Co-Founder of Ethereum Blockchain Vitalik Buterin said:

“When I saw it I noticed that this name was more beautiful for me than other alternative names. I think like that the main reason of this is that “Ethereum” sounds so good and the word contains “ether”. Ether is phenomenon that provides for gliding the light on the space.

Ethereum’s target is being a world computer. The “computer” is working thanks to the blockchain network and its own Virtual Machine. We said that Ethereum isn’t just a digital asset, unlike Bitcoin. By any definition, Ethereum is the world. The network is available for building new apps on its. Furthermore, the App has a new feature: Decentralization. 

That’s why the apps convert to dApps (decentralized apps). Right now Ethereum is the most decentral blockchain network. Because the network has a completely decentral structure. The transactions on Ethereum are kept in almost 500.000 nodes. That’s why Ethereum can provide its decentralized structure.

Every user can deploy their smart contract on the Ethereum blockchain. Even they build their app thanks to the feature. Here, it’s Ethereum’s difference.

What Is A Smart Contract?

Smart contracts are the fundament of the Ethereum blockchain. The network building on them. Smart contracts are written using the Solidity programming language. If you don’t want what is a smart contract or how it works, don’t worry. Let’s imagine 2 people named Alice and Bob. Alice wants to send money or information to Bob. But she needs third-party payments or organizations for doing the transactions.

Here, they can do that thanks to smart contracts. Because the smart contract isn’t the third party. They just need a wallet and smart contract. But, at the same time, they should keep an eye on when choosing smart contracts. Because some contracts’ owners may be malicious.

You might also like: What Is Smart Contract? 

“Smart Contracts” term was created by Nick Szabo in 1994. They are similar to Automats. These machines also work that. You choose a product, it says the relevant price and you pay for that. And then you click the button and it gives the product that you wanted.

What Is Token Standart? Which Standarts Are Most Common?

First of all, we should mention EIPs (Ethereum Improvement Proposal). They are proposals for the development Ethereum community and technology. If there are some changes to the network, it is present to the community as EIP.

Some EIPs are related to standards, they are presented as Ethereum Request for Comment (ERC). All standards’ names are inspired by it: ERC-20, ERC-1155, ERC-721, etc.

• ERC-20: The standard was designed for voting, staking, and digital currency tokens.
• ERC-721: Usually this standard is used by unique, non-fungible tokens (NFTs).
• ERC-777: This token standard is changed and developed ERC-20
• ERC-1155: The standard contains both of them fungible and non-fungible tokens.

What Is dApps (Decentralized Applications)?

You think Decentralized Apps are like normal apps on Web 2.0. Dapp is an application for creating connections between users and servers, but they haven’t a data center, unlike Web 2.0 applications. Smart Contract provides a decentral connection. Additionally, all dApps work as P2P (person-to-person).

They have pure structure. In this manner, dApps can use smart contracts which they were written by another or unknown deployer(owner). Apps and dApps are similar. A difference is in the backend. Normal applications use the backend where all data is collected on the sole center. But dApps don’t collect their data as it is. They can’t do that. Because their backend is blockchain and blockchain is distributed ledger technology. That’s why data don’t collect in one center.

Generally, Web 2.0 applications’ structure is that: Front-End → API → Database. But Web 3.0 or Decentralized applications: Front-End → Smart Contract → Blockchain.

Ethereum Virtual Machine (EVM)

EVM is the fundament of the Ethereum blockchain’s operation structure. We can think of the machine as a presence that was sustained by thousands of computers. EVM is the processor. Generally, Virtual Machines are converted bytecodes. EVM is a “supporter” to users for reducing problems on the network.

Ethereum has 2 types of accounts: External Owned Accounts (EOA) and Contract Accounts. Account abstraction wants to achieve that EOAs and Contract accounts work similarly. EOAs are managed by private keys.

Developers write codes and created smart contracts using Solidity. At this time, the codes are bytecode, so they are non-understandable to readers. EVM is converting them to bytecodes, after that, they are being readable.

What Is Gas Fee On Ethereum?

The gas fee is payment for executing transactions on the Ethereum network. Gas fees are paid using Ethereum Network’s native token ETH. Usually, gas fees are calculated as gwei. 1 gwei equals 0.000000001 ETH.

