ETHER, SECOND IN COMMAND.

ETHER, SECOND IN COMMAND.

October 11, 2021

The world has stood aghast and akimbo in respect to the king of cryptocurrencies (bitcoin). It seems that a greater number of players in the cryptocurrency industry woke up too late after bitcoin had left the kindergarten. As bitcoin continues to break barriers and resisting walls which has made it out of reach for many, the big question has been what is the next outside the confines of bitcoin?

Ether is the next unrefined digital gold in the refining furnace of the cryptocurrency and blockchain industry. What is ether? Ether is the coin second to bitcoin in market capitalization. Ether is a coin while Ethereum is the network upon which ether is programmed on.

Ethereum was initiated in 2013 by vitalik Buterin, one of the major essence of Ethereum network is to give room for programmers to write in and launch their programs.

Transactions under the Ethereum network take a maximum of 15 seconds to complete. As at the time of putting up this article, Ethereum has a total market capitalization of four hundred and two billion, two hundred and eighty five million, five hundred and seventy five Thousand, nine hundred and seventy five Dollars and thirty six cents (402,285,575,975.36 USD)  while its circulating supply stood at 117,880,684 ETH, hence its trading volume is $17,472,133,670. Therefore, the current market price of Ethereum is $3,514.

Crypto and financial analysts have projected the price of ETH to hit $10,000 before the end of the last quarter of 2022.

Mining in the Ethereum blockchain is the creation of block of transactions to be added to the Ethereum blockcahain. Just like bitcoin mining, Ethereum also employs the proof –of-work consensus mechanism.

 

HOW ETHEREUM TRANSACTIONS ARE MINED

  1. A user writes and signs a transaction request with the private key of some account.
  2. The user broadcasts the transaction request to the entire Ethereum network from some node.
  3. Upon hearing about the new transaction request, each node in the Ethereum network adds the request to their local mempool, a list of all transaction requests they’ve heard about that have not yet been committed to the blockchain in a block.
  4. At some point, a mining node aggregates several dozen or hundred transaction requests into a potential block, in a way that maximizes the transaction fees they earn while still staying under the block gas limit. The mining node then:
    1. Verifies the validity of each transaction request (i.e. no one is trying to transfer ether out of an account they haven’t produced a signature for, the request is not malformed, etc.), and then executes the code of the request, altering the state of their local copy of the EVM. The miner awards the transaction fee for each such transaction request to their own account.
    2. Begins the process of producing the Proof-of-Work “certificate of legitimacy” for the potential block, once all transaction requests in the block have been verified and executed on the local EVM copy.
  5. Eventually, a miner will finish producing a certificate for a block which includes our specific transaction request. The miner then broadcasts the completed block, which includes the certificate and a checksum of the claimed new EVM state.
  6. Other nodes hear about the new block. They verify the certificate, execute all transactions on the block themselves (including the transaction originally broadcasted by our user), and verify that the checksum of their new EVM state after the execution of all transactions matches the checksum of the state claimed by the miner’s block. Only then do these nodes append this block to the tail of their blockchain, and accept the new EVM state as the canonical state.
  7. Each node removes all transactions in the new block from their local mempool of unfulfilled transaction requests.
  8. New nodes joining the network download all blocks in sequence, including the block containing our transaction of interest. They initialize a local EVM copy (which starts as a blank-state EVM), and then go through the process of executing every transaction in every block on top of their local EVM copy, verifying state checksums at each block along the way.

Every transaction is mined (included in a new block and propagated for the first time) once, but executed and verified by every participant in the process of advancing the canonical EVM state. This highlights one of the central mantras of blockchain.(ethereum.org)