Homework on Ethereum Intro

  1. Both Bitcoin and Ethereum use a Proof of Work consensus model. However Bitcoin uses SHA-256 and Ether uses ethash. Ethash has a block time of around 12 seconds compared to 10 minutes for Bitcoin. Ethash is also ASIC resistant. Furthermore Ethereum uses EVM to allow the network to deploy smart contracts. Additionally Ethereum intends to move to a proof of stake model in the near future.

  2. Smart contracts are read by the Ethereum Virtual Machine on each node in the network. This creates a buffer between the smart contract and the CPU on the computer hosting the node. This prevents a smart contract from deploying malicious code on computers hosting nodes.

  3. Deploying smart contracts across the Ethereum network makes them uncensorable and transparent.

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  1. Bitcoin and Ethereum do both work currently with PoW. Ethereum however is in the development process of switching to PoS. They use a different algorithm. Ethereum also uses gas to pay for code execution
  2. Smart Contracts executed in ethereum are ran in all the nodes and need consensus to be approved, and the code in each node is executed inside the Ethereum Virtual Machine which sandboxes the code to prevent malicious attacks
  3. Executing the code on many nodes in the ethereum network means that smart contracts can’t be altered and can’t be stopped. The need for consensus of results among the nodes improves reliability of results and security
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1 Ethereum use POW, but also have POS
2 Smart contracts are executed using the EVM, which ensure that the smart contract isn’t trying to perform malicious activity.
3 it more secure.

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  1. Eth uses different language, block time much faster in eth, and eth uses ethhash instead of sha256, eth made for different purpose basically.
  2. It is programmed to reach some kind of goal and when it meats the goal it gets executed, by the set rules of 2 parties. no middle man involved
  3. If all nodes have the information if you change it in 1 node the network will not agree because all the other nodes has different info.
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  1. Both use POW but Ethereum adds another level called EVM - making it possible to execute code on the network to allow for smart contracts. The EVM on all CPUs in the network need to read and execute the smart contract and come to the same result - consensus.

  2. In Ethereum EVM reads the smart contracs and tells what the CPU what to do.

  3. Security. Trustless environment. Greater transparancy.

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

Both ETH and BTC use PoW. ETH is however looking at switching to PoS in the future.

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

Smart contracts on Ethereum do not run on personal computers, but rather across a virtual network of computers, while be isolated from any person’s hardware.

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

No single point of failure.

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Homework on Ethereum Intro - Questions.

  1. From a consensus perspective, how is Ethereum different from bitcoin?
    -> both (still) PoW
  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    -> Smart Contracts in Ethereum are programms executed over a decentralized network.
  3. What are the benefits of executing the code on many nodes instead of just single computer/server?
    -> No single point of failure.Not stoppable. Immutable.
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  1. From a consensus perspective Ethereum uses proof of work, but it has a second layer which is the EVM, Ethereum Virtual Machine.

  2. A program, or a smart contract, on a normal computer is executed directly on the hardware, while in Ethereum the smart contracts are executed in the EVM, which is isolated from the hardware for security purposes.

  3. The benefits of executing the code on many nodes, or in a decentralized manner, is that the results are verified and malicious results are nullified.

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  1. In stead of checking balances, the nodes are checking if the all the instructions in the smart contract will lead to the same result.
  2. Each node will check the smart contract through its EVM for malicous activities, before commencing the concensus check.
  3. That there can be consensus, higher security, transparancy and no escrow needed.
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  1. From a consensus perspective, how is Ethereum different from bitcoin?
    In the near future, Ethereum will use the PoS (Proof of Stake) consensus mechanism.

  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    Smart Contracts use the EVM (Ethereum Virtual Machine) decentralized network to be more secure, as they do not execute directly on normal computers.

  3. What are the benefits of executing the code on many nodes instead of just single computer/server?
    It enhances security through transparency.

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1-From a consensus perspective, how is Ethereum different from bitcoin?
In Bitcoin you must comply with certain rules for the transition to be valid, in the case of ethereum you must comply with a condition or event for the transaction to take effect.

2-How are smart contracts executed in Ethereum compared to a normal computer?
It is a mini program in which there are events or conditions already specified to give a result (the transaction) and therefore do not need an intermediary just like a computer can do thousands of processes without the need for external manipulation.

