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Scripting
Even without any extensions, the Bitcoin protocol actually does facilitate a weak version of a concept of "smart contracts". UTXO in Bitcoin can be owned not just by a public key, but also by a more complicated script expressed in a simple stack-based programming language. In this paradigm, a transaction spending that UTXO must provide data that satisfies the script. Indeed, even the basic public key ownership mechanism is implemented via a script: the script takes an elliptic curve signature as input, verifies it against the transaction and the address that owns the UTXO, and returns 1 if the verification is successful and 0 otherwise. Other, more complicated, scripts exist for various additional use cases. For example, one can construct a script that requires signatures from two out of a given three private keys to validate ("multisig"), a setup useful for corporate accounts, secure savings accounts and some merchant escrow situations. Scripts can also be used to pay bounties for solutions to computational problems, and one can even construct a script that says something like "this Bitcoin UTXO is yours if you can provide an SPV proof that you sent a Dogecoin transaction of this denomination to me", essentially allowing decentralized cross-cryptocurrency exchange.

However, the scripting language as implemented in Bitcoin has several important limitations:

Lack of Turing-completeness - that is to say, while there is a large subset of computation that the Bitcoin scripting language supports, it does not nearly support everything. The main category that is missing is loops. This is done to avoid infinite loops during transaction verification; theoretically it is a surmountable obstacle for script programmers, since any loop can be simulated by simply repeating the underlying code many times with an if statement, but it does lead to scripts that are very space-inefficient. For example, implementing an alternative elliptic curve signature algorithm would likely require 256 repeated multiplication rounds all individually included in the code.
Value-blindness - there is no way for a UTXO script to provide fine-grained control over the amount that can be withdrawn. For example, one powerful use case of an oracle contract would be a hedging contract, where A and B put in $1000 worth of BTC and after 30 days the script sends $1000 worth of BTC to A and the rest to B. This would require an oracle to determine the value of 1 BTC in USD, but even then it is a massive improvement in terms of trust and infrastructure requirement over the fully centralized solutions that are available now. However, because UTXO are all-or-nothing, the only way to achieve this is through the very inefficient hack of having many UTXO of varying denominations (eg. one UTXO of 2k for every k up to 30) and having O pick which UTXO to send to A and which to B.
Lack of state - a UTXO can either be spent or unspent; there is no opportunity for multi-stage contracts or scripts which keep any other internal state beyond that. This makes it hard to make multi-stage options contracts, decentralized exchange offers or two-stage cryptographic commitment protocols (necessary for secure computational bounties). It also means that UTXO can only be used to build simple, one-off contracts and not more complex "stateful" contracts such as decentralized organizations, and makes meta-protocols difficult to implement. Binary state combined with value-blindness also mean that another important application, withdrawal limits, is impossible.
Blockchain-blindness - UTXO are blind to blockchain data such as the nonce, the timestamp and previous block hash. This severely limits applications in gambling, and several other categories, by depriving the scripting language of a potentially valuable source of randomness.
Thus, we see three approaches to building advanced applications on top of cryptocurrency: building a new blockchain, using scripting on top of Bitcoin, and building a meta-protocol on top of Bitcoin. Building a new blockchain allows for unlimited freedom in building a feature set, but at the cost of development time, bootstrapping effort and security. Using scripting is easy to implement and standardize, but is very limited in its capabilities, and meta-protocols, while easy, suffer from faults in scalability. With Ethereum, we intend to build an alternative framework that provides even larger gains in ease of development as well as even stronger light client properties, while at the same time allowing applications to share an economic environment and blockchain security.

Ethereum
The intent of Ethereum is to create an alternative protocol for building decentralized applications, providing a different set of tradeoffs that we believe will be very useful for a large class of decentralized applications, with particular emphasis on situations where rapid development time, security for small and rarely used applications, and the ability of different applications to very efficiently interact, are important. Ethereum does this by building what is essentially the ultimate abstract foundational layer: a blockchain with a built-in Turing-complete programming language, allowing anyone to write smart contracts and decentralized applications where they can create their own arbitrary rules for ownership, transaction formats and state transition functions. A bare-bones version of Namecoin can be written in two lines of code, and other protocols like currencies and reputation systems can be built in under twenty. Smart contracts, cryptographic "boxes" that contain value and only unlock it if certain conditions are met, can also be built on top of the platform, with vastly more power than that offered by Bitcoin scripting because of the added powers of Turing-completeness, value-awareness, blockchain-awareness and state.

