馃攳
What is Ethereum? How is it different from Bitcoin? | CA Rachana Ranade - YouTube
Channel: CA Rachana Phadke Ranade
[58]
Hey folks!!! CA Rachana Ranade here and I welcome聽
you all to another interesting lecture which is聽聽
[63]
about what is Ethereum and how is it different聽
from bitcoin well to put in simple words聽聽
[69]
Ethereum is a decentralized open source blockchain聽
system that features its own cryptocurrency聽聽
[78]
now I am sure these four words might be a little聽
bit confusing for you but if you have watched all聽聽
[84]
my previous videos about cryptocurrencies I am聽
sure you might be familiar with all these words聽聽
[88]
but just to quickly revise I will quickly tell you聽
one by one the very first one it's decentralized聽聽
[93]
decentralized means what the power is not聽
in the hands of a single person but power is聽聽
[98]
distributed amongst various nodes or peers. Second聽
one is it's an open source what is open source聽聽
[104]
it's available to all. It is not secret as such聽
okay it's accessible to many. Third one it's聽聽
[110]
a blockchain system. Now what is a blockchain? I聽
have talked about this in this video in detail but聽聽
[116]
then in simple words it's a distributed ledger and聽
that ledger contains a lot of information which聽聽
[122]
is packed into blocks and all these blocks are聽
chained to each other and that's why it's termed聽聽
[130]
as blockchain right and what is the last word last聽
word is that it features its own cryptocurrency聽聽
[136]
which cryptocurrency ETH so Ethereum is not聽
a cryptocurrency. ETH is a cryptocurrency聽聽
[144]
also known as ether okay then what is聽
Ethereum is what I told Ethereum is equal to聽聽
[150]
these four words or to put it in a simple way聽
Ethereum is an open source blockchain system聽聽
[156]
or simply put it's a platform. Okay what do I聽
do with this platform? This platform can be used聽聽
[164]
for various dapps which can be deployed by using聽
smart contracts now two buzzing use cases of聽聽
[172]
these dapps or decentralized apps are DeFi's and聽
NFD's. I think the last 15-20 seconds went like..聽
[182]
If you want to understand these in detail聽
just check the next part of the video.聽聽
[186]
Now let's understand what are dapps or聽
decentralized apps but to understand what聽聽
[192]
is a decentralized app let me first take an聽
example of only app simple example can be of聽聽
[198]
shadi.com or any other matrimonial聽
app what happens there is Mr. XYZ and聽聽
[205]
Miss. ABC whatever and just, just that they can聽
meet each other over various apps. There is one聽聽
[213]
app here okay now what this app does is that the聽
main thought process is just to do matchmaking聽聽
[220]
okay and are they going to earn some commission in聽
between Yes why because they facilitated these two聽聽
[227]
people meeting each other that is the only reason聽
why they earn some money in between number one聽聽
[232]
I will give you another example okay what is聽
another example another example is completely聽聽
[237]
different of Google drive. Now you can imagine聽
what had happened with google drive just few聽聽
[242]
months ago can you remember that I remember聽
all my important documents which were hosted聽聽
[247]
on google drive they went for a toss, why聽
I could not access my own google drive聽聽
[252]
google was down, google drive obviously was聽
down, youtube obviously was down and I was like聽聽
[259]
oh my god that was a big nightmare now you can聽
imagine these apps have complete centralized聽聽
[267]
authority this single entity controls so much聽
part of my life. Now if this centralization is聽聽
[275]
taken away then what? So that is where comes in聽
the picture that there is no centralization in聽聽
[282]
simple words there is decentralization of what of聽
apps so no single entity is going to control that聽聽
[289]
and that app is not going to earn commission just聽
for the matchmaking purpose right now can I create聽聽
[296]
my own Dapp? Yes, it is very simple step number聽
one just understand how the decentralization works聽聽
[303]
step number two just write a code that mimics聽
