Blockchain Applications: Bitcoin and Ethereum

Running head: BLOCKCHAIN APPLICATIONS
Blockchain Applications
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BLOCKCHAIN APPLICATIONS
Table of Contents
Introduction...........................................................................................................................................2
Discussion..............................................................................................................................................2
Field and Purpose of Bitcoin and Ethereum......................................................................................2
Working Model of Bitcoin and Ethereum..........................................................................................2
Scalability Issues................................................................................................................................3
Features and Weaknesses of Bitcoin and Ethereum..........................................................................3
Socio-Technical Aspects.....................................................................................................................4
Conclusion.............................................................................................................................................4
References.............................................................................................................................................5

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BLOCKCHAIN APPLICATIONS
Introduction
A blockchain is the continuous growing list of specific records, known as blocks that are
eventually linked as well as secured with the help of cryptography [6]. Each and every block
comprises of a specific cryptographic hash of the last block, the transaction data and a timestamp.
According to design, any blockchain is resistant to the data modification. It is open and distributed
ledger, which records the transactions within two parties effectively and permanently [5].
The following report outlines a brief description on the entire concept of blockchain and its
two major applications, viz. Bitcoin and Ethereum. The field and purpose of these applications will be
provided here. Moreover, the complete working model of the application will be given here. The
advantages and disadvantages of Bitcoin and Ethereum will also be depicted here.
Discussion
Field and Purpose of Bitcoin and Ethereum
i) Bitcoin: The first and the most important application of Blockchain technology is Bitcoin. It
is the typical kind of crypto currency and the payment system that is being undertaken worldwide.
Bitcoin is the first digital currency that is decentralized and can work without the central bank [4].
Field of Bitcoin is the new faucet of bitcoin. The best example of this faucet is PayPal bitcoin. It
allows transactions from any currency and is extremely fast and secured.
The main purpose of Bitcoin is to make transactions virtually. It works with the linked sets of
blocks of various transactions records [1]. It is type of crypto currency and helps the user in making
the payment easily and securely.
ii) Ethereum: This is the second important application of Blockchain technology. It is an open
source and public blockchain based computing program as well as operating system that feature
smart contract functionality [10]. Field of Ethereum can be defined as the transaction based state
machine. All the transactions can easily alter the state and that state can keep the track of every
transaction.
The main purpose of Ethereum is that it is traded as the exchange of digital currency similar
to other currencies.