Ethereum is considered to be the very next after Bitcoin in the Cryptocurrency eco-space implementing trustless validation along with distributed storage of transactional data, which happens to be the very prerequisite for Cryptocurrency and its transactions. It happens to have a distributed network of almost 15,000 computers and the token name goes by Ether.
The architecture and transactional space of this crypto is very much similar to that of Bitcoins, like the protocols and the storage of transactional records in a platform that runs the Ethereum software. It also implements blockchain technology, just like Bitcoin. However, one major difference between this crypto and Bitcoin lies in the fact that the Ethereum nodes are capable of handling much more information and transactions as compared to its more popular peer, Bitcoin.
Features of Ethereum
Transactions are done over the network by creating smart contacts that are stored in the Blockchains on all nodes which are in turn invoked by sending Ether to them. Once invoked, all the nodes run the same code and as a result, the transactional details get updated in the ledgers stored in the blockchains. The transactions and smart contacts are run in a platform known as Virtual Machine, which act as an Operating System.
Ethereum also has its variations or forks, just like Bitcoins, like Ethereum Classic, which is a public blockchain. Each of the forks has its own coin, which is different from the others. However, Ethereum’s codes can also be run in a private network as well with selected participants.
Running Ethereum
To participate in the network, you can download some software called a client, or you can write some yourself if you have the patience. Just like BitTorrent or Bitcoin, this client will connect over the internet to other people’s computers running similar client software and start downloading the concerned blockchain from them to catch up with the latest state of the blockchain. It will also independently validate that each block conforms to the protocol rules.
Applications of the Client Software
- Connect to the network
- Validate transactions and blocks
- Create new transactions and smart contracts
- Run smart contracts
- Mine for new blocks
The computer becomes a ‘node’ on the network, running a Virtual Machine, and behaves equivalently to all the other nodes. Remember in a peer-to-peer network there is no ‘master’ server and each computer is equivalent in status to any other.
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