Ethereum Overview(Basic)
외국인 기술관련 밋업에서, 이더리움 강의내용
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ppt file
https://drive.google.com/file/d/0BwBkN9fNGDPeM20zc2x1V3pGcDg/view?usp=sharing
The overall view of Ethereum as a platform for starters
by Han
1. History
-Bitcoin - a financial system performed through bitcoin client/protocol; in the bitcoin client we use bitcoin as currency
Other applications?
-Namecoin - connect a certain ‘domain name’ to a server, each name has to stand out for one server, only one for each, otherwise those will collide and the system will break down.
-Primecoin - proving that the twin primes are infinte, none of which hasn’t been found yet (asymmetric property) http://primecoin.io/about.php
-Colored coin - the concept is to color a bitcoin to represent a particular asset, but that was too independent on bitcoin system and of low applicability and other severe limitations (it has to search from top to bottom to prove and validate a certain bitcoin is colored; and once it’s colored, it can’t be used as a normal bitcoin (deflationary property))
The first thing to point out is that there’s no such a Bitcoin thing in the bitcoin program.
It’s just a bunch of records, account ledger.
when you transact your money in a bank in a real life, you don’t have ‘a money file’ or something.
You are just sending a record that ‘who receive and who send how much’
and the central bank simply put MINUS on your account and PLUS on the other’s account making it balanced
The core implicit point is that bitcoin is decentralized and anonymous consentual ledger.
But now, we ask, is it only a ledger? if you take a careful look into it, its very core, you realize that the blockchain is a database which every node on the network shares syncronizedly; we can keep things in; and write on
Off-the blockchain you can do anything you want to do because you can change / manipulate / modify things.
However On-the blockchain, you can’t manipulate or modify without consentual agreement
If it is a database or asset ledger, why don’t we put other things on the blockchain too?
Anyway even in a real life, stock/bond/financial derivatives are just computer records and certificate papers.
Here comes Ethereum.
We can put anything we imagine on the blockchain and Ethereum is the platform help you do that.
Ethereum is not a single service like Bitcoin but a platform.
2. Attributes
Anonymity - From the first place, you do not put any personal information into it at all
Borderless - Go beyond the borders, anywhere only with the network device to download the blockchain
Decentralized parties - No central party takes control over the system.
Distributed network - With the duty to keep the system shared, every each node works as a part of the network.
DDOS attack-proof - Fee system, every process requires some amount of fee.
Divisibility into pieces - You can divide the currency unit into smaller digits on the network consensus.
Transparency- You can see through every process inside as clearly as glass so that no one ever can cheat on it.
plus
Turing-completeness
Diverse applications supported by a Ethereum platform
3. Turing completeness
Turing has divided and minimized a task into pieces as small as possible.
The world with the normal view:
For example, when drink water, you just drink, but in Turing’s regard, dissecting the task as small as possible,
The world with Turing’s view:
You generate an electric spark, a signal in your brain, to send that through neuron and synapse to your muscle and tendon / stretch your hand to the target and grab it by moving fingers / raise your hand high near your lips / set the angle of lips and the hand in relation / open the mouth and pour the water down inside the mouth.
When we use the command “drink water”, we can apply it only to “drinking water”
But if we use the enoughly simplified, minimized, and fractionalized command, then we can apply them to many more. Like sending signal, moving upwards/downwards, you can apply them to any part of your body.
Turing-complete language must have 1) well fractionalized commands which would be applicable to many works 2) and ‘loop commands’ as “while” / “for” that help activate a certain task repeatedly over and over.
With this kind of approach method, the best minimized computer language is ‘machine language’ and then assembly language.
But in the view of the applicability and usability, we broadly say, C/ C+/ JAVA languages are Turing-complete.
We do not use radio/audio/video and cellular phone separately anymore, thanks to the platform serving Turing-complete language, which is Smart phone. We enjoy every possible services with the one single platform.
Bitcoin is a financial service, which uses its own language, SCRIPT that has no looping command like ‘while’ & ‘for’, so that it is not Turing-complete.
However, Ethereum is a Turing-complete platform.
The languages assisted are Solidity similar to C / JAVA; Serpent to Python; LLL to Lisp.
However, there’s been a problem with ‘loop commands’ in the perspective of the computing and network resources.
The problem is that if you endlessly put a massive volume of works on the network, it goes paralyzed / frozen and stops working on what’s really necessary to be done.
4. Fee system
The reason why Bitcoin didn’t support Turing-complete language but only a customized SCRIPT language is to prevent DDOS attack which is using infinite loop command.
So if you want to run a program on Ethereum blockchain, per every each process, you have to pay a certain amount of a fee, which prevents attackers from squeezing the processing and networking resources.
When your Ether, which is like Bitcoin in the bitcoin program, gets used up, you can’t use the blockchain anymore, thus you can not hurt the system with the infinite loop, unless you have infinite amount of money.
4-1. Virtuous circle
- DDoS spends a lot of Ether, which is sent to miners.
- Miners with more Ether income adds more hashpower to earn more until the marginal income goes zero.
- More hashpower can bear with more works (DDoS).
- In result, the attack only makes the system stronger.
5. DApp - Decentralized Application
What’s possible on this platform?
Maybe almost everything you can possibly think of! of course including what’s already existing on Internet.
Even if it hasn’t been launched yet, there’s some DApps we can take to see what would be the real Ethereum after the launch like.
6. Example
SLOT MACHINE
https://www.youtube.com/watch?v=2ORk_lGwaSE - 2:00
The thing is that no one can’t cheat on the machine or the mechanism behind.
We can see everything transparently; And also no government can touch or regulate it. As you well know it’s P2P distributed server with no central party.
Prediction Market by Atomrigs in Ethereumkorea
Prediction-market products generating platform
You can generate any prediction product out of any subject or source
Adept by Samsung & IBM
Bittorrent(file share) / Ethereum(smart contract) / Telehash(messaging)
http://www.coindesk.com/ibm-reveals-proof-concept-blockchain-powered-internet-things/
https://www.youtube.com/watch?v=U1XOPIqyP7A
Directly related to the “Internet of Things(IoT)”
7. Internet with Economy
With some features empowered, we can build its own Ethereum internet explorer
Explorer with Ethereum could include ‘Whisper / Swarm / Ether’
We can communicate in real time with Whisper message protocol, share & use files on Swarm protocol, and make a direct Economy on the Ethereum blockchain internet.
This will bring the economy to internet and connect the finance in real world to the internet world very directly
8. Let’s see what other decentralized apps we have
Financial DApp
Currency(KRW/USD/CNY/CAD), Bond, Stock, Derivatives product, Hedge contract, Will, Lottery, Gamble
Semi / Non Financial
Token(representing a right to do something), Ticket, Coupon, Coin issued with one’s name
DO / DC - Decentralized Organization / Corporation
Salary, Money transaction, Accounting record, Board Conference, Shares, Vote and Overall management
DAO / DAC - Decentralized Autonomous Organization / Corporation
More decentralized and Autonomous processes with a low level of human intervention & Smooth and algorithmic interaction among each working sections.
