This Edureka “What is Ethereum” video will introduce you to Ethereum and Smart Contracts. Below are the topics covered in this video:
1. What is Ethereum
2. Features of Ethereum
3. Smart Contracts
4. Decentralized Autonomous Organization
TRANSCRIPTION
hello this is neil from an eureka and
welcome to this interesting session on
what is it helium now those of you who
have heard about blockchain would have
also heard about aetherium because these
are some of the most popular
technologies and keywords out there in
the market today so in this session
let’s try to address what exactly is
aetherium what makes it stand out among
all the other implementations of
blockchain that are out there so let’s
move forward and look at the agenda for
the session now we’ll be first trying to
address with the most essential question
which is what is etherium following that
will talk about the various features of
etherium which makes it quite popular
for language we’ll be talking about
smart contracts and we’ll also look at
decentralized autonomous organization
now smart contracts and Dow short form
for decentralized autonomous
organization are two of the most popular
interest among the etherium domain as
well now let’s move forward and look at
the first topic of the session which is
what is a phyria aetherium is actually
an open source public distributed ledger
system which is based on the original
core blockchain idea itself now it also
has few additional features like smart
contracts which is basically an
application now how it is will be
looking at ahead now when I talk about
if you are the most fundamental and
important question that should come to
your mind is that how is it different
from Bitcoin blockchain now let’s look
at some of the key differences here the
first and the most important difference
between Bitcoin and aetherium is that
the concept or the core idea or
fundamental idea which bought these
implementations out in the world today
now the core idea if most of you are not
aware of was to bring a decentralized
digital money into the world that was
not governed by anyone and give the
people the complete freedom to decide
and work around with her now there were
a lot of challenges with respect to the
existing monetary system which we are
not going to be discussing as part of
the session but this was the core idea
of implementing Bitcoin blockchain but
at the same time when you come down to e
theorem although it is a derivative of
Bitcoin blockchain which often refer to
as the second generation of blockchain
because here people have understood what
blockchain can be used for and have
started using the various capabilities
beyond the crypto car
market as well the core idea of
aetherium was to build a world computing
system now this would be a decentralized
computing system where all the resources
would be shared across as well as the
computing effort in itself would also be
so it’s something that would be a
world’s first to be centralized
distributed computing system now when
you come down the original idea of
blockchain was conceptualized in 2008
and the initial release was in Jan 2009
but idioms conceptualization started in
2013 and the first implementation came
out in July 2050 although the method of
release of these coins were initially
different whereas in bitcoins you had
the mind to get bitcoins and in each
helium they came up with a monetary
system which was basically through an
ICU which is an initial coin investment
system now you hear a lot about ICUs and
it’s something that’s gaining a lot of
popularity so if you guys are interested
in ICU do let us know maybe we can try
and come up with a video on ICS as well
now apart from this one of the other key
factors would be the amount of
transactions each of them can process a
spa whereas Bitcoin blockchain can
process only about 3 to 4 transactions
per second III diem blockchain can
process about 15 transactions per second
and again the time that is taken for
creating a block also is slightly
different
an average block in blockchain gets
created every 10 minutes whereas in d3
diem it’s about 12 to 15 seconds also
the reward system was also quite
different whereas in blockchain it’s
about 12.5 bitcoins in aetherium it’s
only about 5 with us now going forward
let’s look at some of the key features
which make it helium so popular or these
key factors which make a theorem so
effective and popular as well now if you
ask me these are the four foundational
pillars which make a theorem so
effective that’s out there firstly a
theorem is a blockchain based
implementation thereby it does require
any form of monetary system thereby you
have its own internal cryptocurrency
which is ether
apart from that it came up with the idea
of smart contracts which is basically an
application that would run on blockchain
and process all the information present
on the blockchain aspect it also bought
in the idea of a decentralized
organization that is an organization
that proved the foundation
knowledge of a governing organization as
you can see in the modern society as
well it also helped to introduce the
concept of smart property wherein you
could digitally transfer your property
without having to face any of the
hassles for exchanging the property or
validating the documents as well let’s
talk about each one of them one by one
let’s talk about the cryptocurrency
which is itza now the most common is
helium’s cryptocurrency that you would
be seeing out there is ether okay which
is actually listed as ETH on most crypto
currency exchange and this is something
that’s gaining a lot of popularity of
recently as well now why a separate
cryptocurrency meant there was bitcoins
already now the idea here is to provide
for the transaction fees as well as the
computational service that you would run
on etherium network itself now there are
various applications that will be
running on this network people put a lot
of information you will customize the
ETD of network for that you need set
necessities as well so for all the
operations that you would be running
there will be some amount of tokens that
are going to be consumed to perform
these computations so these tokens are
generally referred to as gasp so now gas
in itself is something that you pay for
okay so basically the transaction fees
that you would be charged would be for
purchasing that gas as well so again any
sort of computation that you want to
perform okay you need to buy gas and
again that’s where it’s helium comes so
if you want to perform any operations on
aetherium you need to buy gas which is
basically going to be deducted in form
of ether as well now if you’re providing
a high transaction fees then basically
the chance of your operation getting
completed faster would be high because
again this is something that miners
would take as profit as well but let’s
see if you provide too little a gas then
the transaction in itself may fail as
well it’s completely left up to you to
decide on the gas use for your
computational process okay now going
forward let’s talk about what exactly
are smart contracts because we’ve been
talking and hearing about smart
contracts for a while
