▫️Lesson 1.2: What is Ethereum?
Module 1: Introduction to Blockchain and Ethereum
Objective
To explore Ethereum as a leading blockchain platform that extends beyond just cryptocurrency, enabling the development and deployment of smart contracts and decentralized applications (DApps). This lesson will cover the basics of Ethereum, its native cryptocurrency Ether, and its significance in the blockchain ecosystem.
Introduction to Ethereum
Ethereum Defined: Ethereum is an open-source, blockchain-based platform that allows developers to build and deploy decentralized applications (DApps) and smart contracts. Unlike Bitcoin, which is designed primarily as a digital currency, Ethereum serves as a platform for many types of blockchain-based applications.
Ether: Ether (ETH) is the native cryptocurrency of the Ethereum platform. It is used to compensate participating nodes for computations performed and as a transaction fee for users to interact with DApps.
Smart Contracts on Ethereum
Definition: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce and execute the terms of a contract when predetermined conditions are met.
Functionality: On Ethereum, smart contracts are deployed on the blockchain, making them immutable and distributed. This ensures that once a contract is deployed, it cannot be changed, and its execution is guaranteed without the need for intermediaries.
Deployment: Developers write smart contracts in programming languages such as Solidity, compile them into bytecode, and then deploy them to the Ethereum blockchain. Once deployed, a smart contract has an address on the blockchain through which users can interact with it.
Ethereum Virtual Machine (EVM)
Role of the EVM: The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts in Ethereum. It is a completely isolated environment, meaning that code running inside the EVM has no access to the network, file system, or other processes.
Security and Isolation: The EVM ensures that smart contracts run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. This isolation also ensures that vulnerabilities or issues in one contract do not affect others.
Decentralized Applications (DApps)
Architecture: DApps on Ethereum are applications that run on a P2P network of computers rather than a single computer. They are outside the purview and control of a single authority.
Examples: From decentralized finance (DeFi) platforms to games and social networks, DApps utilize Ethereum's blockchain to create a variety of applications that cannot be censored or shut down.
Interactive Example
Activity: Deploy a simple "Hello World" smart contract on the Ethereum test network (Ropsten).
Steps:
Write a simple smart contract in Solidity that returns "Hello, World!".
Use an Ethereum development environment (like Remix) to compile the contract.
Connect to the Ropsten test network using a wallet (like MetaMask).
Deploy the smart contract to the test network and interact with it.
Exercise
Quiz: Test your understanding of Ethereum's key concepts, including the role of Ether, the functionality of smart contracts, and the purpose of the Ethereum Virtual Machine.
This lesson has provided an overview of Ethereum, highlighting its capabilities beyond a mere cryptocurrency platform. By understanding Ethereum's infrastructure and its support for DApps and smart contracts, you're now better prepared to delve into the specifics of smart contract development and the broader implications for decentralized technology.
Next Lesson: Ethereum Blockchain in Detail
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