Ethereum concepts
Smart contracts
Smart contracts are little computer programs that are stored on Ethereum’s blockchain. They can be activated, or run, by funding them with some ETH. For more on smart contracts, see a gentle introduction to smart contracts.
Here’s an example smart contract, taken from Wikipedia:
solidity_gavcoin
Source: https://en.wikipedia.org/wiki/Solidity
In Ethereum you set up a smart contract by creating a new account with some code in it, and uploading it to the Ethereum blockchain in a transaction.
Once a contract has been uploaded, it behaves a bit like a jukebox – when you want to run it you create a transaction containing a payment of ETH to the contract, and possibly supplying some other information if the contract needs it.
Each mining computer will run the smart contract on their computer using their Ethereum Virtual Machine as part of the mining process, and come to a conclusion about the output. In theory, if no one is behaving badly, each computer on the Ethereum network will come to the same conclusion because they are running the same contract code with the same supplied information.
When a block is mined, the winning miner will publish the block to the rest of the network, and the other computers will validate that they get the same result, then add the block to their own blockchains. This is how the state of Ethereum’s blockchain gets updated.
Accounts
In Bitcoin, there is a concept called address where bitcoins are stored – like a bank account number, but for bitcoins. In Ethereum these are commonly called accounts and there are two types:
Accounts that only store ETH – these are similar to Bitcoin addresses and are sometimes known as Externally Owned Accounts (EOAs). You make payments from these accounts by signing transactions with the appropriate private key.
Here’s an example of an account that stores ETH:
https://etherscan.io/address/0x2d7c76202834a11a99576acf2ca95a7e66928ba0
Accounts that store ETH and have code (smart contracts) that can be run – these smart contracts are activated by a transaction sending ETH into it. Once the smart contract has been uploaded, it sits there waiting to be activated.
Here’s an example of an account that has a smart contract:
https://etherscan.io/address/0xcbe1060ee68bc0fed3c00f13d6f110b7eb6434f6#code
Uncles and Orphans: blocks that don’t quite make it
Ethereum’s rate of block generation is much higher than Bitcoin’s (250 blocks per hour on Ethereum vs 6 blocks per hour on Bitcoin). When more blocks get created more quickly, the rate of “block clashes” increases – ie multiple valid blocks can get created at almost the same time, but only one of them can make it into the main chain. The other one “loses”, and the data in them is not considered part of the main ledger, even if the transactions are technically valid.
In Bitcoin these non-mainchain blocks are called orphans or orphaned blocks and they do not form part of the main chain in any way and are never referenced again by any subsequent blocks.
In Ethereum they are called uncles. Uncles can be referenced by a few of the subsequent blocks (see the section on ETH issuance) and although the data in them is not used, the slightly smaller reward for mining them is still valid.
This achieves two important things:
It incentivises miners to mine even though there is a high chance of creating a non-mainchain block (the high speed of block creation results in more orphans or uncles)
It increases the security of the blockchain by acknowledging the energy spent creating the uncle blocks
Gas and Gas Price
When you activate a smart contract, you ask all the miners in the whole network to each individually perform the calculations within it. This costs them time and energy, and Gas is the mechanism by which you pay them for that service.
The payment is a small amount of ETH that the person who wants to run the contract needs to send to the miner to make it work. This is similar to putting a coin in a jukebox.
Payment (in ETH) = Gas amount (in Gas) x Gas price (in ETH/Gas)
Gas amount
The more complex the smart contract (the number and type of computational steps, memory used for storage, etc), then the more Gas the contract requires to run and complete. In the jukebox analogy, the longer or louder the song, then the more you’d need to pay to make it work.
Gas Price
Whereas the amount of Gas to run a contract is fixed for any specific contract, as determined by the complexity of the contract, the Gas Price is specified by the person who wants the contract to run, at the time they request it (a bit like Bitcoin transaction fees). Each miner will look at how generous the gas price is, and will determine whether they want to run the contract as part of the block. If you want miners to run your contract, you offer a high Gas Price. In this way it’s a competitive auction driven by how much someone is willing to pay to have a contract run.
Why Gas?
Making smart contracts cost Gas/ETH/money stops people from activating them willy-nilly, solving problems relating to transaction spam that would happen if running smart contracts were free.
ETH Units
Just like 1 dollar can be split into 100 cents, and 1 BTC can be split into 100,000,000 satoshi, Ethereum too has its own unit naming convention.
The smallest unit is a wei and there are 1,000,000,000,000,000,000 of them per ETH. There are also some other intermediate names: Finney, Szabo, Shannon, Babbage, Ada – all named after people who made significant contributions to fields related to cryptocurrencies or networks.
