Ethereum is a blockchain based distributed computing platform that enables developers to build and deploy their decentralized applications.
Features of Ethereum :-
Features of Ethereum :-
- Cryptocurrency
- Smart Contract
- Ethereum Virtual Machine
- Dapp
- DAO
Cryptocurrency :-
Ether (ETH) is a cryptocurrency that runs Ethereum network.
- It is used to pay for the computation resources and transaction fees on the Ethereum network.
- like Bitcoin, Ether is also a peer to peer currency.
- Apart from paying for transactions.Ether is also used to buy gas, which is used to pay for computation.
- Ether can be utilized for building decentralized applications, smart contracts and making standard peer to peer payments.
Smart Contract :-
- A smart contract is a computer program that facilitates the exchange of money, shares, property etc..
- It contains the terms and conditions of a mutually agreed contract between the peers.
- For the verification process, smart contract is carried out among anonymous parties of the network without the need of a central authority.
- It provides the transfer of any asset or currency in a transparent and trustworthy manner.
- Agreement
- Third Party for execution
- Data tampering is possible
- Agreement coded in a program
- Result is verified by users of Ethereum blockchain network.
- Once a contract is executed, it cannot be tampered.
Note :- EVM is a runtime compiler to execute smart contract code
Ethereum Virtual Machine :-
EVM is a virtual machine designed to operate as a runtime environment for Ethereum based smart contracts.
Note :- EVM is operated in a sandboxed environment (isolated from main network). This is perfect testing environment.
- Any programming language in the smart contract is compiled into 'bytecode'.
- The bytecode can be read and executed using an Ethereum feature called Ethereum Virtual Machine (EVM).
- EVM guarantees security by preventing cyber attacks.
Note :- All the nodes on Ethereum network execute smart using their EVM's.
DAPP :-
- A Dapp (decentralized application) consists of backend code that runs on a distributed P2P network.
- It is a software designed to work on an Ethereum network (without being controlled by a centralized system).
- It provides direct interaction between end users and providers.
- An application qualifies as Dapp when it is open sourced and uses tokens.
Note :- Dapp allows the backend code and data to be decentralized.
DAO :-
- Dcentralized Autonomous Organization is a digital organization that aims to operate without the need of hierarchical management.
- It exists on the blockchain network where it is governed by its protocols and rely upon smart contracts.
- It manages business decision through smart contracts or voting system.
How its works?
- People add funds to the DAO
- Based on that, each member is given a token which represents the percentage of shares in the DAO.
- These tokens are used to vote in the DAO where the proposal status is decided based on maximum votes.
The first thing you have to do is sign up in the crypto bitcoin market, which will provide a place to store your digital currency as well as payment methods.
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