Bitcoins and Ethereum. At the time of validating a transaction, the

validators are involved as the owner of the ethers keeping their own ethers

at stake is proof of stake, a feature associated with Ethereum. In the case of

a failure, the validators lose their own ethers, and it does not have any

impact on the rest of the transactions and ethers.

Ethereum challenges

The challenges associated with Ethereum are the obstacles to its mass

adoption and scalability issues. Ethereum’s smart contract feature provides

the user the ability to carry out the transactions j ust like the external users

as also it enables the user to customize a specific program for managing and

administering a different set of functions that enable businesses and

individuals as well in the development of a currency of their own. There are

solutions proposed and presented to ensure that Ethereum is more scalable

and the processing speeds improved.

Another issue that concerns Ethereum is the inflated transaction cost. To

estimate the transaction costs resulting in overpay of transactions by up to

7 0%

is an issue that exists with the Ethereum algorithm.

Bitcoin applications

The applications of Bitcoin are described as follows:

System of tokens: One of the domains supported by Bitcoin is the system

of tokens using which several applications have been designed and

developed.

Bitshares is one such application that are digital tokens present on the

Blockchain referencing particular assets like specific commodities or

currencies that enable the token holders to earn interest on them. These

commodities can be in the form of gold, silver, oil, or the currency

instruments such as dollars and euros.

The following are the features of the system of tokens application:

Price-stable cryptocurrency: Bitshares use Smartcoins that provide

stability guaranteed by dollars and euros, as also provides the

enhanced

freedom

that

comes

along

with

all

forms

of

cryptocurrencies.