Battle of the Docs: Intro to Ether
Week 1: Assignment 2
One day I decided to solve a problem that was plaguing us at work. I wanted to make something to streamline our resources and make it easier for use to do our job. I figured that there had to be something online for us to use. I fell down a rabbit hole and I loved it. So much so that I ended up building the solution myself.
Assignment:
Task 1:
If you haven’t already, register for this cohort by joining our Discord.
Check out how to earn points:
Task 2:
Prepare by familiarizing yourself with these key terms. I’ve broken them down into simple analogies to help you out! Be sure to take the quiz at the end when you are ready.
Key Terms to Know
Here’s a breakdown of essential terms related to Ether to help you get the most out of your reading!
Cryptocurrency
Definition: A digital or virtual currency that uses cryptography for security and operates on a decentralized network.
Analogy: Think of cryptocurrency like digital cash that you can send to someone online without needing a bank. Instead of being stored in a physical wallet, it’s secured by complex math.
Medium
Definition: A medium of exchange is anything that is widely accepted as a method for settling payments. In Ethereum, ether (ETH) is the native medium of exchange.
Analogy: Just like dollars are the medium of exchange in the US economy, ETH is the currency used to pay for transactions and services in the Ethereum network.
Ledger
Definition: A digital record that keeps track of all transactions made within the network.
Analogy: Imagine a public notebook where every single transaction in the network is written down for everyone to see. No one can alter the past entries without everyone else noticing.
Gas Fees
Definition: Fees paid in ETH to perform a transaction or execute a smart contract on Ethereum.
Analogy: Gas fees are like a toll fee you pay when driving on a busy road. The more congested the road, the higher the toll to encourage drivers to take alternative routes or travel at different times.
Minting Ether
Definition: The process of creating new ether tokens and adding them to the total supply.
Analogy: Minting ether is like a central bank printing new bills, but in Ethereum, this process is automated and distributed through the network.
Block Proposer
Definition: A validator responsible for proposing a new block in Ethereum’s proof-of-stake mechanism.
Analogy: Think of a block proposer like a librarian who submits a new book to the library’s catalog. They organize and record new information to be added to the blockchain.
Burning Ether
Definition: The process of permanently removing ether from circulation.
Analogy: Burning ether is like tearing up a dollar bill so it can never be used again. This can reduce the total supply, making the remaining ether more valuable over time.
Wei
Definition: The smallest denomination of ether, where 1 ETH = 1,000,000,000,000,000,000 (1 quintillion) wei.
Analogy: Wei is to ether what a penny is to a dollar. It helps measure very small values and ensures precise calculations.
Gwei
Definition: A denomination of ether used to express gas prices, where 1 gwei = 1,000,000,000 (1 billion) wei.
Analogy: If wei is a penny, then gwei is like a dime—it’s a slightly larger unit that makes handling gas fees more convenient and readable.
Etherscan
Definition: A popular blockchain explorer that allows users to view transaction details, check wallet balances, and monitor network activity.
Analogy: Etherscan is like a search engine for the Ethereum blockchain. It’s where you go to look up transaction histories, find addresses, or explore the details of any block on the network.
Take your time reading and understanding these terms before diving into the docs. You’ll be better prepared to navigate the technical language and get the most out of your learning!
Task 3:
Read the official "Introduction to Ether" section here.
Task 4:
Now, it’s time to talk about what we’ve learned. You can join the discussion here.