the same behavior and step number three just聽聽
[309]
get a huge network of computers to run this code聽
uh that's that's it and here comes the solution聽聽
[318]
introducing Ethereum not a currency a platform聽
that provides us the infrastructure that has聽聽
[327]
thousands of independent computers that is聽
nodes which are running well once a program聽聽
[334]
is deployed over this network it will聽
ensure that it gets executed as written.聽聽
[342]
Well now if I want to create my own decentralized聽
application I have to ensure that no single聽聽
[349]
person controls this and for this all I聽
need to know is a programming language聽聽
[355]
which language c, c++, Java? No I need to know聽
solidity which is the coding language of Ethereum聽聽
[363]
now once coding is done using solidity all I have聽
to do is deploy it on EVM. What is EVM? Ethereum聽聽
[370]
Virtual Machine which is a blockchain based聽
software so I hope by now you have understood聽聽
[376]
that what Ethereum provides us with Ethereum聽
provides us or Ethereum provides the developers聽聽
[382]
with various tools that can be used to make dapps聽
or decentralized apps. Is it clear till now? So in聽聽
[390]
simple words what is Ethereum? Ethereum is not a聽
currency Ethereum is a platform then which is the聽聽
[397]
currency ETH or Ether is the currency then what聽
is the connection between these two array wait聽聽
[403]
on the Ethereum network there are thousands聽
of computers who are either approving or聽聽
[409]
disapproving transactions are they doing this聽
for free no these nodes need to be incentivized.聽聽
[416]
Incentivized using which currency ETH or Ether聽
well. Well just on a separate note do you know聽聽
[423]
what is this? Yes that is BTC, Bitcoin. What聽
is this? That is ETH or Ether and what is this?聽聽
[431]
That's the like button you need not pay ether聽
or bitcoin to smash the like button it's free of聽聽
[437]
cost if you do that YouTube understands that you聽
are loving the video and will recommend to more聽聽
[442]
and more people that's the way you are helping聽
others to learn more about cryptocurrencies.聽聽
[450]
So now coming back to that point where three聽
words went completely as a bouncer number one聽聽
[456]
I talked about dapps, number two I use the word聽
DIY and number three I use the word smart contract聽聽
[463]
now I hope you are aware about what's a dapp?聽
Decentralized app not a single person is going聽聽
[469]
to control that right second one is DIY another聽
short for more full form coming up for you now.聽
[486]
So what is DIY? DIY is do it yourself okay so聽
either I can actually learn the language solidity聽聽
[494]
okay or I can hire engineers to whom I will聽
uh instruct that you learn the language of聽聽
[500]
celebrity I will pay them handsomely right and聽
what they are going to do? They are going to write聽聽
[506]
smart contracts they will be like what are the聽
smart contracts now that's what exactly I am聽聽
[510]
going to tell you smart contracts are nothing聽
but contracts which can execute themselves they聽聽
[517]
will be like how can a contract execute itself? In聽
simple words smart contracts are contracts which聽聽
[522]
have a lot of ifs and dents now what is this if聽
and then I will give you a simple example for this聽聽
[529]
right now I gave you an example of google drive聽
okay wherein there is absolute centralization聽聽
[534]
everything is in the hands of google okay now I聽
say I don't want g drive I want our drive okay聽聽
[542]
that r drive app is not a centralized app it's聽
a decentralized app so is going to control that聽聽
[548]
me no thousands of nodes thousands of computers聽
are going to control the decision making here聽聽
[553]
okay now what happens understand the coding聽
in this app is done in such a way that there聽聽
[560]
are lots of if sentence means what let's聽
understand if you want us a part of that聽聽
[566]
part of the drive space on rent you are going聽
to pay me and I am going to give that space on聽聽
[572]
rent to you okay so what will be written in the聽
contract if I receive money then you will get聽聽
[578]
