Bitcoin¹ is a new and exciting project that has been developed to offer a super-fast, affordable and easily accessible digital payment alternative to Bitcoin.
Bitcoin¹ is a logical and exciting next business initiative with the vision to advance the mass consumer experience by delivering a worldwide platform where goods and/or services can be paid using cryptocurrency. Convenience and investment potential in one quality product.
In April 2018, Bitcoin One Foundation, the custodian of the Bitcoin¹ Project, deployed a smart contract containing a maximum 21 million tokens (BTC1) that can be traded on P2P wallets, and soon will be trading on strategically selected major cryptocurrency exchanges worldwide.
To facilitate mass adoption and use of BTC1 in every country, Bitcoin¹ is developing a customized, multi-language Mobile Wallet and income-generating Merchant Platform so global buyers and sellers of goods and/or services can make quick, inexpensive payments and transfer of funds using BTC1.
Development has also begun for Bitcoin¹ to operate on its own Blockchain commencing Q4, 2018. All token holders will be rewarded with a 1:1 issue of the new Bitcoin¹ “Coin”, creating a potential market cap of Bitcoin¹ equal to purpose-like coins such as Bitcoin Cash, Dash & Litecoin.
Bitcoin¹. The NEW Bitcoin for everyday use. Anywhere. Anytime.
What are the main differences between Bitcoin¹ and Bitcoin?
Both have 21 million total (maximum) supply with Bitcoin being highly regarded as a store of value. However, historical transaction data analysis of the Bitcoin blockchain has provided indisputable proof of scaling (mass transactions) issues, high cost of individual transactions and time delays for settlement in many instances. This has rendered Bitcoin non-viable as an everyday, any-purpose payment solution, and it has shifted its purpose to primarily a store of value, and, accordingly, been referred to as “Digital Gold”.
Bitcoin¹ overcomes these architecture restrictions by being sourced on the super-advanced Ethereum Blockchain Network, as an ERC20 token with superfast transaction times and astonishingly low transactional costs.
The future Bitcoin¹ “coin” intends to compliment Bitcoin by being an alternative, everyday, global payment solution, overcoming the transactional infrastructure limitations which prevented Bitcoin from reaching its full potential.
|Comparison||Bitcoin¹ (BTC1)||Bitcoin (BTC)|
|Max. supply||21 Mil.||21 Mil.|
|Blocktime||14 sec||10 mins|
|Max. TX/day||6 Million||1.2 Million|
|Average TX fee||$0.14||>$0.50|
|TX confirmations||23 sec||15 min|
|Established since||Mar 2018||Jan 2009|
Bitcoin¹ - hosted on the Ethereum Blockchain Network
Ethereum has exploded in popularity and value in 12 months to be #2 for market capitalization with a value of US$20 billion (10th Sept 2018). In fact the Chinese Government ranks Ethereum at #1 and Bitcoin at #13 in overall cryptocurrency grades!
The long version!
With the second largest market cap in the cryptocurrency world, Ethereum has drawn a lot of attention from investors and crypto enthusiasts alike.
This relatively new cryptocurrency not only presents a significant change to the status quo, it also allows for the quick development and deployment of new applications. Ethereum essentially enables dozens of new and extremely innovative cryptocurrencies to exist.
While Ethereum’s utility is obvious to programmers and the tech world at large, many people who are less tech-savvy have trouble understanding it. We’ve designed this guide to appeal to both crowds and expose anyone from complete crypto beginners and intermediates to this potentially game-changing cryptocurrency.
If you’re interested in Ethereum, chances are you have some sort of foundational knowledge of Bitcoin.
All cryptocurrencies inevitably get compared to Bitcoin, and it frankly makes understanding them much easier.
Bitcoin launched in 2009 as the world’s first cryptocurrency, with the single goal of creating a decentralized universal currency. This currency would not require any intermediary financial institutions, but would still ensure safe and valid transactions. This was made possible by a revolutionary technology called the “blockchain.”
The blockchain is a digital ledger, continuously recording and verifying records. It’s used to track and verify Bitcoin transactions. Since the global network of communicating nodes maintains the blockchain, it’s pretty much incorruptible. As new blocks are added to the network, they are constantly validated.
