Blockchain Lab for Internet of Things Students — Part 1 : Introduction to Blockchain and Ethereum Virtual Machine (EVM)
This is Part 1 out of 6 Parts related to blockchain lab.
Introduction
The world of technology has been revolutionized by the advent of blockchain, a transformative approach to decentralized digital ledger technology. In this article, we delve into the fundamentals of blockchain and its most notable application in Ethereum, focusing on the Ethereum Virtual Machine (EVM) and smart contracts.
Blockchain Basics
The Evolution of Blockchain
Blockchain technology, initially conceptualized in 2008, has evolved significantly. The initial use case was Bitcoin, a digital currency, but the technology has since expanded far beyond cryptocurrencies.
Understanding Distributed Ledgers
At its core, blockchain is a distributed ledger. This means that it is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people. It allows transactions to have public “witnesses,” thereby making a cyberattack more difficult.
Blocks and Cryptographic Chaining
A blockchain is composed of a series of blocks, each containing transaction data, a timestamp, and a cryptographic hash of the previous block. This chaining of blocks ensures data integrity and prevents tampering.
Consensus Mechanisms
Proof of Work (PoW)
Originally implemented in Bitcoin, PoW requires network participants (miners) to solve complex mathematical puzzles to validate transactions and create new blocks. This process, while secure, is energy-intensive.
Proof of Stake (PoS)
As an alternative to PoW, PoS involves validators who are chosen to create a new block based on their economic stake in the network. It’s more energy-efficient and is becoming increasingly popular.
Other Mechanisms
There are other consensus mechanisms like Delegated Proof of Stake (DPoS), Proof of Authority (PoA), and more, each with unique features and suited for different blockchain applications.
Ethereum and Smart Contracts
Ethereum: A Major Blockchain Platform
Ethereum took the concept of blockchain further by introducing smart contracts. These are self-executing contracts with the terms of the agreement directly written into code.
Smart Contracts and Decentralized Applications
Smart contracts enable the development of decentralized applications (dApps) that run on a peer-to-peer network of computers rather than a single centralized server.
Ethereum Virtual Machine (EVM)
EVM: The Heart of Ethereum
The Ethereum Virtual Machine is the runtime environment for smart contracts in Ethereum. It’s a completely isolated environment, ensuring that smart contracts run in a tamper-proof and secure manner.
Execution of Smart Contracts
Smart contracts are written in programming languages like Solidity or Vyper and are compiled into bytecode, which is executed by the EVM. This ensures that the contracts will execute exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference.
Practical Activity
Visualizing Blockchain Technology
Using visual aids, we can illustrate how each block in a blockchain is created and linked to the previous block, forming a secure and immutable chain.
Real-world Applications
Beyond cryptocurrencies, blockchain finds applications in supply chain management, healthcare, finance, and more. These use cases highlight the potential of blockchain in ensuring transparency, security, and efficiency.
Conclusion
Understanding the basics of blockchain and the functionality of the Ethereum Virtual Machine is crucial for anyone interested in the field of decentralized technology. This knowledge forms the foundation for further exploration into the vast possibilities of blockchain applications.
