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What mechanism is Ethereum (Ethereum mechanism)

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what mechanism is Ethereum

what mechanism is Ethereum Ethereum is a distributed system that records transactions and transfers data through the blockchain. In its network, anyone can create and own their own assets such as nodes, accounts, and private keys. These digital currencies are all generated by smart contracts and rely on a decentralized protocol such as Bitcoin. But without such code, Ethereum cannot circulate. So technically, what mechanism is Ethereum? How does it work? How does Ethereum make it work, and what rewards will it give users? Why does Ethereum become one of the most popular networks in the world? Because Ethereum provides a way for people to communicate by using Internet computers. Ethereum is a Open-source software that provides a platform for developers to build various cloud based applications

Ethereum mechanism

Editor’s note: This article is from Cointelgraph Chinese (ID: Cointelgraph China), written by SAMUELHAIG, and reproduced by Odaily Planet Daily with authorization

There are certain challenges and risks when executing the code of smart contracts on the Ethereum blockchain, but this does not prevent Ethereum from becoming a decentralized network

Although most projects are building an extensible, secure and interoperable protocol to achieve these goals, Ethereum still faces many technical obstacles. For example, during the process of running a validator, a large amount of computation is required to reach a consensus, which requires a lot of computational power and is an expensive choice for miners Although ETH2.0 may bring some issues, it has made progress in the past year

In order to better understand this situation, we should study the Ethereum mechanism and related issues, and take these factors into account. What is the Ethereum system? Ethereum is a new Cryptocurrency platform based on proof of equity, which aims to promote transactions with a broader market share by introducing new payment methods. It also uses proof of entitlement to solve this particular problem – the “Proof of work” algorithm. If crypto assets such as Bitcoin Cash are proved to be the main use of Ethereum, it will become a potential competitor of Ethereum. Why choose proof of equity? Because it is supported by the Proof of work algorithm (PoW). Therefore, one of its advantages is to maintain price stability without any control from anyone or organization

However, with the participation of more and more participants, Ethereum also began to pay attention to the proof of equity algorithm. In recent months, Ethereum has been trying to use the proof of interest algorithm as its end to avoid being attacked by 51%. However, there is currently no way to completely eliminate the threat of this vulnerability, so developers are currently seeking other methods to protect them from attacks Unlike Bitcoin, its supply is relatively small due to its strong energy consumption and ability to provide sufficient storage space

Ethereum is a network structure that requires no license and is maintained by multiple nodes. It allows users to create blocks while preserving the complete state of the entire system, ensuring its normal operation and sustainable development. It also provides a flexible way to handle complex events. The advantage of Ethereum lies in its security.

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