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What Algorithm is Ethereum Based On (The Working Principle of Ethereum)

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What algorithm is Ethereum based on? According to Trustnodes, what algorithm is

What Algorithm is Ethereum Based On (The Working Principle of Ethereum)

What algorithm is Ethereum based on? According to Trustnodes, what algorithm is Ethereum based on? What is the consensus mechanism of the Ethereum blockchain? Researchers from the Ethereum Foundation have found that the Ethereum blockchain requires a series of mathematical calculations to run. According to the latest statistical data, as of November 30, 2018, over 50 large enterprises have completed contract code audits. Technically speaking, these companies have the ability to build their own Ethereum networks. So what exactly is the Ethereum project?

Through a simple introduction, we can understand that the Ethereum blockchain consists of three parts – a group of individually calculated blocks, a group of independently verified transactions, and a shard chain, where each shard is a peer-to-peer state blockchain. The core of this blockchain is the issuance and circulation process of Ether.

The Working Principle of Ethereum

The working principle of Ethereum is as follows: in the network, when everyone is sending transactions (like Bitcoin), they must first put a token into the blockchain to complete the operation of the entire system.

In order to simplify and achieve this task, and to provide users with a better experience and value, we use “sharding” technology to ensure the security and integrity of information. Due to the short block time, high gas costs, and limited number of validators, only a few transactions can be processed per second. This requires a significant amount of computational resources to ensure security during transactions.

The working principle of Ethereum is different from Bitcoin:

First, a new chain can be established through sharding. This enables support for more applications.

Second, layered technology makes it easier for developers to deploy smart contract platforms.

Finally, Ethereum follows a phased approach to its work. The first phase is building the shard-based EVM protocol, the second is the beacon chain which is part of Ethereum 2.0 planned for launch in 2021, and the third involves some small-scale testing before sharding. Therefore, theoretically, Ethereum has developed into a fully decentralized state.

In the second step, a unique architecture and mechanism are designed based on its own characteristics. This structure is determined by the consensus algorithm and has different performance requirements, which will affect other parts of the code. These characteristics make it difficult to understand, highly complex, and inefficient.

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