Understand the “version” of Ethereum in Bitcoin transactions
Understanding the concept of “version” about bitcoin transactions is essential to understand how different versions of the Ethereum network affect the blockchain. In this article, we are immersed in bitcoin transactions and reveal some examples.
** What is the version?
In Bitcoin, a block contains multiple transactions combined into a block called a single block. Each transaction has its own unique hash, which serves the “identity” of the transaction. However, there is another complex in each block: the version.
The version refers to the implementation of Ethereum Network to different versions of Blockchain software. Here are interesting things for bitcoin transactions.
Bitcoin transactions and versions
If the bitcoin transaction occurs on the bitcoin network, it can be represented as a Merkle wooden that contains multiple blocks (transactions) in each block. Merkle FA offers the opportunity to justify the credibility and integrity of each transaction.
However, not all versions of Ethereum are compatible with bitcoin transactions. Each version of Ethereum has its own specific requirement to manage transactions, including the creation of new blocks, the upgrade of the blockchain, and the control of transactions.
Ethereum 1.x vs Ethereum 2.0: The Version Defense
In 2020, Ethereum released Ethereum 2.0, an update that replaced the Work-of-of-of-OF (POW) consensus algorithm with a more energy efficient and scalable solution, the so-called stake (POS). This change introduced a new block header format that is incompatible with bitcoin.
In order to place a switch to POS on the Ethereum network, two versions of Ethereum were created: Ethereum 1.0 and Ethereum 2.0. Ethereum 2.0, called “mainnit”, was originally designed for use cases and required high scalability and performance. Nevertheless, he had a serious mistake: he did not support bitcoin transactions.
Version 2.x (Ethereum Beacon Chain)
As a result of the above questions related to Ethereum 1.0, a new version of Ethereum was introduced: ETHERUM BEACON Chain (ETH-Beacon). This version is compatible with both bitcoin and other cryptocurrencies for which POS consensus requires algorithms.
The MainNet Ethereum network, which includes all bitcoin-compatible transactions, uses the Ethereum Beacon chain. It is essential that only transactions initiated by the Ethereum Beacon chain can interact with bitcoin.
Ethereum 2.0 (Ethereum Testnet)
During a separate development development, Ethereum 2.0 was released as an update for testing purposes. This version of Ethereum is not compatible with bitcoin and uses the stake-consensus.
Ethereum Testnet is used to test new blockchain implementation before installed on mainnet. It is important to keep in mind that this version is not intended for production, but is assembled to justify the concept of the upcoming Ethereum 2.0 update.
In summary
Understanding the concept of “version” can be complex in bitcoin transactions, especially if you consider different versions of the Ethereum network. By recognizing the differences in different versions of Ethereum, we can better assess how to influence the blockchain and the possible consequences of bitcoin-compatible transactions.
Keep in mind that the current situation focuses primarily on the Ethereum Beacon Chain (ETH-Beacon) on bitcoin-compatible interactions, while Ethereum 2.0 testing is used for testing.