This report is based on a project which investigates Bitcoin and Ethereum, the two largest cryptocurrencies. Based on theoretical and analytical research Bitcoin and Ethereum is explained regarding what they are, the incentive to use them and how they are used. The report is written from the perspective of the users.
Furthermore, cryptocurrency mining and blockchain forking, or chain splitting, are explained, which is respectively the process responsible for the production of new coins to come into circulation as well as the processing of transactions and a process a cryptocurrency can go through when it is being updated or changed.
The report also contains an analytical comparison of Bitcoin and Ethereum from the perspective of the user’s in which strengths, weaknesses, opportunities and threats have been identified and compared.
The report also contains a discussion-chapter in which a short interview with Ville Sointu, Head of DLT and Blockchain at Nordea have been conducted and discussed, to get an insight of the financial world’s perspective of cryptocurrency and the underlying technology – the blockchain, as well as to get an idea of how cryptocurrency can be regulated to make it safer and easier for the average user.
Furthermore, technological and environmental challenges that cryptocurrency is currently facing or will potentially face, is discussed.
Lastly, I have been able to draw conclusions about the advantages and disadvantages of Bitcoin compared to government issued currency from the perspective of the users, as well as how Bitcoin and Ethereum affects, or will affect, the life of individual people.
|Uddannelser||Informatik, (Bachelor/kandidatuddannelse) Kandidat|
|Udgivelsesdato||19 dec. 2017|
|Vejledere||John Patrick Gallagher|