the space on rent okay what will happen in real聽
world there'll have to be a person who passes聽聽
[584]
the accounting entry who will actually take the聽
money will actually give the dry space to you聽聽
[588]
but here who is going to do that the聽
contract itself is going to execute聽聽
[592]
that's why it's known as a smart contract I hope聽
you have understood here no human intervention聽聽
[598]
as such the contract itself is going to execute聽
itself wherein if's and then's are the main thing.聽
[608]
Going back again to those bouncer words which were聽
these DIY check now, you know that smart contracts聽聽
[615]
checked, you know that dap check you know聽
that and then we talked about the two use聽聽
[620]
cases which were the two use cases one is DeFi聽
and one is NFT. we have not talked about this聽聽
[626]
first let's try and understand what is DeFi to聽
be really honest if I start with the definition聽聽
[630]
of d5 and all that it can be pretty confusing I聽
will try and simplify this concept with the help聽聽
[635]
of a simple example okay let's understand聽
this case that there's Mr. A and Mr. B.聽聽
[640]
Mr. A has excess money and Mr. B is in need of聽
money who is going to do the matchmaking it's a聽聽
[647]
bank okay but your bank is a centralized authority聽
entire power is concentrated in the hands of a聽聽
[655]
bank can this bank go away and can there be聽
a platform on which some decentralized app is聽聽
[664]
built which can directly connect Mr. A and Mr. B聽
okay so this is this is or this can be an example聽聽
[673]
of what centralized finance or decentralized聽
finance if they are getting directly connected聽聽
[678]
with each other that will be an example of聽
decentralized finance I will give you one聽聽
[682]
more example okay Mr. A and Mr. B they want to do聽
trading okay now if I am talking about trading of聽聽
[690]
shares I need a central authority again which is聽
a central authority NSC or it could be BSC okay聽聽
[697]
all powers are concentrated in the hands of whom聽
on in the hands of the exchange now instead of聽聽
[703]
this if there is again a platform a platform on聽
which a dap is built with wherein this person and聽聽
[711]
this person are directly connected with each other聽
wherein they can trade with each other? Answer is聽聽
[716]
Yes and this is also an example of DeFi. Now are聽
there some websites which I can show as an example聽聽
[724]
answer is Yes so just as an example for the聽
banking one I can give you the example of away.com聽聽
[731]
so away.com now what is it it is very聽
clearly mentioned are they is an open source聽聽
[737]
I have talked about this word open source聽
non-custodial liquidity platform for what聽聽
[742]
earning interest on deposit and borrowing assets聽
oh so like I told you the person who had excess聽聽
[748]
money what is he going to do he is going to聽
earn interest on deposits and the person who聽聽
[753]
wanted money is going to borrow the assets right聽
so if you just scroll down here you can see I will聽聽
[758]
give you an example of a stable coin which is USDT聽
coin what can you do you can either borrow this聽聽
[765]
or you can deposit this even rate of interest is聽
also given okay so can this be a classic example聽聽
[772]
of DeFi? Answer is Yes. now I will give you聽
another example another example of what instead of聽聽
[778]
an exchange for trading right what is an example聽
Uniswap what is given here it's a decentralized聽聽
[785]
trading protocol and it's running so what is given聽
here it's a guaranteed liquidity for millions of聽聽
[791]
users and hundreds of Ethereum applications so聽
well I can go on talking about this but I hope聽聽
[797]
you have understood this whenever time permits you聽
can go through this website what is it an example聽聽
[802]
of it's again an example of d phi where there is聽
no centralized authority there's just a platform聽聽
[808]
on which a dap is built which directly connects to聽
people now what are NFTs?. NFTs are digital assets聽聽
[818]
and ownership of which is recorded publicly聽
on a blockchain didn't understand let's take聽聽
[826]
an example now this picture or a caricature聽
