Ethereum proposed to utilize blockchain technology not only for maintaining a decentralized payment network but also for storing computer code that can be used to power tamper-proof decentralized financial contracts and applications.
Ethereum enables the deployment of smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party.
Ethereum comes complete with its own programming language that runs on a blockchain, enabling developers to build and run distributed applications.
transactions on the Ethereum network may contain executable code, while data affixed to Bitcoin network transactions are generally only for keeping notes.
They also Function on different alogrithm
There are time differences in tx execution
They also Function on different alogrithm
There are time differences in tx execution
At the time of the writing Bitcoin and Eth use a consensus protocol called proof of work(PoW), which allows the nodes of the respective networks to agree on the state of all information recorded on their blockchains and prevent certain types of economic attacks on the networks.
Soon, Ethereum will be moving to a different system called proof of stake (PoS) as part of its Eth2 upgrade/merge, a set of interconnected upgrades that will make Ethereum more scalable, secure, and sustainable.
Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met.They are used to automate the execution of an agreement so that participants can be immediately certain of the outcome, without any intermediary's involvement or time loss.
They basically serve as automated intermediary or executor for preplanned or programmed instructions.
Let's take A typical illustration of a smart contract
Let's take A typical illustration of a smart contract
📝Case study
Mr A and Mr B in year 2000 saw an acre of land for 100k$ and felt it was a steal, Mr A had 70k$ while Mr B had 30k$. They both came to an agreement to join resources to acquire the land.
Mr A and Mr B in year 2000 saw an acre of land for 100k$ and felt it was a steal, Mr A had 70k$ while Mr B had 30k$. They both came to an agreement to join resources to acquire the land.
they came to agreement to sell the land once it hit 1m$ in worth, but they had an issue with trust and executions and we'll unforseen circumstances.
They met Joeconceptss who recommend a smart contract,
They met Joeconceptss who recommend a smart contract,
so they programmed the info into the smart contract the details of the purchase and also the ratio of contribution, and also instructed the smart contract about the when sale is intended.
Soon it was 2010 the land hit 1m$ in worth, smart contract sold automatically and distributed funds back to mr a and b equally according to ratio🥳. Also removing fees of “smart contract code creator” creator fees from the profits.
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