Smart Contracts & dApps
Bitcoin vs Ethereum
| Category | Bitcoin | Ethereum |
|---|---|---|
| Founder | Satoshi Nakamoto | Vatalik Buterin |
| Genesis | Jan 2019 | July 2015 |
| Code | Non Turing (Script) | Turing Complete (Solidity and six other languages) |
| Ledger | UTXO - Transaction | State - Account Based |
| Merkle Tree | Transactions | Transactions, State, Storage, Receipts |
| Block Time | 10 min | 14 seconds |
| Consensus | Proof of Work | Proof of Work |
| Hash Function | SHA256 | Ethash |
| Presale | None | ICO & Presale |
| Rewards | 12.5 BTC/Block | 4 ETH/block |
| Monetary Policy | Halves every 210,000 blocks (4 years) | Fixed, but changes by updates |
| Fees | Voluntary | Needed & Market Based |
Decentralized App (dApp)
- Applications run on a Decentralized Blockchain Network
- Gnerally have a native token and run as a Smart Contract on top of a platform
- https://www.stateofthedapps.com
Initial Coin Offerings
- Proceeds used to build networks
- Tokens usually issued prior to being functional
- Development, while open source, is largely centralized
- Promoters allocate themselves ‘premined’ tokens
- Tokens are fungible & transferable
- Scarcity is fostered with preset ‘Monetary policy’
- Purchasers anticipate profits through appreciation