Blog
  • Home
  • Article categories
    • Educationals
    • Events
    • Legals
    • NFTs
    • Politics
    • Press & Partnerships – Eng
    • Real Applications
    • Sports
    • All categories
  • Editorial
  • Become an authorNew!
No Result
View All Result
Create your wallet
  • ItalianoItaliano
Blog
  • Home
  • Article categories
    • Educationals
    • Events
    • Legals
    • NFTs
    • Politics
    • Press & Partnerships – Eng
    • Real Applications
    • Sports
    • All categories
  • Editorial
  • Become an authorNew!
No Result
View All Result
Blog
No Result
View All Result

A different version of the classic Proof of Work: Ethereum

Giovanni CapacciolibyGiovanni Capaccioli
July 30, 2019
in Educationals, Real Applications
Reading Time: 6 mins read
A A
Share on FacebookShare on Twitter

Index

  • The means for the end. 
  • Proof of Work: Ethash.
  • Ethereum: Smart Contracts and Dapps.
  • The Gas.
  • The puzzle.
  • A programmed evolution: Proof of Stake.

The means for the end. 

A different version of the classic Proof of Work:  Ethereum

Ethereum is frequently compared to Bitcoin, due to the similar type of consensus, the Proof of Work, but differs actually for its aim, that led Ethereum to create from the start a variant of the Proof of Work.

Reading and searching for information on the internet, frequently one finds comments and opinions that generate hype about “Bitcoin is better than Ethereum” or “Ethereum is better than Bitcoin” as for other blockchains or cryptocurrencies. However, analyzing the blockchain world, what matters is “choosing the better fitting blockchain for the scope that one wants to reach”. That’s why Ethereum, in this case, differentiates from Bitcoin or others. 

Bitcoin substantially is oriented to coins, while Ethereum is focused on the creation of a decentralized system that enables users to build the famous “Dapps” (Decentralized Apps), based on Smart Contracts structure. 

Ethereum does have its coin, Ether, but it was created as the means for the end, allowing to create and use SmartContracts and Dapps, rewarding the parts of the system. 

Proof of Work: Ethash.

Let’s start from the basis: what brings together Bitcoin and Ethereum is the use of the same consensus system. Both use the Proof of Work. However, from here, Ethereum develops a version of PoW based on a function called Ethash. 

Ethash aims at solving the problem of mining centralization. Few miners groups, or “mining pools” acquire an enormous computing power compared to the rest of actors operating on the network, at the point that these are capable of altering the goodness of the system itself. 

Technically speaking, with Ethash, developers aimed to create an ASIC resistant network: ASIC is the term used to identify hardware customized to satisfy a determined function. The whole “integrated circuits” used by miners to mine Litecoin or Bitcoin, to cite the two most famous PoW-based cryptocurrencies, can be described as ASIC since these are customized to reach a scope, at the point of not being available or buildable through the classic commercial lines of computer shops.

One has to remember that, technically, cryptocurrencies based on PoW can be mined using every personal computer. However, nowadays who does this has a percentage of success close to zero, considering that almost every “professional” miner shall have in place way more elaborated and performing systems, creating “mining pools”, or a “set of computers that put together their computational power to compete as one”. 

Ethereum objective with Ethash is to create a mining system embeddable on common hardware. 

Deepening the possible scopes of this strategy carried out by Ethereum, one can observe how the GPU market is continuously growing.

Ethash exploits this situation: the system uses with both hands the computing power of GPUs. CPUs (processors) are built to work on a  calculation system that differs from the one of GPUs (video card processors). In the PoW system built by Ethereum, GPUs perform way better in solving those kinds of calculations, without going into the details here. 

Ethereum: Smart Contracts and Dapps.

The classic Proof of Work, customized as Ethash, adding Smart contracts and Dapps, basically lead to the creation of Ethereum.

Deepening the research, we’ll learn that Ethereum constitutes of a vast network of computers. Their job is elaborating transactions and creating, and maintaining, the ledger (blockchain).

We then find “Solidity“, that is the programming language that developers can use in blockchain to create and automatically run the software that we call Smart Contract.

Lastly, we have applications that use the network mentioned above to offer users services like governance, ID managing, and so on. The peculiarity of these Dapps is that by being decentralized, they can’t be simply shut down.

Adding Smart Contracts required the creation of a custom environment, to allow processing and implementing of Smart Contracts themselves.

The Gas.

This environment is called Ethereum Virtual Machine or EVM. As the name suggests, it is a virtual machine installed on every node in the network, by nodes themselves. This is crucial since Smart Contracts and Dapps need to allocate computing resources, a process handled by EVM. 

By allowing the whole consensus system to work, EVM needs a price to pay for the computational work: it is called GAS, a price limit (GAS) consumable to reward miners. 

Mining is the element that simultaneously brings together and pushes away Bitcoin and Ethereum. Being based on Proof of Work is composed of the same set of actions carried out to create blocks and securing transactions.

The puzzle.

The difference is in the amount of time needed to carry out the “computational puzzle“. For Bitcoin, the puzzle is complicated enough that is solved and accepted by the network in 10 minutes; for Ethereum, the puzzle is complicated enough that is solved and accepted by the network in 15 seconds. 

