BitCS

We code your Ideas

5.00/5 (2 Reviews)
BitCS is the fastest growing app development company. We binge profoundly into our client’s business to apprehend their business segment, their target. We take the client’s idea and apply our experience in order to reach their project's objective &a...
read more
$25 - $49/hr
10 - 49
2017
United States
BitCS
We code your Ideas
5.00/5 (2 Reviews)
If you are thinking of developing a bitcoin wallet app, first of all, it’s important to know it’s workings? Bitcoin is a form of cryptocurrency. Simply put, it is a digital currency that is entirely decentralized. This means no government body, banks, or other authority controls the money.   Anyone can buy or sell online without the involvement of banks or government regulations.   Plus, it does not involve any physical currency; however, it does record the transactions and stores them on the blockchain network.   Blockchain network, what is that?   The workings of a blockchain network?   (Image source: ecoinplace.com)   The closest analogy for the blockchain network could be a network of bank branches that maintains and access the same transaction history of the account holders anywhere and everywhere. No matter from which branch they make the transaction, their details are saved and shared among all the branches.   Similarly, in a cryptocurrency world, there is a network of computers or nodes that verifies the bitcoin transaction for their users. All verified transactions are noted down on a single ledger and later shared on all the nodes.   However, in the bank, you have the main branch that controls the sub-branches, but in the crypto world, all nodes are independent and behave as the main branch. It doesn’t have a hierarchy structure but a distributed architecture.   Let’s see how cryptocurrency transaction works.   How does Bitcoin transaction work?   In our day-to-day life, we use physical currency to buy goods. In the physical currency, if you have noticed, there is a long number printed at the bottom. This number has confidential information and is used by the bank to track the currency details, for instance, printing press location. Likewise, the bitcoin also generates a unique transaction number called “hash functions”. They use this number to validate their transactions and make them secure. The entire cryptocurrency is based on these hash functions.   Each time some new transaction is verified and takes place on the blockchain network, it generates a unique hash number and adds to the blockchain in forms of blocks. So basically, blockchain is a series of transactions done online and viewed by anyone ( Identity of the person is encrypted). It is the most secure way of online purchase, and it is hack-proof.   (Image Source:goodaudience.com)   Just like in the real world, when you do any money transaction( withdraw/deposit), it is noted down in bank-statement. In the crypto world, this is noted down in the blockchain in the form of blocks. Unlike bank statements, these transactions are open to view by the public, and therefore it is known as a public ledger. However, there are two kinds of blockchains- a private/permission-based blockchain and a public/permissionless blockchain.   Hash number gives a unique identity to the online transaction. Whenever there is a new transaction added in the blockchain, it has the trail of previous payment or “hash number” to it (see image above). Due to this arrangement, there is no chance of cheating or money transaction error as all transaction speaks about the previous transaction.   Experts called “Miners" create these hash numbers and, the process is called mining. It requires some decent calculation and is done to make each online payment unique and secure. The payment is validated only by the miners.   For any cryptocurrency user, they need a wallet to pay and receive digital currency. A cryptocurrency wallet is a computer program that stores public and private keys. The key interacts with various blockchain (Address) to allow users to send and receive digital currency and monitor their balance. These keys are like a gateway to cryptocurrency transactions.   ( Image Source: blog.wetrust.io)   You can resemble your public key and private key as your e-mail address and password. The password or private key is not disclosed to anyone while the e-mail address can be shared to anyone.   They are just numbers:     Private Key: 32 characters of numbers + upper and lower case letter   Public Key (Wallet address): 64 characters    The private key is used as an input, and the output is a public key. This public key is then broadcasted on the network. From the network, the public key is accessed by the person who wants to make the payment. To confirm the amount is going to the right person the receiver uses the private key (digital signage) to authenticate the transaction.   Every transaction is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the number of coins transferred. The key is used to sign the transaction and is a mathematical proof that the transaction has come from the owner.   Bitcoin amount appears in the form of BTC, mBTC, or bits.   ( Image source: ybrikman.com)   The below image speaks broadly about the rising demand of cryptocurrency wallet app. By the end of quarter 1 2018, there were around 24 million users.   (image source:ddi-dev.com)   There are five types of cryptocurrency wallets: Desktop wallet, Mobile wallet, Web wallet, Hardware wallet, and Paper wallet. With a bitcoin wallet app, you carry the key in your pocket that access the digital currency. It's time to consider the Bitcoin wallet app as a fast way of business growth.   Why use cryptocurrency over Physical money    Fast transactions   Avoid fraudsters   Trustworthiness   Decentralization   Privacy ( transaction are anonymous and fully encrypted)   No transaction fees    Types of cryptocurrency Wallet   Web   Mobile   Desktop   Paper   Hardware    It would take another long post to explain how each of these works in the crypto-currency world; so we will straight away jump to the topic - what does it take to develop a bitcoin wallet app?   Features of cryptocurrency/Bitcoin Wallet   (source:igniteoutsourcing.com)     Conversion Rate   QR Code Scanner   Authorization   Paper wallet import   Personal wallet   Security   Addresses   Push Notifications   Trading service   Exchange rate    Since almost every cryptocurrency provides its own e-wallet, you can either integrate some to use for payments or build your own Bitcoin wallet like application.   Steps to develop a cryptocurrency App   Top cryptocurrency Wallet Development Companies   If you are not sure that your development team has the necessary skills or background to code the best bitcoin wallet app, then it is better to outsource them. Here are some top cryptocurrency wallet development companies,   Top cryptocurrency Wallet Development Companies are:     SoluLab   Labrys   HashCash Consultants   Inn4Science   OpenXcell   Technoloader   MixBytes   Bitdeal   Deqode   HoC Solutions    Wrapping Up: Developing a bitcoin app could be challenging as there might be many bottlenecks. This could be overcome only through expert advice and skilled professionals. But there is one more critical aspect one can’t ignore for a successful Bitcoin App that is promotion (SEO) and marketing ( PPC Ads).
If you are thinking of developing a bitcoin wallet app, first of all, it’s important to know it’s workings? Bitcoin is a form of cryptocurrency. Simply put, it is a digital currency that is entirely decentralized. This means no government body, banks, or other authority controls the money.   Anyone can buy or sell online without the involvement of banks or government regulations.   Plus, it does not involve any physical currency; however, it does record the transactions and stores them on the blockchain network.   Blockchain network, what is that?   The workings of a blockchain network?   (Image source: ecoinplace.com)   The closest analogy for the blockchain network could be a network of bank branches that maintains and access the same transaction history of the account holders anywhere and everywhere. No matter from which branch they make the transaction, their details are saved and shared among all the branches.   Similarly, in a cryptocurrency world, there is a network of computers or nodes that verifies the bitcoin transaction for their users. All verified transactions are noted down on a single ledger and later shared on all the nodes.   However, in the bank, you have the main branch that controls the sub-branches, but in the crypto world, all nodes are independent and behave as the main branch. It doesn’t have a hierarchy structure but a distributed architecture.   Let’s see how cryptocurrency transaction works.   How does Bitcoin transaction work?   In our day-to-day life, we use physical currency to buy goods. In the physical currency, if you have noticed, there is a long number printed at the bottom. This number has confidential information and is used by the bank to track the currency details, for instance, printing press location. Likewise, the bitcoin also generates a unique transaction number called “hash functions”. They use this number to validate their transactions and make them secure. The entire cryptocurrency is based on these hash functions.   Each time some new transaction is verified and takes place on the blockchain network, it generates a unique hash number and adds to the blockchain in forms of blocks. So basically, blockchain is a series of transactions done online and viewed by anyone ( Identity of the person is encrypted). It is the most secure way of online purchase, and it is hack-proof.   (Image Source:goodaudience.com)   Just like in the real world, when you do any money transaction( withdraw/deposit), it is noted down in bank-statement. In the crypto world, this is noted down in the blockchain in the form of blocks. Unlike bank statements, these transactions are open to view by the public, and therefore it is known as a public ledger. However, there are two kinds of blockchains- a private/permission-based blockchain and a public/permissionless blockchain.   Hash number gives a unique identity to the online transaction. Whenever there is a new transaction added in the blockchain, it has the trail of previous payment or “hash number” to it (see image above). Due to this arrangement, there is no chance of cheating or money transaction error as all transaction speaks about the previous transaction.   Experts called “Miners" create these hash numbers and, the process is called mining. It requires some decent calculation and is done to make each online payment unique and secure. The payment is validated only by the miners.   For any cryptocurrency user, they need a wallet to pay and receive digital currency. A cryptocurrency wallet is a computer program that stores public and private keys. The key interacts with various blockchain (Address) to allow users to send and receive digital currency and monitor their balance. These keys are like a gateway to cryptocurrency transactions.   ( Image Source: blog.wetrust.io)   You can resemble your public key and private key as your e-mail address and password. The password or private key is not disclosed to anyone while the e-mail address can be shared to anyone.   They are just numbers:     Private Key: 32 characters of numbers + upper and lower case letter   Public Key (Wallet address): 64 characters    The private key is used as an input, and the output is a public key. This public key is then broadcasted on the network. From the network, the public key is accessed by the person who wants to make the payment. To confirm the amount is going to the right person the receiver uses the private key (digital signage) to authenticate the transaction.   Every transaction is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the number of coins transferred. The key is used to sign the transaction and is a mathematical proof that the transaction has come from the owner.   Bitcoin amount appears in the form of BTC, mBTC, or bits.   ( Image source: ybrikman.com)   The below image speaks broadly about the rising demand of cryptocurrency wallet app. By the end of quarter 1 2018, there were around 24 million users.   (image source:ddi-dev.com)   There are five types of cryptocurrency wallets: Desktop wallet, Mobile wallet, Web wallet, Hardware wallet, and Paper wallet. With a bitcoin wallet app, you carry the key in your pocket that access the digital currency. It's time to consider the Bitcoin wallet app as a fast way of business growth.   Why use cryptocurrency over Physical money    Fast transactions   Avoid fraudsters   Trustworthiness   Decentralization   Privacy ( transaction are anonymous and fully encrypted)   No transaction fees    Types of cryptocurrency Wallet   Web   Mobile   Desktop   Paper   Hardware    It would take another long post to explain how each of these works in the crypto-currency world; so we will straight away jump to the topic - what does it take to develop a bitcoin wallet app?   Features of cryptocurrency/Bitcoin Wallet   (source:igniteoutsourcing.com)     Conversion Rate   QR Code Scanner   Authorization   Paper wallet import   Personal wallet   Security   Addresses   Push Notifications   Trading service   Exchange rate    Since almost every cryptocurrency provides its own e-wallet, you can either integrate some to use for payments or build your own Bitcoin wallet like application.   Steps to develop a cryptocurrency App   Top cryptocurrency Wallet Development Companies   If you are not sure that your development team has the necessary skills or background to code the best bitcoin wallet app, then it is better to outsource them. Here are some top cryptocurrency wallet development companies,   Top cryptocurrency Wallet Development Companies are:     SoluLab   Labrys   HashCash Consultants   Inn4Science   OpenXcell   Technoloader   MixBytes   Bitdeal   Deqode   HoC Solutions    Wrapping Up: Developing a bitcoin app could be challenging as there might be many bottlenecks. This could be overcome only through expert advice and skilled professionals. But there is one more critical aspect one can’t ignore for a successful Bitcoin App that is promotion (SEO) and marketing ( PPC Ads).

