Blockchain is a distributed ledger technology that keeps a permanent, tamper-proof list of records. It has its own native cryptocurrency called Ether and a programming language called Solidity. This means that it's safe to send transactions with a gas limit above the estimates. Ethereum is an open source, distributed software platform based on blockchain technology. All gas not used by transaction execution is reimbursed to the sender as Ether. If the gas expended reaches the gas limit before the transaction is completed, the transaction does not go through and the fee is still lost. If the total amount of gas needed to process the transaction is less than or equal to the gas limit, the transaction is processed. Miners have the choice of including the transaction and collecting the fee or not. Every transaction must include a gas limit and a fee that the sender is willing to pay for the transaction. All nodes on the network do the same calculations to keep their ledgers in sync. In block verification, each node goes through the transactions listed in the block they are verifying and runs the code as triggered by the transactions in the EVM. All nodes on the network run the EVM as part of the block verification protocol. To do this, Ethereum implements an execution environment on the blockchain called the Ethereum Virtual Machine (EVM). When a transaction triggers a smart contract, all nodes of the network execute every instruction. There are roughly 118 million ether outstanding, and each ether is worth approximately 2,400. It is the second-largest cryptocurrency by market cap and the most valuable smart contract platform (see Exhibit 1). In the future, the backwards-compatible Ethereum 2.0 protocol, currently under development, will provide a more scalable network on which to build decentralized applications that require higher transaction throughput. Six years after its launch, Ethereum, as of January 21, has a market capitalization of 332 billion. Ethereum’s large user base encourages developers to deploy their applications on the network, which further reinforces Ethereum as the primary home for decentralized applications like DeFi and NFTs. This maturity also extends into the quality of user-experience for the average user of Ethereum applications, with wallets like MetaMask, Argent, Rainbow and more offering simple interfaces through which to interact with the Ethereum blockchain and smart contracts deployed there. Decentralized application developers who deploy smart contracts on Ethereum benefit from the rich ecosystem of developer tooling and established best practices that have come with the maturity of the protocol. Ethereum offers an extremely flexible platform on which to build decentralized applications using the native Solidity scripting language and Ethereum Virtual Machine.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |