How Ethereum works

 Now that we've explained what Ethereum is , let's dive deeper into how does Ethereum work? .

So how does Ethereum work?

How does Ethereum work? The answer starts with using Ethereum for apps or Dapps that don't require a single entity to store or control their data. Just like Bitcoin, Ethereum relies primarily on the Bitcoin protocol and its blockchain design, but goes beyond it to support applications instead of money. So that developers can create new proprietary applications and rules as well as alternative transaction formats.

Currently, Ethereum is based on a programming language called 'Turing-complete', as this language allows developers to write more programs that enable blockchain transactions to control and automate specific results.

 

This flexibility may be the fundamental innovation of Ethereum, as explained in “ Smart Contracts ”.

The Ethereum blockchain?

The structure of the Ethereum blockchain is very similar to that of Bitcoin in that they have a common record of recording all transactions. Every node on the Ethereum or Bitcoin network has a copy of the history of these transactions.

The difference with the Ethereum blockchain is that the nodes store the latest states of all smart nodes as well as all Ether transactions. As for every application, the network needs to track the 'state', or current information of all these applications, including the balance. Each user has all the smart contract codes and everything is stored.

Whereas, Bitcoin uses unspent transaction outputs to keep track of who has Bitcoin and how much.

This may sound complicated, but the idea is very simple. Whenever a Bitcoin transaction is executed, the network "splits" the total amount of the transaction, issuing Bitcoin again in such a way that the data behaves similarly to fiat currencies.

Ethereum, on the other hand, uses accounts. Like a bank account, Ether tokens appear in your wallet, and they can be sent to another account. That is, the funds are always in an account that are not separated or destroyed, such as Bitcoin.

What is the default machine for Ethereum? (Ethereum virtual machine)

With Ethereum, every time a transaction is executed a network of thousands of computers processes it. Contracts written in the nodes' intelligent programming language are compiled into bytecode, which can be read and executed in a so-called Ethereum virtual machine.

Remember that every node in the network carries a copy of the transaction and the history of the smart network contract, in addition to tracking the current “State”. Every time you save modifications, add notes or delete them, every node on the Ethereum network documents that change, and it is confirmed by decentralized miners, not as is the case with Paypal and banks... where the changes are confirmed centrally.

 And as explained in “ How to mine ,” miners are the ones who prevent bad behavior - such as ensuring that no one spends their money more than once and rejecting smart contracts that have not been paid for.

The actual account virtual machine Atriom Ethereum checks the language of smart programming contract in the "Batakod" ' the bytecode ' is a zeroes and units that can computers only read, but developers can write contracts Smart  Smart Contracts  using other languages , such as the language of Solidity and Serpent , which makes it easier for humans Read and write it.

 You might be thinking, isn't that much more expensive than a regular account? Yes it is. For this reason, the network cannot be used for specific use cases.