What is Ethereum? Everything you need to know about ETH

Ethereum is an open source, public, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality. Ethereum provides a decentralized virtual machine – the Ethereum Virtual Machine (EVM), which handles processing the transactions of Ethereum network. Besides the goal of overcoming the disadvantages of Bitcoin, Ethereum also aims to function both as a kind of decentralized internet and a decentralized app store, supporting a new type of application (a DApp – Decentralized Application).

No one owns Ethereum, the system is not free. Ethereum provides a cryptocurrency token called Ether (ETH). Ether can be transferred between accounts and used to compensate participant mining nodes for computations performed. “Gas” , which is an internal transaction pricing mechanism and can be converted into Ether, is used to mitigate spam and allocate resources on the network.

Ethereum was proposed in late 2013 by a cryptocurrency researcher and programmer, Vitalik Buterin. Development was funded by an online crowdsale that took place between July and August 2014. The system then went live on 30 July 2015 and has become increasingly popular. Starting at the end of January 2016, ETH experienced a sudden surge in price.

When learning about Ethereum, we will recognize the differences between Ethereum and Bitcoin (and other altcoins): Ethereum is made up of 4 main elements and they are also the most important parts of Ethereum: Ether (ETH), Smart contract,  Account and Ethereum Virtual Machine (EVM).

Ether (ETH)

Ether is a fundamental token for operation of Ethereum, which thereby provides a public distributed ledger for transactions. It is used to pay for gas, a unit of computation used in transactions and other state transitions. Mistakenly, this currency is also referred to as Ethereum.

It is listed under the ticker symbol ETH and traded on cryptocurrency exchanges. It is also used to pay for transaction fees and computational services on the Ethereum network.

Ethereum Virtual Machine (EVM)

The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts in Ethereum. The formal definition of the EVM is specified in the Ethereum Yellow Paper, original version by Gavin Wood. It is sandboxed and also completely isolated from the network, filesystem or other processes of the host computer system. Every Ethereum node in the network runs an EVM implementation and executes the same instructions. Ethereum Virtual Machines have been implemented in C++, Go, Haskell, Java, JavaScript, Python, Ruby, Rust, and WebAssembly (currently under development).

Smart Contract

You can understand this is a contract management protocol that ensures quickness and transparency. A smart contract is a special protocol intended to contribute, verify or implement the negotiation or performance of the contract, allowing us to perform trackable, irreversible, and secure transactions without the need for third parties. Smart contracts contain all the information regarding a transaction and only proceeds with the resulting actions once the requirements are met. What differentiates smart contracts from traditional paper contracts is that smart contracts are computer-generated. Thus it’s actually the code itself that explains the obligations of the parties involved.

Smart contracts deployed on a blockchain are immutable. This means that the address and the code of that smart contract can’t be modified since it’s permanently written on the blockchain, the only way to modify a smart contract is to deploy a new one.

Account

Ethereum Accounts are objects with components such as storage state, intrinsic balance, number of transaction (nonce), 20-byte address, EVM code/smart contracts, maintained as part of the Ethereum state. Every account has a 20-byte address associated with it. An address is a 160-bit (20-byte or 40 characters) code used for identifying an account (e.g. 0x7053437291d7ef549f066f6802542106b59c0aee). An address is generated whenever a new Ethereum account is created.

There are two types of Ethereum accounts, and they share the same address space on the machine.

  • External Accounts: Accounts that are controlled by external entities, by an individual for example, using public-private key pairs. These accounts have no EVM code (smart contracts) associated with them, hence they have empty storage state and do not make use of memory. These accounts can be created using Ethereum Clients like Geth or Ganache.
  • Contract Accounts: Accounts that are associated with EVM code and are controlled by EVM code. These accounts have non-empty Storage state and also make use of memory and stack during the execution of the EVM code stored as part of the account. A contract account is created when a smart contract is deployed on the Ethereum blockchain. It is derived from the creator’s address and the number of transactions sent from that address, also called “nonce”.

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Comparison to bitcoin

Ethereum is different from Bitcoin in several aspects:

  • Its block time is 14 to 15 seconds, compared with 10 minutes for bitcoin.
  • Mining of ether generates new coins at a usually consistent rate, occasionally changing during hard forks, while for bitcoin the rate halves every 4 years.
  • For proof-of-work, it uses the Ethash algorithm which reduces the advantage of specialized ASICs in mining.
  • Transaction fees differ by computational complexity, bandwidth use and storage needs (in a system known as gas), while bitcoin transactions compete by means of transaction size, in bytes.
  • Ethereum gas units each have a price that can be specified in a transaction. This is typically measured in Gwei. Bitcoin transactions usually have fees specified in satoshis per byte.
  • Ethereum uses an account system where values in Wei are debited from accounts and credited to another, as opposed to Bitcoin’s UTXO system, which is more analogous to spending cash and receiving change in return.

Criteria when choosing a Ethereum Wallet

Not only Ethereum (ETH) but other crypto wallets also need the following factors to ensure the security and good for users.

  • Private key: Defined as a password for you to login to your crypto wallet. And of course, make sure that only you know your private key.
  • Easy to use: Has a friendly interface, especially fast speed.
  • Development community: There is an active development community and long-term support.
  • Backup and security: This is a necessary function when customers want to protect their accounts better and more flexible.
  • Compatibility: The wallet must be programmed to be compatible with the current popular operating systems such as Windows, Linux, mac, Android, iOs.

Make sure the crypto wallet you choose meets the above criteria before selecting. If it does not meet the above requirements, you should consider more carefully.

The best Ethereum wallets

There are 2 types of crypto wallet used to store cryptocurrency: cold wallet and hot wallet. We will rely on this classification to list the best Ethereum wallets for you.