Similar to Bitcoin, Ethereum is a distributed public blockchain network. While both Ethereum and Bitcoin are cryptocurrencies that can be traded among users, there are many substantial differences between the two.
Bitcoin, for example, utilizes blockchain to track ownership of the digital currency, making it an extremely effective peer to peer electronic cash system. Ethereum, on the other hand, focuses on running the programming code of an application. Application developers largely use it to pay for services and transaction fees on the Ethereum network.
Both Bitcoin and Ethereum are “decentralized,” meaning they have no central control or issuing authority. Respective miners run each network by validating transactions to earn either bitcoin (for Bitcoin) or ether (for Ethereum).
If you’re still having trouble making the distinction, the words of Dr. Gavin Wood—one of Ethereum’s Co-Founders—might help:
“Bitcoin is first and foremost a currency; this is one particular application of a blockchain. However, it is far from the only application. To take a past example of a similar situation, e-mail is one particular use of the internet, and for sure helped popularise it, but there are many others.”
Ethereum is simply the application of blockchain for a completely different purpose.
Simply put, Ethereum is a blockchain-based decentralized platform on which decentralized applications (Dapps) can be built.
- Remember, blockchain is the structure the vast majority of cryptocurrencies run on. It’s a database with no central server that keeps track of every transaction and exchange.
- We’ll jump into decentralized apps—referred to as dapps–in greater detail later, but just know they are applications that serve a certain purpose to a user. Fasten your seatbelts, some of these dapps are amazing.
Ethereum’s appeal is that it is built in a way that enables developers to create smart contracts. Smart contracts are scripts that automatically execute tasks when certain conditions are met. For example, a smart contract could technically say, “pay Jane $10 if she submits a 1000 word article on goats by September 15, 2018,” and it would pay Jane once the conditions are met.
These smart contracts are executed by the Turing-complete Ethereum Virtual Machine (EVM), run by an international public network of nodes.
The cryptocurrency of the Ethereum network is called ether. Ether serves two different functions:
- Compensate the mining full nodes that power its network. This keeps things running smoothly at an administrative level.
- Pay people under smart contract conditions. This is what motivates users to work on the Ethereum platform.
If you’re still a little confused, don’t worry. The underlying technology is complicated even at a surface level.
By the end of this guide, you’ll have a better understanding of Ethereum than 99.999% of people out there… and that’s a pretty good start!
We’ll go over things such as how Ethereum functions, Ethereum’s history, and some of the exciting dapps running on the Ethereum platform.
In 2011, a 17 year old Russian-Canadian boy named Vitalik Buterin learned about Bitcoin from his father.
In 2013, after visiting developers across the world who shared an enthusiasm for programming, Buterin published a white-paper proposing Ethereum.
In 2014, Buterin dropped out of the University of Waterloo after receiving the Thiel Fellowship of $100,000 to work on Ethereum full-time.
In 2015, the Ethereum system went live.
In 2017, Ethereum hit a cap rate of $36 billion dollars.
Whether you’re looking at this from an investment standpoint, tech perspective, or witness to history; Ethereum is extremely exciting.
Buterin’s goal was to bring the same decentralization from Bitcoin to more than just currency. This could be accomplished by building a fully-fledged Turing-complete programming language into the Ethereum blockchain.
The Ethereum white paper goes into detail for some of the potential use cases, all of which could be built through decentralized apps on the Ethereum network. The list goes on and on:
- Token Systems
- Financial Derivatives
- Identity and Reputation Systems
- File Storage
- Centralized Autonomous Organizations
- Data Feeds
- Cloud Computing
- Prediction Markets
By building these apps on the Ethereum network, these dapps can utilize Ethereum’s blockchain instead of having to create their own.
Early blockchain applications like Bitcoin only allowed users a set of predefined operations. For example, Bitcoin was created exclusively to operate as a cryptocurrency.
Unlike these early blockchain projects, Ethereum allows users to create their own operations. The Ethereum Virtual Machine (EVM) makes this possible. As Ethereum’s runtime environment, the EVM executes smart contracts. Since every Ethereum node runs the EVM, applications built on it reap the benefits of being decentralized without having to build their own blockchain.
