What is the working mechanism of Ethereum?

3 answers

• Dec 17, 2021 · 3 years ago
  Ethereum is a decentralized blockchain platform that enables the creation and execution of smart contracts. It works by utilizing a network of computers, known as nodes, that collectively maintain a shared database called the Ethereum Virtual Machine (EVM). The EVM is responsible for executing smart contracts and storing their state. Transactions on the Ethereum network are validated and added to the blockchain through a consensus mechanism called Proof of Work (PoW), where miners compete to solve complex mathematical puzzles. Once a block is added to the blockchain, it becomes immutable and cannot be altered. Ethereum also has its native cryptocurrency called Ether (ETH), which is used to pay for transaction fees and incentivize miners. Overall, Ethereum's working mechanism combines the power of decentralized computing, smart contracts, and blockchain technology to enable a wide range of decentralized applications (dApps) and tokenized ecosystems.
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• Dec 17, 2021 · 3 years ago
  So, here's the deal with Ethereum: it's like a supercomputer that runs on a decentralized network. Instead of relying on a single entity or server, Ethereum uses a network of computers to process and validate transactions. This network is made up of nodes, which are essentially computers that participate in the Ethereum network. These nodes work together to maintain a shared database called the Ethereum Virtual Machine (EVM). The EVM is like the brain of Ethereum—it executes smart contracts and stores their state. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically execute when certain conditions are met. Ethereum's underlying mechanism also involves a consensus algorithm called Proof of Work (PoW), where miners compete to solve complex puzzles to validate transactions and add them to the blockchain. This ensures the security and integrity of the network. Ethereum is pretty cool, right?
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• Dec 17, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that Ethereum operates on a decentralized network of computers called nodes. These nodes work together to maintain a shared database known as the Ethereum Virtual Machine (EVM). The EVM is responsible for executing smart contracts, which are self-executing contracts with predefined conditions written in code. Ethereum's underlying mechanism also involves a consensus algorithm called Proof of Work (PoW). Miners compete to solve complex mathematical puzzles to validate transactions and add them to the blockchain. This ensures the security and immutability of the Ethereum network. Ethereum's native cryptocurrency, Ether (ETH), is used to pay for transaction fees and incentivize miners. Overall, Ethereum's working mechanism enables the creation and execution of decentralized applications (dApps) and facilitates the development of innovative blockchain-based solutions.
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