  • Hot wallet: Binance, Bittrex, Poloniex, Kraken, Bitfinex, Coinbase.com, MyEtherWallet, Tiktakbtc, Exodus, Jaxx, Mist, MetaMask, etc.
  • Cold wallet: MyEtherWallet (Paper Wallet), ETHAdress, Ledger Nano S, Trezor và KeepKey, etc.

What is Smart Contract?

You can understand this is a contract management protocol that ensures quickness and transparency. A smart contract is a special protocol intended to contribute, verify or implement the negotiation or performance of the contract, allowing us to perform trackable, irreversible, and secure transactions without the need for third parties. Smart contracts contain all the information regarding a transaction and only proceeds with the resulting actions once the requirements are met. What differentiates smart contracts from traditional paper contracts is that smart contracts are computer-generated. Thus it’s actually the code itself that explains the obligations of the parties involved.

A smart contract is a special protocol intended to contribute, verify or implement the negotiation or performance of the contract. Essentially, it serves as a digital contract that won’t function unless the input requirements are satisfied.

Smart contracts deployed on a blockchain are immutable. This means that the address and the code of that smart contract can’t be modified since it’s permanently written on the blockchain, the only way to modify a smart contract is to deploy a new one.

Lifecycle Of A Smart Contract

Smart contracts are typically written in a high-level language, such as Solidity. But in order to run, they must be compiled to the low-level bytecode that runs in the EVM. Once compiled, they are deployed on the Ethereum platform using a special contract creation transaction which is identified as such by being sent to the special contract creation address, namely 0x0. Each contract is identified by an Ethereum address, which is derived from the contract creation transaction as a function of the originating account and nonce. The Ethereum address of a contract can be used in a transaction as the recipient, sending funds to the contract or calling one of the contract’s functions. Note that, unlike EOAs, there are no keys associated with an account created for a new smart contract. As the contract creator, you don’t get any special privileges at the protocol level (although you can explicitly code them into the smart contract, of course). You certainly don’t receive the private key for the contract account – it doesn’t exist – we can say that smart contract accounts own themselves.

Importantly, contracts only run if they are called by a transaction. All smart contracts in Ethereum are executed, ultimately, because of a transaction initiated from an Externally Owned Account. A contract can call another contract that can call another contract, and so on, but the first contract in such a chain of execution will always have been called by a transaction from an EOA. Contracts never run “on their own”, or “run in the background”. Contracts effectively lie dormant until a transaction triggers execution, either directly or indirectly as part of a chain of contract calls. It is also worth noting that smart contracts are not executed “in parallel” in any sense – the Ethereum world computer can be considered to be a single-threaded machine.

Transactions are atomic, regardless of how many contracts they call or what those contracts do when called. Transactions execute in their entirety, with any changes in the global state (contracts, accounts, etc.) recorded only if all execution terminates successfully. Successful termination means that the program executed without an error and reached the end of execution. If execution fails due to an error, all of its effects (changes in state) are “rolled back” as if the transaction never ran. A failed transaction is still recorded as having been attempted, and the ether spent on gas for the execution is deducted from the originating account, but it otherwise has no other effects on contract or account state.

As mentioned above, it is important to remember that a contract’s code cannot be changed. However a contract can be “deleted”, removing the code and its internal state (storage) from its address, leaving a blank account. Any transactions sent to that account address after the contract has been deleted do not result in any code execution, because there is no longer any code there to execute. To delete a contract, you execute an EVM opcode called SELFDESTRUCT (previously called SUICIDE). That operation costs “negative gas”, a gas refund, thereby incentivizing the release of network client resources from the deletion of stored state. Deleting a contract in this way does not remove the transaction history (past) of the contract, since the blockchain itself is immutable. It is also important to note that the SELFDESTRUCT capability will only be available if the contract author programmed the smart contract to have that functionality. If the contract’s code does not have a SELFDESTRUCT opcode, or it is inaccessible, the smart contract can not be deleted.

(https://fullstacks.org)

Go to the Tiktakbtc website: https://tiktakbtc.net/en/ and click Login on the top right side.

If you do not have an account at Tiktakbtc, please enter this link:
How to Register and update the account information at Tiktakbtc

1. Deposit

Step 1: Click Wallet, click Deposit or you can click DEPOSIT button (green button)

Step 2: Choose Ethereum (ETH)

Step 3: You are going to see your address. You can copy your address or scan QR code to send the amount of ethereum from others to your wallet at Tiktakbtc.

2. Withdraw

Step 1: Click Wallet, click Withdraw or you can click WITHDRAW button (yellow button)

Step 2: Choose Ethereum (ETH)

Step 3: Insert properly the information about: your addressquantityfee (you can freely choose levels of fee: medium fee or high fee. If you choose high fee, your transaction will be processed more quickly.

After all, click WITHDRAW.

There is a withdrawal notification, insert Google Authenticator code (or not), then click WITHDRAW.

3. Buy

Step 1: Click Exchange, click Buy/Sell

Step 2: Choose ETH/VNDT

Step 3: Enter the number of ETH that you want to purchase. Then, click CONTINUE.

There is a confirmation. You will confirm and enter Google Authenticator (or not), then click Buy to finish.

4. Sell

Step 1: Click Exchange, click Buy/Sell

Step 2: Choose ETH/VNDT

Step 3: Enter the number of ETH that you want to sell and then you click CONTINUE.

There is a confirmation. You will confirm and enter Google Authenticator (or not), then click Sell to finish.

If you have any questions in using services of Tiktakbtc, please feel free to contact with us through: https://support.tiktakbtc.net/We are already to support you anytime. Good luck!

The article is still being developed by Tiktakbtc in order to provide customers with the best information!

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