Discussion 2

.docx

School

University of the Cumberlands *

*We aren’t endorsed by this school

Course

531

Subject

Information Systems

Date

Dec 6, 2023

Type

docx

Pages

Uploaded by RonithReddy

Ethereum was developed as a decentralized, open-source blockchain platform to expand upon the capabilities of Bitcoin and enable the creation of decentralized applications (DApps) and smart contracts. Here's a breakdown of its development, core components, and its contribution to the development of smart contracts: 1. Development of Ethereum: Origin: Ethereum was proposed by Vitalik Buterin in late 2013 and officially announced in early 2014. It was developed in response to perceived limitations in Bitcoin, particularly its scripting language, which was not flexible enough to support complex smart contracts and DApps. Vision: The primary goal of Ethereum was to provide a more versatile and programmable blockchain platform that could enable developers to build a wide range of decentralized applications beyond simple peer-to-peer transactions. 2. Core Components of Ethereum: Ethereum Virtual Machine (EVM): The EVM is the runtime environment for executing smart contracts and DApps on the Ethereum network. It is a Turing-complete virtual machine, meaning it can execute any computation that can be described algorithmically. Ether (ETH): Ether is the native cryptocurrency of the Ethereum network. It is used to pay for transaction fees (gas) and as a store of value within the ecosystem. Smart Contracts: Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into code. They run on the EVM and can automate various processes, such as token transfers, voting mechanisms, etc. Decentralized Applications (DApps): DApps run on the Ethereum blockchain, utilizing smart contracts for their functionality. These include anything from decentralized finance (DeFi) applications to games and social networks.

Consensus Mechanism: Ethereum initially used a Proof of Work (PoW) consensus mechanism, similar to Bitcoin, but it has been transitioning to a Proof of Stake (PoS) consensus mechanism called Ethereum 2.0. PoS aims to improve scalability and energy efficiency. 3. Contribution to Smart Contracts: Ethereum played a pivotal role in popularizing and advancing the concept of smart contracts. While the concept of intelligent contracts existed before Ethereum, Ethereum's EVM and programmable blockchain made it much more accessible and user-friendly. Ethereum's innovative contract capabilities have given rise to many use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), supply chain management, voting systems, and more. Ethereum's success has inspired the development of other blockchain platforms that also support smart contracts, contributing to this technology's broader adoption and evolution in the blockchain and fintech industries. In summary, Ethereum was developed to provide a versatile blockchain platform for creating decentralized applications and smart contracts, and its core components, including the EVM, Ether, and smart contracts, have played a significant role in advancing the blockchain and bright contract space. Questions: 1) What were the primary motivations and goals behind the development of Ethereum? 2) Can you explain the critical components of the Ethereum ecosystem, including the Ethereum Virtual Machine (EVM) and smart contracts?

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help