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[Christ_bit]

  While it sounds more complex, the idea is fairly simple.

And you will see why in a few minutes! 

[Croosss123]

Every time a bitcoin transaction is made, the network ‘breaks’ the total amount as if it was paper money, issuing back bitcoins in a way that makes the data behave similarly to physical coins or change.

[Whyknow78]

In order to make future transactions, the bitcoin network must add up all your pieces of change, which are classed as either ‘spent’ or ‘unspent’. 

[Christ_bit]

Ethereum, on the other hand, uses accounts.

[Choco_boy]

Like bank account funds, ether tokens appear in a wallet, and can be ported (so to speak) to another account. 

[Croosss123]

Funds are always somewhere, but don’t have what you might call a continued relationship.

[Christ_bit]

Now, with that clear what is the ethereum virtual machine?

[Whyknow78]

With ethereum, every time a program is used, a network of thousands of computers processes it.

[Choco_boy]

Contracts written in a smart contract-specific programming languages are compiled into ‘bytecode’, which a feature called the ‘ethereum virtual machine’ (EVM) can read and execute. 

[Croosss123]

  All the nodes execute this contract using their EVMs.

[Choco_boy]

But we have to remember that every node in the network holds a copy of the transaction and smart contract history of the network, in addition to keeping track of the current ‘state’.

[tarikul1921]

SEMESTER 3

Week 3 : 2019.01.11 ~ 2019.01.17
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[Christ_bit]

That every time a user performs some action, all of the nodes on the network need to come to agreement that this change took place.

[Croosss123]

The goal here is for the network of miners and nodes to take responsibility for transferring the shift from state to state, rather than some authority such as PayPal or a bank. 

[Choco_boy]

Bitcoin miners validate the shift of ownership of bitcoins from one person to another.

[Christ_bit]

In this part the EVM executes a contract with whatever rules the developer initially programmed.

[Croosss123]

Actual computation on the EVM is achieved through a stack-based bytecode language (the ones and zeroes that a machine can read), but developers can write smart contracts in high-level languages such as Solidity and Serpent that are easier for humans to read and write.

[Choco_boy]

As explained in our guide “How Ethereum Mining Works“, miners are the ones that are preventing bad behavior – like ensuring that no one is spending their money more than once and rejecting smart contracts that haven’t been paid for. 

[Whyknow78]

There are a few thousand ethereum nodes out there, and every node is compiling and executing the same code.

[Christ_bit]

But, you might be thinking, isn’t that much more expensive than a normal computation? Yes, it is.