What is Ethereum? How does Ethereum work?

php Editor Apple will introduce you to what Ethereum is and how it works through this article. Ethereum is an open source platform based on blockchain technology designed to enable the development of smart contracts and decentralized applications. Its working principle is to run on a network of global nodes and implement transactions and data storage on the blockchain by executing smart contracts. The core concepts of Ethereum include Ethereum, Gas fees and smart contracts, which together constitute the operating mechanism of Ethereum.

What is Ethereum?

Ethereum is an open source, decentralized blockchain platform that allows anyone to build and run smart contracts. A smart contract is a code stored on the blockchain that automatically executes when certain conditions are met. This makes Ethereum an ideal platform for building a variety of decentralized applications, such as financial applications, games, and social networks.

How Ethereum works

Ethereum uses a consensus mechanism called "proof of work" to ensure the security of the network. Proof of work requires miners to solve complex mathematical problems to verify transactions and add new blocks to the blockchain. Miners are rewarded with Ethereum (ETH) for solving these problems.

Ethereum also uses a mechanism called "smart contracts" to execute code. Smart contracts are codes stored on the blockchain that automatically execute when certain conditions are met. This makes Ethereum an ideal platform for building a variety of decentralized applications, such as financial applications, games, and social networks.

Advantages of Ethereum

• Decentralization: Ethereum is a decentralized platform, which means that it is not controlled by any single entity. This makes it more secure and reliable.
• Smart contracts: Ethereum uses smart contracts to execute code. Smart contracts are codes stored on the blockchain that automatically execute when certain conditions are met. This makes Ethereum an ideal platform for building a variety of decentralized applications.
• Security: Ethereum uses a proof-of-work consensus mechanism to ensure the security of the network. Proof of work requires miners to solve complex mathematical problems to verify transactions and add new blocks to the blockchain. This makes Ethereum very secure.

Disadvantages of Ethereum

• Scalability: Ethereum has limited scalability, which means it can only handle a limited number of transactions per second. This makes it unsuitable for handling large-scale transactions.
• Cost: Ethereum’s transaction costs are high, making it unsuitable for micropayments.
• Complexity: Ethereum is a complex platform, which makes it difficult to use. This makes it unsuitable for non-technical people.

The above is the detailed content of What is Ethereum? How does Ethereum work?. For more information, please follow other related articles on the PHP Chinese website!