Simple Understanding of Eths Protocol

Complete Comprehension of ETHS Protocol Made Easy

Author: Blue Fox Notes Source: X (originally Twitter)@lanhubiji

Ethscriptions Inscriptions Protocol (hereinafter referred to as eths protocol) is a protocol for building and sharing native digital assets on the Ethereum blockchain. Ethscriptions inscriptions started in 2016. However, the birth of the eths protocol was inspired by the btc inscriptions protocol, which was launched by Tom Lehman. So far, there are over 2 million inscriptions on Ethereum.

The eths protocol brings not only inscriptions on the Ethereum blockchain but also new explorations for Ethereum L1 scaling. In simple terms, it has several key points:

Uses calldata on Ethereum

The eths protocol uses Ethereum transaction call data (calldata) to store data instead of smart contracts, which has the potential to lower fees. So how is calldata utilized? In regular transfer transactions, when users send ETH, calldata is used as a “comment field,” which is generally left blank. If interacting with smart contracts, the “function name and parameters” information will be added to the calldata field. Ethscriptions also utilize a similar method where it encodes data into calldata, but not specifically for smart contracts. It has a concept called “dumb contract” (the name is interesting, as it forms a sharp contrast to smart contracts). Through this approach, ethscriptions exist entirely on the Ethereum blockchain, achieving permanence and suitable for building native digital assets, among other things.

No use of smart contracts

As mentioned above, it has its own concept of a dumb contract, meaning that the eths protocol itself does not use smart contracts for storage and execution. Its way of calculating states is by applying deterministic protocol rules to Ethereum transaction call data (calldata). In short, the eths protocol bypasses smart contracts and uses calldata to store data on the blockchain, aiming to achieve a cheaper storage method.

ESC VM brings new narratives

Regarding the eths protocol, the ESC VM (ESC Virtual Machine) proposed in ESIP-4 is receiving more attention because it carries greater imagination. Specifically, the ESC VM is a new protocol built on ethscriptions. It uses ethscriptions as computer instructions (where ethscriptions have a new purpose), allowing users to interact with specific programs.

The specific program here mainly refers to dumb contracts. In other words, ESC VM + Dumb Contract can execute commands such as creating new contracts and invoking existing contracts. Simply put, in Ethscriptions, specific formats must be used to create ethscriptions so that these ethscriptions are recognized as “normal ethscriptions” and can be identified by the ESC VM. These eths inscriptions can be computer instructions that enable “deployment” and “invocation.” “Deployment” creates new Dumb Contracts, while “invocation” calls the state-changing functions on existing Dumb Contracts. After a dumb contract is deployed, anyone can call its functions.

ESC VM provides an environment similar to the EVM for Dumb Contracts. However, ESC VM is not yet a true virtual machine; it currently only applies to specific contracts (Dumb Contracts). The eths protocol plans to introduce general computation in the future, bringing the possibility of new narratives.

Currently, dumb contract doesn’t support direct payments. There is no concept of ether here, and ether needs to be “bridged” to dumb contract through the smart contract. Furthermore, it doesn’t currently support the arbitrary creation of dumb contracts. The dumb contract code must be consistent with the other Eths protocol rules defined in the ESIP process.

Eths protocol is not L2, but a new exploratory extension

Eths explores a different technical route than L2. In terms of Ethereum’s scalability, there is still a lot of room for development. Moreover, it’s important to note that different technical routes have their own trade-offs and there is currently no question of replacing anyone.

For the Eths protocol, it currently achieves relatively simple functionality through dumb contracts and the ESC VM. However, its greatest narrative comes from the possibility of general computing in the ESC VM. If there is a real opportunity to reach this stage in the future, Eths has the potential to bring more application scenarios and further enrich and prosper the Ethereum ecosystem.

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