Gas fees are paid to network validators. Validators have nodes on the Ethereum blockchain. They verify users’ transactions. In return, users should pay relevant amounts to them. Right now Ethereum has Proof-of-Stake (PoS) algorithm. But its first algorithm was Proof-Of-Work(PoW). Right now they should have a minimum of 32 ETH to be validators. But validators were called miners when the network has a PoW algorithm. They should mine for be validators node.

On 15 September 2022 was realized on the Ethereum Network Merge Upgrade. Ethereum was a PoS blockchain thanks to the upgrade.

There’s a gas limit. Users can use the function for determining the limit to gas payments. Standard ETH transfer is available for 21.000 gas limits. For example, if you set a 50.000 gas limit, EVM is using 21.000 gas and refunds its piece of 29.000.

Especially in bullish seasons gas fee ratios are increasing. Because so many users’ wants to use the network. In this case, gas fees are increasing. The completed transaction has been some users who are paying large amounts as fees. Because validators verify these users’ transactions.

Ethereum’s Scalability Problem

Ethereum is a decentral blockchain, so, your data is reliable on there. But the network isn’t scalable. The scalability ratio is measured for TXS power. If blockchain produces blocks fast, so it is scalable. But Ethereum isn’t.

So, can Ethereum produce that? Yes, Ethereum can do it, but in this case, it must produce smaller blocks. Because nodes should download these data. If blocks have huge sizes, and Ethereum produce them fast, nodes can’t download and keep them on their device. And then, the nodes’ count will reduce. But we don’t want it as blockchain enthusiasts.

Right now, there are some solutions to the problem: Rollups, Danksharding, Sharding, ZeroKnowledge Proof (ZKP), Sidechains, etc.

Rollups solve the problem of sending zkProofs to the Ethereum Chain. In this case, Ethereum’s “noisy” will reduce. Rollups have 2 types: Optimistic and zkRollups. Optimistic Rollups just create proofs and they don’t convert them zkProof and send them to Ethereum. But zkRollups are using cryptographic methods. That’s why Optimistic Rollups are faster than zkRollups.

Danksharding is the initial phase of the Sharding procedure. The phase is preparation. The sharding phase wants to separate chains. In this case, all nodes aren’t busy at the same time. In there Data Availability helps for increasing scalability. So, every node can verify the transaction using a little piece.

ZeroKnowledge Proof (ZKP) technology is providing security and scalability at one time. Transactions will be completed using proofs, but the proofs don’t contain any knowledge or information about the processes.

Sidechains want to be parallel workers for the Ethereum chain. They are working and want to reduce Ethereum’s load as Rollups. Right now the most common sidechain is Polygon. And the network’s native token is MATIC.

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At the very heart of Ethereum’s blockchain technology lies the Ethereum Virtual Machine (EVM), essentially acting as a decentralized engine. This powerful engine enables the seamless operation of decentralized applications (dApps) and smart contracts. Essentially, it operates as the technological backbone that allows applications to run flawlessly without any interruptions, fraud, or external meddling. Moreover, the EVM stands as the foundational element of Ethereum’s decentralized ecosystem, offering a platform for developers to create innovative programs across a globally distributed network.

Understanding How the EVM Operates

In essence, the EVM simplifies the intricate process of executing smart contracts and dApps by translating them into bytecode. This transformation allows the Ethereum network to understand and execute these contracts efficiently. Consequently, whenever you interact with an Ethereum application, you’re engaging with smart contracts, which the EVM executes with high efficiency.

Furthermore, the EVM boasts Turing-complete capabilities, meaning it can execute any computational task given sufficient resources. This feature is crucial for the complex functionalities required by dApps. Additionally, each operation within the EVM incurs a “gas” cost, a clever mechanism designed to prevent spam and reward miners for their computational efforts. Therefore, this gas system ensures the network remains efficient by maintaining a balance between computational demands and the incentives for network support.

Highlighting the EVM’s Role in the Crypto Ecosystem

Interestingly, the Ethereum Virtual Machine occupies a pivotal position within the cryptocurrency ecosystem. It lays the groundwork for Ethereum’s ambitious vision of a decentralized internet, a space where developers have the freedom to create applications free from centralized control. As a result, the EVM has enabled revolutionary developments across various sectors, including finance, gaming, and social media.

Moreover, the influence of the EVM extends far beyond Ethereum itself. A significant number of blockchain projects have embraced EVM compatibility, thus fostering a more interconnected and versatile blockchain ecosystem. This strategic move allows developers to reach a broader audience and applications to benefit from the strengths of diverse blockchains.