Philosophy
The design behind Ethereum is intended to follow the following principles:

Simplicity: the Ethereum protocol should be as simple as possible, even at the cost of some data storage or time inefficiency.fn. 3 An average programmer should ideally be able to follow and implement the entire specification,fn. 4 so as to fully realize the unprecedented democratizing potential that cryptocurrency brings and further the vision of Ethereum as a protocol that is open to all. Any optimization which adds complexity should not be included unless that optimization provides very substantial benefit.
Universality: a fundamental part of Ethereum's design philosophy is that Ethereum does not have "features".fn. 5 Instead, Ethereum provides an internal Turing-complete scripting language, which a programmer can use to construct any smart contract or transaction type that can be mathematically defined. Want to invent your own financial derivative? With Ethereum, you can. Want to make your own currency? Set it up as an Ethereum contract. Want to set up a full-scale Daemon or Skynet? You may need to have a few thousand interlocking contracts, and be sure to feed them generously, to do that, but nothing is stopping you with Ethereum at your fingertips.
Modularity: the parts of the Ethereum protocol should be designed to be as modular and separable as possible. Over the course of development, our goal is to create a program where if one was to make a small protocol modification in one place, the application stack would continue to function without any further modification. Innovations such as Ethash (see the Yellow Paper Appendix or wiki article), modified Patricia trees (Yellow Paper, wiki) and RLP (YP, wiki) should be, and are, implemented as separate, feature-complete libraries. This is so that even though they are used in Ethereum, even if Ethereum does not require certain features, such features are still usable in other protocols as well. Ethereum development should be maximally done so as to benefit the entire cryptocurrency ecosystem, not just itself.
Agility: details of the Ethereum protocol are not set in stone. Although we will be extremely judicious about making modifications to high-level constructs, for instance with the sharding roadmap, abstracting execution, with only data availability enshrined in consensus. Computational tests later on in the development process may lead us to discover that certain modifications, e.g. to the protocol architecture or to the Ethereum Virtual Machine (EVM), will substantially improve scalability or security. If any such opportunities are found, we will exploit them.
Non-discrimination and non-censorship: the protocol should not attempt to actively restrict or prevent specific categories of usage. All regulatory mechanisms in the protocol should be designed to directly regulate the harm and not attempt to oppose specific undesirable applications. A programmer can even run an infinite loop script on top of Ethereum for as long as they are willing to keep paying the per-computational-step transaction fee.
Ethereum Accounts
In Ethereum, the state is made up of objects called "accounts", with each account having a 20-byte address and state transitions being direct transfers of value and information between accounts. An Ethereum account contains four fields:

The nonce, a counter used to make sure each transaction can only be processed once
The account's current ether balance
The account's contract code, if present
The account's storage (empty by default)
"Ether" is the main internal crypto-fuel of Ethereum, and is used to pay transaction fees. In general, there are two types of accounts: externally owned accounts, controlled by private keys, and contract accounts, controlled by their contract code. An externally owned account has no code, and one can send messages from an externally owned account by creating and signing a transaction; in a contract account, every time the contract account receives a message its code activates, allowing it to read and write to internal storage and send other messages or create contracts in turn.

Note that "contracts" in Ethereum should not be seen as something that should be "fulfilled" or "complied with"; rather, they are more like "autonomous agents" that live inside of the Ethereum execution environment, always executing a specific piece of code when "poked" by a message or transaction, and having direct control over their own ether balance and their own key/value store to keep track of persistent variables.

Messages and Transactions
The term "transaction" is used in Ethereum to refer to the signed data package that stores a message to be sent from an externally owned account. Transactions contain:

The recipient of the message
A signature identifying the sender
The amount of ether to transfer from the sender to the recipient
An optional data field
A STARTGAS value, representing the maximum number of computational steps the transaction execution is allowed to take
A GASPRICE value, representing the fee the sender pays per computational step
The first three are standard fields expected in any cryptocurrency. The data field has no function by default, but the virtual machine has an opcode which a contract can use to access the data; as an example use case, if a contract is functioning as an on-blockchain domain registration service, then it may wish to interpret the data being passed to it as containing two "fields", the first field being a domain to register and the second field being the IP address to register it to. The contract would read these values from the message data and appropriately place them in storage.

The STARTGAS and GASPRICE fields are crucial for Ethereum's anti-denial of service model. In order to prevent accidental or hostile infinite loops or other computational wastage in code, each transaction is required to set a limit to how many computational steps of code execution it can use. The fundamental unit of computation is "gas"; usually, a computational step costs 1 gas, but some operations cost higher amounts of gas because they are more computationally expensive, or increase the amount of data that must be stored as part of the state. There is also a fee of 5 gas for every byte in the transaction data. The intent of the fee system is to require an attacker to pay proportionately for every resource that they consume, including computation, bandwidth and storage; hence, any transaction that leads to the network consuming a greater amount of any of these resources must have a gas fee roughly proportional to the increment.

