One way to use blockchain is to transform Bitcoin. These variations are advertised as better or more advanced versions than the original Bitcoin, and are also called Altcoin.
the blockchain system can be applied beyond cryptocurrency. There have been many novel ideas based on structures worth billions of dollars.
Ethereum: Ethereum is a virtual currency applied to Bitcoin as Bitcoin was applied to existing credit currencies. Ethereum provides infrastructure so that apps can run without a central server. Like Bitcoin, it relies on nodes on the Internet. In this case, the node provides the CPU required to run the app. To prevent abuse and eliminate low-quality apps, Ethereum requires apps to pay for currency called ether. Code developed in the Ethereum network is executed by software called Ethereum Virtual Machine. Developers use Smart Contracts to develop apps, which are executed automatically when certain conditions are met. An example of a smart contract is automatic delivery of products when payment is completed. The Ethereum app is called a Decentralized Application (DAP), and hundreds of apps have been successfully launched. Examples of the app include digital signature apps, prediction software, electric car charging management, and online gambling sites.
Ripple: If Bitcoin is for the general public, Ripple is for banks and payment management services. Currently, banks use a protocol called SWIFT (International Interbank Communications Agreement), which requires intermediary intervention. Changes in the exchange rate sometimes delay transactions. Ripple helps financial institutions process, pay, and exchange payments in real time at no high cost. Although not officially employed, many banks have already begun using Ripple in the clinical stage. The important difference between Ripple and Bitcoin is that it does not allow everyone to participate in the network. Computers must prove themselves and obtain permission to participate. In this respect, Ripple cannot be said to be a true decentralized and open currency.
