Understanding the “version” of Ethereum in Bitcoin Transactions
When it comes to Bitcoin transactions, the understanding of the concept of “version” is crucial to understand how the different versions of the Ethereum network affect the block chain. In this article, we will deepen what the version in the context of Bitcoin transactions means and we will explore some examples.
What is the version?
In Bitcoin, a block contains multiple transactions combined in a single block called block. Each transaction has its own unique hash, which acts as an “identity” of the transaction. However, within each block, there is another level of complexity: versions.
The version refers to the implementation of the Ethereum network of different versions of its blockchain software. This is where things become interesting for Bitcoin transactions.
Transactions and versions of Bitcoin
When a bitcoin transaction is produced in the Bitcoin network, it can be represented as a Merkle tree, which contains multiple blocks (transactions) in each block. The Merkle tree provides a way to verify the authenticity and integrity of individual transactions.
However, not all versions of Ethereum are compatible with Bitcoin transactions. Each version of Ethereum has its specific requirements for transaction management, including the creation of new blocks, updating the state of the block chain and the verification of transactions.
Ethereum 1.x vs Ethereum 2.0: The difference in version
In 2020, Ethereum launched Ethereum 2.0, an update that replaced the consent algorithm of the work test (POW) with a more efficient solution from a scalable energy and view called stake test (POS). This change has introduced a new block header format incompatible with Bitcoin.
To welcome this passage to Pos on the Ethereum Network, two versions of Ethereum were created: Ethereum 1.0 Ethereum 2.0. The Ethereum 2.0 version, called “Mainnet”, was initially designed for use cases that require high scalability and performance. However, he had a serious defect: he did not support Bitcoin transactions.
Version 2.x (Faro Ethereum chain)
As a result of the above problems with Ethereum 1.0, a new version of Ethereum was introduced: Ethereum Beacon Chain (Eth-Beacon). This version is compatible with bitcoin and other cryptocurrencies that require POS consent algorithms.
The Ethereum Mainnet network, which includes all Bitcoin compatible transactions, uses the Ethereum beacon chain. It is essential to keep in mind that only transactions initiated by nodes in the Ethereum lighthouse chain can interact with Bitcoin.
Ethereum 2.0 (Ethereum Testnet)
In a separate development effort, Ethereum 2.0 has been launched as an update for proof purposes. This version of Ethereum is not compatible with Bitcoin and instead uses the consent of stake tests.
Ethereum Testnet is used to test the new blockchain implementation before distributing it in Mainnet. It is essential to take into account that this version is not intended for the use of production, but as a proof of concept for the imminent update of Ethereum 2.0.
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Understanding the concept of “version” in Bitcoin transactions can be complex, especially when you consider different versions of the Ethereum Network. By recognizing the differences between the various versions of Ethereum, we can better appreciate the way they affect the block chain and the possible implications for transactions compatible with Bitcoin.
Remember that the current state of things focuses mainly on the Beacon Ethereum (Eth-Beacon) chain for Bitcoin compatible interactions, while Ethereum 2.0 Testnet is used for test purposes.