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The individual units that make up a cryptocurrency are encrypted strings of data that have been encoded to represent one unit. bitcoin майнер создатель bitcoin Refund balance: the amount to be refunded to the sender account after the transaction. Remember how we mentioned that storage in Ethereum costs money, and that a sender is refunded for clearing up storage? Ethereum keeps track of this using a refund counter. 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This is analogous to a blank slate, before any transactions have happened on the network. When transactions are executed, this genesis state transitions into some final state. 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Now, we’ll look at how the transaction actually executes within the VM. The part of the protocol that actually handles processing the transactions is Ethereum’s own virtual machine, known as the Ethereum Virtual Machine (EVM). The EVM is a Turing complete virtual machine, as defined earlier. The only limitation the EVM has that a typical Turing complete machine does not is that the EVM is intrinsically bound by gas. Thus, the total amount of computation that can be done is intrinsically limited by the amount of gas provided. Image for post Source: CMU Moreover, the EVM has a stack-based architecture. A stack machine is a computer that uses a last-in, first-out stack to hold temporary values. The size of each stack item in the EVM is 256-bit, and the stack has a maximum size of 1024. The EVM has memory, where items are stored as word-addressed byte arrays. Memory is volatile, meaning it is not permanent. The EVM also has storage. Unlike memory, storage is non-volatile and is maintained as part of the system state. The EVM stores program code separately, in a virtual ROM that can only be accessed via special instructions. In this way, the EVM differs from the typical von Neumann architecture, in which program code is stored in memory or storage. Image for post The EVM also has its own language: “EVM bytecode.” When a programmer like you or me writes smart contracts that operate on Ethereum, we typically write code in a higher-level language such as Solidity. We can then compile that down to EVM bytecode that the EVM can understand. Okay, now on to execution. Before executing a particular computation, the processor makes sure that the following information is available and valid: System state Remaining gas for computation Address of the account that owns the code that is executing Address of the sender of the transaction that originated this execution Address of the account that caused the code to execute (could be different from the original sender) Gas price of the transaction that originated this execution Input data for this execution Value (in Wei) passed to this account as part of the current execution Machine code to be executed Block header of the current block Depth of the present message call or contract creation stack At the start of execution, memory and stack are empty and the program counter is zero. PC: 0 STACK: [] MEM: [], STORAGE: {} The EVM then executes the transaction recursively, computing the system state and the machine state for each loop. The system state is simply Ethereum’s global state. The machine state is comprised of: gas available program counter memory contents...