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If you want to understand what Ethereum is, how it works and what it does, but don’t want to get bogged down in technical details, this tutorial is for you.

Important: This tutorial assumes that the reader has a basic understanding of blockchain technology. If you are not familiar with blockchain, you can first read this “Blockchain Beginner’s Tutorial”.

What is an Ethereum tutorial?

Beyond Bitcoin and the next generation of decentralized apps

Although the concept of blockchain is often associated with Bitcoin, there are a number of blockchain applications that go beyond digital currencies. In fact, Bitcoin is just one of hundreds of blockchain applications today.

“Blockchain is to Bitcoin what the Internet is to email. Blockchain is a huge electronic system on which applications can be built. Currency is just one application based on blockchain.”
Sally Davies is FT technology correspondent

Until recently, building blockchain applications required a sophisticated background in programming, encryption, and mathematics, as well as vast amounts of resources. But now things have changed. Previously unimaginable applications, from electronic voting and asset electronic records to regulatory compliance and trading, are being developed and deployed at an unprecedented rate. Ethereum makes this possible by giving developers the tools to build decentralized applications.

What is a Beginner’s Ethereum tutorial?

Simply put, Ethereum is an open software platform based on blockchain technology that allows developers to develop and deploy decentralized applications. (Click here to buy Ether)

Is Ethereum like Bitcoin? Sort of, but not exactly.

Both Ethereum and Bitcoin are distributed public blockchain networks. Bitcoin and Ethereum have some obvious technical differences, but what’s most notable is that their purpose and capabilities are fundamentally different. Bitcoin has only proposed one blockchain application, a point-to-point electronic cash system, that would enable online bitcoin payments. While Bitcoin’s blockchain is used to track ownership of an electronic currency (Bitcoin), Ethereum’s blockchain focuses on the code that executes any decentralized application.

In the Ethereum blockchain, miners aren’t mining bitcoin, but ether, the cryptocurrency that fuels the network. Ethereum is not only a tradable cryptocurrency, app developers can also use it to pay transaction fees and service fees for the Ethereum network.

“The currency is the currency of the earliest and the most important, is a kind of application based on block chain. However, it is not the only application. In the past happened in the example in similar situations, for instance, E-mail is one of the types of Internet applications, and obviously promote the development of the Internet, but the Internet has not only a kind of application.” Dr Gavin Wood, co-founder of Ethereum

What is a smart contract?

A smart contract is just a term used to describe computer code that facilitates the exchange of money, content, property, shares, or anything of value. Smart contracts running on a blockchain are like autonomous computer programs that execute automatically when certain conditions are met. Because smart contracts run on a blockchain, they only enforce code rigorously, with no auditing, downtime, threat of fraud, or interference from third parties.

“The [Ethereum] blockchain has some extraordinary capabilities. One of them is the ability to build smart contracts. Smart contracts are literally self-executing, taking care of themselves in terms of implementation, management, performance, payment.”
Don Tapscott

Ethereum virtual machine

Prior to Ethereum, blockchain applications could only perform limited operations. Bitcoin and other cryptocurrencies, for example, can only be used as point-to-point digital currencies.

It wasn’t long before the developer ran into trouble. One way to solve the problem is to extend the functions provided by Bitcoin and other apps, which is complicated and time-consuming. Another approach is to develop entirely new blockchain applications and platforms. Vitalik Buterin, the creator of Ethereum, came up with a new solution to this problem.

“I think [those in the bitcoin community] are going about it the wrong way. I think they’re focusing on individual applications; they’re trying to support each one individually with a Swiss Army knife protocol.”

Ethereum’s core innovation is the Ethereum Virtual Machine (EVM), turing-complete software that runs on the Ethereum network. This way, anyone with enough time and memory can run any program in any language. Ethereum virtual machines make creating blockchain programs easier and more efficient than ever before. Instead of creating a native blockchain for every new app, Ethereum makes it possible to develop thousands of different apps on a single platform.

What’s ethereum for?

Ethereum helps developers build and deploy decentralized applications. Decentralized applications, or DApps, provide specific functions to their users. Bitcoin, for example, is a Dapp that provides its users with a peer-to-peer electronic currency system that enables online bitcoin payments. Because a decentralized application consists of code running on a blockchain network, it is not controlled by any individual or centralized entity.

Ethereum can also build decentralized anonymous organizations (DAOs). The DAO is a completely anonymous, decentralized organization without any leadership. The DAO is run by code on a set of smart contracts on the Ethereum network. Its code was originally designed to replace the norms and architectures of traditional organizations, removing the reliance on people and centralized control. The DAO is collectively owned by anyone who buys tokens, which do not represent shares and ownership, which indicate contributions and give people voting rights.

