what is ethereum? ethereum is an open source globally decentralized computing infrastructure that executes progarms called smart contracts. it uses blockchain to store the system state changes at the same time and rate. what are the between ethereum and bitcoin? ethereum is most times compared to bitcoin. ethereum shares similar elements withother open blockchains which are:
- a peer-to-peer network conneting participants.
- a Byzatine fault tolerance consensus algorithm for synchronization of state updates(a proof of work blockchain).
- the use of cryptographic primitives used as a method to secure transations taking place btween to nodes in a blockchain net work such asdigital signatures and hashes and a digital currency (ether).
Despite all these simillarities there are still different in many ways. balow are sum of their differences:
- ether is not primarily designed to be a digital currency payment network. but it is both integral and neccessary for the opreration of ethereum. -ethereum is intended as a utility currency to pay for use of the etherum platform as the world computer.
- bitcoin on the other hand has a very limited script language, while ethereum is designed to be a general purpose progarammable blockchain that runs a virtual machine capable of executing code of arbitrary unbounded complexity.
- bitcoin script language is intentionally constrained to simple true/false evaluation spending conditions, while the ethereum language is turing complete which means ethereum can straight forwardlly function as a general-purpose computer.
What are the components/characteristics of a blockchain?
- A peer-to-peer network connecting participants and propagating transactions and blocks of varified transaction based on a standardized "gossip" protocol. 2.messages in form of transactions representing state transitons.
- A set of consensus rules governing what makes up a transaction.
- A chain of cryptoghaphically secuerd blocks that acts as a journal of all the verified and accepted state transitions.
- one or more software implimentation of the client. 6.A state machine that process transaction according to the consensus rule. 7.A consensus algorithm that decentralize control over the blockchain by forcing participant to cooperate in the in the enforcement of the consensus rule.
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