Ethereum: State of knowledge and research perspectives

Abstract

Ethereum is a major blockchain-based platform for smart contracts – Turing complete programs that are executed in a decentralized network and usually manipulate digital units of value. A peer-to-peer network of mutually distrusting nodes maintains a common view of the global state and executes code upon request. The stated is stored in a blockchain secured by a proof-of-work consensus mechanism similar to that in Bitcoin. The core value proposition of Ethereum is a full-featured programming language suitable for implementing complex business logic. Decentralized applications without a trusted third party are appealing in areas like crowdfunding, financial services, identity management, and gambling. Smart contracts are a challenging research topic that spans over areas ranging from cryptography, consensus algorithms, and programming languages to governance, finance, and law. This paper summarizes the state of knowledge in this field. We provide a technical overview of Ethereum, outline open challenges, and review proposed solutions. We also mention alternative smart contract blockchains.