computing value, or numeraire. They
can serve as payment for goods, services, and can also be used to represent a mathematically secured and
pseudonymous identity.
•

Peer-to-peer networking: individual users connect their computers together to form a network that can
exchange data without a central server. Bitcoin and Ethereum run on P2P networks, as does nearly every
other cryptocurrency in use today.
•

Consensus algorithms: these algorithms permit blockchain users to reach a consensus about the current
state of the blockchain. The Bitcoin blockchain reaches consensus on a global state change (which typically
involves adding a new block to the blockchain) about once every 10 minutes, whereas the Ethereum
blockchain reaches consensus in approximately 15 seconds.
•

Turing complete virtual machine: a virtual machine is a computer that exists in software form and can be
run at a layer of abstraction above its underlying hardware. A “Turing complete” system can run any
program and is powerful enough to implement any program defined in any similarly computationally
complete system. For comparison, Bitcoin is not Turing-complete as its virtual machine can only run a
much simpler class of programs.

• These four pillars of dapp technology are designed to enable smart contracts
 Smart contract

“Smart contract is a computer program or a transaction protocol which is

intended to automatically execute, control or document legally relevant

events and actions according to the terms of a contract or an agreement.”

 Smart Contract
 A smart contract is a self-executing contract with the terms of the
agreement between buyer and seller being directly written into lines of
code.

 The code and the agreements contained therein exist across a

distributed, decentralized blockchain network.

 The code controls the execution, and transactions are trackable and
irreversible.

 Smart contracts permit trusted transactions and agreements to be

carried out among disparate, anonymous parties without the need for
a central authority, legal system, or external enforcement mechanism.
 Smart Contract

 A smart contract is a self-enforcing piece of so ware that is managed

by a P2P network of computers.

 Smart contracts are e cient rights management tools that provide a

coordination and enforcement framework for agreements between
network participants, without the need of traditional legal
contracts.

 They can be used to formalize simple agreements between two

parties, the bylaws of an organiza- tion, or to create tokens.
 Smart Contract
 Smart contracts usually have a user interface that can be implemented as
a web page, an application, or a mobile app.

 In the future, traditional contracts may become outdated for the purposes
of certain transactions.

 Rather than drafting a costly, lengthy contract employing attorneys,

banks, notaries, and Microsoft Word, contracts could be created with a
few lines of code.

 Smart contracts could potentially be constructed automatically by wiring

together a handful of human-readable clauses.
 How Smart Contracts Work
Szabo defined smart contracts as computerized transaction
protocols that execute terms of a contract.

He wanted to extend the functionality of electronic transaction

methods, such as POS (point of sale), to the digital realm.

These new securities are formed by combining securities (such as

bonds) and derivatives (options and futures) in a wide variety of
ways.

 Very complex term structures for payments can now be built into
standardized contracts and traded with low transaction costs, due
to computerized analysis of these complex term structures."
 Self-Enforcing Agreements
 A Smart contract is a self-enforcing agreement embedded in computer code
managed by a blockchain.

 The code contains a set of rules under which the parties of that smart
contract agree to interact with each other.

 If and when the predefined rules are met, the agreement is automatically
enforced.

 Smart contracts provide mechanisms for efficiently managing tokenized

assets and access rights between two or more parties.

 One can think of it like a cryptographic box that unlocks value or access, if
and when specific predefined conditions are met
 Decentralized Autonomous Organization (DAO)

 One of the major features of digital currencies is that they

are decentralized.

 This means they are not controlled by a single institution like a

government or central bank, but instead are divided among a variety of
computers, networks, and nodes.

 In many cases, virtual currencies make use of this decentralized status to

attain levels of privacy and security that are typically unavailable to
standard currencies and their transactions. block.
 What Is the DAO?

 What Is the DAO?

 The DAO was an organization that was designed to be automated and decentralized. It acted as a form
of venture capital fund, based on open-source code and without a typical management structure or board of
directors.

 To be fully decentralized, the DAO was unaffiliated with any particular nation-state, though it made use of the
ethereum network. (See also: "How Do You Invest in the DAO?")

 Why make an organization like the DAO?

 The developers of the DAO believed they could eliminate human error or manipulation of investor funds by
placing decision-making power into the hands of an automated system and a crowdsourced process.

 Fueled by ether, the DAO was designed to allow investors to send money from anywhere in the world
anonymously.

 The DAO would then provide those owners tokens, allowing them voting rights on possible projects.

 The DAO launched in late April 2016 thanks to a month-long crowdsale of tokens that raised more than $150
million in funds.

 At the time, the launch was the largest crowdfunding fundraising campaign of all time.
 Future of the DAO

 What does the future hold for the DAO?

 The DAO as originally envisioned had not returned as of mid-2020. Nonetheless, interest in
decentralized autonomous organizations as a broader group continues to grow.

 While there are many lingering concerns and potential issues regarding legality, security, and
structure, some analysts and investors believe that this type of organization will eventually
come to prominence, perhaps even replacing traditionally-structured businesses.

 Dash

 The popular digital currency Dash is an example of a decentralized autonomous organization

because of the way it is governed and the way its budgeting system is structured. It may only
be a matter of time before additional DAOs enter the field.