Ethereum: An Introduction
Ethereum a decentralized information storage network used to independently run applications without intermediaries through a blockchain. More importantly, however, is that Ethereum executes code in a Turing-complete Virtual Machine. If Ethereum were not Turing-complete it would not be successful in it’s goal: to create a protocol used for smart contracts, decentralized autonomous organizations (ie: long term smart contracts), and decentralized applications. It seeks to solve bitcoin’s problems by creating a protocol that is aware of it’s value, the blockchain, and it’s current/previous state(s).
Ethereum Virtual Machine:
The Ethereum Virtual Machine (EVM code for short) is a Turing-complete protocol used to understand other types of protocols and code languages. The EVM stacks, memorizes, and stores data while accessing all information regarding transaction information as an output (17). Solidity and other programming languages (such as Vyper, Yul, and Fe) are used on Ethereum compiled through the EVM. When the EVM executes code on a node the blockchain documents it’s state.
Ethereum Upgrades: The Roll-up Centric Roadmap
That problems with Ethereum comes with the transaction cost and speed. Needless to say, these upgrades seek mitigate these issues by implementing Proof of Stake (POS), Sharding, Statelessness, and most importantly roll-ups. The transition from PoW to PoS, sometimes called ETH 2.0 are actually upgrades being built on the consensus layer before being ported over into the execution layer.
Beacon Chain
Beacon Chain which will make the transition from Proof of Work to Proof of Stake. As we saw, Ethereum uses Proof of Work wherein miners are paid in Ether for their work to secure and run transactions through the blockchain. Beacon Chain implements staking, a model that uses Ethereum to run transactions and secure the network. Currently ethereum’s PoS work is held on the consensus layer, whereas PoW operates on the execution layer. Later on this year or possibly the beginning of next year staking will be fully implemented; the consensus layer will be merged with the execution, negating the need for PoW. Staked Ethereum, run through a node, will be paid out to Ethereum holders who help to run transactions on the network.
Sharding
After Beacon Chain is completed, data shards will be implemented. Data shards store data and make it available. Data shards will not be placed on the execution layer but will be used to accelerate roll-ups by feeding data to them from the Ethereum network. After this is completed even if Ethereum’s network continues to be congested, by the time the sharding is implemented in it’s stateless form most people will potentially be using some type of roll-up as an alternative to Layer 1 solutions.
Rollups
Rollups are a new type of blockchain that does not need consensus or a permanent data layer. Their purpose are solely to execute transactions, compress them, bundle them up together, then port them over onto the blockchain they are attached to. They are effectively a second layer (hence Eth 2.0 or Ethereum Layer 2) underneath the underlying chain while using it’s consensus mechanism and data.
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References
https://docs.ethhub.io/ethereum-roadmap/ethereum-2.0/eth-2.0-phases/
https://eth.wiki/
https://nirolution.com/ethereum-explained-simply/
https://ethereum.stackexchange.com/questions/45/how-would-i-explain-ethereum-to-a-non-technical-friend
https://medium.datadriveninvestor.com/ethereum-explained-788c5cf6080b?gi=6c34fbd0551c
https://coinnws.com/ethereum-whitepaper/
https://www.upfolio.com/ultimate-ethereum-guide
https://ethereum.org/en/developers/docs/intro-to-ethereum/
https://www.bitdegree.org/crypto/what-is-ethereum
https://changelly.com/blog/ethereum-gas-transaction-fees-explained/
Rollups:
https://dappradar.com/blog/ethereum-rollups-a-simple-explanation
https://vitalik.ca/general/2021/01/05/rollup.html
https://blog.mercury.cash/2021/04/16/what-are-ethereum-rollups-all-about/
https://medium.com/interdax/ethereum-l2-optimistic-and-zk-rollups-dffa58870c93
https://beincrypto.com/ethereum-rollups-will-speed-up-the-network-says-vitalik/
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Disclaimer: The information presented within this video is NOT financial advice.
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