Introduction to

DECENTRALIZED COMPUTING

WITH ETHEREUM

presented by:

[Hamid Salehian]

Who's Win

Ant Colony vs grizzly beaR

Most PowerFul SUperComputer

Cores: 10,649,600

Memory: 1,310,720

Linpack Performance: 93.014 PFLOPS

(Max: 125.436 PFLOPS)

Sunway Taihulight

*PFLOPS : 1 000 000 000 000 000 floating point operations per second

Cores: May Infinite

Memory: May Infinit

Linpack Performance: 80704290.84 PFLOPS

Super SUperComputer

850000x Faster than Top 500 Supercomputers

How

Decentralized Computing

LEt's Start With

Decentralized Computing:

What?

- Allocation of resources, both hardware and software, to each individual workstation

- Computation model to share process and computation on P2P network

- Use Idle resources

Remember: BitTorrent

PRos

- Low Downtime ( Zero)

- No Central Point of Failure

- Infinite Scalability

- High Performance

- Maximize Efficiency

- Lacks centralized points of vulnerability

- Incorruptible

- Data Transparent

- Low Cost

- Low Control

- Difficult to Manage

- Difficult to Implement

Decentralized Computing:

BitterSweet

CONS

How To IMPLEMENT

So...

BlockChain

- Chain of Block contain Information

- Decentralized Database or data structure

- Records are permanent

- Extremely difficult to change or remove

- Timestamped Transaction

- No single individual or organization maintains the database

- Transparent record of exchange

BLOCKChain: WHAT IS?

BLOCKChain: Structure

Hash(Signature)

Data

Hash of Prev Block

*Hash = Sign ( data, private key)

SHA256

● Similar to a page in a paper ledger

● Each block depends on the previous block making a chain from the origin

● To edit a transaction in a block would require recalculation of all blocks after it

● Normally uses a distributed ledger with a consensus system and public/private key cryptography

HOW BLOCKChain Works?

Hash: 1Z8F

Prev Hash: 0000

Hash: 6BQ1

Prev Hash: 1Z8F

Hash: 3HQ4

Prev Hash: 6BQ1

Data

HOW BLOCKChain Works? (ConT)

Hash: 1Z8F

Prev Hash: 0000

Hash: 6BQ1

Prev Hash: 1Z8F

Hash: 3HQ4

Prev Hash: 6BQ1

3FTQ

Data

Hash: 1Z8F

Prev Hash: 0000

Hash: 6BQ1

Prev Hash: 1Z8F

Hash: 3HQ4

Prev Hash: 6BQ1

3FTQ

Text

Proof of Work

Consesus

51% Accept that block is valid

HOW BLOCKChain Works? (ConT)

BitCoin:

BlockChain as CryptoCurrency

Blockchain for ComputatioN

Why Not??

Ethreum: the WoRld Computer

Decentralized application (dApp) platform
Programmable Blockchain (Blockchain 2.0)
Use capability of Blockchain to compute against currency
Combination of cryptographic architecture and Turing completeness
Applications, which never shutdown
Runs computer codes equivalently on many computers around the world
Not only Cryptocurrency

Ethreum: History

Described by Vitalik Buterin in late 2013
Vitalik published the Ethereum white paper
Early 2014, Swiss Company Ethereum Switzerland GmbH Develop Ethereum Software Project

Bitcoin VS Ethereum

Bitcoin = Decentralized Data Storage

Ethereum = Decentralized Data Storage + Computation

	Bitcoin	Ethereum
Supply Style	Deflationary (a finite # of bitcoin will be made)	Inflationary (much like fiat currency, where more tokens can be made over time)
New token issuance time	Every 10 minutes approximately	Every 10 to 20 seconds
Purpose	Cryptocurrency	Smart Contracts and dApp
Price	$18449.99	$841.62

VS

How Ethereum Works?

Ethereum: Glossory

Every node (computer) in the network runs something called Ethereum Virtual Machine (EVM)

EVM: Think of it as a operating system that understands and executes the software written in Solidity
Solidity: Ethereum specific programming language
Smart Contract: The software/apps executed by Ethereum Virtual Machine
Gas : Specific costs for execution of different type of statements