Blockchaindev #1 - Ethereum Smart Contracts 101
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This document provides an introduction to Ethereum smart contracts, including: - An overview of cryptocurrencies and the context around Bitcoin and Ethereum - What smart contracts are and how they allow code to run on the Ethereum Virtual Machine - Examples of financial and non-financial applications that can be built with smart contracts - How to get started creating your own smart contract by deploying to the Rinkeby test network
Blockchaindev #1 - Ethereum Smart Contracts 101
- 2. ETHEREUM SMART CONTRACTS 101 SUMMARY ▸ About us ▸ Cryptocurrencies - Some Context ▸ Bitcoin ▸ Ethereum ▸ Applications ▸ Smart Contracts and Gas ▸ Create your own contract ▸ ERC20 tokens ▸ Tools ▸ Recap
- 4. ETHEREUM SMART CONTRACTS 101 BLOCKCHAINDEV MEETUPS ▸ Focused on blockchain technologies ▸ Knowledge-sharing and learning ▸ Beginner friendly
- 7. ETHEREUM SMART CONTRACTS 101 CRYPTOCURRENCIES - SOME CONTEXT ▸ Cypherpunk Movement (started in the 80s) ▸ Activists, programmers, hackers, researchers, mathematicians, … ▸ Advocated the use of strong cryptography and privacy enhancing technologies as a route to social and political change.
- 8. ETHEREUM SMART CONTRACTS 101 CRYPTOCURRENCIES - SOME CONTEXT ▸ Financial Crisis of 2007-2008 ▸ During the last quarter of 2008, central banks purchased US$2.5 trillion of government debt and troubled private assets from banks
- 9. BITCOIN A P2P ELECTRONIC CASH SYSTEM
- 10. ETHEREUM SMART CONTRACTS 101 October, 2008
- 11. ETHEREUM SMART CONTRACTS 101 October, 2008
- 12. ETHEREUM SMART CONTRACTS 101 BITCOIN ▸ Decentralized P2P ▸ No need for banks ▸ Limited supply ▸ Strong protection of your digital assets
- 13. ETHEREUM SMART CONTRACTS 101 BITCOIN ▸ Sign transactions with a digital signature ▸ Transactions are stored in a blockchain ▸ A consensus algorithm run on the network to verify the validity of the transactions (proof-of-work) ▸ Transactions are non-reversible
- 14. ETHEREUM SMART CONTRACTS 101 BLOCKCHAIN ▸ Database ▸ Distributed ▸ Decentralized ▸ Immutable (write once, append only) ▸ Public (or private) ▸ Stores transactions
- 15. ETHEREUM SMART CONTRACTS 101 A blockchain (https://www.computerworld.com/article/3191077/ security/what-is-blockchain-the-most-disruptive-tech-in-decades.html)
- 16. ETHEREUM SMART CONTRACTS 101 DECENTRALIZED AND DISTRIBUTED NETWORK
- 17. ETHEREUM SMART CONTRACTS 101 NETWORK ▸ Executes code ▸ Validates transactions (consensus) ▸ Mines new blocks ▸ Stores the blockchain ▸ Application infrastructure / supercomputer
- 19. ETHEREUM SMART CONTRACTS 101 Ethereum White Paper (2013)
- 20. ETHEREUM SMART CONTRACTS 101 Vitalik Buterin
- 21. ETHEREUM SMART CONTRACTS 101 WHAT IS ETHEREUM ANYWAY? ▸ A cryptocurrency (ETH), but more! ▸ A platform for developing and running decentralized applications
- 22. ETHEREUM SMART CONTRACTS 101 WHAT IS ETHEREUM ANYWAY? ▸ Virtual Machine (EVM) ▸ A programming language ▸ A blockchain for state transitions ▸ A “world computer”
- 23. ETHEREUM SMART CONTRACTS 101 ETHEREUM: A WORLD COMPUTER ▸ Arbitrary code is executed on the network ▸ You can run your code by creating a Smart Contract ▸ Contracts alter the state of the blockchain
- 24. ETHEREUM SMART CONTRACTS 101 APPLICATIONS ▸ Financial ▸ Semi-financial ▸ Non-financial
- 25. ETHEREUM SMART CONTRACTS 101 FINANCIAL APPLICATIONS ▸ Payments ▸ Sub-currencies and tokens ▸ Initial Coin Offering (ICOs) ▸ Smart Property ▸ Banking and Trading (derivatives, hedging contracts, currency, futures, digital assets)
- 26. ETHEREUM SMART CONTRACTS 101 SEMI-FINANCIAL APPLICATIONS ▸ Bounties ▸ Coupons, any type of miles ▸ Gambling ▸ Marketplaces and Monetization
- 27. ETHEREUM SMART CONTRACTS 101 NON-FINANCIAL APPLICATIONS ▸ Reputation and identity ▸ Decentralized Autonomous Organizations (DAOs) ▸ Voting ▸ Games (cryptokitties) ▸ Decentralized file storage
- 28. ALSO, MEMES…
- 29. SMART CONTRACTS HOW TO RUN YOUR CODE ON THE EVM
- 30. ETHEREUM SMART CONTRACTS 101 SMART CONTRACTS ▸ Computerized transaction protocol that executes the terms of a contract ▸ A contract is defined as a piece of code ▸ Self-executing contract ▸ You can create use it as a backend for your dapps
- 31. ETHEREUM SMART CONTRACTS 101 SMART CONTRACTS ▸ Your smart contract will contain instructions ▸ The code is also stored on the blockchain ▸ The execution of the code can create transactions and a new state of the blockchain
- 32. ETHEREUM AND CRYPTO-LAW: USES BLOCKCHAIN TO IMPLEMENT ARBITRARY SOCIAL CONTRACTS WITHOUT A CENTRAL SERVER Dr. Gavin Wood ETHEREUM SMART CONTRACTS 101
- 33. ETHEREUM SMART CONTRACTS 101 GAS ▸ Execution fee or cost ▸ Reading information is free ▸ Changing data/creating transactions costs gas ▸ You pay gas to the network
- 34. ETHEREUM SMART CONTRACTS 101 GAS ▸ Incentive for nodes to run your code and store your data ▸ Code must be efficient (time + space complexity) to optimize the costs ▸ Different instructions have different costs ▸ You can add more gas to your transactions to have a higher priority
- 35. ETHEREUM SMART CONTRACTS 101 EXAMPLES OF INSTRUCTIONS AND THEIR GAS PRICES ▸ Calculating a hash ▸ Multiplying two numbers ▸ See link
- 36. GETTING STARTED
- 37. ETHEREUM SMART CONTRACTS 101 CREATING A SMART CONTRACT ▸ Install Metamask and create a wallet ▸ Use the Rinkeby test network ▸ Get some fake ether @ rinkeby faucet ▸ Open remix and create your contract ▸ Deploy on (injected web3) and check etherscan.io! ▸ Also check web3.js
- 39. ETHEREUM SMART CONTRACTS 101 ERC20 TOKEN STANDARD ▸ Read the ERC20 Token Standard ▸ Implement the EIP20Interface to create your own token
- 41. ETHEREUM SMART CONTRACTS 101 OTHER TOOLS YOU CAN USE ▸ GETH: command line interface + ethereum node ▸ Drizzle: front-end libs for dapps ▸ Truffle: development environment for ethereum ▸ Ganache: run your personal blockchain
- 42. ETHEREUM SMART CONTRACTS 101 RECAP ▸ Decentralization is good! ▸ You can create your own Smart contracts and dapps to run on the ethereum network ▸ Create your own tokens by implementing the EIP20 interface ▸ Use web3js on the frontend (ethereum js api)