Original subtitles

Tribe, when explaining Ethereum blockchain on the base level, you know, these like Jola, continue

in a similar fashion.

The lecture will be again a lecture.

So if you have enough information about if the Ethereum blockchain, you can skip this one and you can

continue with the next lecture.

OK, so any further waiting?

Let's start and let's start with the explanation or capitulations of the differences between a banking

system and if the Ethereum blockchain system I was talking in a previous lecture, mainly from the perspective

of transactions.

Of course, there is much more in the Ethereum blockchain and also much more into the banking system,

not just the banking transactions, of course.

OK, but let's mark here some, uh, some of biggest differences.

So you have it on the paper.

OK, so differences between the banking system and the Ethereum blockchain a first in terms of centralized

centralization.

In a case of a banking system, banks are centralized, usually owned by companies or owned by governments.

Right.

So yeah, there are definitely centralized systems there running the centralized ledger.

So the ledger of all of the transactions there are centralized.

So let's mark here centralized.

In the case of the of the banks, there are centralized comparing with the blockchains.

In this case, in Ethereum blockchain, Ethereum is definitely decentralized, decentralized, and it's

running thanks to the connections of many, many nodes.

OK, so we have a centralization and decentralization.

Also, Ethereum is not a company, is the open source project that's running by the Ethereum Foundation,

and it's not running by Ethereum Foundation by the Ethereum Foundation is working on Ethereum blockchain.

OK, but this is actually for the resources out there.

The lecture I will give you the resources to write about if you're in foundation.

OK, so centralized centralization and decentralization.

OK, what about the other differences I was mentioning in the Prados lecture that when you want to open

a bank account, you need to provide some private details, of course, and to provide your name, your

address and so on and your details.

OK, so you need to provide your personal information like personal.

Better so now in five, you want to open your bank account, you don't need to do it in the case of

the blockchains, you know, personal information here, OK, which is you just simply will create the

account and that's it's a no, no personal, no personal information.

OK, there are also other differences about the fees in the bank, so usually when you have to pay fees

or to pay your fees and this stuff and here you don't have any fees.

All right.

OK.

In the banks, you are keeping currencies issued by states of dollars of euros.

So all of these currencies are the inflation that are inflationary.

They're actually inflationary.

The digital currencies are not all of them, but usually that's difficult.

Digital currencies are not inflationary.

They are in some cases, they are the inflationary care because dollars can inflate and they can to

lose the value of our time.

In the case of Bitcoins and Imperium, and in the case of a bitcoin, then you have a limited amount

of bitcoins that will not happen, that it will be losing the value.

On the other hand, it will be gaining the value.

But about this stuff, I don't want to talk.

I just about the lack of talk about the development stuff.

OK, but this is this are some of the main differences we'll be talking about other as we'll go to the

lectures.

OK, so if we have the if we have these recapitalized nicely, we can start talking about a developed

development on the Ethereum blockchain.

Also, to not forget, I would like to mention here also these resources are included them in the in

the links of the of these lecture.

So here it's about the Ethereum Foundation.

All something.

Think, OK, just call us, crawl around here and maybe ask me questions in the Q&A section.

And yeah, and so I really like the core values of the Ethereum ecosystem here.

I would read about them and also, as I mentioned, Ethereum's open source project so anybody can make

a contributions and you can make an improvement proposals.

Call to APIs.

OK.

You can also read about them here.

Just as an off topic of this lecture.

OK, so now let's continue.

What is that Ethereum also capable of?

I don't want to talk only about the transactions.

Transactions of the money?

OK.

So let me go back to our drawing board and and I'll draw here something more you can look at here and

you.

You know what?

And we'll be talking about some stuff on Etherium.

So first of all, don't ethereal me look like Etherium state that this database I was looking about

there, that all of their accounts are restored and the balances of the accounts are stored.

OK, so we'll call it Etherium state.

OK, let me market summary here.

Okay, something here in the corner.

Uh, if he or a um, if the Ethereum state OK, Ethereum state very, very are keeping all of their.

All of their accounts, also all the balances of the account and so on.

OK, here I am state every account on the Etherium has a specific format.

It's that of any byte number usually noted as the hexadecimal number.

So these numbers start.

If you have that count on a theorem, usually have an address like this zero x sum hexadecimal number

of days zero saying it's a hexadecimal number and many it has a 20 byte.

So let's say one two zero a eight and you have a the of this number because this is the one byte is

done by.

So you have a choice of any of this.

OK, so this is the address.

OK.

This can be, for example, but otherwise what can be my address?