If you are thinking of developing a bitcoin wallet app, first of all, it’s important to know it’s workings? Bitcoin is a form of cryptocurrency. Simply put, it is a digital currency that is entirely decentralized. This means no government body, banks, or other authority controls the money.  

Anyone can buy or sell online without the involvement of banks or government regulations.  

Plus, it does not involve any physical currency; however, it does record the transactions and stores them on the blockchain network.  

Blockchain network, what is that?  

The workings of a blockchain network?  

(Image source: ecoinplace.com)  

The closest analogy for the blockchain network could be a network of bank branches that maintains and access the same transaction history of the account holders anywhere and everywhere. No matter from which branch they make the transaction, their details are saved and shared among all the branches.  

Similarly, in a cryptocurrency world, there is a network of computers or nodes that verifies the bitcoin transaction for their users. All verified transactions are noted down on a single ledger and later shared on all the nodes.  

However, in the bank, you have the main branch that controls the sub-branches, but in the crypto world, all nodes are independent and behave as the main branch. It doesn’t have a hierarchy structure but a distributed architecture.  

Let’s see how cryptocurrency transaction works.  

How does Bitcoin transaction work?  

In our day-to-day life, we use physical currency to buy goods. In the physical currency, if you have noticed, there is a long number printed at the bottom. This number has confidential information and is used by the bank to track the currency details, for instance, printing press location. Likewise, the bitcoin also generates a unique transaction number called “hash functions”. They use this number to validate their transactions and make them secure. The entire cryptocurrency is based on these hash functions.  

Each time some new transaction is verified and takes place on the blockchain network, it generates a unique hash number and adds to the blockchain in forms of blocks. So basically, blockchain is a series of transactions done online and viewed by anyone ( Identity of the person is encrypted). It is the most secure way of online purchase, and it is hack-proof.  

(Image Source:goodaudience.com)  

Just like in the real world, when you do any money transaction( withdraw/deposit), it is noted down in bank-statement. In the crypto world, this is noted down in the blockchain in the form of blocks. Unlike bank statements, these transactions are open to view by the public, and therefore it is known as a public ledger. However, there are two kinds of blockchains- a private/permission-based blockchain and a public/permissionless blockchain.  

Hash number gives a unique identity to the online transaction. Whenever there is a new transaction added in the blockchain, it has the trail of previous payment or “hash number” to it (see image above). Due to this arrangement, there is no chance of cheating or money transaction error as all transaction speaks about the previous transaction.  

Experts called “Miners" create these hash numbers and, the process is called mining. It requires some decent calculation and is done to make each online payment unique and secure. The payment is validated only by the miners.  

For any cryptocurrency user, they need a wallet to pay and receive digital currency. A cryptocurrency wallet is a computer program that stores public and private keys. The key interacts with various blockchain (Address) to allow users to send and receive digital currency and monitor their balance. These keys are like a gateway to cryptocurrency transactions.  