so let me just address this to give you
a standard definition the smart contract
basically is a computerized transaction
protocol which in turn executes a term
of a protocol but in terms of the simple
word it’s basically an application
wherein you write the standard contract
rules and it gets executed without
having any
it’s because anything on the blockchain
is completely immutable this is
something that is the core foundation of
blockchain so if I try to even
manipulate a contract it is not possible
let’s take the example of Alice and Bob
who actually have formed a physical
contract and they trying to put the
information on a permission blockchain
as per this in turn would actually lead
to a smart contract okay now to give you
another simple example let’s say I’m
buying a house from either of you okay
now what happens is that you give me the
money and finally I decide not to
transfer the property then it becomes a
loss for you because firstly there could
be a challenge that I would say that I
do not receive the money or something
like or any situation like that this can
be completely avoided firstly by putting
it on blockchain because the transaction
that I would be taking from you would be
completely visible and I can ensure and
blockchain in itself is immutable so
this cannot be rejected or it cannot be
falsified as well apart from that let’s
say I am going to write a smart contract
that says once I have received the money
from you transfer the property from me
to you that would get automatically
executed when I would have a
confirmation of payment from you okay so
this gets executed but let’s say if I
write the condition that only and only
if I get five thousand ethers will I
transfer the property then what would
happen is until and unless I get that
five thousand eaters the transaction
would not take place that is the
contract would not get executed as well
so this in turn also ensures that
falsification from both ends are not met
okay so this is something that’s quite
realistically and since it’s out there
an open the parent no human intervention
can manipulate it this becomes a
trustless system very you don’t have to
put your trust of someone else then by
making it quite easy for operations to
work and quite transparent as well now
for those of you who are looking for an
opportunity in blockchain to mean this
is what you need to look out for because
today there’s a huge demand for people
who can write mod contracts as such okay
now let me give you a sample idea of
what a smart contract were to look like
so this is a sample contract that you
are seeing okay now this is a IDE which
is remix ID okay now by default you also
get
ballot program here I also have a
HelloWorld program written here so even
when you see here there are various in
tax coming here now I don’t want to go
in detail with respect to this because
this is written in a programming
language called solid okay solidarity in
itself is one of the most popular
programming language for writing smart
contracts on the ethereum blockchain
but since there are various
implementations of aetherium that people
use there are different languages that
are also preferred as well with respect
to that sake
so definitely smart contracts and
etherium is something that you should
really look out for if you are looking
for a developer Chapra okay now this is
just this simple environment
now one idea here is when I look at the
run option it asked me what kind of
environment do I want to use a virtual
environment
do I want to inject a web 3 or a web 3
provider as well now usually what
happens is let’s say if I am trying to
emulate it I would be using a web 3
provider where I would provide it with
account details as well so if you see in
the account it has the public key of the
account as well as it tells me the
number of ethers that it has as per same
time I can also specify the limit of gas
that has to be used for any operation
and the value as well now we gave in E
and ether are the different levels of
ether that you can see like how you have
a Satoshi which is the smallest unit in
Bitcoin you have a we that is present in
ether as well now coming back let’s go
back to our presentation now here the
next and the most interesting part of a
theme that I feel and would be the
future for most blockchain based
industries would be the decentralized
autonomous organization now talking
about how stars are basically
organizations or group of people who
which completely exist entirely on the
blockchain itself an are governed by the
various protocols of blockchain now what
you need to understand is that
blockchain is an open-source technology
which can be manipulated as per the
user’s requirement so let’s say if I’m
forming an organization of various
people’s I can ensure that we come to a
common understanding and then I can
build this organization first itself I
define these protocols first itself I
create an understanding and then I
create this organization and then what I
can do is basically I can create a
unison of multiple long-term smart
cracks which are present between these
people itself so any decision that needs
to be made any operation that needs to
be done would all be written in smart
contracts and these all would come
together as well now basically what they
are is they’re designed to hold on to
the asset and use it in form of a voting
system and manage their distribution as
well so let’s say if there is someone
who holds major assets then he would
have a higher priority as well now again
two or more entities within the Dow
itself can interact with each other in a
fully decentralized and automated
fashion as well so any communication
thereby also is completely possible and
this is something that definitely
happens on a regular basis as well now
in a doubt what you need to understand
is that each action or of wood is
represented by some form of transaction
in that blockchain itself now what you
need to understand is that in case if
any operation needs to be done it will
be in four-four transaction as well now
again to give you a quick idea a group
of people come and write smart contracts
that govern that organization people
actually add funds to this dock and are
given tokens to represent their
ownership aspect so more you invest more
tokens do you hold as well and when the
Dove begins to operate each member
proposals on how to spend this money as
per and based on the votes of the
members the proposal status is decided
as such now what you need to understand
is that this is how going forward most
organizations will definitely work out
with because this makes it quite easier
and also at the same time you do not
need to depend on a third party you do
not have to have the trust factor to go
forward as well
thereby making it quite easy and
effective as such okay
so with this we come to a conclusion of
this session now if you are interested
to learn more on aetherium feel free to
write that in our comment section and if
there is something more that you would
like to know about any of the blockchain
implementations please post that in our
comment section below so with that thank
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