Comparative Report: Bitcoin, Libra Blockchain Applications Analysis

This report provides a comparative analysis of two blockchain applications: Bitcoin and Libra. It begins with an introduction to blockchain technology, explaining its decentralized nature and the role of blocks and chains. The report then delves into Bitcoin, detailing its function as a peer-to-peer electronic cash system within the finance field, and Libra, designed for financial transactions, particularly cross-border payments. The working models of each application are explained, including Bitcoin's use of public keys and Libra's backing by assets. The report addresses scalability issues inherent in both applications, such as Bitcoin's processing limitations and Libra's closed network. Furthermore, the report explores the features, weaknesses, and socio-technical aspects of both Bitcoin and Libra, referencing sources in IEEE format.

Network application

INTRODUCTION
 Blockchain contains a set of records, data and information that are
linked together in form of cryptography.
 It is designed in such a way that data is modified during transaction
between two parties. A blockchain is used for managing data over
distributed network.
 The presentation will describe about two blockchain applications
and its features.

Field and purpose of application
 Bitcoin is a peer to peer blockchain of electronic transfer of cash without
involving any financial institution. It is completely related to finance field.
Bitcoin is digital wallet from where transaction are done [1].
 Whereas libra is decentralised blockchain that support in low volatility
cryptocurrency. Libra blockchain is used in financial transaction. Its
purpose is to be used in cross border payment and money transfer.

Working model of application
 A bitcoin works on basis of public key. When a user sends bitcoin to
someone the transaction details are published along with public key a
network. Then, the info is verified other computer in network through
digital signature. So, after confirmation transaction is added into
blockchain. In this way each block is added into chain and in bitcoin
transfer.
 In libra money is deposited into bank account and is backed up by either
dollar or euro. The bank holding libra will generate interest.

Scalability issues
 There are many issues occurring in bitcoin. First is the scalability issue is
its processing capacity is limited by average block creation of 10 times and
block size of 1 megabyte. Also, transaction time limit is only 3.3 to 7 per
second. So, these issues constrain the network and blockchain [2].
 In libra scalability issue is that it is not open network so any person will not
be able to trade in it. Also, participation in libra is limited and only libra
association members are allowed to provide approval.

Features and weakness of application
 Bitcoin features
 It is easy to set up a bitcoin as there is no are no charges, credit checks, etc.
 It is a decentralised blockchain having autonomy administrating experts.

CONT..
 Weakness
 There is high threat of scam or fraud in bitcoin as there is no specific
financial institution involved [3].
 Due to its high price volatility bitcoin losses its market value to a great
extent.

CONT..
 Features of libra
 The currency is controlled by a group of companies with particular
standards and policies.
 There are physical offices of libra in Switzerland.

CONT..
 Weakness
 There are strict rules and regulations which are to be followed to trade in
libra.
 Any change in technology will be a threat to investors and states [4].

Socio technical aspect
 The main aspect of bitcoin is with advancement in technology there are
many countries such as Africa and Brazil where societies are still using
bitcoin. Moreover, there is lack of trust among people regarding use of
bitcoin.
 Libra is yet to be launched so its socio technical aspect is poor countries
people will not be able to engage with it. Furthermore, many countries are
not having advance IT infrastructure that supports in trading libra.

REFERENCES
Books and Journals
 Amaden Z. and et.al., 2019 The libra blockchain.
 Nakamoto S. 2017 Bitcoin: A Peer-to-Peer Electronic Cash System
 Luuc V.D.H and et.al., 2017 Process Memory Investigation of the Bitcoin
Clients Electrum and Bitcoin Core. IEEE Volume 5. pp 22385-22398
 Holmes F. 2019 Facebook's Libra Cryptocurrency Is the Future of Fintech

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