( Image Source: blog.wetrust.io)  

You can resemble your public key and private key as your e-mail address and password. The password or private key is not disclosed to anyone while the e-mail address can be shared to anyone.  

They are just numbers:    

  • Private Key: 32 characters of numbers + upper and lower case letter  
  • Public Key (Wallet address): 64 characters
       

The private key is used as an input, and the output is a public key. This public key is then broadcasted on the network. From the network, the public key is accessed by the person who wants to make the payment. To confirm the amount is going to the right person the receiver uses the private key (digital signage) to authenticate the transaction.  

Every transaction is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the number of coins transferred. The key is used to sign the transaction and is a mathematical proof that the transaction has come from the owner.  

Bitcoin amount appears in the form of BTC, mBTC, or bits.  

( Image source: ybrikman.com)  

The below image speaks broadly about the rising demand of cryptocurrency wallet app. By the end of quarter 1 2018, there were around 24 million users.  

(image source:ddi-dev.com)  

There are five types of cryptocurrency wallets: Desktop wallet, Mobile wallet, Web wallet, Hardware wallet, and Paper wallet. With a bitcoin wallet app, you carry the key in your pocket that access the digital currency. It's time to consider the Bitcoin wallet app as a fast way of business growth.  

Why use cryptocurrency over Physical money   

  • Fast transactions  
  • Avoid fraudsters  
  • Trustworthiness  
  • Decentralization  
  • Privacy ( transaction are anonymous and fully encrypted)  
  • No transaction fees
       

Types of cryptocurrency Wallet  

  • Web  
  • Mobile  
  • Desktop  
  • Paper  
  • Hardware
       

It would take another long post to explain how each of these works in the crypto-currency world; so we will straight away jump to the topic - what does it take to develop a bitcoin wallet app?  

Features of cryptocurrency/Bitcoin Wallet  

(source:igniteoutsourcing.com)    

  • Conversion Rate  
  • QR Code Scanner  
  • Authorization  
  • Paper wallet import  
  • Personal wallet  
  • Security  
  • Addresses  
  • Push Notifications  
  • Trading service  
  • Exchange rate
       

Since almost every cryptocurrency provides its own e-wallet, you can either integrate some to use for payments or build your own Bitcoin wallet like application.  

Steps to develop a cryptocurrency App  

Top cryptocurrency Wallet Development Companies  

If you are not sure that your development team has the necessary skills or background to code the best bitcoin wallet app, then it is better to outsource them. Here are some top cryptocurrency wallet development companies,  

Top cryptocurrency Wallet Development Companies are:    

Wrapping Up: Developing a bitcoin app could be challenging as there might be many bottlenecks. This could be overcome only through expert advice and skilled professionals. But there is one more critical aspect one can’t ignore for a successful Bitcoin App that is promotion (SEO) and marketing ( PPC Ads).

