GHOST resolves network security loss by including stale blocks in calculating the longest chain. In Ethereum, this is limited to seven levels. 

Modified Ghost Implementation

Malicious users can potentially shut down miners and full nodes by forcing them to enter an infinite loop. However, the alternative, Turing-incompleteness, is too messy to implement, and leaving the machine Turing-complete is a better solution.

Computation and Turing Completeness

Need to reduce excessive wealth concentration and give incentive for obtain and hold currency, so use a permanent linear supply growth model as opposed to the Bitcoin capped supply model.

Currency and Issuance

Vulnerable to two forms of centralization
- Mining ecosystem and ASICs
- Block validation not done locally

Mining Centralization

With rising sizes of blockchain, only larger businesses could run full nodes while individual users used lighter nodes. Use an intermediate state tree root so even if validation is centralized, at least one honest node exists and a verification protocol can then be used. 

Scalability

Bitcoin uses a market based approach to set the price of transaction fees, but much of transaction processing is made by third parties and not the miner making the decision to include it or not. Ethereum uses the GHOST protocol to rely on regulated block limits, providing a more stable baseline. 


Fees in Bitcoin and Ethereum

- Modified GHOST Implementation
- Fees
- Computation and Turing-Completeness
- Currency and Issuance
- Mining Centralization
- Scalability


University of Minnesota - Twin Cities

Ethereum is alternative protocol to Bitcoin for building decentralized applications.   

It is open-source, has smart-contract functionality, and allows users to create their own arbitrary rules for ownership, transaction formats and state transition functions.

Ethereum

Buterin, Vitalik. (2013). A Next-Generation Smart Contract and Decentralized  

Application Platform. https://ethereum.org/en/whitepaper/


Ethereum Whitepaper

- Ethereum Accounts
- Transactions
- Messages
- Ethereum State Transition Function
- Code Execution
- Blockchain and Mining
- Ethereum's Functionality
- Ethereum's Design

Key Ethereum Terms

- Token Systems
- Financial derivatives and Stable-Value Currencies
- Identity and Reputation Systems
- Decentralized File Storage
- Decentralized Autonomous Organizations
- Further Applications


Ethereum Applications

Ethereum Concerns

- Ethereum Whitepaper
- Ethereum Name Service (ENS)
- Go-Ethereum for electronic voting system using clique as proof-of-authority

Ethereum References

The Ethereum governance refers to the way and process to make changes to the protocol, this protocol isn't controlled by someone. Therefore, decisions under the protocol are extremely important since so many people and project depends on it, that's why either decision making or core changes, this process considers social and technical criteria and it's also supported totally by the community.

Ethereum Governance

Is an updated version of the Ethereum network that aims to improve several features of the existing network
Some of the features of Ethereum 2.0 include:
- **Proof of Stake**: replaces *Proof of Work*
- **Sharding**.
- **Virtual Machine Update**.
- **Scalability**.
- **Security**.

Ethereum 2.0

Ether is the native cryptocurrency used fundamentally for payment transaction fees on the Ethereum network, then after the **Merge** it's also used for validate and propose blocks on Mainnet. The pricing mechanism for Ethereum's computing power is facilitated by the ether cryptocurrency. In order for transactions to be validated on the blockchain, users are required to pay ether, known as gas fees, which depends on computing power required for running a transaction


Ether (ETH)

Ethereum supports Proof of Stake and uses validators instead of miners, blocks are randomly selected by a validator to propagare this block to the network and consequently add it to the network through the assembly process. Unlike other blockchain, Blocks support of creation of smart contracts using a system of gas for the execution of them.

Ethereum Blocks

It's the runtime Environment for executing smart contracts and running transaction on the Ethereum Virtual Machine, designed to be Turing Complete, which means the EVM can run any program given enough resources. It allows developers to write and deploy smart contracts than are self-executing based on the agreement reached by the user.
The EVM exist as a single entity maintained by thousand of connected computers running an Ethereum Client software.

Ethereum Virtual Machine (EVM)

A Ethereum node is a device that is connected to the Ethereum network and helps maintain the network by validating transactions and blocks. A node can be any device, such as a personal computer, a server, or a mobile device, that runs **Ethereum client** software and connects to the Ethereum network.

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