Base chain

Launched in 2015 by Vitalik Buterin, Ethereum is a decentralized blockchain platform focused on enabling the creation and execution of smart contracts and decentralized applications (dApps). The Ethereum blockchain is powered by its native currency, Ether (ETH), which is used to fuel transactions and smart contract operations. Ethereum's groundbreaking innovation lies in its ability to support Turing-complete smart contracts, expanding the scope of blockchain technology beyond simple transactions. As the second most notable blockchain, Ethereum has catalyzed the emergence of a diverse ecosystem of tokens and projects that prioritize secure, decentralized systems, pushing the boundaries of traditional, centralized models and advancing the potential of decentralized technology.

Network and Protocol¶

The Ethereum network is a decentralized, open-source blockchain platform that supports the creation and execution of smart contracts and decentralized applications (dApps). It establishes rules that govern the operation of the Ethereum network, providing strong cybersecurity measures to protect the integrity of transactions and ensure that only authorized users can interact with their data on the blockchain. The Ethereum network and protocol consist of several key components that work together to maintain the network's security, stability, and functionality:

• Smart Contracts and Ethereum Virtual Machine (EVM): Enables the creation and execution of self-executing agreements that automatically enforce their terms without the need for intermediaries. Smart contracts are written in programming languages like Solidity or Vyper and run on the Ethereum Virtual Machine (EVM), a Turing-complete virtual machine that executes smart contract code in a secure and isolated environment, ensuring consistent execution across all nodes in the network.

• Decentralized Applications (dApps): Supports the development and deployment of dApps that run on the Ethereum blockchain without any central point of control.

• Nodes: Computers that participate in the Ethereum network, storing and validating the entire blockchain. There are different types of nodes, such as full nodes and light nodes, each with varying levels of participation and responsibility within the network.

• Blockchain: A public, distributed ledger that records all transactions and the current state of smart contracts. It comprises interconnected blocks containing transaction data, a timestamp, and a reference to the previous block via its hash, ensuring data integrity and auditability.

• Validators: Validators secure the network through a Proof of Stake (PoS) consensus mechanism, locking up a certain amount of Ether (ETH) as collateral to propose and validate new blocks. They are chosen to create new blocks based on their staked Ether and earn rewards for successfully validating transactions and maintaining the network's integrity.

• Transactions and Gas Fees: Transactions involve the transfer of Ether (ETH) or interactions with smart contracts, and are cryptographically signed using private keys, ensuring security and authenticity. Gas fees, paid in Ether, are associated with each transaction to incentivize validators and prevent spam.

• Cryptography: Employs public-key cryptography to secure transactions and protect user identities, allowing only the private key holder to authorize transactions while the public key is used for verification.

• Peer-to-Peer (P2P) Communication: Utilizes a P2P protocol to enable nodes to communicate and share transaction data, smart contract states, and blockchain updates without relying on a central server or authority.

sequenceDiagram
    autonumber
    User->>Node: Broadcast Ether transfer transaction
    Node->>Validator: Relay transaction
    Validator->>Validator: Propose new block (with transaction)
    Validator->>Validator: Validate transaction (check sender balance, nonce, and signature)
    Note over Validator: Valid transaction
    Validator->>Node: Broadcast new block (with validated transaction)
    Node->>Node: Verify block
    Note over Node: Valid block
    Node->>Blockchain: Add new block to local copy (with Ether transfer)

Nodes¶

In the Ethereum network, nodes play a vital role in maintaining its decentralized foundation and ensuring the security and integrity of the entire blockchain. These nodes, the backbone of the network, are computers that diligently store and validate the entire blockchain and execute smart contracts.

There are three primary types of nodes: full nodes, light nodes, and archive nodes. Each has its unique set of responsibilities and levels of participation within the network. For this project, we will focus on full nodes.

• Full nodes: are the protectors of the Ethereum network, storing a complete copy of the blockchain and enforcing the consensus rules. By verifying and validating transactions, blocks, and smart contract executions, these nodes ensure that malicious activities are kept at bay. Full nodes also act as relay points for transactions, propagating them across the network. Running a full node requires more storage and computational resources but offers the highest level of security and autonomy.

• Light nodes: also known as light clients, are the agile participants of the Ethereum network. They store only a subset of the blockchain and rely on full nodes to provide them with the necessary data to validate transactions and smart contract executions. This lean approach allows light nodes to operate with lower resource requirements, making them more accessible to a broader range of users. However, this convenience comes at the cost of reduced security and a greater dependence on full nodes for information.

• Archive nodes: serve as comprehensive repositories of the Ethereum network's history, storing not only the complete blockchain but also the entire state of the Ethereum network at every block. These nodes are resource-intensive and require massive storage capacity, but they offer an invaluable resource for developers and researchers seeking historical data and insights into the Ethereum network's evolution.

