Bitcoin, cryptocurrency, Ethereum, and Blockchain are some of the most hyped around technologies one can possibly think of. But today will be talking about the difference between Bitcoin and Ethereum. You won’t believe it but these two are some of the most confusing terms which we were asked by so many of you guys. So, we thought it would be better to provide our readers with something they can look up to.
For starters, the latest tell you that both Ethereum and Bitcoin have some similarities. The first and foremost would be their connection to digital currency trades that are carried away through online exchanges. Not only that but both of them are stored in various types of cryptocurrency wallets.
That’s just not it, both Bitcoin and Ethereum are decentralized which means they are not issued or regulated by any central bank or any sort authorities. The most crucial similarity among them is the technology they use, which is none other than Blockchain. In case you are planning on implementing these technologies in your brand/business, then do make sure to hire a Blockchain App Development Company.
Those were some of the similarities which you as a curious individual should know about. Since this article is all about this distinction between the two most popular cryptocurrencies, let’s not waste more time and get right into the differences between Bitcoin and Ethereum (ether).
Everything about Bitcoin
We were first introduced with Bitcoin in January 2009. It came out as an offering of online currency that could be secured without any Central authority that made it different than the government-issued currencies. There are no physical Bitcoins, do anything you will have is a balance which is associated with the cryptographically secured public ledger. Bitcoin is said to be the most successful early efforts of online currency which later become a virtual decentralized currency that gained acceptance among regulators and various government bodies. In 2017 when cryptocurrency was on top of the world, the Bitcoin market value was accounted for close to 87% of the total cryptocurrency market.
Everything about Ethereum
Ethereum is relatively a new concept when compared to Bitcoin as it was launched in 2015. In just a matter of time, it managed to become the largest and most well-established open-ended decentralized software platform. It has the capability to deploy smart contracts and decentralized applications without any downtime, fraud, or any sort of interference from a third party. Ethereum has its own programming language which is known to be running on Blockchain. It also enables blockchain developers to build and run distributed applications without any hassle whatsoever.
What Sets Them Apart?
Though there are so many similarities between Bitcoin app development and Ethereum, both of them share so many differences as well.
For instance, whenever you carry out transactions on Ethereum you may end up with executable code. While Bitcoin, on the other hand, has network transactions that are generally meant for keeping notes. One of the major difference amongst them is the block time. A transaction carried out in ether is more likely to get confirmed in seconds while transactions on Bitcoin can take up a couple of minutes for confirmation.
Bitcoin came out as an emergence of a new form of digital money that could operate itself outside the control of the government.
Just after its launch, people started to realize that Bitcoin could be utilized for a handful of other purposes.
Applications and contracts of Ethereum are powered by ether which is said to be the Ethereum network currency.
Ether was introduced as a platform to complement Bitcoin but emerged itself as a competitor in the world of cryptocurrency.
Also Read: Best Tools for Blockchain Development in 2020
Another difference is the motive behind the creation of these systems. Bitcoin was created as an alternative to national currencies and to become a medium of exchange and store of value. The motive behind creating Ethereum was quite different. It was introduced as a platform to facilitate immutable and programmatic contracts via its own currency.
Both Bitcoin and ether are digital currencies but people often get confused with their primary purpose. They often think that both these systems were introduced as an alternative monetary system, which is further from the truth. They were introduced just to facilitate and monetize the operations carried out by the Ethereum smart contract and decentralized application platform.
Considering the fact that Ethereum is yet another use case of Blockchain which actually supports the network of Bitcoin, it would be better not to compare it with Bitcoin. Lastly, you should know no that the ecosystem of ether is much smaller when compared to that of Bitcoin’s. In fact, Ethereum’s market was valued under $16 billion while Bitcoin’s market was placed at a whopping value of $147 billion.