Ethereum Blockchain and Smart contracts by @alihussain07 | Supporting #burnsteem25

Ethereum is a decentralized platform that runs the smart contracts exactly the way they are programmed without any time fraud, third party interference and also has its own cryptocurrency called Ether. Ethereum aims to enable innovations in three key areas that includes currency issuance through Either which serves as in the innate currency for the Ethereum blockchain. The second is DAO(Decentralized Autonomous organization) and third is smart contracts.

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Features of Ethereum Blockchain

• Because it is nearly impossible to alter the transaction in the block or introduce any fraudulent blocks into the network, it is secure.
• Ethereum's community is its second distinguishing characteristic. People from all across the world are paying close attention to Ethereum.
• The third characteristic of Ethereum is its structure, which is business-friendly. Several corporations are using the platform to test and develop a variety of applications.
• The possibility of generating new assets on a blockchain, which can be used as money, a representation of an asset, a virtual share, a proof of membership, or anything at all, is the fourth aspect we'll examine.
• The ability of Ethereum to process transactions quickly is the following feature. While Bitcoin required a block of 10 minutes, Ethereum only needs a few seconds.
• The fact that Ethereum is uncensored is the final benefit. Every transaction may be seen in full transparency thanks to the open source Ethereum network.

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Concept of GAS in Ethereum

If we talk about the the blocks in Ethereum then Gas is the fundamental block of the Ethereum ecosystem which is paid for every operation that is performed on the Ethereum blockchain. We can say it a crypto fuel for the Ethereum blockchain. In other words it is the transaction fee which is paid when one party send the Ether token to another party. When a person deploys a smart contract on the ethereum blockchain, and the transaction fee is need to be paid for that also.

This payment is compulsory regardless of the transaction successful or fail to proceed. The Gas price is expressed in Either. The miners decided to fail or success the transaction is based on the GAS price. If someone talk about the Gas there would be two concept here which are gas prices and other is gas limit. The overall cost of the transaction is the product of gas limit and the gas prices , the gas limit can he defined as the maximum amount of unit that a gas one is willing to spend on a single transaction.

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Ether token

Ether is the name of Ethereum's own currency. The platform's client pays it as a reward for carrying out desired procedures. It guarantees that programmers produce error-free code. The cost will go up because there are extraneous codes. Ethereum is a platform built on the blockchain, and ether is the cryptocurrency that powers it. It is frequently written as ETH.

Comparison between Bitcoin and Ethereum

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Bitcoin	Ether
Bitcoin secure hash algorithm (SHA-256	Ethereum uses ethash algorithm
Used for purchasing goods and services	Used for making decentralized apps.
Its price is $23500 at the moment	it's price is $1600 at the moment.
A currency created to compete against the gold and fiat currency	A token created for facilitating smart contracts.
Transaction speed is measured in minutes	Transaction speed is measured in seconds.

Ethereum Wallets

Wallets is a place where we can secure our ether. Basically a wallet stores the means of accessing your currency using the private key. Ethereum wallets include hardware wallet, Desktop wallets, Mobile wallets and paper wallets.

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Ethereum Virtual Machine

Etherium Virtual machine abbreviated as EVM is an engine which executes translation code smart contracts are compiled into byte code which an EVM read and execute. Ethereum Virtual machine can be regraded as a quasi Turing complete machine. It possess its own programming language known as EVM bytecode.

As the code which we have to write in high programmable language that can be complied to EVM bytecode. Opcodes is the specific types of instructions that EVM machine used. This instructions used for specific program to execute. When a user do the transaction from desktop wallets as 5/8 then the desktop wallets send this transaction message to the the machine that is called EVM. After that it connect to the wallet adress that is given on the platform of Ethereum.

Ethereum Languages

As I discussed earlier that bytecode is the specific language of the Ethereum. The contracts that are done first goes into EVM and then transfer to Ethereum blockchain in order to execute. The are different types of language related to Ethereum blockchain which includes Solidity which is considered as object oriented and also very high level of language which is used in smart contracts for its implementation.

This language is influenced by the number of programmable language such as C++, JavaScript and python. The another type of language that the Ethereum blockchain uses is low level Lisp . Lisp is the original language of the smart contracts program. It is almost the simplest and minimalistic type of language. The next type of language that we deal in Ethereum blockchain is VIPRE which is also influence by Payton.

The next language os serpent language which is used as a purpose of complied the code in the EVM machine. The next type of language is the Mouton and it is dynamically full high level of language that is similar to C language. The last language of the Ethereum blockchain is the Julia which is considered as an intermediate language that is used to complies different backend in EVM machine.

