Homework on Ethereum Intro

  1. Their is no difference. At the moment both are PoW.
  2. Smart Contracts are read (executed) by an EVM which in turn instructs the CPU.
  3. Sounds inefficient but probably to ensure its execution.
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Could’nt find video. But no worries will answer the best I can.

  1. Bitcoin follows a Proof of Stake (PoW) protocol.
    Ethereum currently follows a PoW protocol but one day is planned to utilize a Proof of Stake (PoS) protocol. BTC is dependent on a brute force approach to consensus performed by centralized power houses running ASIC’s processors. Ethereum is less dependant upon CPU computation and is more reliant upon computations being solved through accessible memory found in GPU’s. Bitcoin utilizes cryptographic puzzles with changing difficulty which miners compete to solve. These computations will then be verified by the rest of the network completing the block.
    Ethereum on the other hand in the future will utilize proof of stake. Allowing those who have the most invested in the network to have the most influence in regards to mining from the network. Simultaneously decreasing the dependency upon expensive hardware and a cheap power source. (hydroelectric regions)

2.Ethereum is able to execute a smart contract without third party approval. The code embedded in the smart contract itself will activate when conditions are met by all involved parties. Because of the blockchain nature ($ETH has a designated market value which a smart contract can identify) of the ethereum network there is no third party required to verify something of value has been secured to close the contract. In a normal computer you would need a third party individual to confirm that the money required for the contract has been placed in escrow for example.

  1. By executing a code on multiple nodes it eliminates a single point of error. It also makes it all but impossible to tamper with the transfer of value across a contract, without other nodes in the network identifying that the encoded values do not compute. You cannot cook the books so to say because the redundancy of nodes and game theory encourage ethical interrelation.

These are my best descriptions from my own research.

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  1. While Bitcoin is a static system, Ethereum is an interactive infrastructure where we can execute programs on the blockchain. The consensus principles are the same as bitcoin; trust without trust.

  2. Ethereum smart contracts are non-retroactively modifiable. They run on the blockchain and are transparent ( for all to see and verify ). They allow a program to own and allocate capital, making many middlemen obsolete! A normal computer can run programs without even connecting to a network.

  3. We have a full transparency and immutability. That means that people in power will have to put their money where their mouth is when executing on promised performance, because their actions are on the blockchain under everyone’s scrutiny. This technology will bring a lot of innovation ( and off course backlash ) with it.

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  1. From a consensus perspective, how is Ethereum different from bitcoin?
    The both use POW, although eth is moving to POS. They differ in hashing algorerithm where bitcoin uses SHA-256 and eth uses ethash.

  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    Smartcontracts are executed in a VM on multiple eth-nodes. A normal program is executed directly on one machine.

  3. What are the benefits of executing the code on many nodes instead of just single computer/server?
    So you can be sure the code will be executed and can be sertain that it’s done right.

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1 From a consensus perspective, how is Ethereum different from bitcoin?
Ethereum differs in that bitcoin is only concerned with transactions purely. Ethereum’s consensus is an accounts base model that facilitates smart contracts as well as transactions as appose to the UTXO model with bitcoin. Revert back to “bitcoin & ethereum blockchain” and mining!

2 How are smart contracts executed in Ethereum compared to in a normal computer?
Smart contracts are executed on the EVM in ethereum and then sent to the CPU. In a normal PC everything is executed on the CPU.

3 What are the benefits of executing the code on many nodes instead of just single computer/server?
The benefits of executing code on many NODES as apposed to a single server eliminates the threat of single point of failure/attack basically heightening security.

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Etherium is a smart contract and controls the release of promise based on
conditional rules that have been agree to.

Contracts are executed by satisfying rules with in the contract

The same as Bitcoin…and blockchain. If you try to change the code you would have to change
all the blocks at the same time on all the nodes. Impossible.

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image From a consensus perspective, how is Ethereum different from bitcoin? Bitcoin you only have transactions on a bitcoin blockchain and cannot reverse it.
Ethereum have financial applications that can do whatever they want with money and no way to change their behavior after being deployed.
How are smart contracts executed in Ethereum compared to in a normal computer? Using solidity to write code smart contracts are executed in little bits of code.
What are the benefits of executing the code on many nodes instead of just single computer/server? Complete transparency, everyone can read the code. Removing middleman, trusting math and technology.

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  1. From a consensus perspective, how is Ethereum different from bitcoin?
    The end of consensus in Bitcoin results in unspecified transactions while ethereum updates a state on the network.

  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    Smart contracts are executed on a network node then via the threshold of nodes required by the ethereum network.

  3. What are the benefits of executing the code on many nodes instead of just single computer/server?
    The primary benefit of distributed storage and execution of a blockchain is that disaster recovery is possible from a loss down to a single node which is good in terms of business continuity. Also with the ongoing effort at consensus algorithms it is much harder to spoof the network thus ensuring a more robust ledger.