There is a lot of confusion among the blockchain enthusiasts relating to Bitcoin and Ethereum. This may be because they may have come across a few tech-news headlines saying “Ethereum, the cryptocurrency has long been the clear No. 2 to Bitcoin”.  Though both Bitcoin and Ethereum are regarded as cryptocurrencies, they differ in purpose. But before we discover the difference between these two, it is essential to know the difference between Bitcoin and Blockchain.   Blockchain: The blockchain is a type of a ledger that records all the transactions for any business process. It also acts as bitcoin’s ledger and takes care of all the transactions of bitcoin. Blockchain can smoothly transfer anything from currencies to property rights of stocks.  Bitcoin: Bitcoin is a digital currency built with the help of blockchain technology. It was introduced to simplify the transactional process and unify payment services using a single type of currency. It means you can say bitcoin is a blockchain, but the blockchain is not a bitcoin. Bitcoin is limited to trading as a currency.   Bitcoin Vs. Ethereum  Blockchain has grown over the period, and now it is catering to even small transactions across various industries. While bitcoin is the most widely used and well-known use case of blockchain, Ethereum may be the killer app that facilitates the blockchain to discover its full potential. Digging a little bit into the technical aspect, Ethereum uses a Turing Complete programming language and a Turing Complete internal code. It means it is capable of calculating anything and everything with sufficient computing power and a particular time period.  Some more details on how both use the blockchain.  Bitcoin (UTXO) vs Ethereum (Account/balance model)  One of the significant differences between bitcoin and ethereum is how a transaction is processed.  Bitcoin uses UTXO ( Unspent Transaction Outputs)  Ethereum works on the transaction-based state machine or account/balance model.   Bitcoin (UTXO)  UTXO (Unspent Transaction Output) works well with bitcoin as digital wallets facilitate most of the tasks associated with transactions. Basically, UTXO is the amount of leftover cryptocurrency change that you receive from each transaction.  Note that to buy any goods through bitcoin (UTXO) you need to transfer the entire bitcoin value and the remaining balance will be sent back to you. It is the same as when you go to the grocery store to buy goods worth $37, and you give a $50 note to the store owner, and he returns the balance of $13. In bitcoin there is no $20, $5, or $10, they can only use $50 block.  They might not have currency options, but the blockchain transcribes $50 somewhat similar to our currency notes. It uses the combination that could be anything ($25+$1+$24), or ($35+$15) or ($22+$3+$25), from this block they can pick any combination, to sum up, $37. For instance, from the combination ($35+$15)=> it can take $32 from ($35 block) and rest $5 from ($15 block).  If the paying amount is more than $50, let say $87 they have to send two $50 notes with more combinations. The blockchain will deduct $87 from two blocks of $50 ( again using the combination) and return the remaining balance.  Now comes the second part, after buying goods worth $37 in bitcoin, the balance left is $13. In bitcoin, this $13 balance is known as unspent transaction output. Based on this remaining balance or output, the future transactions are done (see image below). The only difference to cash transaction and bitcoin is the amount in bitcoin you received at the end had also deducted their transaction fees.  ( image source: blockonomi.com)  Like Ethereum, bitcoin does not store account balances but it is derived by using blockchain transactions ever recorded. With bitcoin, a user simply holds the private keys to one or more UTXO at any given point in time.  Ethereum (Account/balance model)  Ethereum is basically an open software platform built on blockchain technology. It empowers developers to build and deploy decentralized applications besides cryptocurrency.  In the current blockchain world, there are two ways to record and save state.   UTXO model (Unspent Transaction Output) — Bitcoin  Account model — Ethereum, CITA  In the account model on which the ethereum is based, the world state is stored on nodes locally, not transferred with blocks. ( See image below for “STATES”)  ( image source: vas3k.com)  A full Ethereum node is composed of three essential parts.   Blockchain component  Peer-to-peer network  The virtual machine   It will take a separate session to explain node components in detail, which is not feasible here. So let’s go straight to the basics. Ethereum is designed around three concepts- Accounts, smart contracts, and transactions.  Accounts  Accounts are basic units of Ethereum protocol. In order to interact with the ethereum network (blockchain), you need an account, just like bitcoin that uses a “bitcoin address” to store and send bitcoins.  Ethereum has allocated 2 types of accounts or addresses for this. Both types of accounts can either be used for digital payment or perform operations using Smart Contracts.  Two types of Ethereum Accounts  Private key-controlled user accounts/ EOA( Externally Owned Account)  You can make an ETH transfer or payment by signing transactions with a private key in this account. The main purpose of these accounts is to serve as a medium for users to interact with the Ethereum Blockchain. Through this account, users can send ether(cryptocurrency) and messages from it.   Contract-code controlled accounts (smart contracts)  Smart contracts can only be activated by sending ETH into it. After the smart contract has been coded and uploaded, it will sit in this account and wait to be activated.  Smart Contracts  Ethereum enables the development and deployment of custom code(smart contracts) into the blockchain. A smart-contract becomes like a self-operating computer program that automatically executes when specific conditions are met.  Every contract that populates on the ethereum blockchain is stored in a specific format called EVM (Ethereum Virtual Machine) bytecode which is an ethereum specific binary format. The Ethereum virtual machine is the engine in which the transaction code gets executed and activates the contract.  So basically, Ethereum blockchain stores your data, stores the code and also runs the code in the EVM (Ethereum Virtual Machine). Besides cryptocurrency, developers can code “Smart Contracts” for any business applications.  ( Image source: edureka.co)  Transactions  Every transaction in the Ethereum only needs to make one reference and signature that produces one output, contrary to UTXO design. Ethereum transactions are signed data packages, containing a host of information. The ethereum block includes the following information and processes the transaction when all the requirements are full-filled.   Address of the recipient  Signature of the sender’s  Transaction amount  The gas price value – it tells how much the sender pays per computational step  The Start gas value – it controls how many computational steps the transaction is allowed to execute  An optional data field   The Ethereum blockchain verifies to see if the transaction contains all the data listed above, and has a valid signature. If the nonce ( number of transactions sent by the account) also matches, the transaction moves on to the second step. When you interact with the Ethereum blockchain, you are executing transactions and updating its state. ( Below is the image showing the change in the state)  ( image source: oreilly.com)  There are more technical details on Ethereum, that is not possible to explain here like passing message calls, transaction trie, DAO, Ethereum exchange rate, etc.   I hope the above information was useful to get an overview of how both ( Bitcoin & Ethereum) have explored blockchain technology in their own way.  Keeping it short - what Bitcoin does for money, Ethereum does for contracts. Bitcoin is used to buy goods on popular websites like Namecheap,Overstock.com, or Tesla. Meanwhile, the Ethereum is mainly being used by developers building applications (dApps) on top of it.   Ethereum was not as popular as bitcoin, but gradually, it is gaining momentum in the Blockchain world. It is expected that as more and more apps will be developed on the blockchain, the value of Ethereum will rise.