OK, so let's say that is the address.

This is the my address, let's say three four, be zero.

And again, you have a for the of this character.

So 20 byte number mark here is a 20 byte number is a unique address tonight.

OK, so these keep on Ethereum state for every account these links.

The structure of each of you keep your balance right, as as I was mentioning Mickey Olympism out there,

you have your account balance, right, so let me draw it.

I'm still not very used to traveling, but let me try it.

OK, so every account has some balance that's very important to know balance and is saying how much

money basically you have on your council balance.

Let's say 10, if you OK.

There is also a nonce number.

Nuns, no and no, I would like to want to talk later.

Let's say nuns, number three.

This basically means how many transactions that we have made from our account, and I will say I will

be saying by it is important later.

That's not important right now.

Just to know now is that the event we are creating account on Etherium.

We have this address and there we can keep a balance.

For example, if they are by, if if both vanity and people are keeping on their if their account.

10 ethereal, not an ethereal but button, if OK, so we'll have attentive.

OK, that's a let's say, Bob Bob's account and we have a flip account and then we are different balance

and a different, different nonce.

Of course.

All right, so that's in the terms of the account, and it's called when you have only your account

balance, and that's that's a that's a usually if your account is skull's do called also externally

owned accounts.

So these you cannot you can say these externally owned account will say it here.

Externally owned account.

OK.

Uh, you can.

You can validate if you're writing it somewhere externally, externally, externally or aren't.

Account.

OK.

OK, so that's exactly take out.

All right.

There is also other type of the column, and that will be the main that this will be the main part of

the chorus we'll be talking about, but before we'll take a look on the other type of the account place.

Let's go to your browser.

And let's start here for Ether.

Can it scan on either a scanner?

I think it's although I'm not sure if it's something I can.

You can check all of the blocks that have been mined and also talking about the blocks that blocks content

and transactions, which will alter the Ethereum state.

OK.

It's a lot easier every time, every mined block and also the transactions in that is a block.

So let's say here you have a you have a block these ones and you have at many 70 225 transactions here.

You can select any transactions you want and focus now on the methods that are the method is transfer.

This means that this has been transferring only some ether from account to account.

Let's say these one here.

You can see here this went from this address is a tragedy.

Is this a a for the hexadecimal sort of any byte address on the Ethereum and this user on this of these

others or sending some ifthere some ether to these others?

So these two, by the way, we'll be talking about about all of these fields later.

For now, it is important for us from Tor and the value so of that user here was transferring zero point

zero.

If I saw in the value of a sixty four dollars is currently zero point zero two ether.

If you want, you can also click this address here on the from.

And this will not be here all the transactions that his user has been sending.

And you can see also, this user has a balance that, as I mentioned, so every account has a balance

and this user currently have zero point three ether and all the transactions that he or she has made.

So you can say this, it's open.

I can select any other s and I can search all the transactions that user has been making.

Of course, I don't know about any personal information about the user.

I don't know what who is the user, but I can still see here what's what's happening on the blockchain.

So.

So that's a very interesting thing.

OK, so I'm encouraging you to maybe just search here through these ether scan.

But as it was mentioning here, there's a simple transactions from this address.

You will be also creating our own other assets will have a similar format is set to many by the number

from two and ether ether sent.

OK, and there's an externally owned account.

OK, so.

But the main part of the chorus of you'll be working on a different type of the account.

We'll be working on an account which will be very well be storing not just the balance and the nonce,

but we'll be storing also some quote because you can execute a call, you can create a programs that

will be around on Ethereum blockchain and this will be interesting part of the of the chorus.

So.

Every every this program will also contain other so we'll have the same as this address addresses here.

We'll have others for this for this program because zero eggs, let's say one one zero one one two C

and again 20 bites or 40 of these characters.

And these will be a different type of account of a different type of counseling, not externally Ulta.com,

but this account that contains code some program are also refereed as a contract.

Smart contract is a contract.

Contract and the contracts.

Contracts don't have just the balance, they have balance as well.

They've also not.

But they have also something else.

They have a balance, and that's.

Bob, because a contract can also keep Eve, so people will have so many thoughts on each other, I

think they can keep an.

How many transactions has been made?

They talk about there is an interesting part of the they have a storage hedge.

Storage, property, storage, hash and also called hash called hash.

And these are pointers to defense structures on the Ethereum blockchain and storage.

It's pointing this stretch because it can start some data in the contract in this program that we'll

be running on Ethereum blockchain so we can have here some kind of a story.

We'll be talking about these stories started later, so there will be storage.