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Consensus Mechanism of Ethereum for Mining

Ethereum blockchain rely on the proof of work mechanism in order to confirm its security. This consensus mechanism is used in Ethash that was discussed earlier. During each of the time the transaction in Ethereum blockchain are madea miner confirm the authentication of the information that was given during the transaction and also updating the blockchain with the transaction that was done.

If we want to understand it with an example where if one person want to send 2/8 to another person so the process that will takes place during this transaction can be followed as
When 1st person make attempt to send 2/8 to other person and once the transaction of 1st person is intiated and then this transaction will combine with those transaction which takes place in the very last block.

After that the minor work strat,they have to validate the authentication of the block with another new set of instructions. Aftwr the process of validation the minor will create a new set block and also its reward will also came for his work. And after the 2nd person will receive the crypto currency after the process of validation. In Ethereum mining there are two things to be notes the first is transaction list and the other is recently what is the state of the ledger.

Ethereum Decentralized Applications

As the name shows the applications based on decentralized mechanism which does not required the trust of middle man so in this way the failure that takes olace due to single point is avoided. These decentralized application run on the peer to peer network system. The security of the these application which are present in Ethereum blockchain are ensure by cryptographic security mechanism.

These decentralized application are always open and anyone can verify the content of the software. If we talk about different properties of Ethereum Decentralized Applications these are.

• For the development program Ethereum Decentralized Applications uses the Ethereum as network.
• Blocks are encoded cryptographically in order to ensure their security.
• As it is decentralized so this is also not handled by the central or middle man.
• No one can create as same the copies of the decentralized apps.

Advantages of Ethereum Decentralized Applications

The advantages of the Ethereum Decentralized Applications are given as

• As the Ethereum Decentralized Applications have distributed network so that its stability is improved due to distributed network.
• There is also an increase in the reliability.
• The reward system after the mining is given to the minor automatically.
• As Ethereum blockchain is highly secure and it is not so much in downtime.
• As the most important thing is that there is not involvement of third party.

Examples of Dapps

These example of Ethereum Decentralized Applications include

• Weifund
• Kyc.CHAIN
• 4G capital
• Storj.IO

Decentralized Autonomous organization of Ethereum Blockchain

This DAO system is a kind of voting system with the help of token that are distributed among the users of Ethereum native token and blockchain. The potential of the blockchain is also understand with the help of decentralized autonomous organization system. This system basically runs on the rules and regulations that are formed by the consensus process or algorithm. This agreement takes place between the blockchain and user of the blockchain and are written as a set of contracts that runs through blockchain.

Technical analysis of Ether token

Now I will do technical analysis of Either token by using different strategies such as support and resistance, and by using different indicators such as Triple Exponential Moving Average, RSI , parabolic SAR and Exponential Moving Average with different average days closing price.

Support and Resistance

Support and resistance are those points from where the price of an asset keep on rotating. Resistance is an area where the number of seller increase and support is an area where the number of buyers increase.

It is also happened that when the previous resistance is break it becomes new support level and when some support level is break it becomes the new resistance level. In above screen shot you can see that support and resistance level are drawn and price keeps on fluctuating between these levels.

Parabolic Stop and Reverse Indicator

It is another type of simple and easier to understand indicator. In this indicator the price of an asset when change the dots that are above and below are also change its position. When dots are above means that market is going down and when dots are below means market is going up.

Here in the above screen shot it can be seen that when dots are above the price action the price of Ether keeps on declining and when dots are below the price lines of ether when market is going upward.

Triple Exponential Moving Average Indicator

Triple Exponential Moving Average Indicator is a type of special indicator which indicates the bullish and bearish behavior of the market with the help of single line. TEMA is actually the combination of three indicators that includes two exponential function and one simple moving average function.

Here in case of ether token we can see that when the TEMA line is below the trend line as see in the last of the graph then price will go up and when the TEMA line is above the price line and price of Ether will go down.

Conclusion

So in conclusion I would like Ethereum is Decentralized platform and its native token is Ether. Whenever we talk about the price, market value of assets then we are actually talking about the Ether token. In the strat of ether when It was launched in 2014 its price was only 0.31 cents but now it increase up to many folds. The transaction speed of Ethereum platform is also very high as compared to the the bitcoin.

Ethereum blockchain works on the proof of work algorithm. The are different languages of the Ethereum Blockchain on which the smart contracts are written. There are four kinds of Ethereum wallets that are used now a days. Although now a days the market of cryptocurrency is lower but I think so ether has a great ability to bounce back again.

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