Messages
Contracts have the ability to send "messages" to other contracts. Messages are virtual objects that are never serialized and exist only in the Ethereum execution environment. A message contains:

The sender of the message (implicit)
The recipient of the message
The amount of ether to transfer alongside the message
An optional data field
A STARTGAS value
Essentially, a message is like a transaction, except it is produced by a contract and not an external actor. A message is produced when a contract currently executing code executes the CALL opcode, which produces and executes a message. Like a transaction, a message leads to the recipient account running its code. Thus, contracts can have relationships with other contracts in exactly the same way that external actors can.

Note that the gas allowance assigned by a transaction or contract applies to the total gas consumed by that transaction and all sub-executions. For example, if an external actor A sends a transaction to B with 1000 gas, and B consumes 600 gas before sending a message to C, and the internal execution of C consumes 300 gas before returning, then B can spend another 100 gas before running out of gas.



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china bitcoin bitcoin 3d by bitcoin bitcoin конвертер bitcoin sberbank книга bitcoin security bitcoin bitcoin wiki Rather, it is a combination of proven technologies applied in a new way. It was the particular orchestration of three technologies (the internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto’s idea so useful.ethereum faucet компания bitcoin casinos bitcoin алгоритм bitcoin bitcoin ann youtube bitcoin платформы ethereum magic bitcoin forbot bitcoin bitcoin bot bitcoin основатель This split followed a 2016 system manipulation that saw the theft of $50 million worth of Ether. Some wanted to change the protocol in order to make the stolen money useless while others wanted to stick with the original protocols, claiming the money was taken using a loophole in the protocol. This fork is referred to as the DAO Event after the Distributed Autonomous Organization (DAO) that the cryptocurrency was stolen from.Race Condition AvoidanceTo send Bitcoin to someone, you need to digitally sign a message that says, 'I am sending 50 Bitcoins to Peter'. The message would be then broadcasted to all the computers in the network. They store your message on the database/ledger.

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The code that makes bitcoin mining possible is completely open-source, and developed by volunteers. But the force that really makes the entire machine go is pure capitalistic competition. Every miner right now is racing to solve the same block simultaneously, but only the winner will get the prize. In a sense, everybody else was just burning electricity. Yet their presence in the network is critical.bitcoin circle car bitcoin bitcoin окупаемость bitcoin payoneer ethereum pools bitcoin rotator продать ethereum bitcoin обозначение ethereum node ethereum эфириум bitcoin работа ethereum exchange bitcoin film реклама bitcoin calculator ethereum ютуб bitcoin tether скачать ethereum падение куплю ethereum hacker bitcoin bitcoin alert jax bitcoin cryptocurrency tech xapo bitcoin ethereum логотип direct bitcoin moto bitcoin trader bitcoin лотереи bitcoin bitcoin foto monero btc ethereum платформа neteller bitcoin ethereum supernova робот bitcoin bitcoin example bitcoin cny

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bitcoin forbes hosting bitcoin Transactions are processed quicker and cheaper than standard (non-blockchain) systems;Like most cryptocurrencies, the price of Litecoin can be volatile. One of the best ways to keep track of the Litecoin price is by using the Exodus charts.bitcoin мошенники майнеры bitcoin bitcoin casinos 4000 bitcoin bitcoin настройка bitcoin бизнес The Great Financializationbitcoin конец bitcoin dark bitcoin status технология bitcoin bitcoin фото casinos bitcoin dao ethereum Blockchain Career GuideLitecoin was launched in October 2011 and is one of the oldest cryptocurrencies in existence. Litecoin has similar characteristics to Bitcoin since it is a fork of Bitcoin. However, Litecoin does not share any history with the Bitcoin genesis block, and it has opted for shorter block generation times and higher base supply.net bitcoin

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This means storing your encrypted (or not) wallet file on a cloud storage solution such as Dropbox, or emailing them to yourself on gmail. This very similar to trusting a custodial wallet service, and is not recommended for the same reasons. You might say you use encryption for two-factor authentication, but uploading the wallet to the cloud reduces this to one-factor. Furthermore, there are a variety of ways in which 2FA can be compromised, in particular SMS-based 2FA, such as via a SIM-Swap.mt5 bitcoin

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