PUBLIC BLOCKCHAIN Publi % roca a Blockchain, Ethereum and its Components;~Mining=in--Ethereum, Ethereum Virtual achine(EVM), Transaction, Accounts, Architecture and workflow, Comparison between Bitcoin and Ethereum. t-networks used it i types of test-net used in Ethereum,.Transferring Ethers using Metamask; Mist Wallet, Ethereum frameworks, case study of Ganache for Ethereum Blockchain, Exploring etherscan.io, and ether block structure. 41 _ Introduction to Public Blockchain «+ Inthis module we will learn the Ethereum blockchain and discuss how it works. Ethereum is a public blockchain. + Itisopen to everyone, no matter your location, background, skin, education or age, __ + Blockchain can be divided into two main categories according to accessing and managing permissions. © Public Blockchain ~ Permissionless ‘0. Private Blockchain ~ Permissioned «Ina public blockchain anyone is able to join or leave the network at any time, meaning that any individual may access the information, “submit and receive transactions and also get involved in the ‘process of verifying transactions. + Acprivate blockchain operates on the basis of access rules that limit the number of people who can. join the network. We will discuss private blockchain in detail in the next module. +The public blockchain model, which is used by Bitcoin, Ethereum, and Litecoin, is largely viewed as the original distributed ledger structure. + Because itis completely open, anyone may join and participate inthis type of blockchain Ikean accept and send transactions from anywhere on the globe and is auitable by everyone in the system. + Public blockchainig not only decentralized, but aso fully distributed, because each node connected to the network has the same amount of transmission and power as all the others. + Inorder to be considered legitimate, a transaction should be authorized by each of its constituent nodes via the consensus process. When a record is authorized, itis recorded on the chain. Incentives. are commonly used in public blockchains to incentivize individuals to join the network and to authenticate transactions. ic blockchain is secure because it cannot be changed or edited after it has been validated by Data kept on a pul the blockchain network.WF blockchain (MU) 4:2 Public Bog In the public blockchain, each network node possesses a complete copy of the ledg i ch USer ofthe pe less ledger keeps a copy of the ledger on their local nodes, and all users adopt a distributed consensus 4. °° to decide on the ledger's final state, ety “ * One of the most significant drawbacks of a public blockchain is its complete transparency, Ths transparency implies minimal to no transaction privacy and supports a poor security paradigm, a ‘+ Another disadvantage is the large amount of computational power required to keep the ledger up to date 4.2 Ethereum + Ethereum, founded in 2015 by Vitalik Buterin, is a unique blockchain with a unique token known as Ether, * While the ownership of digital currency is verified by Bitcoin via the blockchain, the Ethereum platform enay developers to create fuly dstbuted apps and does away wit the “centralized” ient-server internet architec * The key feature of Ethereum is its programmability, which enables the development of applications * Ethereum is a blockchain-based open software platform that allows developers to create and deploy decentralzey applications. *. * Itis more than simply a platform for cryptocurrencies; it has the ability to perform tasks and develop distributey applications. © Ethereum is a DIY platform for decentralized applications known as Dapps (decentralized apps). It isthe gata SDI platform f anes: decenera cer sees infrastructure for operating Dapps. © The Ethereum network is completely decentralized since itis run by thousands of separate computers. * Once the program is deployed to the Ethereum network, these computers also identified as nodes will, be assued that it execute'as written © It was the first technology to implement a smart contract It permits participants to ryndecentralized blockchain It was the first technology to implement a smarter plications, which are called Dapps. x Ethereum blockchain is an immutable public database that stores a record of every transactions. that has ever taken Place. + Ethereum is.a Turing complete system. | ‘«_Inits virtual machine, Ethereum can run programmes and read and write data to memory. Any programme that 3 ‘Turing complete machine can compute may be done by this machine. 2 = Ethereum's major point of differentiation is how it mixes blockchain technology and computing power. When ie programmability feature is paired with all of the blockchain’s distinguishing characteristics, Ethereum becomes ® practical technology. 2 itis ref ETH and has its own currency called Ether. es con currency called What is Ether? © Ether (ETH) is the native cryptocurrency of Ethereum. «tis the second largest cryptocurrency around. The goal of ether is to create a market for computing ‘+The Ethereum network and smart contracts are powered by ether, which is used as fuel (or 925) The Ethereum network's users utilize ether to pay for services rendered by the network. + Ethefeum allows us to send ether which is equivalent to BitcoinPubli Blockehaln Ether Cryptocurency Ethereum Components imrereum’s components are asfolows: Fig. 1 hereum is a peer-to-peer network of computers named Ethereum nodes or clients, each of which runs @ 1: Components of Ethereum compatible software. Anyone can run an Ethereum node and there are no special prerequisites or requirements, «+ Atthe moment, there are thousands of Ethereum nodes that communicate with each other. tn Fig, 432 and 433 shows, statistics about the Ethereum mainnet_ oe va® cm ‘nn . a AS ig, 43.2: Ethereum latest blocks and transactionee Statistics Pee eee De a Fig, 4.3.3: Ethereum Mainnet Statistics “There are more ways for a user or application to communicate with the network. Web 3js isa collection of libraries that allows web applications to interact with an Ethereum node. using HTTP , IPC or WebSocket. A normal webste cannot communicate with a Ethereum blockchain so we will need Web3js « Nowlet us discuss components of thereum. 1) Peer-To-Peer (P2P) network : Every computer or node on the éthereum blockchain is linked to every other node. Ethereum operates on the Ethereum main network, which is accessible through TCP port 30303, and employs the B=Vp2p pratocol 2) Consensus rules: The set of rules used to determine if transaction is legitimate 3) Transactions : On a Ethereum network, transactions are the messages that are sent and received. A value, @ sender, a receiver, and a payload of data are all components of a transaction, 4) State machine : The state machine known a the Ethereum Virtual Machine, or EVM for short, procests fthereum transactions and state changes. The Ethereum val machine executes the program in a mace language (bytecodes). These programmes are created in a high level language, such as Soliity, and are the? converted into bytecode via a compiler. The program written in a high level ae is called a smart contract 5) Consensus sme The ent Ethereum network's consensus algorithm is the process used to reech consensus on the longest chain Ethereum that are at ae i eres oe te ee coeems OccPublic Blockchain structures : The state of Ethere ‘Um is kept locally on each node in the form of a database, often Google's LevelD8, which keeps the system informatio n i a este Paticia Tree and transactions in a serialized hashed data structure known as j4_Mining in Ethereum here is no one own i «see ; er Of a distributed system, computers are free to join the Ethereum network and start xeilying transactions whenever they choose. This process is known as mining, jining nodes consult one anc + Mining ‘other (consensus) to agree on the sequence of transactions across the system, which is required to instantly calculate everyone's account balances despite the fact that many transactions are going through the network, > Blockchain mining is a peer to peer process > Blockchain mining is used to vorly transactions on the network ZO: Transaction initiated ‘Transaction details \ broadcasted to miners S 2 Mining is completed ‘and miner gets reward Bo} Transaction complete Transaction in added to the blockchain fining Process Overview in Ethereum Fig. 4. Because this process uses electricity, which is an ‘expensive, miners receive a reward of around 5 ethers for each block they mine. * Mining is a core component of both Bitcoin and Ethereum, and it functions much the same way in both networks, with a few exceptions. Mining also secures the network by creating, verifying, publishing and propagating blocks in the Blockchain, + New blocks are added to the blockchain through mining, a resource-intensive process. Yet