Bitcoin money pots
We chose to implement an online money pot in Ethereum, a kind of blockchain that focuses on smart-contracts instead of money transfer. This article demonstrates how we can leverage Ethereum to develop this use-case. If you are not familiar with any of these concepts, you should first read this article French which presents an overview of these notions. If you already know of them, you can skip this paragraph.
These contracts are actually code representing business processes. Just like Bitcoin, all transactions are charged. Some additional fees are added so that a transaction gets validated and added to the blockchain. Online money pots have known a blazing success these last few years, 2 famous examples being Leetchi created in and Le pot commun created in A money pot can be created to celebrate a birthday, to make a gift, or even to finance construction works after a flood.
Most of the online services are available for free, but a free service can be very lucrative. In these cases, the user is not the consumer, but he is the product itself. Existing online money pots which do not draw off commissions have another way to make money, because they require to use VISA, Paypal or other vendors for transactions, vendors usually not free.
They count on our trust to deal the collected amounts to the proper person when the money pot is closed. Ethereum can provide a transparent, auditable and almost free money pot. With Ethereum, the money pot is written as smart-contracts. When they are deployed to the blockchain , everyone can interact with them. It received its name in honor of the Internet meme Doge. If we compare Dogecoin with other crypto-currencies, the main peculiarity will be its fast production schedule.
This currency grew its popularity as Internet tips. Dogecoin community is famous because of their charity — they have fundraised sufficient sums for the Jamaican Bobsled Team to enter Winter Olympic Games and then other sportsmen. This ranking is not based on market capitalization of crypto-currency — the cap chart looks different and changes every month Bitcoin, however, still takes the first place.
This has been just the subjective ranking and a try to compare Bitcoin with other crypto-currencies. There is already a big amount of crypto-currencies on the market, but the most famous and widely used is still Bitcoin. However, the recent problems with Bitcoin blockchain have shown that the effectiveness of some transactions can sometimes limp. The users and the developers are concerned not only by effectiveness decrease, but also a protocol involved into the current problems.
Ethereum, that uses another protocol, is in good standing and has gained a good reputation among crypto-currencies. It shows a good work on many points and the dynamic growth perspective. But is it enough to cripple the monopoly of Bitcoin? He explained that, in contrast to Bitcoin, where the block size is a constant and to change it the oral agreement of the whole community and the update of the whole software is needed, in the Ethereum network miners can easily vote for the increase and decrease of block size, since such mechanism has been laid into platform from the very beginning.
The co-founder of Cashilla, Jani Viljavec also believes in Ethereum. But the announced release of the next stable version Homestead and the regular good news about the applications working on Ethereum have offered their mite. He is sure that Ethereum is on the more winning side that Bitcoin since it is a system where the decentralized applications can work, and not only financial and exchange operations can be carried out.
Aleksandar Matanovic, the founder and CEO of EC District, stated that during the time when Bitcoin had no competitors, it progressed a lot, and now other crypto-currencies must catch up with it. Ethereum is just at the beginning of the long way, but it is able to challenge the Bitcoin expansion. The founder of CryptoPay George Basiladze also marked the potential of Ethereum, provided it will constantly update the protocol.
During several decades the world has been shaken by several technological revolutions. We were the witnesses of the Internet creation, saw the rapid development of computer technologies, and now the market is awaiting the splash of interest to the development of network technologies in the sphere of finances and bank services.
The new object of mass interest — the blockchain technology. At the basis of this technology lies the idea of the distributed database, the verification of transactions in which is provided by the thousands of users simultaneously. They confirm the validity of the changes put in into the base, so it is impossible to forge them.
Blockchain technology can become a new wave that will bring thousands of startups to the top. Blockchain owns such characteristics that were peculiar for the operating system with open source Linux or Skype that used P2P protocol.
This means a high level of security, open infrastructure, comparative cheapness, decentralization, and the absolute clearness of all operations. Who can be interested in such demonstration? In addition, this technology is used for micro- and mini payments, which earlier was not interesting for banks at all.
Blockchain allows to transfer a small sum for a small commission or without it at all. This would sufficiently simplify the possibility of right holders to receive payment for the content. One should agree that it is not hard to pay 10 cents for the book or music, but today this procedure is so bulky, that it is much easier to upload a pirate version.
Right now Bitcoin is most commonly used for such payments, the number of transactions increases steadily. One more possibility opens to banks — the system of client authentication. The verification of a client by one of the member banks would automatically remove the necessity of such actions for other members of the project.
Banks started out the acquisition of blockchain, but the usage of this technology can be widened more. One can only mention the possibility of using blockchain as an alternative financial system in case of global cataclysms. The system of verification right on assets and properties is in the near future of the blockchain technology, and crypto-currencies also evolve in this direction.
How to get free Bitcoins? This is the question that worries newcomers to the mysterious and exciting world of crypto-currencies. It is easy to answer this question — use Bitcoin faucets. They do not generate fantastic sums, however, they still share free Bitcoins with you.
The analogy with water drops is perfect, since, to collect the needed quantity of water to drink, you have to wait quite a bit. The situation is the same with Bitcoin: Why Bitcoin faucets are needed?
They are used to attract users to the website.