Hi everyone, and welcome to my Week 4 homework post for Professor @gbenga. I attended the lecture about Ethereum Blockchain and I have learned many new things, thanks to respected Professor @gbenga. So let's get started.

What is Ethereum?

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Ethereum can be termed as forefather of the decentralized applications. It is a computing platform that uses multiple nodes as it is a decentralized in nature. Ethereum is a platform where new decentralized applications can be created just like internet, but difference is only internet allows creation of applications based on centralized environment. Ethereum uses blockchain system and allows the creation and use of smart contracts.

Ethereum blockchain started in 2015 and its founder is Vitalik Buterin who started working on blockcahin system in 2012. He tried to contact Bitcoin magazine for some shortcomings in the system, but he noticed that no changes are being made in bitcoin blockchain. Then he came with new blockchain ideas and launched Ethereum Blockchain in 2015. Ethereum is the cryptocurrenchy of Ethereum Blockchain. It can be termed as a upgradation to the Bitcoin blockchain with many different features.
Bot networks uses blockchain technology, yet they are different from each other. Bitcoin came into being in 2009 and it was the first cryptocurrency in the world. Ethereum was launched in 2015 with some new improved features being used in Bitcoin Blockchain network. Ethereum also allows the developers to develop their own programs using this platform of Ethereum Blockchain.

How it works?

Ether is the native currency of Ethereum blockchain. Ehter runs on ethereum blockchain and can be used for many transacation purposes. As we know that blockchain is a ledger that allows people to store data on it. Similarly Ethereum uses the same blockchain technology allowing people to add and store data on it. Moreover, users can create their own applications through Ethereum blockchain. Now many organizations have created their own coins using ethereum blockchain. This blockchain uses Proof of stake consensus instead of Proof of work consensus mechanism used by Bitcoin network.

What is Proof of Stake

Bitcoin network that uses Proof of work consensus mechanism, it requires physical mining devices to validate blocks and it is a very expensive way of adding blocks on ledger. While proof of stake uses virtual consensus by selecting a node to forge a block. These nodes are chosen keeping in view different factors such as staking period and staking quantity of the node. These validators are rewarded with transaction fees.

Smart Contract.

Smart contract is a set of code that uses blockchain and is used to create a trustless protocol. Users involved in smart contract has to rely on and trust the code being run of blockchain. The system executes the contract only when both parties to the smart contract agrees with the terms of the contract. Every command is executed by smart contract hence a transaction is completed between two Ethereum addresses.

Mining of Ehtereum.

Mining can be termed as a process where complex mathematical problems on the blockchain are solved by computers by validating the transactions made on blockchain. Hashing is the term used for mining of Ethereum. A node with very fast hash speed can only mine Ethereum on the blockchain. Then miners are rewarded with the transaction fees and newly mined Ethereum.
ECR-20.

As we discussed earlier that Ether (ETH) is the native cryptocurrency that runs on the Ethereum blockchain. It was also launched in 2015 alongwith the blockchain. Pre-mined coins were 72 million at the time of launch of this blockchain network.

One of the major purposes of Ehtereum was to allow users to create tokens for different dApps using this blockchain network. These tokens are known as ECR-20 tokens. A lot of companies have issued their own tokens using Ethereum Blockchain like Huobi Tokens issued by Huobi exchange.
Another term that is being used now a days is Ethereum Gas, and it refers to the fee paid for a transaction to be process on Ethereum Blockchain. This fee is determined by the miners. A transaction is not possible on the blockchain without gas. The term used for Gas is gwei.

What are Ethereum Nodes

Nodes are used to validate different transactions being made on this blockchain. These nodes run independently as it is a decentralized environment but it requires identical copies of the blockchain to run these nodes. There are softwares like Geth and Parity that are used to run nodes. There are two kinds of nodes used in Ethereum blockchain.

1. Full/Client Nodes. These nodes require specialized hardware such as GPUs and ASICs. These nodes are used to store the blockchain data as well as validate and verify blocks.
2. Ethereum Light nodes. As it is a decentralized network, anyone can work on this network using nodes but here are users who cannot run full nodes, light nodes can also be used for this purpose. Light nodes include computer, laptop or mobile devices. These nodes require fewer resources and lower computing space for validating blocks. Full nodes supply necessary information to light nodes as these nodes are unable to sync with the blockchain.

Ethereum Plasma.

Ethereum plasma is the framework of secondary chains that communicates with main blockchain. Ethereum plasma is used to solve the scalability problems on Ethereum blockchain. It operates like a blockchain tree. In this way various smaller chains can be created on main blockchain. This plasma is built on smart contracts and merkle trees that creates unlimited number of smaller chains.

Conclusion

Ethereum blockchain is an upgraded form of blockchain that was being used by Bitcoin network. It has added some new features on the blockchain network. It has given the users ability to create their own tokens.

Thanks in anticipation.

@steemitblog

@steemcurator01

@steemcurator02

@gbenga

Regards,

@mawattoo8