Ethereum: Why can we have small fractions of a Bitcoin?
Ethereum: Why can we have small fractions of a bitcoin?
When you start to explore the world of cryptocurrencies such as Ethereum and Bitcoin, a question that occurs is usually because we cannot have small fractions of a bitcoin. The answer consists of technology and the basic principles that govern these digital currencies.
Bitcoin limitation
One of the main reasons why Bitcoin cannot be divided into smaller parts is due to its limited supply. According to the original design of Satoshi Nakamoto, there will be only 21 million bitcoins, computers from all over the world. This shortage is designed to avoid inflation and to maintain the value of each currency.
When a new block is extracted from the Bitcoin network, it includes an exclusive code known as “hash block”. The block hash serves as a work test (POW) that connects all the previously extracted blocks, creating a block chain called blockchain. As several blocks are added to the chain, the level of difficulty in solving the prisoners of war increases exponentially.
To solve the next block, the network nodes must compete to find a hash that meet certain conditions, such as a product of a specific number of numbers and have a number of leader zeros. The first knot that found a valid hash adds the new block to the blockchain, and this process is endlessly repeated.
Limiting Bitcoin Fraction
Now, here things become interesting. When you try to divide a bitcoin into smaller fractions, the blockchain code ensures that each fraction has an exclusive code associated with it. This is done using a concept called “hash separation”, which divides the block hash into 2^256 bits (or approximately 1,125 gigabyte).
To put this in perspective, imagine -take the entire Bitcoin network and divide it into smaller pieces, each representing a fraction of a currency. The resulting number would be astronomical – an unfriendly number that would probably be too small to be practically useful.
Why Fractional Bitcoin is not practical
There are several reasons why Bitcoin fraction is not practical:
1.
- Safety : Blockchain fragmentation increases the risk of attacks and explorations, which makes it more difficult to maintain the integrity of the network.
- Scalability : As the number of users and transactions in the Bitcoin network increases, the same is true for the calculation power needed to solve Bonds Pow. Bitcoin fraction would require more resources, forcing the infrastructure.
Ethereum solution
In order to address these limitations, Ethereum, an alternative popular platform blockchain, introduced the concept of “gas” in its 2015 intelligent contractual standard. Gas is a measure of the necessary calculation effort to perform a specific network segment. When using gas, developers can create fractions of a cryptocurrency without compromising safety or scalability.
The Ethereum gas system allows fractional transactions, offering a way to divide the calculation effort into several knots on the network. This allows users to share the fractions of their assets safely and practically.
Conclusion
Although it may seem against Bitcoin it can be divided into smaller parts, the basic technology is designed to prevent this. The lack of bitcoin, combined with the complexity of the blockchain, ensures that the fractional transactions are not practical or viable. However, understanding how the Ethereum gas system works, developers and users can explore alternative solutions for fractional transactions on other platforms.