There is a lot of confusion among the blockchain enthusiasts relating to Bitcoin and Ethereum. This may be because they may have come across a few tech-news headlines saying “Ethereum, the cryptocurrency has long been the clear No. 2 to Bitcoin”.  Though both Bitcoin and Ethereum are regarded as cryptocurrencies, they differ in purpose. But before we discover the difference between these two, it is essential to know the difference between Bitcoin and Blockchain.   Blockchain: The blockchain is a type of a ledger that records all the transactions for any business process. It also acts as bitcoin’s ledger and takes care of all the transactions of bitcoin. Blockchain can smoothly transfer anything from currencies to property rights of stocks.  Bitcoin: Bitcoin is a digital currency built with the help of blockchain technology. It was introduced to simplify the transactional process and unify payment services using a single type of currency. It means you can say bitcoin is a blockchain, but the blockchain is not a bitcoin. Bitcoin is limited to trading as a currency.   Bitcoin Vs. Ethereum  Blockchain has grown over the period, and now it is catering to even small transactions across various industries. While bitcoin is the most widely used and well-known use case of blockchain, Ethereum may be the killer app that facilitates the blockchain to discover its full potential. Digging a little bit into the technical aspect, Ethereum uses a Turing Complete programming language and a Turing Complete internal code. It means it is capable of calculating anything and everything with sufficient computing power and a particular time period.  Some more details on how both use the blockchain.  Bitcoin (UTXO) vs Ethereum (Account/balance model)  One of the significant differences between bitcoin and ethereum is how a transaction is processed.  Bitcoin uses UTXO ( Unspent Transaction Outputs)  Ethereum works on the transaction-based state machine or account/balance model.   Bitcoin (UTXO)  UTXO (Unspent Transaction Output) works well with bitcoin as digital wallets facilitate most of the tasks associated with transactions. Basically, UTXO is the amount of leftover cryptocurrency change that you receive from each transaction.  Note that to buy any goods through bitcoin (UTXO) you need to transfer the entire bitcoin value and the remaining balance will be sent back to you. It is the same as when you go to the grocery store to buy goods worth $37, and you give a $50 note to the store owner, and he returns the balance of $13. In bitcoin there is no $20, $5, or $10, they can only use $50 block.  They might not have currency options, but the blockchain transcribes $50 somewhat similar to our currency notes. It uses the combination that could be anything ($25+$1+$24), or ($35+$15) or ($22+$3+$25), from this block they can pick any combination, to sum up, $37. For instance, from the combination ($35+$15)=> it can take $32 from ($35 block) and rest $5 from ($15 block).  If the paying amount is more than $50, let say $87 they have to send two $50 notes with more combinations. The blockchain will deduct $87 from two blocks of $50 ( again using the combination) and return the remaining balance.  Now comes the second part, after buying goods worth $37 in bitcoin, the balance left is $13. In bitcoin, this $13 balance is known as unspent transaction output. Based on this remaining balance or output, the future transactions are done (see image below). The only difference to cash transaction and bitcoin is the amount in bitcoin you received at the end had also deducted their transaction fees.  ( image source: blockonomi.com)  Like Ethereum, bitcoin does not store account balances but it is derived by using blockchain transactions ever recorded. With bitcoin, a user simply holds the private keys to one or more UTXO at any given point in time.  Ethereum (Account/balance model)  Ethereum is basically an open software platform built on blockchain technology. It empowers developers to build and deploy decentralized applications besides cryptocurrency.  In the current blockchain world, there are two ways to record and save state.   UTXO model (Unspent Transaction Output) — Bitcoin  Account model — Ethereum, CITA  In the account model on which the ethereum is based, the world state is stored on nodes locally, not transferred with blocks. ( See image below for “STATES”)  ( image source: vas3k.com)  A full Ethereum node is composed of three essential parts.   Blockchain component  Peer-to-peer network  The virtual machine   It will take a separate session to explain node components in detail, which is not feasible here. So let’s go straight to the basics. Ethereum is designed around three concepts- Accounts, smart contracts, and transactions.  Accounts  Accounts are basic units of Ethereum protocol. In order to interact with the ethereum network (blockchain), you need an account, just like bitcoin that uses a “bitcoin address” to store and send bitcoins.  Ethereum has allocated 2 types of accounts or addresses for this. Both types of accounts can either be used for digital payment or perform operations using Smart Contracts.  Two types of Ethereum Accounts  Private key-controlled user accounts/ EOA( Externally Owned Account)  You can make an ETH transfer or payment by signing transactions with a private key in this account. The main purpose of these accounts is to serve as a medium for users to interact with the Ethereum Blockchain. Through this account, users can send ether(cryptocurrency) and messages from it.   Contract-code controlled accounts (smart contracts)  Smart contracts can only be activated by sending ETH into it. After the smart contract has been coded and uploaded, it will sit in this account and wait to be activated.  Smart Contracts  Ethereum enables the development and deployment of custom code(smart contracts) into the blockchain. A smart-contract becomes like a self-operating computer program that automatically executes when specific conditions are met.  Every contract that populates on the ethereum blockchain is stored in a specific format called EVM (Ethereum Virtual Machine) bytecode which is an ethereum specific binary format. The Ethereum virtual machine is the engine in which the transaction code gets executed and activates the contract.  So basically, Ethereum blockchain stores your data, stores the code and also runs the code in the EVM (Ethereum Virtual Machine). Besides cryptocurrency, developers can code “Smart Contracts” for any business applications.  ( Image source: edureka.co)  Transactions  Every transaction in the Ethereum only needs to make one reference and signature that produces one output, contrary to UTXO design. Ethereum transactions are signed data packages, containing a host of information. The ethereum block includes the following information and processes the transaction when all the requirements are full-filled.   Address of the recipient  Signature of the sender’s  Transaction amount  The gas price value – it tells how much the sender pays per computational step  The Start gas value – it controls how many computational steps the transaction is allowed to execute  An optional data field   The Ethereum blockchain verifies to see if the transaction contains all the data listed above, and has a valid signature. If the nonce ( number of transactions sent by the account) also matches, the transaction moves on to the second step. When you interact with the Ethereum blockchain, you are executing transactions and updating its state. ( Below is the image showing the change in the state)  ( image source: oreilly.com)  There are more technical details on Ethereum, that is not possible to explain here like passing message calls, transaction trie, DAO, Ethereum exchange rate, etc.   I hope the above information was useful to get an overview of how both ( Bitcoin & Ethereum) have explored blockchain technology in their own way.  Keeping it short - what Bitcoin does for money, Ethereum does for contracts. Bitcoin is used to buy goods on popular websites like Namecheap,Overstock.com, or Tesla. Meanwhile, the Ethereum is mainly being used by developers building applications (dApps) on top of it.   Ethereum was not as popular as bitcoin, but gradually, it is gaining momentum in the Blockchain world. It is expected that as more and more apps will be developed on the blockchain, the value of Ethereum will rise.

