Hello World, We’re the team behind the Bancor Protocol (PDF) and we’re building a decentralized, hierarchical monetary system on the blockchain.When we look at the world of exchange between people, we see two main categories of things that we share and trade — Information and Value.While information (content such as texts, images, video, etc.)is replicable by its nature (when you share it, you and someone else both have it), value is not (when you give it to someone, you no longer have it.)Before the age of the Internet, there were many private information networks, which some of us are even old enough to remember, like BBSs, Prodigy, Compuserve, AoL, to name a few.The rise of the public Internet changed everything and those which survived adopted the new open, global standard for information exchange, which relies on a collection of TCP/IP networks, interlinked through peering agreements.Until blockchain, all currencies, which represent value, lived in closed silos.Blockchain, the technology pioneered by Bitcoin, is the decentralized value exchange network, the Internet of money.

It will eventually replace a large part of today’s private banking networks and allow new players (and the old which adapt) to create new types of value and transact in an open, global system not owned by anyone.The Bancor team has been building products on the Internet since the late nineties.ethereum virtual coinSome of our companies were Contact Networks, MetaCafe, Mytopia, Particle Code and AppCoin.bitcoin decode scriptWe bumped into Bitcoin in 2011 and began exploring possibilities in user-generated currencies.bitcoin unverifiedFollowing the release of Ethereum in 2015, we understood that smart-contracts were a game changer and would allow for currency creation and customization at scale.10 gh/s bitcoin miner profit

Programmable modules that manage and hold value (represented as tokens) can perform value-related processes for a negligible cost — processes currently handled by various organizations (e.g.bitcoin iran sanctionsescrow services, exchanges, law firms, to name a few).ethereum wsjHowever, the implications of autonomous decentralized code which can manage digital money on an open standard for value exchange are far more profound.In the Summer of 2016, we started working on Bancor with the goal of creating a hierarchical monetary system (where one digital token holds other tokens in its reserve) to build a new type of standard for cryptocurrencies that would lay the foundation for a decentralized global exchange.bitcoin pool profitabilityOne that is autonomous, has no spread, no counterparty risk and provides continuous liquidity for any asset.bitcoin telegraph

One that enables the long-tail of currencies as the Internet did for content.We would like to share with you, the Internet, our draft whitepaper for your review and comments.bitcoin now taxableAll feedback is welcome, and much appreciated.Welcome to the first decentralized global computational machine.Over the past couple weeks I have been reading the Homestead release notes, the Solidity Documentation, watching youtube videos about Ethereum; really just an all out effort on trying to understand what this protocol is and why it is a technological successor to Bitcoin.In trying to explain it to others(or even write about it on here) I come to the notion that it is: A global cryptographic, decentralized, immutable, permissionless world computer.And in relation to the protocols of that which it is built on.Without the Internet Bitcoin could have never existed and without Bitcoin, Ethereum could have never existed.

Now that’s a bold claim but I’m willing to make in that I truly believe that the predecessor technology has enabled this new paradigm in decentralized computing.Bitcoin has and will continue to enable an unimaginable number of new and disruptive applications which will impact a number of verticals.I use my Shift card every day, wake up and check the price with an eye half open, and I anticipate my full attention will be back as we approach The Halvening.But right now, I want to learn how to write Smart Contracts in the Solidity programming language.I want to know how these contracts are compiled onto the Ethereum Virtual Machine (EVM).And how this is powering the next generation of peer-to-peer technology.Download the latest Ethereum Wallet Install Mix IDE, the IDE for authoring Smart Contracts using the High Level Language Solidity.Program Solidity contracts on Visual Studio You can also use the Online Compiler The EVM is stack-based execution environment that uses Smart Contracts (similar to object-oriented classes) and HTML, CSS, and JavaScript to create dApps.

When you are running a decentralized application (dApp), every instruction is executed on every node of the network.This means the operands for the instructions are taken from the stack, and it is also where the results are added.This is the low level assembly code of the EVM and the resulting flow-control functions that can be found in the Ethereum Yellow Paper.Items are pushed to the Stack and can be manipulated using POP (remove top item from the stack), SWAP (Swap item order on the stack / Limit of 16 elements), and DUP (copy and order new item on top of the stack).The stack also extends Memory and Calldata to be used in during program execution.Memory is an expandable byte-array used to store data during program execution.It can be accessed using the MSTORE and MLOAD instructions.Calldata is a byte-array, just like memory, but it is read-only.It contains the data from the transaction that triggered the code execution in the Contract.Storage is a map used for fields in contracts.

A contract can neither write nor read any storage other that its own.Essentially it is permanently storing the state variables within the contract.Elements of the Ethereum Smart Contract Contracts in Solidity are similar to classes in object-oriented languages.Each contract can contain declarations of: A smart contract’s code resides in a Contract Account.It is unalterable once deployed.There are two kinds of accounts on the Ethereum network: Externally Owned Accounts (Public-Private Key) and Contract Accounts.Externally Owned Account (EOAs): an account controlled by a private key, and if you own the private key associated with the EOA you have the ability to send ether and messages from it.Contract Accounts (CA): an account that has its own code, and is controlled by code.EOA0 —-Transaction–> CA1 = Activate Code in CA1 CA1 —– Messages —> CA2, CA3, CA4= Perform functions in CA2, CA3, CA4 EOA1 —– Transaction —-> EOA2 = Send Ether EOA2 Ether, the currency used in Ethereum, is exchanged for computation on the platform.

Gas is the name for the execution fee for every operation made on an Ethereum blockchain.Its price is expressed in ether and it’s decided by the miners, which can refuse to process transaction with less than a certain gas price.To get gas you simply need to add ether to your account.The Ethereum client automatically converts Ether to gas and gas to Ether when transactions are processed.When a transaction is sent from an EOA to a CA, it is sent with input code and Ether.The input code and ether is then processed by the Contract Account, thereby activating itself and thus executes its code.A CA can then send a message out to other (CA) contracts.The contracts are essentially talking and passing messages between themselves, in this way, sending a message is exactly like calling a function.This could produce another smart contract, send Ether to another address, register a vote of confidence, open a door to a house; virtually any sort of call to or update to the state of the decentralized network.

The total cost of a transaction is based on 2 factors: Total cost = gasUsed * gasPrice An EOA can also send a transaction to another EOA and nothing happens accept transfer some Ether (P2P payment or ether).Visit the Solidity website to see example Smart Contracts and write and edit them within your wallet.You will be able to use Electron by Shapeshift to deposit bitcoin in exchange for Ether so you pay the mining fee and begin deploying your first smart contracts.Start with the following three example smart contracts.A new block is created every 15 seconds in Ethereum.Essentially you are sending binary data to invoke state transition rules through EVM bytecode at the assembly level thus updating the distributed state of the blockchain; AKA deploying your Smart Contract.Mining Ether = Securing the Network = Verifying Computation on the Global Computer Next: 3 RaspPi3’s, 32GB SD cards each a running the Ethereum computer (Web3.0, next-generation peer-to-peer technology platform) running on each… Watch Ethereum for Dummies – Dr. Gavin Wood A global cryptographic, decentralized, immutable, permissionless world computer.