What is the public chain of Ethereum Chain? (Is Ethereum a public chain?)

What is the public chain of Ethereum Chain? The blockchain technology can achieve the transformation of existing systems, making them closer to traditional systems. This can be done by upgrading or hard forking existing networks to reduce costs, improving transaction confirmation speed by using methods such as upgrading or hard forking existing networks or establishing new consensus mechanisms for nodes with EIP-1559, and supporting smart contracts and decentralized applications (such as DeFi, NFTs, etc.).

The innovation of blockchain technology lies in its ability to address the scalability and security concerns of most people. Developers can easily build their own ecosystem applications without relying on traditional hardware servers, thanks to the technical features of blockchain and its underlying architecture based on cryptography and encryption algorithms. This is precisely built based on the concept of “distributed storage”.

Is Ethereum a public chain?

Editor’s note: This article is from “Plain-language Blockchain” (ID: hellobtc), authored by Yang Shu, authorized reprint from Odaily Star Daily.

In the past year, the price of Ethereum has increased more than 100 times. Although Ethereum is a public chain or is known as a decentralized currency, it depends on the opinions of the development team, technical personnel, and the community. So, what is a public chain and is it the recognized standard for digital assets? Let’s take a look at the answer to this question. What is an encrypted consensus mechanism? Simply put, tokens like Bitcoin or Litecoin are formed by other nodes running in the network. According to data from the Bitcoin Treasuries website, Ethereum has had over 1 billion users since 2015. In December 2017, Ethereum’s mainnet went live, generating a total of approximately 3 trillion USD in new funds, making it the largest trading market in the world so far.

However, due to the current congestion and poor network performance of Ethereum, many miners have started selling ETH as collateral. Therefore, people generally have doubts about ETH and believe that a drop in ETH price may trigger a larger-scale market collapse, causing deeper economic losses to users. Why use smart contracts on Ethereum? Because Ethereum adopts the Proof-of-Stake system, a workload-based consensus protocol that aims to eliminate concerns of any single participant by packaging blocks into a new transaction and broadcasting it to another new transaction. In addition, the validators also need to perform a series of tasks to prevent 51% attacks, including sending data, checking if it is related to “valid” addresses, or sending messages to specific accounts…

However, as Ethereum becomes more popular and undergoes upgrades, this situation will continue to occur – at least fundamentally, this is understandable, because when we use smart contracts, we are actually handling transactions. In other words, as long as users are willing to pay a certain fee, they can perform transfer operations. On the other hand, despite ETH being a completely different form of currency, and ETH not necessarily being considered as part of a monetary system, it does not necessarily mean that it is divisible and it cannot be guaranteed against depreciation.

Therefore, Ethereum has always been controversial and questioned, and some people are concerned that its security may be compromised. Some people criticize Ethereum’s founder Vitalik Buterin for repeatedly saying, “I don’t know if they have had this experience.” He also added, “Ethereum is indeed a very successful solution, so I believe they should be able to play a role, even unstoppable”.

However, some suggest that if ETH can maintain the status of an anchor like BTC in a stable manner, the same applies to DeFi.