Ethereum: Why not store balance on the blockchain?
Managing Ethereum network devices and transactions often arises as to why it is not stored directly in the blockchain. In this article, we examine the reasons behind the design decision and how to involve new balance and each transaction.
The Current Approach: A Brief Overview
Currently, when a user executes a transaction on the Ethereum network, the following are happening:
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- After processing the transaction, the new balance of the sender will be updated.
Although this approach has the benefits, there are some drawbacks. Here are some reasons why the balance is not stored directly on the blockchain:
* Scalability:
As the Ethereum network increases, it increases for transactions and the number of users, and storing balance in each block can result in increased transaction processing times and costs.
* Safety: If an attacker manipulates a user account balance, you can potentially obtain control over their wealth. Storing the blockchain balance to exploit the vulnerability much harder for the attacker.
* Lack of efficiency: As mentioned earlier, passing the entire blockchain can be time consuming and costly to determine the user’s balance.
ALTERNATION: With new balance with each transaction
Imagine a scenario where the balance is stored directly in each block. This is called “block-based accounting”.
Here’s what would happen:
- When processing the transaction, the sender’s new balance sheet (including pending transactions or charges) is calculated and included in the block.
- The updated balance is then radiated to all the nodes of the network.
This approach has many benefits:
* Improved scalability: By not having to query the blockchain, the processing time of the transaction can be significantly reduced.
* Increased security: Block-based accounting makes it much harder for attackers to manipulate the user’s balance without affecting other transactions in the same block.
* Effective use of network resources: By storing the balance directly in each block, the network can retain computing resources and reduce the amount of data processed.
Conclusion
While storing the balance on the blockchain may seem like an effective solution, some disadvantages. In this article, we examined why it is not stored directly within the Ethereum network. However, taking into account alternative approaches, such as block-based accounting, it becomes clear that there are ways to improve scalability, security and efficiency.
As the Ethereum network develops further, it is essential for developers and users to find out about the latest developments and possible solutions. Who knows? Perhaps one day we see a future where the balance is stored directly in each block!
Related articles
- “Ethereum 2.0: what you need to know”
- “How to use Ethereum Intelligent Contracts”
- “Benefits of decentralized financing (defi) on Ethereum Network”