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  1. From a consensus perspective, how is Ethereum different from bitcoin?
    ETH and BTC both use PoW but is switching to PoS in the future
  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    The smart contracts are executed in all the nodes inside EVM (Ethereum Virtual Machine)
  3. What are the benefits of executing the code on many nodes instead of just single computer/server?Cannot be altered or stopped providing reliability and security
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1.Ethereum is different from bitcoin from a consensus point of view because it runs EVM (ethereum virtual machine) that need to be on the nodes and the running of these smart contract need to agree to be in consensus

2.In a normal computer the CPU reads line by line of code to execute the instruction, but EVM reads the smart contract line by line and asks the CPU of the node to carry out the function

3.Executing code on many machines uses the benefits of decentralised blockchain which is immutable

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  1. From a consensus perspective, how is Ethereum different from bitcoin?
    Both use PoW, but Bitcoin requires miners to solve a hash puzzle whereas Ethereum requires nodes to run smart contracts through an EVM and agree on the results from running their code.

  2. How are smart contracts executed in Ethereum compared to in a normal computer?
    In a normal computer, code instructions within a program are directly executed by the CPU. However, with Ethereum, the code is executed by EVM, whilst the CPU merely executes the instructions that EVM directs it to. This effectively encapsulates the smart contracts, preventing them from accessing the computer’s hardware.

  3. What are the benefits of executing the code on many nodes instead of just single computer/server?
    Provides a decentralised network essential for consensus protocols to work and eliminates a single point of failure scenario. Smart contracts become transparent and unstoppable.

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  1. It is blockchain 2.0 with the ability to make smart contracts

  2. Ethereum smart contracts use EVM (etherum virtual machine)

  3. For transparency, security and integrity of the network

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The intro homework is still out of sync with the course material. The “Ethereum and Smart Contracts Introduction” hosted on the academy site does not talk about consensus algorithms or the EVM.

There is a link to the Teachable site in the comments here from Aug 13th, do I need to sign up for that? Please update the course material or at least put a note in the instructions.

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  1. In the Ethereum blockchain every node has a environment called EVM which makes possible to read and execute Smart contracts, also Ethereum use Account model for management of balance instead of Utxos.
  2. The Smart contracts are built in Ethereum Programming Language known as Solidity and then the code is executed by the EVM, after this process the EVM compile the smart contract code in Bytecode, which is different of have a CPU executing the software instructions directly.
  3. Decentralization, Transparency, Consensus and assure that the whole network will get the same result and will stay up to date.
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1. From a consensus perspective, how is Ethereum different from bitcoin?
Both Bitcoin and Ethereum use the Proof of Work of consensus method, however Ethereum is switching to Proof of Stake in the near future.

2. How are smart contracts executed in Ethereum compared to in a normal computer?
Smart contracts are evaluated by the Ethereum Virtual Machine (EVM). This is a protected environment that allows for better security.

3. What are the benefits of executing the code on many nodes instead of just single computer/server?
Security. Having the code run on thousands of nodes makes it much harder for a bad actor to attack the network as all nodes need to come to consensus. It’s much harder to attack many nodes than a single centralized point of failure.

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  1. Web 1.0 describes static websites showing not much more than text, images and links. It was a much more simplified and narrow user experience than the web 2.0 of today.

  2. A smart contract is a contract on the blockchain which has parameters defined by its creator. Once a smart contract is implemented the parameters, unless they explicitly allow it, can’t be changed anymore. When the parameters have met, the smart contract will execute on its own.

  3. The code on the Ethereum blockchain is public and open source. Anyone can review and verify what a smart contract exactly does. And just as with bitcoin, transactions can be verified as well.

Edit: @filip I see that I am the first to reply to the new questions. The older questions seem to be more advanced. I really hope that this is indeed the right thread.

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  1. web 1.0 allowed for text communication only
  2. a smart contract is a binding self executing contract.
  3. the code is open and transparent.
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  1. What was Web 1.0?
    Static websites built on, Text, Images, Links and allow you to read and share information.

  2. What is a smart contract?
    Code that runs on the Ethereum Blockchain using Solidity. It is a transparent and unstoppable contract that performs a particular function when a trigger is met.

  3. How is transparency achieved with ethereum code?
    Anyone can see the transaction it is open and transparent.

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  1. Web 1.0 was the first internet where there was no interaction with the web as all texts and images were just basically static - until the introduction of javascript that brought the internet to 2.0.

  2. Smart contracts are small pieces of codes written in solidity programming language that run on the ethereum blockchain for the execution of certain transactions autonomously and in a decentralized way.

  3. All smart contract codes are transparent and open for all to see and it runs according to the codes without any third party involvement.

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1.) Web 1.0 is a static interpretation of content with only fixed elements like links, images and text.
2.) A SC is a piece of code which determines, what is done with TXs, when and/or under which conditions the payements are triggered.
3.) The transperency is given by the inmutability concept of blockchain. No middleman or third parties are required to trust. “Code is law” and the code is public for everyone.

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