was gifted to me by one of my friends now聽聽
[832]
what could happen potentially let us understand聽
once I upload this people will immediately start聽聽
[838]
doing copy paste copy paste copy paste and a lot聽
of replicas of this same image will be created聽聽
[844]
and everyone can say I did this I am the true聽
owner of this okay now if my friend were to tell聽聽
[852]
that hey I am the OG creator of this specific聽
photograph what could he have done he could聽聽
[859]
have uploaded this photograph as a digital asset聽
on a blockchain and he would have recorded that聽聽
[866]
hello I am the original person who created this聽
now does he only know about this or now the聽聽
[873]
world knows about it now the world knows about it聽
because it's on a blockchain so that is why this聽聽
[879]
specific photograph becomes original it becomes聽
non-replaceable that is nothing but non-fungible.聽
[890]
So I hope you have understood very nicely what聽
is Ethereum. I hope it's fixed into your mind聽聽
[897]
that it's a platform it's not a currency it's聽
a platform on which dapps can be built wherein聽聽
[904]
smart contracts are an integral part of that and聽
two amazing use cases we talked about it was defy聽聽
[911]
and NFT. Now you know a lot about Ethereum if you聽
are already aware about bitcoins well and good if聽聽
[917]
you're not aware about what is a bitcoin you can聽
just check out this video and now let's move on聽聽
[922]
with the distinction of bitcoin versus Ethereum聽
so uh let's understand this distinction using few聽聽
[928]
points who is the founder of bitcoin technically聽
speaking anonymous but people use the name of聽聽
[934]
Mr. Satoshi Nakamoto. Ethereum there are many聽
co-founders but one of the co-founder is Vitalik聽聽
[940]
Buterin who is pretty famous second one if I am聽
talking about uh supply is there any limitation on聽聽
[945]
supply the answer is yes bitcoin maximum supply is聽
21 million bitcoins for Ethereum it's an unlimited聽聽
[952]
supply but maximum new Ether okay here I should聽
not be using Ethereum maximum number of Ethers聽聽
[960]
which can enter into the market are capped at 18聽
million per year okay next one is the transaction聽聽
[967]
time how much transaction time is required on聽
a bitcoin blockchain it's roughly 10 minutes聽聽
[971]
per transaction but on the Ethereum blockchain one聽
transaction can be executed in barely 15 seconds.聽聽
[978]
Next one is bitcoin is used as what what is聽
the true value bitcoin is in itself is just聽聽
[983]
a store of value nothing else okay but if I am聽
talking about Ethereum the value of Ethereum聽聽
[990]
lies in its blockchain it can it can be used for聽
multiple purpose it's upon you and me it's upon聽聽
[997]
it's upon various uh you know software engineers聽
and all those all those geeks how they can use聽聽
[1002]
this blockchain? how they can use this knowledge聽
to build various dapps on this blockchain right.聽聽
[1010]
Next one what is the application of bitcoin uh聽
it's just used as money but Ethereum I talked聽聽
[1016]
about so many applications including two amazing聽
applications which is NFT and DeFi. Next one is聽聽
[1023]
fees okay how much fees how much reward is given聽
to the miner 6.25 btc uh is given as a reward to聽聽
[1030]
the uh miner and for Ethereum it's 280 h per block聽
crypto asset of your choice just check out the聽聽
[1037]
wazirx app link is there in the description box聽
they have an amazing feature which is known as the聽聽
[1042]
quick buy so what you have to do is just open the聽
app hit on quick buy select whichever crypto asset聽聽
[1048]
you want to enter the amount and swipe to buy and聽
there you go it's that easy don't forget to apply聽聽
[1057]
the promo code cryptorachana and the first 500聽
users will get one Wazirx token absolutely free聽聽
[1064]
of cost well did you know that Ethereum 2.0 is on聽
its way so if you want me to make a separate video聽聽
[1072]
on that do let me know in the comment section till聽
then keep learning take care, Jai Hind and bye.
Most Recent Videos:
You can go back to the homepage right here: Homepage