3-What are the benefits of running the code on many nodes instead of just a computer / server?
Security, transparency since several nodes will give the approval to the transaction therefore diminishes or cancels the manipulation.

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Both Bitcoin and Ethereum use a PoW, they use a different algorithm and Ethereum is allowing for the building of decentralized applications to be built on top of it.

Smart contracts are executed using ethereum virtual machine.

Making the network secure, no central point of attack and decentralized

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  1. Ethereum uses EthHash instead of SHA256. Block time and size differs to Bitcoin
  2. smart contracts are executed via the EVM on the Ethereum network
  3. censorship resistance, immutable, no single point of failure
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Homework on Ethereum Intro - Questions.

  1. From a consensus perspective, how is Ethereum different from bitcoin?
    -Both uses PoW consensus mechanism, but Ethereum mining algo is different. Average blocktime for eth is 15sec which for btc is 10min. Eth changing to Proof of Stake consensus soon.
  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    -Smart contracts are executed in eth network
  3. What are the benefits of executing the code on many nodes instead of just single computer/server?
    -Security and integrity. Once the smart contract is done it can not be changed because it works in blockchain.
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  1. Currently, both Bitcoin and Ethereum reach consensus by using the proof-of-work protocol, and rely on miners to solve and create blocks, which are then validated by a network of nodes before being added to the blockchain. There are some small differences in the mathematical puzzle which miners have to solve: Ethereum uses the Ethash algorithm and the Keccak-256 hash function, whereas Bitcoin uses SHA-256. Ethereum is also planning to move to proof-of-stake in the near future.
    The Ethereum Virtual Machine (EVM) also adds an additional layer to Ethereum’s consensus mechanism. The EVM is a program which runs on each node in the network and enables consensus to be reached on the operation, results and state of the smart contracts deployed on the Ethereum blockchain.

  2. In a normal computer, programs are executed directly by the computer’s CPU.
    In Ethereum smart contracts are executed by the EVM on each of the network’s nodes, and only indirectly by each node’s CPU, which receives instructions from the copy of the EVM running on that particular computer.

  3. Benefits of executing the code on many nodes instead of just a single computer/server:
    - Decentralised: trustless; no middlemen; confidence to carry out business and financial transactions with complete strangers;
    - Transparency: verifiable; prevents manipulation, fraud, corruption and nepotism;
    - Security: no single point of failure; tamper-proof; EVM reduces the risk of malicious code attacking individual computers/servers; data stored on the blockchain is less vulnerable than data stored on a third-party server;
    - Unstoppable;
    - 24/7/365

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  1. Ethereum is switching to Proof-of-Stake, whereas Bitcoin uses Proof-of-Work.
  2. Smart contracts are executed by each validating node throughout the network, as opposed to just once on a single machine.
  3. No central point of failure, not easily compromised by a single malicious entity or act of nature, and (mostly) immutable.
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  1. From a consensus perspective, how is Ethereum different from bitcoin?
    Both use PoW but the difference lies in the mining algorithm. While Bitcoin uses SHA-256, Ethereum uses Ethhash
  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    They are executed on the EVM; a runtime environment for Ethereum based smart contracts which leverages on multiple nodes that run on their own computers.
  3. What are the benefits of executing the code on many nodes instead of just single computer/server?
    To ensure security, transparency and maintain trust.
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This an answer from one of the participant

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 perspektive Ethereum uses smart contract and have a Touring complete blockchain. Boath is having consensus based on Proof of Work.
    Just as you can´t change a preveaus transaction in bitcoin, you cant change a smart contract.

  2. A smart contract is executed by programming the smart contracts to make for example a transaction when some issue is solved or some predefined prerequisites are met.

  3. If the code is executed on many different areas of the world and the Blockchain is decentrallized then it will becom censorship resistance. This means that even if they cut internet in the whole China, the blockchain will survive. Even if they jail miners in sweden, China, USA and North Korea, the blockchain will most probably survive. By making it open source everyone can read avd veryfi the code and the contracts, making it transparent.

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  1. Ethereum differs from bitcoin in its consensus algorithm by using Ethash instead of SHA256.

  2. In Ethereum smart contracts are executed with Ethereum Virtual Machine which acts as an interface between the blockchain and the CPU of individual computers.

  3. Benefits of executing code on many nodes instead of a single computer/server include, increased security, transparency, and eliminating trust concerns.

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