“DAO consists of one or more smart contracts funded by a group of like-minded people. DAO operates with complete transparency and is free from interference from anyone, including the founders. DAO can exist on the network and serve its customers as long as it can afford to live.”
Slock.it

What are the benefits of a decentralized ethereum platform

Because decentralized applications run on blockchain, they all benefit from the following features:

  • Immutability – Data cannot be modified by third parties.
  • Tamper-proof – Applications run on a consensus network and censorship is nonexistent.
  • Security – There is no risk of a central point of collapse, and the application is secured by cryptography against hacking and fraud threats.
  • Zero downtime – Applications are always online and never shut down.

What are the downsides of decentralized apps?

Of course, despite these advantages, decentralized applications are not without their drawbacks. Because smart contract code is written by a human, its quality is related to the author’s ability. Errors and omissions in code can invite unexpected attacks. If a bug in your code is exploited by bad guys, there is no effective way to stop the attack other than to reach a consensus and rewrite the low-level code. And modifying the low-level code violates the basic principle of blockchain, immutability. Similarly, any move by a central party would seriously threaten the very nature of decentralized applications.

How do I access Ethereum if I want to develop an Ethereum application?

There are many ways to access the Ethereum network, the simplest of which is with the native Mist browser. Mist offers an easy-to-use user interface and digital wallet that allows users to trade and store Ethernet, as well as create, manage, deploy and use smart contracts. Just as web browsers enable users to access the Internet, Mist provides a gateway to decentralized blockchain applications.

There’s also a MetaMask browser plugin that turns Google’s Chrome browser into an Ethereum browser. MetaMask makes it easy for anyone to run or develop decentralized applications with a Web browser. Although MetaMask will initially only support Chrome, it will eventually support Firefox and other browser platforms.

Although still in its early days, Mist, MetaMask and other browsers are ready to bring blockchain-based applications to more people. Even people with no technical background are likely to build blockchain applications. This is a revolutionary step in blockchain technology that could make decentralized applications mainstream.

Blockchain/Ethereum courses: Filling the gap

There is a shortage of blockchain developers, and some universities and private companies are offering a number of blockchain-related courses to meet the market demand.

According to Bitcoin pioneer Jered Kenna, experienced blockchain specialists can earn more than $200,000 a year.

“Talent with blockchain experience is in short supply,” Kenna explained. “Some people get five offers in one day.”

Learn blockchain development with Blockgeeks

As a leader in the blockchain community, Blockgeeks has organized its own courses to help you understand blockchain technology and prepare for great job opportunities in the job market. The goal of these courses is to help students keep up with blockchain technology while allowing them to develop practical skills that will help them in their careers.

Blockchain Basics: A practical learning path

The blockchain certified Master’s program starts with the fundamentals, giving students a foundation that they can then learn to advance and teach them how to apply blockchain technology to real-world situations.

By the end of the course, students will create, connect, and use personal blockchains deployed on AWS. They will learn how to use MultiChain Streams and create their own blockchain applications.

This course is designed for:

  • Employees who want to use blockchain technology in their work
  • Students who want to use blockchain technology in their projects
  • Investors who want to learn more about the blockchain industry
  • Entrepreneurs who want to embrace blockchain technology in new businesses
  • Product managers who want to use blockchain
  • Consultant to industry leaders

What are the applications on Ethereum right now?

The Ethereum platform already has a number of applications across multiple service sectors and industries. But developers are in uncharted territory, so it’s hard to predict which apps will succeed and which will fail. Here are some outstanding projects:

Weifund offers an open platform for crowdfunding based on smart contracts. It allows funding to become digital assets backed by contracts that can be used, traded or sold in the Ethereum ecosystem.

Uport provides users with a secure and convenient way to fully control their identity and personal information. Instead of relying on government agencies that sell their personal information to third parties, users can control who has access to their data and personal information.

BlockApps help enterprises build, manage, and deploy blockchain applications. From proof of concept to generation systems and integration with traditional systems, Blockapps offers a range of tools to build private, semi-private, or public industry-specific blockchain applications.

Provenance uses Ethereum to make opaque supply chains transparent. By tracking the history of raw materials and products, build a developed, accessible information framework that allows customers to make enough information to help them make decisions when purchasing products.

Augur is an open source prediction marketplace where anyone can make predictions and be rewarded for being right. By trading virtual shares, predictions can be made about real-world future events, such as who will win the next US election. Users are rewarded with money if they buy shares that are correctly predicted.

To learn about other Ethereum applications in development, click here.

“Ethereum is an amazing public experiment that demonstrates the value of smart contracts on a public blockchain. It is the result and source of breakthrough innovation, not seen since the early days of the Internet.” — Caleb Chen London Trust Media

The DAO attack threatened everything

Remember how to build decentralized anonymous organizations with Ethereum? There was a vicious incident in 2016. A startup that developed a decentralized anonymous organization called The DAO was hacked.

The DAO project was created by The team behind The startup Slack.it. Their goal is to create unmanned venture capital firms where investors can make decisions through smart contracts. The DAO raised money by selling tokens, eventually raising about $150 million from thousands of funders.