As it happens with Bitcoin, Ethereum continuously adapts the difficulty level of the puzzle. It happens when it sees that the process needs too much, too little, time to be carried out, keeping it around 15 seconds.  

A programmed evolution: Proof of Stake.

It is crucial to highlight that the creators of Ethereum plan to shift from PoW or PoS (Proof of Stake) because they think that a blockchain system based on PoS can fit better the needs and objectives of Ethereum. 

The transition to the new consensus is scheduled and will be a significant change for Ethereum. 

Tags: BlockchainEthashEthereumLedgerProof of WorkSmart Contracts
Giovanni Capaccioli

Giovanni Capaccioli

R&D, Business Intelligence Manager & Blog Director presso Affidaty S.p.A.

Articoli correlati

Economy

Technology Blockchain: Money Laundering Is Counting Down on the Euro.

This contribution, which for the first time opens a window of knowledge on blockchain technology and the risks of money...

byGiuseppe Franceschini
March 23, 2023
Educationals

Bitcoin: the story of a revolutionary idea.

Work in progress. To create a new conceptual model for the use of blockchain, it is important to first identify...

byMaurizio Acco
March 21, 2023
Real Applications

Companies: true innovation is the use of blockchain

Introduction. Entrepreneurs face an increasingly complex and unsettled scenario, which makes the environment in which they operate volatile and often...

byAvv. Alfonso Scafuro
March 16, 2023
Real Applications

Blockchain: Awareness driving change.

Introduction. My name is Marco Piano, a 92' class Blockchain Technology Advisor. In parallel, I am part of the QA...

byDott. Marco Piano
March 9, 2023
Next Post

Blockchain: the Proof of Stake (PoS)

Special Authors

Dott. Marco K. Santarelli
Dott. Marco K. Santarelli
10 posts
Marco Santarelli Network Analysis, Intelligence and Defence Intelligence of things…
View Posts →
Avv. Marco Del Fungo
Avv. Marco Del Fungo
8 posts
Cybersecurity Legal Advisor - Data Protection New Technologies Law -…
View Posts →
Maurizio Acco
Maurizio Acco
10 posts
Arezzo Bitcoin - Founder
View Posts →
Raffaele Battaglini
Raffaele Battaglini
4 posts
Founder at Battaglini-De Sabato Law Firm - Organiser at Legal…
View Posts →
Davide Zanichelli
Davide Zanichelli
4 posts
Chamber of Deputies - IV Finance Commission
View Posts →
On. Luca Carabetta
On. Luca Carabetta
2 posts
Member of the Italian Parliament | Economic Development Commission |…
View Posts →
Michele Ficara Manganelli
Michele Ficara Manganelli
2 posts
NFT ART CH Gallerist | Grid Trader & Blockchain Expert…
View Posts →
Dott. Fabio Massimo Castaldo
Dott. Fabio Massimo Castaldo
2 posts
Dott. Fabio Massimo Castaldo Vice Presidente del Parlamento Europeo
View Posts →
Eugenio Giovanardi
Eugenio Giovanardi
2 posts
Co-Founder Moonia | NFT Strategist | VR Specialist | Metaverse…
View Posts →
Luigi Corvo
Luigi Corvo
2 posts
Founder at Open Impact. Associate Professor at Milano-Bicocca University. Professor…
View Posts →
Lorenzo Zamponi
Lorenzo Zamponi
2 posts
Partner at ZM Consulting Srl Chartered Accountant and Branch administrator…
View Posts →
Prof. Santi Tomaselli
Prof. Santi Tomaselli
2 posts
President of the Roman Observatory for European funds.
View Posts →
https://www.hdemy.io/

Recommended

Kotuko becomes a certified integrator of T.R.I.N.C.I.®

March 24, 2023

Technology Blockchain: Money Laundering Is Counting Down on the Euro.

March 23, 2023

Bitcoin: the story of a revolutionary idea.

March 21, 2023

Bitcoin: the story of a revolutionary idea. The most important milestones.

March 7, 2023

Blockchain.com is running low on liquidity: is bankruptcy on the horizon?

March 2, 2023

Newsletter

Sign up to stay updated on our blog and find out about our future initiatives! Fill out the form below

Your entry cannot be validated.
Your registration was successful.

Popular last 10 days

  • Companies: true innovation is the use of blockchain

    612 shares
    Share 245 Tweet 153
  • Technology Blockchain: Money Laundering Is Counting Down on the Euro.

    592 shares
    Share 237 Tweet 148
  • Bitcoin: the story of a revolutionary idea.

    595 shares
    Share 238 Tweet 149
  • Bitcoin: the story of a revolutionary idea.

    590 shares
    Share 236 Tweet 148
Affidaty Blog

© by Affidaty S.p.A.

Menu

  • Home
  • Categories
  • Editorial
  • Become an author

Follow Us

No Result
View All Result
  • Home
  • Article categories
    • Educationals
    • Events
    • Legals
    • NFTs
    • Politics
    • Press & Partnerships – Eng
    • Real Applications
    • Sports
    • All categories
  • Editorial
  • Become an author
  • ItalianoItaliano
Create your wallet

© by Affidaty S.p.A.