How does Ethereum ensure the security of transactions?

Ethereum is a decentralized public platform based on blockchain technology that allows developers to build and deploy smart contracts and create decentralized applications. In this transaction network, transaction security is very important. So, how does Ethereum ensure the security of transactions?

First of all, Ethereum uses cryptography technology to protect users’ transactions and private information. Each Ethereum user can have a public key and a private key. The public key is used to receive transactions, and the private key is used to sign transactions and verify the legitimacy of transactions. This means that only someone with the correct private key can send ether or execute a smart contract.

Secondly, Ethereum uses the "Proof of Work" (PoW) mechanism to protect transactions. On Ethereum, miners calculate difficult mathematical problems to verify transactions and package them into blocks. Once a block is packaged, it is broadcast to the entire network and every node performs a consistency check. These checks include verifying the signature of the transaction, confirming that the sender of the transaction has sufficient funds to support the transaction, and checking that the transaction adheres to Ethereum’s protocol rules.

Third, Ethereum uses distributed ledger technology to secure transactions. Each node saves the complete blockchain, which means that even if a node is attacked or goes down, the remaining nodes can still continue to verify and confirm transactions. In addition, Ethereum uses smart contracts to implement decentralized applications. Smart contracts define the business logic and transaction rules in the application to ensure that every transaction is safe.

Finally, Ethereum continues to improve its protocol rules and mechanisms to deal with emerging security threats. For example, Ethereum 2.0 will adopt a faster consensus mechanism and use less computing resources to verify transactions, improving the security and scalability of the network.

In short, Ethereum protects the security of transactions through multiple means such as cryptography technology, workload proof mechanism, distributed ledger technology and smart contracts. As technology continues to develop and mature, the security of Ethereum will be further improved.