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.

  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.