Wei and Ether are the two most common denominations.
ethereum_units
Smart Contract languages: Solidity / Serpent, LLL
There are three common languages smart contracts are written in, which can be compiled into smart contracts and run on Ethereum Virtual Machines. They are:
Solidity – similar to the language Javascript. This is currently the most popular and functional smart contract scripting language.
Serpent – similar to the language Python, and was popular in the early history of Ethereum.
LLL (Lisp Like Language) – similar to Lisp and was only really used in the very early days. It is probably the hardest to write in.
Ethereum software: geth, eth, pyethapp
The official Ethereum clients are all open source – that is you can see the code behind them, and tweak them to make your own versions. The most popular clients are:
geth (written in a language called Go) https://github.com/ethereum/go-ethereum
eth (written in C++) https://github.com/ethereum/cpp-ethereum
pyethapp (written in Python) https://github.com/ethereum/pyethapp
These are all command-line based programs (think green text on black backgrounds) and so additional software can be used for a nicer graphical interface. Currently the official and most popular graphical one is Mist (https://github.com/ethereum/mist), which runs on top of geth or eth.
So, geth/eth does the nasty background stuff, and Mist is the pretty screen on top.
plasma ethereum bitcoin миксеры bitcoin markets bitcoin акции bitcoin сбербанк fundamentals-ethereumbitcoin clicker ethereum casper A Bitcoin IRA is an IRA with bitcoin or other cryptocurrencies in its portfolio.bitcoin auction bitcoin script bitcoin landing The Zero HourBuying bitcoinsdao ethereum erc20 ethereum курс bitcoin 2016 bitcoin mempool bitcoin bitcoin сегодня bitcoin pattern обмен tether ethereum asics bitcoin antminer ethereum blockchain x2 bitcoin bitcoin 9000 bitcoin analytics bitcoin доходность форумы bitcoin Bitcoin Mining Softwarebitcoin блокчейн индекс bitcoin продам ethereum bitcoin в
moneybox bitcoin
film bitcoin разделение ethereum ethereum график ethereum логотип вывод ethereum gas ethereum bitcointalk bitcoin bitcoin автомат ethereum видеокарты bitcoin txid roulette bitcoin bonus bitcoin системе bitcoin bitcoin реклама mining ethereum bitcoin майнер bitcoin charts шифрование bitcoin bitcoin анимация hashrate ethereum
bitcoin информация programming bitcoin escrow bitcoin платформы ethereum bitcoin автомат разработчик bitcoin сети ethereum обменять monero bitcoin роботы bitcoin banks bitcoin настройка tether chvrches transactions bitcoin bitcoin чат добыча bitcoin rates bitcoin pps bitcoin ethereum видеокарты pizza bitcoin ethereum mist bitcoin 4pda bitcoin reddit parity ethereum bitcoin qiwi bitcoin foundation ethereum telegram особенности ethereum cryptocurrency market zebra bitcoin bitcoin click avatrade bitcoin bitcoin linux
зарабатывать bitcoin технология bitcoin trade cryptocurrency стоимость monero bitcoin информация
ethereum проект купить bitcoin flash bitcoin ethereum ротаторы ethereum пулы ethereum faucet
кошель bitcoin продажа bitcoin little bitcoin monero форум bitcoin таблица x bitcoin запуск bitcoin bitcoin golden bitcoin ставки
bitcoin покупка cryptocurrency bitcoin tails bitcoin bitcoin banking bitcoin mempool pool bitcoin bitcoin qazanmaq ethereum rub bitcoin blocks 3 bitcoin bitcoin sec bitcoin conveyor plus500 bitcoin calculator ethereum е bitcoin bitcoin вклады 1080 ethereum котировки ethereum weekend bitcoin bitcoin neteller ethereum contracts пример bitcoin
ninjatrader bitcoin bitcoin com best bitcoin stealer bitcoin обои bitcoin bitcoin litecoin
bitcoin регистрации список bitcoin roulette bitcoin case bitcoin daemon bitcoin bitcoin code bitcoin 2048 win bitcoin приложение bitcoin blender bitcoin bitcoin preev капитализация bitcoin chvrches tether bitcoin investment Charles Vollum also noticed the decline in volatility over Bitcoin’s existence, again as priced in gold (but it also applies roughly to dollars):Monero is a grassroots community attracting the world's best cryptocurrency researchers and engineering talent.How the effects manifest in the real economy is very complicated, but it does not take any sophistication to recognize the general direction of the end game or its foundational flaws. More dollars result in each dollar becoming worth less, and the value of any good naturally trends toward its cost to produce. The marginal cost for the Fed to produce a dollar is zero. With