Abstract
This article discusses the detailed data structure of Ethereum blockchain and defines its essential components, essence, and advantages. It is argued that the primary Ethereum’s elements are accounts, state, fuel, transactions, and blocks. It is concluded that the platform has a significant and appropriate architecture.
Keywords— Ethereum, blockchain, structure, transactions
Introduction
Ethereum’s platform allows developers to create and deploy decentralized applications on it, such as Status or Metamask. It managed to gain public confidence, and the Ethereum Foundation, a nonprofit organization, was created to regulate its development. Ethereum has attracted many developers who are engaged in basic technology and creating their own applications. Countless ICOs have been conducted on the Ethereum platform, and this trend seems to continue. Its architecture might be considered prominent and significant, which makes the theme relevant to discuss. This article will explore the detailed data structure of Ethereum blockchain, as well as determine its essence and peculiarities.
Essence of Ethereum
In the context of Ethereum, the blockchain acts as a public registry, in which everything that happens on the network is recorded in real-time. Some of the basics of blockchain technology that allow the use of Bitcoin are also a foundation of the work of Ethereum. The structure of the Ethereum blockchain is similar to what can be seen within Bitcoin. Thus, a copy of each transaction is distributed throughout the network, and each node (a computer with Ethereum software) stores this copy. This transmitted digital registry can be easily synchronized through a large-scale decentralized network. It has data blocks consisting of transactions and smart contracts. These blocks are connected together and represent a complete record of the history of Ethereum, starting from the first block [1]. They are created by a number of users and distributed among the others who check them and confirm that they are correct. Each blockchain has a certain type of consensus-building algorithm. The network uses these algorithms to match only the valid data value. New Ethereum transactions are being confirmed by miners using the same Proof-of-Work system like Bitcoin.
Each time a program or transaction is activated, the network must process this data. Contracts written in different programming languages are compiled into coherently and consistently, which Ethereum’s EVM can decrypt and execute. Hence, anyone can run any program, no matter what language it is written in, if there are enough time and memory. All Ethereum nodes execute contracts using their EVMs, and this innovation means a lot because it allows one to build interaction in an efficient and significant manner. There is no need for its own blockchain for each new project. Smart contracts might be considered as a core advantage of Ethereum. They are computer programs that control the transfer of digital currencies or assets between the parties if certain conditions are met. Ethereum provides the basis for these contracts and, at the same time, has a level of functionality that is not available to most of the cryptocurrencies. Ethereum is can be applied in areas such as identification systems, insurance payments, and a lot of other essential spheres.
Ethereum’s Key Components
Accounts
The system of the blockchain contains a plethora of small integral elements. Among them are accounts that are intersected and interconnected through the messaging pattern. Each account possesses its own state, as well as a 20-bit address. It should be emphasized that there are two kinds of these accounts – the external and contract ones [1]. For the former, there is the possibility to send messages to another account. Meanwhile, contract accounts are not provided with such an opportunity. Using them, one can only make a transaction in answer to other got transactions. All actions in Ethereum take place because of operations launched by external accounts.
State
It seems reasonable to state that Ethereum’s world state might be considered as the matching of the accounts’ states to their addresses. This matching is kept in the data structure – the modified Merkle Patricia tree [1]. The latter may be perceived as a kind of binary file that consists of the set of nodes. A full archive node syncs Ethereum by downloading the whole chain from the original state block to the current one. This archive contains the header file; moreover, all transactions in it become executed. As an alternative to downloading and saving the accomplished chain, thin Ethereum’s nodes tend to load solely the circuit of header data set from the primal state block to the running header.
Fuel
Ether is the currency that makes the Ethereum ecosystem work. It might be defined as follows: it is a necessary element and fuel for the operating of the Ethereum application platform. This is the form in which customers pay for the requested operations. The cost of this fuel, or gas, is determined by the complexity of the calculations for the action that the network performs [1]. Any developer who wants to create an application on Ethereum, or any person who wants to access a smart contract, must have this gas. Ether can also be used as a currency; as the Bitcoin network slowed down in its development, and the transaction fees became higher, some users switched to it as a medium of exchange. The total supply of ether is not limited, as, for example, in the case of bitcoins.
Transactions
As mentioned above, the described blockchain might be understood as a transaction status system. It means that because of transactions that take place between numerous accounts, the world state of Ethereum changes. Hence, these transactions are a cryptographically signed element of instructions that are initially provided by external accounts and then brought to Ethereum. There are two kinds of them – the ones that send messages and the ones creating a contract. They, again, are launched by external accounts, and after this reoriented to the blockchain. It should be noted that transactions are a bridge between the external and internal states of the Ethereum structure. However, the above does not imply that specific types of contracts cannot interconnect with others. Contracts in the global context of the blockchain’s state are capable of interrelating. Their communication happens via messaging or internal transactions.
Blocks
Transactions should be assembled into blocks, and Ethereum – as other blockchains – consists of a number of these blocks connected. They contain the following: block headers, information on the transactions embedded in them, and several headers for actual ommers. The latter are blocks, parents of which are the parent elements of the current blocks. They contribute to the fact that the blockchain’s blocking time is considerably lower if to compare with its competitors. Ommers lead to an increase in transactions’ speed; however, they also result in intense competition among miners for the following solution of the block [1]. They were developed in order to provide these miners with the opportunity to obtain a significant reward for the inclusion of blocks without parents in the primary chain.
Block headers in Ethereum consist of not merely Merkle tree but the following three ones: transaction tree, receipt tree (data with the results of each transaction), and state tree. In order to make this approach to operate, the Ethereum system mixes the Merkle tree with the Patricia one [1]. This structure is completely deterministic: two Patricia trees with identical keychains (key and value) will always be characterized by the same root hash. They provide improved performance for typical database operations such as add, search, and delete. For this reason, Ethereum customers can receive correct responses to all kinds of requests that they send to the network.
Ethereum’s Advantages
Since Ethereum is a decentralized platform, it is characterized by all the innovative advantages of blockchain technology. First, it is invariance – the data recorded on the blockchain cannot be changed or deleted by a third party. Second, it is the absence of censorship – Ethereum applications are based on a network with a consensus principle. Third, it is security – Ethereum protected by cryptography has proven that it is immune to fraud or hacking. Fourth, it is transparency – all entries are available to everyone.
Conclusion
To conclude, the above investigation showed that Ethereum has a well-developed and consistent data structure. Although Ethereum can be considered a veteran by the standards of cryptocurrencies, in fact, this technology is still at an early stage of its development. Many in the crypto community have held their breath and are waiting for how it will develop. Perhaps the development of Ethereum is the key to a decentralized future. If the platform meets expectations, it will be able to greatly change not only some sectors of the business, but also the whole life of a human. What is Blockchain Ethereum – How Does It Work?
Reference
Coding Complier, What is blockchain Ethereum – how does it work? 2020. Web.