There is a lot of confusion among the blockchain enthusiasts relating to Bitcoin and Ethereum. This may be because they may have come across a few tech-news headlines saying “Ethereum, the cryptocurrency has long been the clear No. 2 to Bitcoin”

undefined

Though both Bitcoin and Ethereum are regarded as cryptocurrencies, they differ in purpose. But before we discover the difference between these two, it is essential to know the difference between Bitcoin and Blockchain.  

  • Blockchain: The blockchain is a type of a ledger that records all the transactions for any business process. It also acts as bitcoin’s ledger and takes care of all the transactions of bitcoin. Blockchain can smoothly transfer anything from currencies to property rights of stocks
  • Bitcoin: Bitcoin is a digital currency built with the help of blockchain technology. It was introduced to simplify the transactional process and unify payment services using a single type of currency. It means you can say bitcoin is a blockchain, but the blockchain is not a bitcoin. Bitcoin is limited to trading as a currency.  

Bitcoin Vs. Ethereum 

Blockchain has grown over the period, and now it is catering to even small transactions across various industries. While bitcoin is the most widely used and well-known use case of blockchain, Ethereum may be the killer app that facilitates the blockchain to discover its full potential. Digging a little bit into the technical aspect, Ethereum uses a Turing Complete programming language and a Turing Complete internal code. It means it is capable of calculating anything and everything with sufficient computing power and a particular time period. 

Some more details on how both use the blockchain. 

undefined

Bitcoin (UTXO) vs Ethereum (Account/balance model) 

One of the significant differences between bitcoin and ethereum is how a transaction is processed. 

  • Bitcoin uses UTXO ( Unspent Transaction Outputs) 
  • Ethereum works on the transaction-based state machine or account/balance model.  

Bitcoin (UTXO) 

UTXO (Unspent Transaction Output) works well with bitcoin as digital wallets facilitate most of the tasks associated with transactions. Basically, UTXO is the amount of leftover cryptocurrency change that you receive from each transaction. 

Note that to buy any goods through bitcoin (UTXO) you need to transfer the entire bitcoin value and the remaining balance will be sent back to you. It is the same as when you go to the grocery store to buy goods worth $37, and you give a $50 note to the store owner, and he returns the balance of $13. In bitcoin there is no $20, $5, or $10, they can only use $50 block. 

They might not have currency options, but the blockchain transcribes $50 somewhat similar to our currency notes. It uses the combination that could be anything ($25+$1+$24), or ($35+$15) or ($22+$3+$25), from this block they can pick any combination, to sum up, $37. For instance, from the combination ($35+$15)=> it can take $32 from ($35 block) and rest $5 from ($15 block). 

