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Home » Ethereum
Ethereum

Background on the mechanics of the ether pre-sale

Finance Insider TodayBy Finance Insider TodayAugust 28, 2025No Comments5 Mins Read
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Through the run-up to the ether sale we will likely be releasing a sequence of weblog posts concerning our improvement plans and supposed organizational construction. Right this moment we describe among the background particulars of the ether sale module.  The sale module will likely be displayed on our web site at https://www.ethereum.org during the sale.


What’s it?

The ether sale is an HTML/JavaScript net utility that allows individuals and organizations to pre-purchase ether tokens with bitcoin. Ether could also be bought by events concerned with utilizing it of their improvement of distributed functions on the Ethereum platform or just to pay for using functions on the platform as soon as the genesis block is launched.  The applying runs principally contained in the browser, together with pseudo random quantity technology (PRNG) and encryption/decryption of person secrets and techniques.

Moreover, we will likely be making out there a standalone pure Python utility that can be utilized from a command line interface to buy ether in lieu of utilizing the web site retailer.


Web site workflow:

  1. After agreeing to the shop’s Phrases and Circumstances, the customer enters the specified quantity of ether to buy, their e mail tackle, a password to make use of for encryption, and generates a “random” seed forming the idea for his or her transaction-specific bitcoin & Ethereum addresses.
  2. The person purchaser sends cost in bitcoin to the generated tackle which is displayed on the shop web page and in addition offered in a downloadable encrypted pockets file. When the browser, which is monitoring the bitcoin blockchain, sees sufficient funds have been despatched to this generated tackle, the browser creates a brand new transaction forwarding the bitcoin to the genesis sale tackle. This transaction is signed by the customer’s browser and submitted to the bitcoin community. No transaction information is saved on the any servers as a result of the Bitcoin blockchain serves as the acquisition database.
  3. After the transaction has been efficiently submitted, the person purchaser is once more prompted to obtain a backup copy of their encrypted pockets along with being emailed one other backup file.  The client must be conscious that retaining the pockets as an e mail attachment in an e mail account for any time frame represents a vulnerability.  The e-mail attachment must be downloaded to a secure laptop on the earliest alternative and the e-mail must be expunged from the e-mail system.


(What follows is technical data, the GUI now we have developed abstracts all of that is in a really user-friendly method)


Pockets encryption course of: 

  1. Randomgen a SEED.
  2. BKPKEY = sha3(SEED + “x02″)[:16]
  3. KEY = pbkdf2(PW)
  4. ENCSEED = encrypt(KEY, SEED)
  5. WALLET = [ ENCSEED, BKPKEY ] (plus non-sensitive information like ethereum and bitcoin tackle)

The BTC and ETH privkeys and addresses are derived from the SEED.


Seed restoration course of: 

  1. WALLET + PW restoration:  (regular)
  2. KEY = pbkdf2(PW)
  3. SEED = decrypt(KEY, ENCSEED)


Overview of web site steps for making an ether buy:

  1. Purchaser clicks “Purchase Ether” and agrees to the Phrases & Circumstances
  2. Purchaser enters preliminary buy data

    1. Purchaser enters the quantity of ether they’d wish to buy
    2. Purchaser enters e mail tackle because the vacation spot for pockets backup file
    3. Purchaser enters passphrase, which serves as an encryption seed. A really robust passphrase is very beneficial

  3. Purchaser generates entropy by transferring their mouse or tapping their display screen. A “seed” is constructed based mostly on this generated entropy in addition to different random system inputs. When the specified entropy size is achieved the pockets is generated utilizing the seed.  The pockets incorporates:

    1. a person BTC tackle to ship the funds to
    2. a person ETH tackle
    3. an encrypted seed
    4. a backup encrypted seed

  4. The browser sale app checks the newly created BTC tackle to see if funds arrive. Earlier than sending any funds, the customer has a chance to obtain the pockets. If an issue happens between transactions, any funds ship to the customer’s private deposit tackle will likely be accessible with the passphrase. If the unspent steadiness of the BTC tackle > 0.01 BTC, the browser sale app generates a signed transaction from the newly created BTC tackle with 2 particular outputs:

    1. an output of the entire unspent steadiness minus miners payment to the primary sale BTC tackle–this btc tackle is the place all of the funds go, it’s a set, recognized BTC tackle.
    2. an output of 10000 satoshi to a BTC tackle generated from the (string) ETH tackle–this bitcoin tackle is for confirming ethereum addresses and is exclusive for each transaction.

  5. The browser sale app prompts the purchaser to obtain their pockets once more & and in addition sends the customer an e mail containing a backup for the ether pockets.  The identical warning as said above applies.  Don’t depart the pockets as an e mail attachment in an e mail system.  Obtain as quickly as doable and be certain that the e-mail is expunged.
  6. The browser sale app will show the variety of bitcoin transaction confirmations


In order that’s it! Though there’s a variety of technical issues occurring within the background, the GUI now we have developed will make the method a click on by click on operation.



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