Think_On_Chain

Consensus Client (CL) &  Execution Client (EL)   ✅ The Two-Client Architecture (CRUCIAL TO UNDERSTAND) Every Ethereum node (full node or validator) runs two clients : 1. Execution Client (EL) – Geth, Nethermind, Erigon Verifies transactions (nonce, signature, gas, balance) Executes smart contracts (EVM) Maintains the world state Computes stateRoot Verifies execution payloads of blocks 2. Consensus Client (CL) – Prysm, Lighthouse, Teku, Nimbus Runs the Beacon Chain Handles validators, attestations, committees Chooses the head block (LMD-GHOST) Finalizes the chain Gossips blocks, attestations, sync messages Communication Between EL & CL: They talk through a local API called Engine API (JSON-RPC over pipe/HTTP). This API sends messages like: CL → EL : “Here is a new block’s execution payload, verify it.” EL → CL : “Execution payload is valid, here is the new stateRoot.” EL → CL : “Here is your suggested new block’s payload.” (wh...

  MEV ⭐ 1. WHAT IS MEV? (Deep Explanation) MEV = profit extracted by controlling the ordering of transactions inside a block. Meaning: Who controls the order of transactions controls the profits. Because different order = different outcome. FOR EXAMPLE: If Alice buys ETH and one second later Bob buys ETH the price is different. So the person ordering transactions can: insert their own transaction reorder others censor some bundle multiple txs together …and make money. ⭐ 2. WHY DOES MEV EXIST? Because: Blockchains allow: Public mempools Deterministic state machine Known execution rules Transparent AMMs Since everything is public, anyone can predict what will happen next if a transaction were executed. That means: ✔ If someone does a big Uniswap swap → price will jump ✔ If someone is liquidatable → someone will liquidate them ✔ If someone creates arbitrage → someone will execute it Therefore: There is money to be made just by ord...

THORCHAIN   ⭐ FIRST — THE CORE PROBLEM THORCHAIN SOLVES Normally, you cannot swap native BTC for native ETH directly. Why? Because: Bitcoin runs on the Bitcoin chain Ethereum runs on the Ethereum chain They don't talk to each other They have different consensus No smart contracts on Bitcoin So everyone traditionally uses: ❌ Wrapped tokens (WBTC, WETH) ❌ Central exchanges (Binance) ❌ Bridges (which get hacked often) THORChain fixes this WITHOUT wrapping and WITHOUT trusting a bridge. ⭐ SECOND — WHAT IS THORCHAIN? It is a cross-chain AMM built on its own blockchain (Cosmos Tendermint-based). It connects multiple chains and allows: ✔ Native BTC → Native ETH ✔ Native ETH → Native BNB ✔ Native ATOM → Native BTC ✔ etc. NO wrapping. NO centralized custody. NO external oracles. Everything is handled by THORChain nodes and vaults. ⭐ THIRD — HOW DOES THORCHAIN CONNECT MULTIPLE CHAINS? This is the magic: THORChain nodes run full nodes of every supported blockchain. M...

  UNISWAP V3 VS V2 ⭐ FIRST — WHY UNISWAP V2 HAD LIMITATIONS In Uniswap V2: 🔴 Liquidity is spread uniformly across the entire price range (0 → ∞) For example in ETH/USDC pool: Liquidity is equally available for: ETH at $1 ETH at $10 ETH at $1000 ETH at $1,000,000 But ETH will never go to $1 or $1,000,000. Still LP money is wasted covering these useless ranges. This causes: Capital inefficiency Low returns for LPs High slippage for traders Need for huge liquidity Lower fees for LPs ⭐ UNISWAP V3 FIXES ALL OF THIS The core idea: ⭐ Concentrated Liquidity: LPs choose the price range they want. Instead of depositing liquidity from 0 → ∞ , an LP can say: “I only want to provide liquidity between $1500 and $2000 ETH.” So liquidity becomes customizable and focused where traders actually trade. ⭐ LET’S SEE WHAT UNISWAP V3 IMPROVED VS V2 ⭐ 1. Concentrated Liquidity (Main Innovation) LPs choose custom price ranges: lowerBound = 1500 up...

Ethereum Client ⭐ 1. What Is an “Ethereum Client”? Think of Ethereum not as “one software,” but as a protocol specification . ✔ Ethereum protocol = rules block format transaction format gas rules EVM instructions state trie consensus rules networking rules JSON-RPC log format storage model The protocol is written in documents (Yellow Paper, EIP specs). It is NOT code. ✔ A client = a real software implementation of those rules. Clients are software programs that implement the Ethereum protocol. Examples: Client Language Geth Go (most popular) Nethermind C# Erigon Go + Rust optimized Besu Java Reth Rust Every Ethereum node you run is one of these clients. ⭐ 2. What Is GETH? GETH = Go-Ethereum Written in Golang Developed by Ethereum Foundation Most widely used Ethereum client (~70% of nodes) Runs full EVM Executes tx, mines/verifies blocks Stores blockchain state Provides JSON-RPC endpoints When you run: geth --syncmode=full You are ...