If the paying amount is more than $50, let say $87 they have to send two $50 notes with more combinations. The blockchain will deduct $87 from two blocks of $50 ( again using the combination) and return the remaining balance. 

Now comes the second part, after buying goods worth $37 in bitcoin, the balance left is $13. In bitcoin, this $13 balance is known as unspent transaction output. Based on this remaining balance or output, the future transactions are done (see image below). The only difference to cash transaction and bitcoin is the amount in bitcoin you received at the end had also deducted their transaction fees. 

undefined

( image source: blockonomi.com) 

Like Ethereum, bitcoin does not store account balances but it is derived by using blockchain transactions ever recorded. With bitcoin, a user simply holds the private keys to one or more UTXO at any given point in time. 

Ethereum (Account/balance model) 

Ethereum is basically an open software platform built on blockchain technology. It empowers developers to build and deploy decentralized applications besides cryptocurrency. 

In the current blockchain world, there are two ways to record and save state.  

  • UTXO model (Unspent Transaction Output) — Bitcoin 
  • Account model — Ethereum, CITA 

In the account model on which the ethereum is based, the world state is stored on nodes locally, not transferred with blocks. ( See image below for “STATES”) 

undefined

( image source: vas3k.com) 

A full Ethereum node is composed of three essential parts.  

  • Blockchain component 
  • Peer-to-peer network 
  • The virtual machine  

It will take a separate session to explain node components in detail, which is not feasible here. So let’s go straight to the basics. Ethereum is designed around three concepts- Accounts, smart contracts, and transactions. 

Accounts 

Accounts are basic units of Ethereum protocol. In order to interact with the ethereum network (blockchain), you need an account, just like bitcoin that uses a “bitcoin address” to store and send bitcoins. 

Ethereum has allocated 2 types of accounts or addresses for this. Both types of accounts can either be used for digital payment or perform operations using Smart Contracts. 

Two types of Ethereum Accounts 

  • Private key-controlled user accounts/ EOA( Externally Owned Account) 

You can make an ETH transfer or payment by signing transactions with a private key in this account. The main purpose of these accounts is to serve as a medium for users to interact with the Ethereum Blockchain. Through this account, users can send ether(cryptocurrency) and messages from it.  

  • Contract-code controlled accounts (smart contracts) 

Smart contracts can only be activated by sending ETH into it. After the smart contract has been coded and uploaded, it will sit in this account and wait to be activated. 

Smart Contracts 

Ethereum enables the development and deployment of custom code(smart contracts) into the blockchain. A smart-contract becomes like a self-operating computer program that automatically executes when specific conditions are met. 

Every contract that populates on the ethereum blockchain is stored in a specific format called EVM (Ethereum Virtual Machine) bytecode which is an ethereum specific binary format. The Ethereum virtual machine is the engine in which the transaction code gets executed and activates the contract. 

So basically, Ethereum blockchain stores your data, stores the code and also runs the code in the EVM (Ethereum Virtual Machine). Besides cryptocurrency, developers can code “Smart Contracts” for any business applications. 

undefined

( Image source: edureka.co) 

Transactions 

Every transaction in the Ethereum only needs to make one reference and signature that produces one output, contrary to UTXO design. Ethereum transactions are signed data packages, containing a host of information. The ethereum block includes the following information and processes the transaction when all the requirements are full-filled.  

  • Address of the recipient 
  • Signature of the sender’s 
  • Transaction amount 
  • The gas price value – it tells how much the sender pays per computational step 
  • The Start gas value – it controls how many computational steps the transaction is allowed to execute 
  • An optional data field  

The Ethereum blockchain verifies to see if the transaction contains all the data listed above, and has a valid signature. If the nonce ( number of transactions sent by the account) also matches, the transaction moves on to the second step. When you interact with the Ethereum blockchain, you are executing transactions and updating its state. ( Below is the image showing the change in the state) 

undefined

( image source: oreilly.com) 

There are more technical details on Ethereum, that is not possible to explain here like passing message calls, transaction trie, DAO, Ethereum exchange rate, etc.  

I hope the above information was useful to get an overview of how both ( Bitcoin & Ethereum) have explored blockchain technology in their own way. 

Keeping it short - what Bitcoin does for money, Ethereum does for contracts. Bitcoin is used to buy goods on popular websites like Namecheap,Overstock.com, or Tesla. Meanwhile, the Ethereum is mainly being used by developers building applications (dApps) on top of it.  

Ethereum was not as popular as bitcoin, but gradually, it is gaining momentum in the Blockchain world. It is expected that as more and more apps will be developed on the blockchain, the value of Ethereum will rise.

Loading interface...
Contact information
us
BitCS
1324 hidden ridge, Irving, Texas 75038
United States
GoodFirms