Ethereum What it is and how it works.

Ethereum is a programmable blockchain that has smart contracts, similar to bitcoin but with many more features. Smart contracts are programs that run autonomously and have their own local storage of ether (the cryptocurrency of the ethereum blockchain). You can think of them as computer programs that store and run other computer programs.

Ethereum programs are written as scripts called “smart contracts” or are written using code in the Solidity language. re is no way for people to cheat because the scripts are run through an automated process called mining, making it impossible for one person to undo the actions of another.

Fees for using the ethereum network are paid in ether. se fees incentivize mining, which is necessary to validate transactions and prevent denial of service attacks.

Ethereum was the first blockchain to use a hybrid proof-of-work / proof-of-stake consensus mechanism called “proof of activity.” This means that Ether can be created through both proof of work (PoW) and proof of stake (PoS). Proof of work ensures that blocks are always difficult for an attacker to create by requiring honest miners to solve puzzles. reward for mining blocks is paid to all people who successfully mined blocks. proof of stake rewards validators (ether holders) who have coins in their wallets and are in accordance with the rules of the network.

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blockchain provides a link to a database, the World Ledger. This database includes all transactions ever executed, allowing a user’s computer to verify the validity of each transaction, preventing them from spending money that is not theirs.

In this way, Ethereum works like a global computer, but nobody controls it. Ethereum’s value to its users lies in its ability to apply reliable business practices. It has the potential to provide an important foundation for more sophisticated applications.

Ethereum provides the ability to run decentralized applications, called “smart contracts,” which are based on blockchain technology.

Smart contracts are computer programs that run on the Ethereum blockchain. se can represent anything from financial transactions to legal agreements. Smart contracts allow users around the world to avoid certain problems when doing business online. y solve security problems, reduce costs, and eliminate third-party risk. Ethereum smart contracts are secure, irreversible, and transparent, making them ideal for many use cases in the financial industry. This technology can completely change the way users interact with businesses and governments around the world.

Ethereum has a sister blockchain, the Ethereum Classic chain, which was born after the hard fork on July 20, 2016. hard fork was the result of a hacker who found an exploit in the code that allows him to steal 50 million dollars in Ether, which is about half of your total fund at the time. hacker managed to get away with this exploit and conserve his funds. This event completely divided the Ethereum Classic blockchain from the Ethereum blockchain.

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community decided to keep the original version unchanged while redesigning one of the versions as ‘Ethereum Classic’. This resulted in an identical blockchain (and therefore its smart contracts as well), but with two different currencies (and therefore market values ​​as well).

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