Ethereum is a decentralized platform that runs smart contracts, applications that run exactly as programmed without possibility of downtime, censorship, fraud or third party interference. In this blog post I will take you through all the steps required in setting up a fully functioning private ethereum blockchain, inside your local network — which includes:
- Setting up a private blockchain with ethereum using geth.
- Setting up the MetaMask ethereum wallet to work with the private blockchain.
- Transfer funds between multiple accounts.
- Create, deploy and invoke a smart contract on the private blockchain using remix.
- Setting up ethereum block explorer over the private blockchain.
Kind of a big deal. You’d have to be a total square not to have heard about them. Me? I’ve got eight.
Often over-complicated, over-mysticised, over-singularised (I don’t even know what the right word for it is, but people say The Blockchain a lot). What are they? Join me for a rough tour from the ground up and I’ll try to make sure you leave here knowing the answer to one question:
What are people talking about when they talk about blockchains?
There’s a lot to cover, so it’s actually going to come in two parts. This, the first, will look at the data structures known as blockchains and their properties, along with any other bits and pieces you need to make sense of them.
The second part will apply what you’ve learnt to the practical and widespread applications of blockchains to power distributed ledgers, cryptocurrencies such as Bitcoin and Litecoin and smart-contract based chains like Etherium.
Yesterday, a hacker pulled off the second biggest heist in the history of digital currencies.
Around 12:00 PST, an unknown attacker exploited a critical flaw in the Parity multi-signature wallet on the Ethereum network, draining three massive wallets of over $31,000,000 worth of Ether in a matter of minutes. Given a couple more hours, the hacker could’ve made off with over $180,000,000 from vulnerable wallets.
But someone stopped them.
Having sounded the alarm bells, a group of benevolent white-hat hackers from the Ethereum community rapidly organized. They analyzed the attack and realized that there was no way to reverse the thefts, yet many more wallets were vulnerable. Time was of the essence, so they saw only one available option: hack the remaining wallets before the attacker did.
By exploiting the same vulnerability, the white-hats hacked all of the remaining at-risk wallets and drained their accounts, effectively preventing the attacker from reaching any of the remaining $150,000,000.