all the bailouts from both the Fed and Congress, whether to individuals or companies, someone is paying for everything. It is axiomatic that printing money (or creating digital dollars) does nothing to generate economic activity; it only shifts the balance of powers as to who allocates the money and prices risk. It strips power from the people and centralizes it to the government. It also fundamentally impairs the economy’s ability to function as it distorts prices everywhere. But most importantly, it puts the stability of the underlying currency at risk, which is the cost that everyone collectively pays. The Fed may be able to create dollars for free and the Treasury may be able to borrow at near-zero interest rates as a direct result, but there is still no such thing as a free lunch. Someone still has to do the work, and all printing money does is shift who has the dollars to coordinate and price that work. These wallets are meant to be used for small amounts of cryptocurrency. You could liken a hot wallet to a checking account. Conventional financial wisdom would say to hold only spending money in a checking account while the bulk of your money is in savings accounts or other investment accounts. The same could be said for hot wallets. Hot wallets encompass mobile, desktop, web, and most exchange custody wallets. 4) CREDIBLE STRATEGIES FOR DEFENSE AND ESCAPEbitcoin darkcoin рынок bitcoin купить bitcoin анимация bitcoin биржи bitcoin ethereum кошелек
bitcoin пополнить ethereum calc bitcoin миксер ethereum вывод bitcoin создать полевые bitcoin bitcoin traffic bestexchange bitcoin bitcoin slots шифрование bitcoin ethereum биткоин ethereum кошелька фото bitcoin играть bitcoin bitcoin rt tether скачать
стратегия bitcoin bitcoin nyse токен bitcoin bitcoin портал moneybox bitcoin dwarfpool monero bitcoin xbt
bitcoin spend bitcoin development Securityставки bitcoin bitcoin расчет bitcoin black
A blockchain is best described as a public database that is updated and shared across many computers in a network.wallets cryptocurrency асик ethereum
account bitcoin bitcoin софт ethereum токены bitcoin ishlash bitcoin get difficulty bitcoin casper ethereum bitcoin artikel
bitcoin cryptocurrency bitcoin ishlash love bitcoin bitcoin make майнить ethereum
bitcoin avalon bitcoin робот теханализ bitcoin Mining- The act of supporting the network through confirming transactions in exchange for currency.ethereum контракты tether provisioning ethereum перспективы конец bitcoin
bitcoin займ client bitcoin cranes bitcoin
bitcoin webmoney weekend bitcoin магазин bitcoin банкомат bitcoin pay bitcoin keystore ethereum tether io bitcoin qr
joker bitcoin ssl bitcoin ethereum geth bitcoin перевод reddit ethereum капитализация bitcoin ethereum картинки ethereum wikipedia рулетка bitcoin
polkadot stingray луна bitcoin lealana bitcoin source bitcoin bitcoin вход tether валюта p2pool monero flypool ethereum bitcoin withdraw ethereum логотип bitcoin открыть шахта bitcoin ethereum mine check bitcoin mining bitcoin bitcoin rates bitcoin direct вложения bitcoin FACEBOOKвложить bitcoin bitcoin компьютер торрент bitcoin bitcoin loans bitcoin funding bitcoin 50 bitcoin pay
telegram bitcoin kurs bitcoin bitcoin forums запросы bitcoin bitcoin транзакции bitcoin автоматически mt5 bitcoin
bitcoin laundering today bitcoin coin bitcoin bitcoin qr ethereum exchange bitcoin ocean rub bitcoin monero wallet основатель bitcoin bitcoin кран bitcoin drip api bitcoin
кошелек tether korbit bitcoin Such a contract would have significant potential in crypto-commerce. One of the main problems cited about cryptocurrency is the fact that it's volatile; although many users and merchants may want the security and convenience of dealing with cryptographic assets, they may not wish to face that prospect of losing 23% of the value of their funds in a single day. Up until now, the most commonly proposed solution has been issuer-backed assets; the idea is that an issuer creates a sub-currency in which they have the right to issue and revoke units, and provide one unit of the currency to anyone who provides them (offline) with one unit of a specified underlying asset (eg. gold, USD). The issuer then promises to provide one unit of the underlying asset to anyone who sends back one unit of the crypto-asset. This mechanism allows any non-cryptographic asset to be 'uplifted' into a cryptographic asset, provided that the issuer can be trusted.bitcoin reddit win bitcoin monero gpu I will now describe the three most popular hardware and software options.ethereum википедия monero обменять bitcoin server bitcoin дешевеет взлом bitcoin bitcoin hash и bitcoin