In conclusion, the Ethereum Virtual Machine is an indispensable component of the cryptocurrency world. Not only does it fuel the unique decentralized applications that distinguish Ethereum, but it also supports a vibrant ecosystem and encourages continuous innovation across the blockchain domain. For developers keen on exploring Ethereum’s capabilities or enthusiasts curious about decentralized technology, gaining an understanding of the EVM is a crucial step toward appreciating the vast potential and ongoing advancements in blockchain technology.

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BounceBit is a native BTC restaking chain providing the basic security of Bitcoin. This platform network secures the network by staking Bitcoin and BounceBit tokens. BounceBit’s PoS mechanism offers a unique dual token staking system along with full EVM compatibility. It allows users to contribute to security by staking both Bitcoin and BounceBit tokens.

One of the most important features of BounceBit is that it offers an approach that combines DeFi (decentralized finance) and CeFi (centralized finance) yield mechanisms. This enables users to gain returns both with native validator staking and the DeFi ecosystem. Furthermore, thanks to a CeFi mirroring mechanism supported by Ceffu and Mainnet Digital, users can also earn returns on CeFi platforms.

This return mechanism of BounceBit not only increases the yield potential of crypto but also contributes to the security of the network. These features reveal the importance and innovative approach of BounceBit in the Bitcoin ecosystem.

On the other hand, BounceBit plans to move to testnet in March and to mainnet in April.

Click on the link for detailed review and registration.

Who are the Investors?

We see exchanges like OKX among the investors of BounceBit, along with individuals from large establishments like EigenLayer.

PoS: Stands for “Proof of Stake” and it defines the block validation process in a cryptocurrency network. In the PoS protocol, the right to validate a block is determined according to the cryptocurrency (token) you have. So, the more tokens you have, the more chances you have to validate blocks. It differs from other algorithms like PoW by reducing energy consumption and providing a more environmentally friendly mining.

EVM: Stands for Ethereum Virtual Machine. EVM is a virtual machine that runs smart contracts in the Ethereum blockchain. It is a Turing complete system, i.e., it can solve any computational problem. This provides developers with the flexibility to create complex smart contracts and decentralized applications (DApps). It runs on all nodes in the Ethereum blockchain and verifies the validity of transactions on the blockchain.

DeFi: short for “Decentralized Finance”, and it means decentralized finance. It is an ecosystem developed as an alternative to traditional finance systems. DeFi enables the provision of financial services in a decentralized manner through blockchain technology and smart contracts. This includes lending, borrowing, swapping, insurance, and many other types of financial transactions. It is developed with aims such as expanding access to services, making financial transactions fast and economical, and making the financial system more transparent.

CeFi: stands for “Centralized Finance” and it means centralized finance. It refers to a structure where financial services are provided and managed by central authorities or organizations. Services provided through banks, financial institutions, and other intermediaries usually fall under CeFi. These types of services can provide advantages such as reliability and compliance, but they can be costly and exposed to centralization risks. Decentralized systems reduce risks and make financial services accessible by a wide audience.

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ERC-404 New Standard in Ethereum

The experimental standard ERC-404 on the Ethereum network brings unprecedented diversity to the crypto world. This protocol, created by synthesizing traditional ERC-20 and ERC-721 standards, extends the boundaries of digital assets with its complex features. Thus, it provides crypto investors with an opportunity to build more sophisticated and diverse portfolios.

Expansion of Projects in Web3 Wallet

The updates made in Binance’s Web3 wallet announce the support for projects such as Manta, ZetaChain, ZKFair, Metis, and Scroll by the platform. This expansion enriches the potential of the Web3 wallet even further by increasing users’ access to various tokens.

Inscription Marketplace BRC-20 and EVM Compatible Token Trading

The inscription marketplace launched by Web3 Wallet is positioned to support trading of BRC-20 and Ethereum Virtual Machine (EVM) compatible tokens. Besides offering users a wider range of trading options, this platform is also opening new doors to the crypto world by showcasing altcoin projects.

Binance’s integration of altcoins and innovative steps in its Web3 wallet not only improve the user experience but also reflect its vision of leading in the crypto world. As a platform that exceeds users’ expectations, Binance continues to be at the forefront of innovation and user-oriented evolution. This significant step points to a more reliable and diverse future in crypto asset management.

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