This is an article created on 2018-05-29 09:39:57, and the information in it may have developed or changed.
Ethereum smart contract
Ethereum is a distributed computing platform. It will generate a cryptocurrency called Ether. Programmers can write "smart contracts" on the Ethereum blockchain, and these Ethereum smart contracts will automatically execute according to the code.
What is Ethereum?
Ethereum is often compared to Bitcoin, but the situation is different. Bitcoin is a cryptocurrency and a distributed payment network that allows Bitcoin to be transferred between users.
Related: What is Bitcoin? How does it work?
The Ethereum project has bigger goals. As the Ethereum website states, "Ethereum is a distributed platform that runs smart contracts." These smart contracts run on the "Ethereum Virtual Machine", a distributed computing network composed of all devices running Ethernet nodes.
The "distributed platform" part means that anyone can build and run an Ethereum node, just as anyone can run a Bitcoin node. Anyone who wants to run a "smart contract" on a node must pay the operators of these nodes in Ether, a cryptocurrency related to Ethereum. Therefore, the person running the Ethernet node provides computing power and gets paid in Ethernet, which is similar to the way that the person running Bitcoin node provides hashing power and pays in Bitcoin.
In other words, while Bitcoin is just a blockchain and payment network, Ethereum is a distributed computing network whose blockchain can be used for many other things. Details are provided in the Ethereum white paper.
What is ether?
Ethernet is a digital token (or cryptocurrency) related to the Ethereum blockchain. In other words, Ether is the token and Ethereum is the platform. However, these terms are now often used interchangeably. For example, Coinbase allows you to purchase Ethereum tokens, which represent Ethereum tokens.
This is technically "altcoin", which actually means a non-bitcoin cryptocurrency. Like Bitcoin, Ether is also supported by a distributed blockchain-in this case the Ethereum blockchain.
Developers who want to create applications on the Ethereum blockchain or Ethereum smart contracts need Ethernet tokens to pay nodes to host it, while users of Ethereum-based applications may need Ethernet to pay for those applications Service charges in. People can also sell services outside the Ethereum network and accept Ethernet payments, or they can sell Ethereum tokens in the form of transactions-just like Bitcoin.
Why are distributed applications interesting?
Ethereum blockchain application
The Bitcoin blockchain stores the history of Bitcoin transactions, and that's it. The Ethereum blockchain stores Ethereum tokens in people's wallets, but it also stores the latest status of each smart contract and the code of each smart contract.
The blockchain is a distributed ledger stored in multiple locations, so this means that smart contract data is stored by those Ethereum nodes. If you create "smart contracts" (also known as applications) on the blockchain, they are stored and run in a distributed manner.
For comparison, consider the many applications we use today. This includes email applications such as Gmail, note-taking applications such as Microsoft OneNote, and any other applications that use the application and store data on a company server. If the company storing the data bans your account, closes the application, or goes out of business, you will lose all data in the application unless you have an offline backup copy.
If you are using an application built on Ethereum, the code that makes up the application (smart contract code) and personal data (the state of the smart contract) will be stored in the blockchain. Whenever you use the application and change data, all Ethereum nodes update the status of the smart contract. This means that the absence of a central "point of failure" may prevent you from accessing data or closing applications you use. Your data and the code of the application itself will be backed up globally, and no one can take all of these memos offline. Of course, your data will be encrypted via the blockchain, so no one else can read it.
What is a smart contract?
Smart contracts are applications that run on the Ethereum virtual machine. This is a distributed "world computer" with computing power provided by all Ethereum nodes. Any node providing computing power will pay with Ether digital currency as a resource.
They are named smart contracts because you can write "contracts" that are executed automatically when the requirements are met.
For example, imagine building a Kickstarter-like crowdfunding service on top of Ethereum. Someone can build an Ethereum smart contract to pool funds to others. This smart contract can be written like this: When $ 100,000 of currency is added to the pool, it will all be sent to the recipient. Alternatively, if the $ 100,000 threshold is not reached within a month, all currencies will be returned to the original holder of the currency. Of course, this will use ether instead of dollars.
All of this will be based on smart contract codes, which can automatically execute transactions without the need for trusted third parties to hold currency and sign transactions. For example, Kickstarter charges a 5% fee on top of the 5% payment processing fee, which means a fee of $ 8,000 to $ 10,000 will be charged on a $ 100,000 crowdfunding project. Smart contracts do not require payment to third parties like Kickstarter.
Smart contracts can be used for many different things. Developers can create smart contracts to provide functionality to other smart contracts, similar to how software libraries work. Alternatively, a smart contract can simply be used as an application to store information on the Ethereum blockchain.
In order to actually execute smart contract code, someone must send enough Ethernet tokens as a transaction fee-how much depends on the required computing resources. This has paid the price for Ethereum nodes to participate and provide computing power.
One of the most well-known applications built using smart contracts on the Ethereum network is CryptoKitties, which claims to be "the world's first game built on blockchain technology."
Essentially, CryptoKitties is a digital "collectible" form stored on the Ethereum blockchain. CryptoKitties provides a good demonstration of the ability to store and exchange digital items on the Ethereum network.
The new CryptoKitties are generated by "breeding". This involves choosing two basic CryptoKitties and spending Ether tokens to run smart contracts. The contract uses two selected cats to generate a new CryptoKitty. Details of these kittens and breeding processes are stored on the public ledger of the Ethereum blockchain.
You can "own" CryptoKitties, which are stored in the Ethereum blockchain ledger. You can sell or trade it to others, or you can buy it. This is different from using a smartphone app that allows you to buy, trade, and breed cats. These are usually stored on the application's own server, and precious precious pets can be lost if the company closes the application or bans your account. However, because CryptoKitties is stored in the blockchain, it does not happen. No one can take your kitten away.
December 2017-Coincidentally, near the all-time high price of Bitcoin, people spent more than $ 12 million in Ether fees for CryptoKitties, while the most expensive CryptoKitty sold for about $ 120,000.
Like Ethernet, Bitcoin, and expensive paintings, CryptoKitties is worth people preparing to pay for them.
Original: howtogeek.com/350322/what-is-ethereum-and-what-are-smart-contracts Author: Chris Hoffman
The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion;
products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the
content of the page makes you feel confusing, please write us an email, we will handle the problem
within 5 days after receiving your email.
If you find any instances of plagiarism from the community, please send an email to:
info-contact@alibabacloud.com
and provide relevant evidence. A staff member will contact you within 5 working days.
