Diving deep into Eth1

In this section, we will get into the details of Ethereum architecture. We will start with some basic concepts of accounts, contracts, transactions, and messages, and then discuss the EVM internals and how the EVM actually works.

Accounts

As we discussed earlier, instead of the UTXO model, Ethereum manages accounts and transactions differently from Bitcoin. Ethereum introduces the world state concept, the collection of all accounts on the blockchain network. The world state presents the global state of the Ethereum network, which is constantly updated following any transaction execution. It is a kind of global database, which is replicated to all Ethereum nodes behind the scenes. Like your bank account, an Ethereum account is used for holding ethers and transacting with each other. It has a 20-byte cryptographic address and an account balance. The address identifies the owner of the account.

In addition to the address, an Ethereum account contains four...