What is Ethereum ? Components of Ethereum?

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 What is Ethereum?

Ethereum is an Open Source Blockchain platform which allows anyone to develop and deploy Blockchain based Applications. Any kind of application including cryptocurrency, tokens, wallets, social apps etc. can be developed and deployed in a Distributed Environment of Ethereum. 

In other words, rather than sticking with the cryptocurrency alone, Ethereum opened the possibilities of the ‘blockchain’ and ‘distributed ledger’ technology to other application domains. Ethereum is not a single network rather it is more like a protocol for internode communication.

Basically, there is two type of users in a typical Ethereum blockchain.

1)  DApp (or a smart contract)

2) Externally Owned Accounts (EOA) 

DApp 

DApp is the ‘Decentralized Applications’ running on the blockchain. They are the applications that run on blockchain without any centralized control. We can say bitcoin is a decentralized application that runs on Bitcoin blockchain. But it is the Ethereum blockchain that extended the scope of decentralized application and popularized the word DApp.

DApp uses the shared ledger instead of a server to record and store all the transactions. The DApps will have a set of backend codes as well as a user interface. In Ethereum, these backend codes will contain the smart contract and the front end will provide a user interface for the user to interact with the block¬chain. Once the smart contracts are deployed on the blockchain, then the DApp will become accessible in the blockchain. Then any node in the blockchain network can use the DApp.

Some examples of Ethereum DApp:- Green Ether Project, splitcoin, The  Immortals Every user will have an account in Ethereum, they are called Externally Owned Accounts (EOA).

What is CryptoKitties ?

CryptoKitties is the first game in Ethereum blockchain. A participant can buy and sell crypto kittie token from the issuer. The transaction will be done in Ether. The game had witnessed an unprecedented demand from buyers and Ethereum network was flooded with the transactions.

Components of Ethereum

1) Smart contracts 

Smart contracts are the nerves of Ethereum blockchain framework. All the operations in Ethereum are controlled with smart contracts. Smart contract is the digital version of contracts; which is executed automatically upon satisfying predefined conditions.

In Ethereum, these smart contracts are written in solidity programming language. The smart contract will provide the direct contract execution between sender and receiver without a middleman.

Working of a Smart Contract

  • First, a contract account is created in Ethereum blockchain. The contract will have specific rules and actions based on that rules. 
  • The contract is then coded. In Ethereum, the smart contract is coded in Solidity; an Ethereum compatible high-level language. 
  • The coded contract is deployed in Ethereum network. The deployed contract will have a unique public-key address, the address is used to reach the contract in the network. Once the contract is deployed in, it can’t be modified even by the Issuer.

2) Ether

Bitcoin is the fuels of bitcoin network and Ether is the fuel of Ethereum. Ether is the cryptocurrency of Ethereum network, and it is the backbone of transactions in Ethereum.

The Ethereum network exists in a consistent state because of the computational and other resources spent by individual nodes, Ether is the reward provided to those individual nodes. As more people getting interested in Ethereum, the value of Ether is also surging on daily basis. 

Today, Ether is the most demanded cryptocurrency after Bitcoin.

Ethereum Clients 

Ethereum Clients are the tools used to connect to the Ethereum blockchain for developmental or mining purposes. 

Some of the Ethereum clients are listed below.

  • Geth — Geth is an Ethereum client working in GO language. Geth has a command line interface (CLI) tool that communicates with the Ethereum Network and acts as the link between the different nodes in the network.  
  •  Eth — C++ Eth is a powerful Ethereum client which is more focused on miners.
  • Pyethapp — this client is useful for DApp development using python. 

‘Pythapp’ is also an excellent choice for research and academic purpose in Ethereum blockchain.

3) EVM 

The EVM is the engine behind the whole Ethereum blockchain. Smart contracts are run on the Ethereum Virtual Machine (EVM) - the decentralized, consensus driven computer which distinguishes Ethereum from earlier Blockchains. This Virtual Machine runs its own language of bytecode. For this reason, several languages for writing contracts have been developed.

Of these, the most popular one is Solidity. Solidity is a JavaScript-like language developed specifically for writing Ethereum Smart Contracts. The Solidity compiler ‘sol-c’ turns this code into Ethereum Virtual Machine bytecode, which can then be sent to the Ethereum network, as a transaction to be given its own address.

4) Etherscripter 

Etherscripter is a visual smart contract builder tool in Ethereum. It provides  a GUI for creating smart contracts in simple steps. 

Etherscripter provides a simple drag and drop interface where the corresponding backend codes in Serpent, LLL, and XML will be generated automatically. Using Etherscripter even a non-programmer can create smart contracts.



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