Hi I am Dasom Today’s topic is Ethereum Ethereum project is aimed for decentralized application platfrom adding Smart Contract function over basic currency function There was a limit to express complicated logic on Bitcoin network Ethereum network provides a Turing complete language supporting any complicated operations I am flawless I’m sorry Let’s check out the inside of Ethereum! Ethereum can be divided into three sectors The first is Smart Contract ensuring integrity of the network The second is Swarm, a distributed storage platform The third is Whisper, a decentralized communication protocol Completely free of censorship between Ethereum clients By using the components, Ethereum provides an optimized environment to develop decentralized applications that never stops The strongest Iron Man DApp! Consensus Algorithm The current consensus algorithm is Proof of Work on Ethereum On Bitcoin network, there’s an environment only a few miners keep mining blocks by ASIC Ethereum is using a different consensus algorithm called Ethash using Dagger-Hashimoto algorithm It’s too hard The algorithm should consume nearly the entire available memory access bandwidth It does not allow to use ASIC but GPU for mining blocks Ethereum does not focus on generating blocks but prioritize a mining environment that computers can verify Smart Contract operation That’s why Ethereum adopted the alternative algorithm On the Roadmap, Ethereum plans to adopt hybrid algorithm(PoW/Pos) after Metropolis stage and will completely move to Proof of Stake at Serenity, the last stage GAS Have you ever heard of a word ‘Gas’ when you searched about Ethereum? GAS! GAS! GAS! People say things like “how much is Gas?” Gas is a fuel unit on Ethereum network Fill it up, please! Gas is a fuel to operate Smart Contract function on Ethereum Smart Contracts have various functions DApp is composed of the multiple functions Gas is an essential source to implement DApp But it doesn’t mean paying more Gas solves everything You need to consider the Gas limit of each block Here’s an example Let’s say I am an owner of a company with 100 employees Suppose I pay 100 employees by Smart Contract To execute ‘Pay All Salaries’ function The Gas amount should be over the Gas limit of a block If I use this function as it is ‘Pay All Salaries’ function will be failed and none of employees will receive their salaries But Gas will be consumed as transaction fee “My boss is not still picking up my phone” What if the number of employees is 80? Gas amount meets Gas limit and all employees can get their salaries successfully But what if the number of employees is 10,000? Block generation will be jammed for a long time To prevent any situations like this, there is Gas limit Gas price equals number of Gas times 1 Gwei For example The required amount of Gas is 21,000 when sending your ETHER You need to multiply 21,000 Gas by 0.000000001 ETH And the result is 0.000021 ETH, the fee will be paid to a block miner Every transaction requires to consume Gas on Ethereum Scalability Few weeks ago, you’ve watched CryptoKitties, one of DApps on Ethereum Ethereum network was jammed due to dramatic increase in one DApp Also, When Status ICO was initiated, There was another delay on Ethereum network The situations are due to scalability issue Ethereum plans to solve the issues by developing Proof of Stake, a new type of consensus algorithm Sharding, the process of splitting up the chain data and the 2nd layer, Plasma, an update to boost up the processing speed PoS maintains a constant speed of mining a block discouraging competitions between miners on Ethereum If two blocks are spread to the network simultaneously Each node will eventually adopt the longest chain as the only option Also, there is no need to consume large electricity Sharding helps nodes not to verify whole blockchains and make an environment more accessible That means, nodes can verify limited number of transactions of specific Contracts or wallet addresses Plasma creates virtual blockchain on Ethereum And it aims to compose off-chain verified through Ethereum using Proof of Stake and Sharding It improves efficient use of space and processing speed and it is expected to exceed throughput of credit card company in near future Roadmap Ethereum Roadmap can be divided into four stages Frontier Homestead Metropolis Serenity Each stage adds new features and improves protocol From getting funding by Bitcoin at ICO Ethereum team planned to move to Serenity stage in two years But the progress is way behind schedule Because the relevant tech level increased very rapidly Both official clients and community clients need to be developed on the same time to apply new technologies That’s why the updates has been delayed Currently, Byzantium hard fork is completed which is one of two hard forks at Metropolis stage The next hard fork, Constantinople will be launched on the first quarter of 2018 The hybrid consensus algorithm will be adopted PoW and PoS By combining Proof of Work and Proof of Stake at Constantinople At the last stage, Serenity, the complete Proof of Stake will be ready Aren’t you excited? Lean on me! I am sorry That’s all for today about Ethereum Bye! Hey Guys! Aren’t you forgetting something? Please SUBSCRIBE and LIKE COINsight! Thanks a lot!