The structure of Ethereum (1/5)

Hi it's Keir Finlow-Bates here and today 
I thought I would start a video series   on Ethereum and other smart contract blockchain 
systems, and this video series is inspired by a   message and a diagram that I got from 
Guillerme Maia a couple of days ago,   and in that diagram he'd split Ethereum up into 
three layers: layer one, layer two, layer three.   So in the series I'm going to look at these 
three layers in a bit more detail, but for today   I'm just gonna give a quick summary about why 
you would split it up into these layers, and   what those layers actually are. So traditionally 
therefore we look at layer 1 as the blockchain   layer: that's the layer that allows a group of 
different people or different nodes to come to   a common view of the truth – common consensus 
– as to the state of data at any given time,   and blockchain was first introduced with Bitcoin, 
where it was used for the transmission of value   in the form of … bitcoin. In Ethereum the 
blockchain layer is used for two purposes:   it's used for the transmission of value in the 
form of Ether (the native cryptocurrency of   the Ethereum system) and it's used for the 
transmission of data.

And then there's one   final interesting fact there, which is that in 
computer science data can be "facts and figures"   or it can be "code" – instructions that a 
computer can then run. So that's the kind of leap.   Bitcoin does have a sort of very simple scripting 
system that is purely used in order to allow for   different kinds of transactions involving the 
transfer of value, i.e. bitcoins. In Ethereum   the data when interpreted as code can provide 
instructions for the transfer of value, or it can   actually provide a whole load of other options, 
allowing you to effectively create and modify   data structures to serve all sorts of different 
purposes, not just the transferal of these Ethers   that i mentioned. So that's the foundation layer 
– the blockchain layer – so it kind of forms the   backbone or the spine of the system, and in 
tomorrow's video I'll talk about layer two,   which is described variously by people as being 
the programming layer or the Solidity layer, but I   think there's a bit more to it than that, so look 
out for video number two shortly.

Bye for now!.

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