Clients¶

Ethereum clients are software implementations that allow users to connect to and interact with the Ethereum network. They play a crucial role in the network by implementing the Ethereum protocol, enabling users to run nodes, send transactions, and deploy and interact with smart contracts. There are several Ethereum clients, each developed using different programming languages and offering various features. Some of the most popular Ethereum clients include:

• Geth (Go Ethereum): Geth is the most popular Ethereum client, developed using the Go programming language. It's maintained by the Ethereum Foundation and is widely used for running full nodes, mining, and deploying smart contracts. Geth supports JSON-RPC and WebSocket interfaces, providing flexibility for developers.

• OpenEthereum (formerly Parity): OpenEthereum is another widely used Ethereum client, developed using the Rust programming language. It is known for its performance, security, and modular architecture. OpenEthereum was initially developed by Parity Technologies but is now maintained by the OpenEthereum community. It offers advanced features such as Warp Sync for faster synchronization, and it supports private and consortium chains.

• Besu: Besu is an Ethereum client developed using the Java programming language and is maintained by ConsenSys. It is designed for enterprise use and supports both public Ethereum networks and private permissioned networks. Besu is compatible with Ethereum and Ethereum Classic networks and offers advanced features such as privacy groups and permissioning.

• Nethermind: Nethermind is an Ethereum client developed using the C# programming language. It is known for its performance and modular design. Nethermind supports JSON-RPC and WebSocket interfaces and offers advanced features such as fast sync and integration with the Nethermind Data Marketplace.

• Erigon (formerly Turbo-Geth): Erigon is an Ethereum client developed using the Go programming language, focused on performance and resource efficiency. It is maintained by the Erigon team and aims to provide a faster and more resource-friendly alternative to Geth.

These clients play a crucial role in maintaining the decentralized nature of the Ethereum network by offering multiple implementations of the protocol. Users can choose a client based on their specific needs, programming language preferences, and desired features.

Infrastructure-based Governance¶

Validators and node operators are instrumental in shaping the network's rules, development, and evolution for Ethereum. By actively participating in the decentralized governance process, they contribute to the network's growth and progress.

Validators, a specific type of node operators, secure the Ethereum network through staking and have a significant say in its development. They run full nodes and participate in the Proof of Stake consensus mechanism by staking Ether (ETH) as collateral. By proposing and validating new blocks, validators directly influence the acceptance or rejection of proposed changes and forks. Validators are chosen to create new blocks based on their staked Ether, further emphasizing their role in the network's development.

Other node operators also participate in decentralized governance by choosing which software version to run, contributing to the network's security and consensus. Their decisions impact how the Ethereum network evolves and develops. Node operators play an essential role in maintaining the network's connectivity and ensuring that it remains fully synchronized.

Soft forks involve backward-compatible changes, with validators and node operators maintaining network stability by upgrading or continuing to run older software. Hard forks, however, require validators and node operators to choose which chain to support, determining the fate of the fork. The chain with the majority of support becomes the dominant chain, while the other may continue as a separate, smaller network.

Ethereum's infrastructure-based governance underscores the importance of validators and node operators in shaping the network's direction, rules, and development. This approach emphasizes the significance of these technical components in the evolution of decentralized networks, empowering the community and individual node operators to drive development.

Operators¶

Individual node operators in the Ethereum network have several key responsibilities, with the most important duties listed below:

• Choosing the software version: Node operators decide which version of the software to run, contributing to the decentralized governance process and shaping the network's growth and progress. This includes supporting the Ethereum client's ability to interact with dApps, execute smart contracts, and handle gas fees. Operators must actively monitor and stay up-to-date with any changes or updates to the Ethereum network.

• Maintaining network connectivity: Operators ensure their nodes remain online and fully synchronized with the network, contributing to its security, stability, and overall consensus. To achieve this, they regularly check the node's internet connection and uptime to minimize downtime and maintain synchronization with the blockchain.

• Staying updated on protocol changes: Node operators must keep up-to-date with proposed updates or modifications, deciding whether to support these changes, which in turn affects the adoption of soft or hard forks. Part of this responsibility involves actively participating in community discussions and forums to stay informed about potential protocol changes, dApp developments, smart contract updates, and the implications of supporting or opposing them.

• Monitoring and maintaining hardware and software: Regular monitoring and maintenance of node hardware and software are essential to minimize downtime and ensure optimal performance. This requires periodically updating the node's software with the latest security patches and making sure the hardware is running efficiently to maintain the node's optimal performance.

By fulfilling these responsibilities, node operators serve as the backbone of the Ethereum network, fostering its decentralized nature and acting as stewards of the blockchain to ensure its continued success.