Why Bulleon chose Ethereum ERC20?
To better understand the Ethereum ERC20 token standard, it is essential to know why it is difficult to create new applications and currencies in the original Bitcoin Blockchain. The Bitcoin Blockchain has some problems that make it a bad choice for ICOs. These problems are highlighted below.
1. Bitcoin Blockchain is not a more general-purpose program: What distinguishes Bitcoin from not being a more general-purpose program is its design as a monetary system. Therefore, the ledger of the account balance is its internal program state. This means we can easily set up a new Bitcoin wallet for our ICO, but writing a program that calculates and distributes the tokens on top of that wallet is difficult. So, to execute ICO contracts, a more general-purpose program state is needed
2. Security Issues: Talking of security, Bitcoin cannot be referred to as a Turingcomplete scripting system. This is because a Turing-complete scripting system can find answers to any computable problem when given enough time and memory. In general, two things are required by a Turing-complete scripting system: firstly, the ability to repeat or ignore instructions when certain conditions are met, and secondly, the ability to store data as a variable. Indeed, Bitcoin Blockchain is not a Turingcomplete scripting system.
One of the main reasons why Bitcoin is not a Turing-complete system is because it does not support programming loops as a security measure. The programming loops will activate a DOS (denial of service) attack because the attacker can tell the miners to make infinite loops. However, this is a problem when it comes to implementing ICOs, because loops allow developers to check and recalculate data. An effective crowdsale requires the calculation of the total contribution after each new investor, then the closing of the ICO is determined after certain conditions have been met, and the tokens are distributed to investors during ICO based on an algorithm.
3. Longer Block time (Slow Confirmation): Finally, the block time of Bitcoin is too long for a cryptocurrency or ICO to be feasible or achieved. At 10 minutes per block, transactions could take over an hour to clear and then be verified after they are few blocks deep within the chain. This means that new contributions to the crowd-sale will only be checked after one hour, and any later ICO steps will be postponed or delayed.
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