Shortly after The fundraising, The DAO was attacked by an unknown attacker who stole approximately $50 million worth of Ethereum at one time. Even though The DAO itself was attacked due to a software bug unrelated to The Ethereum platform, ethereum’s developers and founders still had to clean up their act.

The upcoming Ethereum fork

After much debate, the Ethereum community voted to recover the stolen funds through a hard fork, or code change. The hard fork moves the stolen funds into a new smart contract where the original owner of the funds can retrieve the stolen tokens. That’s where things get complicated. The decision was controversial and sparked heated debate.

Here’s a little explanation. Ethereum is based on blockchain technology, and all transactions are supposed to be irreversible and unmodifiable. By performing a hard fork and rewriting the rules by which blockchain operates, Ethereum sets a dangerous precedent and violates the very nature of blockchain. If a blockchain is modified every time a large amount of money is involved or enough people are negatively affected, it loses its core value of being secure, anonymous, tamper-proof and immutable.

While there are some less radical soft forks, the Ethereum community and its founders are still at risk. If they don’t get their stolen money back, people will lose faith in Ethereum. On the other hand, the operations required to retrieve stolen funds violate core principles of decentralization and set dangerous precedents.

Consequences of the fork: Ethereum is split

In The end, The majority of The Ethereum community voted for a hard fork and retrieved The stolen DAO funds. But not everyone agrees with the decision. This leads to fragmentation, where two parallel blockchains exist at the same time. For those who are vehemently opposed to modifying blockchains, even if there is hacking, there is classic Ethereum. The majority of those who agreed to modify a small portion of the blockchain code and get their stolen money back chose Ethereum.

The two blockchains have the same properties, and all blocks prior to the hard fork are the same. This means that everything on the Ethereum network is valid on classic Ethereum until the hard fork. After a hard fork or code modification, the two blockchains run independently.

The future of Ethereum beyond imagination

Despite The DAO attack, Ethereum continues to grow and has a bright future. By providing a friendly platform where people can harness the power of blockchain technology, Ethereum is accelerating the decentralization of the world economy. Decentralized applications have the potential to have a profound impact on hundreds of industries, including finance, real estate, academia, insurance, healthcare and the public sector.

“If you think the Internet has affected your life, Ethereum is going to have an equally broad impact on communications and even the information industry as a whole. It’s going to change every aspect of our lives.

Building a public Ethereum ecosystem: As public Ethereum grows in scalability and configurable privacy/confidentiality over the next two years, consumers will be exposed to a variety of interesting early products using their blockchain identity and access points (Uports).

Boardroom (Weifund), team management tools (UJO), Music/film/art content Management and usage (Gnosis), and Virtue Poker.”

Joseph Lubin, Consensys CEO

The biggest companies will do business on private blockchains

  • Private blockchain: Within two years, large companies will be doing business on private enterprise blockchain. Every company’s employees, customers, suppliers and service providers can securely access the private blockchain through highly encrypted transactions (transation).
  • Collaborative blockchains: Within two years, most companies began building collaborative blockchains from the bottom up, collaborating with a small number of counterparties in their ecosystems on a few use cases to share a source-of-truth infrastructure, supply chain, or value chain.
  • Commercial use of public blockchains: Some companies use public blockchains for their own scenarios. These scenarios use the same blockchain components as their private ethereum-based implementations purchased or built.

The Ethereum platform is also helping to change the way we use the Internet. Decentralized applications are driving a fundamental change from the information Internet (where information is seen quickly, exchanged and communicated) to the Value Internet (where value is exchanged directly without intermediaries).

As industry research on blockchain platforms continues, Ethereum is emerging as the de facto leader. A few days ago, for example, JPMORGAN opened source its Quorum platform, built by Jeff Wilcke and his team using the Ethereum Go language client. Several other major banks are also using Ethereum, while Microsoft uses the Beltchley platform as a cornerstone component of its blockchain. Both publicly and privately, the industry continues to contribute to Ethereum, working with us and others to help the fledgling codebase mature. Stay tuned for related news.

The development of blockchain requires the cooperation of the global village. The real-time web and developers involved in the open source community have made important contributions. They continue to improve and enhance the Ethereum platform, helping ethereum respond more quickly to the industry’s demand for the value it stands for. This investment of time and resources speaks volumes about developers’ confidence in Ethereum and its commercial value, as well as their belief in ethereum’s capabilities. — Joseph Lubin, Consensys CEO

Although it’s early days and there are undoubtedly many hurdles to overcome, Ethereum does seem to be a transformational platform. With so many exciting applications still to be developed, we can only hope for a future that ethereum cannot imagine.

  • What is Ethereum? A Step-by-Step Beginners Guide
  • Author: Blockgeeks.com
  • Tunneling plan — Blockchain split rudder
  • Permanent link to this article: github.com/xitu/blockc…
  • Translator: cdpath
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