Hello everyone, I am your good friend Digger.The second groundbreaking event in blockchain finance, the birth of Ethereum, is ushering in the second generation blockchain network
Hello everyone, I am your good friend Digger.
The second groundbreaking event in blockchain finance, the birth of Ethereum, is ushering in the second generation blockchain network.
Second generation blockchain system:
Ethereum
As is well known, finance is not just about peer-to-peer transactions, transfer and collection are just the simplest forms of transaction behavior. The functionality of Bitcoin is far from supporting a decentralized financial system. The transformation brought about by Ethereum can be considered a milestone.
Environmental protection and low energy consumption blockchain
As is well known, Bitcoin mining requires a significant amount of energy and resources, and China has banned Bitcoin mining because of the significant waste of resources. This is because Bitcoin and early Ethereum both used the proof of work mechanism, also known as the POW mechanism, to operate. Everyone wants to mine, but which miner is qualified to mine? Pow requires miners to answer complex mathematical equations and have the opportunity to obtain mining qualifications, which means that the higher your computing power, the higher your profits. But in fact, most of the energy consumption is wasted on meaningless things such as mathematical equations. After the upgrade of Ethereum Shanghai, it was merged into the proof of equity mechanism, also known as POS, which means that if you pledge a portion of Ethereum, you are eligible for mining. This is similar to equity rewards, which reduces market circulation on the one hand, and on the other hand, the history of brainless computing power no longer exists, reducing operating energy consumption by 99.9%, making it a green blockchain system.
Ethernet virtual machine
Ethernet virtual machineEthereum Virtual MachineEVMSmart contracts
Defi Protocol
Defi refers to decentralized finance: a financial protocol running on a blockchain decentralized system. He is not controlled by any entity and is not subject to regulatory intervention from governments, banks, etc. Completely independent and autonomous security, the only risk is the loss of assets caused by hacker attacks on protocol vulnerabilities, so open source, technical support, vulnerability repair, and code auditing are very important.
Simply put, you can write a contract that automatically runs on the Ethereum main network to complete more complex transactions such as mortgage lending, equity pledge, wealth management interest generation, currency exchange, and so on
Digital token protocol (technical standard)
Before the emergence of Ethereum, the threshold for issuing a digital currency was very high, because as a blockchain system, you not only needed tokens but also a network to operate. But Ethereum has greatly lowered the threshold for blockchain usage:
ERC20 standard: allows you to customize the issuance of tokens with this technical specification. You don't need to have your own network, you can borrow Ethereum network to run, and only need some Ethereum as fuel (handling fee). The typical ERC20 token is what we are familiar with: the USDT Teda token, which does not have its own network and is just a car dealer.
ERC721 standard: Allowing the issuance of homogeneous tokens, in other words, you can issue NFTs (digital collectibles) for transfer and circulation on the blockchain. Artists from all over the world will gather here to release their limited edition collections.
ERC1155 standard: Allow homogeneous and non homogeneous tokens, under which you can send NFTs in bulk.
Smart contracts
Smart contractsOP..
Smart contracts
Token Economics Destruction Mechanism
The supply of tokens in Ethereum is dynamic. On the one hand, miners continue to mine to generate new Ethereum, and on the other hand, the EIP1559 agreement brought about by the London upgrade divides Ethereum's handling fees into two parts, with half as a reward for miners and the other half permanently destroyed. This means that when the overall network transaction volume is high and the network is active, a large amount of transaction fees will be used to destroy Ethereum, resulting in a decrease in Ethereum supply and deflation. If the activities on the chain are cold, the destruction volume is less than the production volume, and Ethereum enters inflation, which makes it easy for Ethereum to dynamically adjust the supply volume.
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