Mastering Bitcoin

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Mastering Bitcoin ( mastering-bitcoin )

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order to pay for contract execution. Ethereum’s blockchain records contracts, which are expressed in a low-level, byte-code like, Turing-complete language. Essentially, a con‐ tract is a program that runs on every node in the Ethereum system. Ethereum contracts can store data, send and receive ether payments, store ether and execute an infinite range (hence Turing-complete) of computable actions, acting as de-centralized autonomous software agents. Ethereum can implement quite complex systems that are otherwise implemented as alt- chains themselves. For example, below is a Namecoin-like name registration contract written in Ethereum (or more accurately, written in a high-level language that can be compiled to Ethereum code): if !contract.storage[msg.data[0]]: # Is the key not yet taken? # Then take it! contract.storage[msg.data[0]] = msg.data[1] return(1) else: return(0) // Otherwise do nothing Future of Currencies The future of cryptographic currencies overall is even brighter than the future of bitcoin. Bitcoin introduced a completely new form of de-centralized organization and consensus that has spawned hundreds of incredible innovations. These inventions will likely affect broad sectors of the economy, from distributed systems science, to finance, economics, currencies, central banking, and corporate governance. Many human activities that previously required centralized institutions or organizations to function as authoritative or trusted points of control can now be de-centralized. The invention of the blockchain and consensus system will significantly reduce the cost of organization and coordination on large scale systems, while removing opportunities for concentration of power, cor‐ ruption and regulatory capture. Future of Currencies | 233

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