Still, she will be talking also about how the values are starting to storage and so on, but storage

of data, but a cottage is interesting.

One called hash contains a bytecode.

This will be an application we will be writing bytecode.

OK.

Of course, the applications as we are writing in are calling, but this will be although the compile

applications will contains some hexadecimal byte code.

OK, so this will be the byte called the sequence of of hexadecimal symbols.

OK, so there will be some four zero six zero and so on and so on bytecode.

So yeah, guys.

So that's that's that's the difference.

That's some basics about extending all they could count on accounts and the contracts.

OK, so just to continue with this.

We will be writing this contract, I will not get here, actually, I will make it here.

They'll be writing these contracts in Solidity, programming language solidity, solid data programming

language solidity is object oriented oriented language, so this is a normal, object oriented programming

language to all people.

Is inspired by C++ by the JavaScript.

Syntax is very similar to JavaScript, actually.

It also contained a types.

It has a types.

And also, what I want to say is it's has curly brackets syntax.

That's what I want to say.

Curly brackets, syntax.

So the function body will write instead of the curly brackets.

And also, I think semicolons as you will see you later.

OK, so we will be writing smart contracts is insulated, which is very similar to JavaScript.

Let's say they'll be creating the Smart Contracts Act.

You can have any programs you want.

It'll be running on the blockchain.

Let's say it'll be.

You will have application called fans so users can send some funds.

And you will you will be keeping will be keeping.

We will take care of the fans of your clients.

You can create also banking application.

You can create that create voting application.

Any applications you want.

By the way, this extension salt is a denoting that this is solely the application.

Venue for black to deploy application on the blockchain.

It has to be in the bytecode format.

Because I saw that there is a high, high order programming language beneath to compile it into the

lower code.

So in the bytecode, but you will see all of these later.

For now, you can know that these will be compiled into bytecode and stored on the blockchain, just

a compiled.

Compiled.

You know, bytecode.

OK, and it will be start on the blockchain, so this will be this node.

This note, this network of the notes on the on the blockchain, right?

So all of it's this is going like that.

These are just computers surrounding this software.

All right.

It will be blockchain, right?

It's a blockchain, Ethereum is Ethereum.

I know.

I don't need to know.

I don't need to talk about this as a blockchain can talk about this as a theory of Ethereum ecosystem

or Ethereum platform.

So now when you want to communicate with accounts or with the smart contracts, everything is starting

with the transactions on the blockchain, so you will send the transactions to the blockchain.

Let's say Bob builds on the transaction.

They'll say to this address here of the smart contracts or transaction of two zero x one one two.

See, and you can interact with that code in this on this address.

So you can say I would like to add some fans so you will call the function as you will later seals.

You will call the function.

You would like others on FOX.

So let's say I like it here.

I would like to Ethereum's labels will this transaction?

And these transactions will go to Ethereum blockchain again.

It has to be mined, will be added to the mempool.

And in the end, it will find its way to smart contract code and it will be executed.

It will be executed in the bite code.

And since this is just a transaction to send some if the storage, that balance of contract the update,

that OK.

So this will be not one, but it will be three Etherium if I'm keeping saying if anybody votes that

Etherium, I mean if because that's the that's the digital currency, if you are Ether.

OK, so that's the really guys.

It does it really high over the.

But I would like to for you to take from this is that we have two types of accounts externally owned,

as that's a basically normal account that I would create if I would like to keep some ether on my account.

Or you have these, you have these contract addresses where you can keep also quote normal software

application as the Jaresko application, but this will be Solidity application.

So let the application basically can be any application to keep the funds of their user baking application

or marketplace whatever you want.

This will be compiled into bytecode and start on the blockchain and then the users on the blockchain

want to interact with your video smart contact with your application.

They can send the transactions with the other as the recipient will be the address of the of the contract,

and they will send some if to it or they will call some function in the bytecode.

But about these guys later.

OK, guys, so that's should be it, and I think it would be about the time to to start to start coding,

so we have a better understanding of if the area again, if any questions.

These topics can be overwhelming from a beginning, but we will go gradually, gradually elaborating

all the topics I have been talking previously about.

So we'll be repeating this stuff and I will be adding a little bit, a little bit and I will be making

some quizzes for you, for reading.

As I mentioned about the Ethereum Foundation, you can check the Etherscan and also here is illustrated

e Ethereum.

OK, so here are some.

Here are some stuff that I'll be talking about is also.

OK, so that's going to be from this lecture.

Let's let's see, let's see you in in the next one.

Yes.