Cryptocurrency Giants-Ethereum and Bitcoin

Running head: ETHEREUM AND BITCOIN
Cryptocurrency Giants-Ethereum and Bitcoin
Name of the Student
Name of the University
Author’s Note:

1
ETHEREUM AND BITCOIN
Table of Contents
Introduction...........................................................................................................................................2
Discussion..............................................................................................................................................2
Part 1: Architecture, Features and Challenges of Ethereum..............................................................2
Part 2: Applications of Bitcoin for Token Systems and Decentralized File Storage............................4
Part 3: Differences and Similarities between Ethereum and Bitcoin.................................................5
Conclusion.............................................................................................................................................5
References.............................................................................................................................................7

2
ETHEREUM AND BITCOIN
Introduction
The crypto currency is the digital asset, which is being designed to work as a basic money
exchange medium [3]. The crypto currency eventually uses a strong cryptographic algorithm to
secure the various financial transactions and hence creating an additional unit is controlled and an
asset transfer is easily verified. These crypto currencies can also be defined as the digital currency,
alternative currency or virtual currency types. There are few decentralized controls for all crypto
currencies and these specific crypto currencies work through the distributed ledger technology such
as blockchain technology. The respective databases of all the public financial transactions are served
with this blockchain technology. There are two important or vital examples of the crypto currencies
are Bitcoin and Ethereum [8]. Both of these are digital currencies that are utilized worldwide for any
type of virtual money transaction. The following report would be providing a brief description about
the details related to Bitcoin and Ethereum. The architecture, features and challenges of Ethereum,
the applications of Bitcoin with various differences and similarities will also be given here.
Discussion
Part 1: Architecture, Features and Challenges of Ethereum
The crypto currency of Ethereum is a typical crypto currency, in which the blockchain could
be generated by this platform of the Ethereum [12]. The Ether is easily transferred in the accounts of
the users and hence the participant mining nodes are using for compensations of the computations
that are performed eventually.
i) Architecture: The basic architecture of this Ethereum crypto currency is much different
than any other crypto currency. The complete infrastructure of Ethereum then shares each and
every record of transactional history. All the network nodes can store this transactional history and
the most significant architecture factor is that these nodes are responsible for helping to store the
current smart contract state, thus adding up the remaining ether transactions [7]. The basic network
needs to be kept in the recent state and update it as per required. Moreover, the recent data of the
applications are included in the user’s balance, codes of the smart contract and location to store the
balance storage. The major purpose is to make future transactions and thus the Ethereum network
is added with altered pieces and then is being classified as unspent and spent.