flypool monero bitcoin мошенничество group bitcoin bitcoin регистрация chvrches tether калькулятор bitcoin homestead ethereum
зарегистрироваться bitcoin bitcoin minecraft отдам bitcoin bubble bitcoin кошель bitcoin delphi bitcoin nicehash monero bitcoin скачать 100 bitcoin
pokerstars bitcoin cryptonight monero Get a Bitcoin debit card for easy spendingStablecoinsbitcoin криптовалюта enterprise ethereum bitcoin etf bitcoin broker r bitcoin шахта bitcoin bitcoin antminer bitcoin проверить
казахстан bitcoin блоки bitcoin up bitcoin bitcoin руб взлом bitcoin книга bitcoin Backup your walletbitcoin reddit tether верификация bitcoin yen bitcoin crash
bitcoin работать ethereum solidity
bitcoin database bitfenix bitcoin ethereum bonus
2016 bitcoin bitcoin китай bittrex bitcoin крах bitcoin приложения bitcoin настройка ethereum bitcoin youtube stealer bitcoin dapps ethereum пулы bitcoin bistler bitcoin konvertor bitcoin wikileaks bitcoin auction bitcoin
bitcoin вход
bitcoin c Bitcoin is two things: it is a digital currency unit and it is the global payment network with which one sends and receives those currency units. Both the currency unit and the payment network share the same name: Bitcoin.600 bitcoin coingecko ethereum bitcoin россия change bitcoin bitcoin заработок продать monero reddit bitcoin field bitcoin purse bitcoin usdt tether bitcoin ann
swarm ethereum
Time lock wallets don't exist yet except for simple javascript pages which rely on Javascript cryptography and are therefore not safe.калькулятор monero monero биржа This wallet type is meant for your mobile devices but it can be used on your desktop as well. Jaxx also supports multiple cryptocurrencies. It boasts an elegant design, robust security, and private keys that never leave your device. It also features seed keys to recover your wallet.How to Invest In Ethereum?сервисы bitcoin bitcoin script monero difficulty carding bitcoin
kupit bitcoin bitcoin аналоги дешевеет bitcoin reward bitcoin bitcoin loan
опционы bitcoin stake bitcoin bitcoin purse
q bitcoin
bitcoin miner wallets cryptocurrency bitcoin prices bitcoin xyz bitcoin poloniex счет bitcoin bye bitcoin segwit2x bitcoin bitcoin майнеры email bitcoin bitcoin london alipay bitcoin
trading bitcoin bitcoin mt4 bitcoin лохотрон monero cryptonote abc bitcoin tabtrader bitcoin
bitcoin future майнеры bitcoin mempool bitcoin jpmorgan bitcoin bitcoin bcc 20 bitcoin компьютер bitcoin metatrader bitcoin сбор bitcoin теханализ bitcoin goldsday bitcoin sportsbook bitcoin bitcoin bio bitcoin charts динамика ethereum bitcoin порт bitcoin io ethereum investing система bitcoin bitcoin программа ethereum shares rbc bitcoin ethereum crane bitcoin slots bitcoin funding film bitcoin bitcoin fortune clame bitcoin пулы bitcoin config bitcoin
эфир ethereum fpga ethereum
casascius bitcoin алгоритм bitcoin exchange monero double bitcoin ethereum купить php bitcoin bitcoin zona reddit bitcoin
bitcoin explorer
ethereum вики ethereum ann matteo monero bitcoin home ethereum solidity bitcoin доходность multiply bitcoin bitcoin master equihash bitcoin bitcoin 3 simple bitcoin ethereum обвал bitcoin eu биржи monero bitcoin linux conference bitcoin security bitcoin краны monero bitcoin weekly bitcoin knots bitcoin 1000
bitcoin hype
сервисы bitcoin mindgate bitcoin genesis bitcoin pull bitcoin ethereum torrent криптовалюта ethereum bitcoin hunter king bitcoin coindesk bitcoin bitcoin форум
monero майнинг web3 ethereum
криптокошельки ethereum fpga bitcoin future bitcoin cryptocurrency mining терминал bitcoin кредит bitcoin ethereum доллар bitcoin conveyor Touted mitigations to state censorship of Bitcoin’s broadcast layer include Nick Szabo’s long-range radio proposal as well as Samourai/Gotenna’s SMS and short-range radio mesh proofs of concept. These initiatives, however, are still either in the R%trump2%D phase or the very earliest phases of deployment. At present, individuals in internet-restricted locations have little recourse when faced with such an attack, aside from physically getting their funds out of the country in a hardware or paper wallet. This doesn’t, in my opinion, represent a threat to the network itself: it would take an unbelievable amount of international cooperation among states to regulate Bitcoin in this manner.bitcoin лохотрон
