Homework on Ethereum Intro

Homework on Ethereum Intro - Questions.

  1. From a consensus perspective, how is Ethereum different from bitcoin?

  2. How are smart contracts executed in Ethereum compared to in a normal computer?

  3. What are the benefits of executing the code on many nodes instead of just single computer/server?

I may do a start for this course, future students may append or improve on this post.

Both Bitcoin and Ethereum use proof of work consensus mechanism, however the underlying mining algorithmus is different. Eth uses Ethhash, whereas in BTC consensus is found via SHA256. Average block size and block time can be found on etherscan.io and are about 20 kB and 15 sec at the time of writing this post. Whereas in BTC blocksize is about 1 MB and block time is 10 min.

Smart contracts are executed within the ethereum network. This means each full node - i.e. a computer saving a copy of the blockchain needs to fully synchronize with the latest state of each contract in the whole network. So once a full node receives the command to execute a contract from state a to state b, the information has to spread in the whole network (globally).

Executing code on a distributed and decentralized network provides the benefits of having no central point of failure and censorship resistance. I.e. once code is deployed and executed there are no measures in place to stop execution.

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  1. Ethereum uses GPU friendly mining algo and is switching to POS.

  2. Smart contracts run on EVM

  3. The security and integrity of the code is higher due to all parties being able to verify it ran correctly.

Does it seem like these questions are on material covered later in the course? I’m pulling from the original fundamentals course and plagiarizing other student’s answers at this point, not from materials presented so far. It seems like the REAL intro video is missing.

@marsrvr Yes. I guess some technical error while they posted. @ivan @filip kindly have a look. Intro video is missing

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We are looking in to it!

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1. From a consensus perspective, how is Ethereum different from bitcoin?
Ethereum’s proof of work is different as transfers do not look at UTXOs, but rather update the accounts’ balances directly. There is no traceability of ETH other than the sending/receiving addresses. Also, block sizes and average block times differ. Lastly, GAS is used to create proportions for different actions in a smart contract (adding, dividing, etc.), which differs from Bitcoin which does not care about anything other than transaction fees. ETH intends on moving towards a PoS model in the future.

2. How are smart contracts executed in Ethereum compared to in a normal computer?
Smart contracts are executed using the EVM (ethereum virtual machine), which ensures that the smart contract isn’t trying to perform any malicious activity on the node’s computer. The node keeps track of the smart contract and the current state of said contract.

3. What are the benefits of executing the code on many nodes instead of just single computer/server?
No central point of attack, making the network more secure. It also provides the gateway to immutability as any changes to records already agreed upon by the nodes (balances & smart contract states) would be identified by the other nodes supporting the network.

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  1. From a consensus perspective, how is Ethereum different from bitcoin?

Ethereum makes smart contracts possible, Every node has EVM, to read smart contracts, to have the results.

  1. How are smart contracts executed in Ethereum compared to in a normal computer?

In Ethereum smart contracts are read by EVM, then EVM tell the CPU to execute the smart contracts.

A normal Computer is CPU directly to read and execute the program.

  1. What are the benefits of executing the code on many nodes instead of just single computer/server?

More security. The whole network can keep the same states. Consensus also build on this.

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  1. From a consensus perspective, how is Ethereum different from bitcoin?

Bitcoin uses UTXO’s and ETH uses balances. ETH was the first to implement Smart contracts. Bitcoin and Ethereum both have POW, Bitcoin is SHA-256, Ethereum uses ethash. ETH wil move to POS (maybe also progpow inbetween).

  1. How are smart contracts executed in Ethereum compared to in a normal computer?

Smart contracts are run in EVM’s (Ethereum virtual machine’s) in a sandbox like environment. These Evm’s are decentralised to the miners who execute the smart contracts.

  1. What are the benefits of executing the code on many nodes instead of just single computer/server?

It has an uptime of 24/7/365 & more secure

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Where’s the Ethereum intro video? The only one I seen was a 2 minute video with none of the questions discussed.

Sorry about that, the order was wrong. Here is the video https://ivanontech.teachable.com/courses/ethereum-101/lectures/10444416

No problem. Thank you and I’m really enjoying the courses so far

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