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Ethereum Blockchain

Ethereum Blockchain

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How Ethereum decentralise things

Ethereum coding language “Solidity”, is used to write smart contracts, that are the logic that runs dapps. In real life all contracts are sets of “Ifs” and “Thens” meaning a set of conditions and actions. For example, if I pay the landlord 1k on the first of the month, then he lets me use my apartment. That’s exactly smart contract works on Ethereum. Ethereum developers write the conditions of their program or dapp and then the Ethereum network executes it, they are called smart contracts because they deal with all the aspects of a usual contract : enforcement, management, performance and payment.

Code is Law

Smart contract behaves like a judge, it is uncompromisingly letter strict. It follows the rules down to a T. and can’t take any secondary considerations on the spirit of the law into account. Once the smart contract is deployed on the Ethereum network, it cannot be edited or corrected, even by its original author. It’s Immutable, The only way to change this contract, would be to convince the entire Ethereum network that a change should be made, And that’s virtually impossible. And this open a whole word to a complex and insecure contract.

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Smart contract should be written with a perfect accuracy in order to make sure that the contract does only what the author intended

DAO event crashing halt

DAO stands for the decentralised autonomous organisation, which allows users to deposit money and get returns based on the investment that the DAO made, the decisions would be crowd sourced and decentralized, Back then, The DAO raised a $150M in Ethereum currency, Ether. When ether was trading at around $20. All this sounded very good, the code wasn’t secured very well and resulted in someone figuring out a way to drain the DAO out of money using a loophole found in the DAO’s smart contract. As a consequence, the Ethereum community decided that code is no longer is the law.

Ethereum classic birth

The small minority that didn’t agree with the Ethereum developer who decided that code is no longer is the law and changed the Ethereum rules in order to bail out the investors for the sake of reverting all the money that went into the DAO. This minority stuck to the original Ethereum blockchain before its protocol was altered and that’s how Ethereum classic was born. Which is actually the original Ethereum

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Ethereum currency

To power the dapps into the large network of computers, we need Ether, the currency of Ethereum network. When people talk about the price of Ethereum, they actually refer to the price of Ether, the currency that incentivises people to run the Ethereum protocol on their computers. In order to deploy a smart contract to the Ethereum network, it’s author must pay Ether. This is made in order to push people to write optimised and efficient code rather than wasting Ethereum network computing power in unnecessary tasks.

C/c

Ethereum is a network of computers working together to replace the centralised model of programs and companies which run the internet today.

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