Smart contracts are strings of computer code capable of automatically executing when certain predetermined conditions are met.
Instead of requiring a single central authority to say “yay” or “nay,” these contracts are self-operated. This not only makes the entire process more effective, it also makes it more fair and objective.
For example, a simple smart contract use case would be:
- Jim wants to bet Sarah 100 Ether (ETH) that the price of ETH will be above $1000 on August 30th, 2018.
- They agree on a data feed to be used to determine the ETH price.
- They each escrow 100 ETH to a smart contract, with the winner taking the full 200 ETH.
- On August 30th, 2018 the data feed is queried and the contract immediately executes sending money to the winner.
Using the smart contract, there’s no need for Jim and Sarah to trust each other. They just have to trust the data feed.
Keep in mind that this is only a very simple example. Many smart contracts are extremely complex and can work wonders.
The takeaway: Smart contracts can automate a variety of tasks, without requiring intermediaries. All a smart contract needs is the arbitrary rules written into it.
Now, let’s move on to the Dapps.
Most of us have a pretty good understanding of what an application (app) is. An application is formally defined as a program or piece of software designed and written to fulfill a particular purpose of the user. We use apps every day: Apps allow us to check our bank balance, scroll through a live feed of pictures, or even launch a Flappy Bird into oblivion.
Now take this definition and ~*~decentralize~*~ it. Dapps serve similar functions, but run on an entire network of nodes rather than a central source. The fact that they are decentralized gives dapps an enormous advantage over traditional apps.
You know when Instagram is down because the server is down? This doesn’t happen with dapps. How about when Zomato got hacked and exposed the information of 17 million people? This doesn’t happen either.
Moreover, Dapps are:
- Open Source – Dapps allow users to view the app code on both the frontend and backend. No sketchy “allow us to use your location” nonsense unless otherwise stated.
- Autonomous – Dapps automatically act by the rules encoded into them. No room for outside corruption.
- Secure – Data and protocols are stored on the blockchain cryptographically. No hacks.
- 100% Uptime – The blockchain is always running, meaning zero downtime for dapps. No crashes.
- Easier to Implement – Developers wanting to take advantage of blockchain technology do not need to create a new blockchain. The framework is there, saving dapp creators a ton of time and effort spent creating a potentially subpar framework. In order to run on this decentralized network, dapps just pay transaction fees.
Building a global community.
Unless you bought Bitcoin (BTC) back in 2011 for approx. US$1.00, many new holders of small amounts of Bitcoin now cannot buy whole coins, instead they purchase fractions of a coin up to 8 decimals. Eg. If you want to buy US$100 worth of Bitcoin you would receive 0.01078399 of a Bitcoin. (based on BTC price of US$9,273 on 28th April 2018).
All allocated Bitcoin¹ tokens (BTC1) have now been released and allowed savvy investors the opportunity to purchase whole tokens for a fraction of the price of Bitcoin and own an exciting cryptocurrency with real potential of project and token growth.
As the Bitcoin¹ project progresses, a key milestone will be to have BTC1 tokens adopted for widespead use as an everyday, worldwide payment solution for goods and/or services.
Ultimately this mass adoption is expected to create significant demand for BTC1 and offer first round investors a grass roots opportunity in project and token growth, as well as to be part of a savvy, cosmopolitan global community.
Bitcoin¹ Decentralized Applications (ÐApps) and Projects
A major, worldwide marketing initiative will begin in Q4, 2018 for mass adoption by global merchants and service providers to accept and send payments for goods and/or services using BTC1 via our in-house developed multi-language Bitcoin¹ Mobile Wallet and income-generating Bitcoin¹ Merchant Platform and creation of a Bitcoin¹ branded, worldwide ATM debit card.
Bitcoin¹ Blockchain development underway
Development has begun for Bitcoin¹ to operate on its own Blockchain. The planned timeline for this is Q4, 2018. This means that Bitcoin¹ will transition from a token to a coin. Accordingly, BTC1 token holders will be rewarded with a 1:1 issue of Bitcoin¹ “Coin”. Obviously the outcomes of this are incredibly exciting and puts Bitcoin¹ on par with other cryptocurrencies like Bitcoin Cash, Monero, Litecoin, Dash, etc.