By Shivani Uppal on The Capital
When you enter the fascinating new world of crypto, one of the first questions you’re going to ask yourself is about the discrepancies between Ethereum and Bitcoin. It’s pretty complicated, isn’t it? You might think of Bitcoin and Ethereum, as many of us do, such as Apple and Microsoft crypto. However, unlike Apple and Microsoft, they are different from each other.
Basics of Ethereum and Bitcoin
Here we’re going to look at some of the basic features and details of Ethereum and Bitcoin.
- Launched in 2015, the commonly recognized Ethereum blockchain synonym is Blockchain 2.0.
- Smart contracts software transactions
- The smart contracts remove the need for third parties in a variety of processes, not just financial systems
- Provides a forum to develop intelligent contract apps better known as dApps
- It dispenses a programming language called Solidity to construct dApps
- Ether is the currency, empowers transactions on the Ethereum blockchain
- Ether is highly liquid with a trading value of $2.4 m in the last 24 hours
- Ethereum transactions take seconds to complete
- Set afloat in 2009, Bitcoin was the first cryptocurrency and the first blockchain technology to be used.
- Bitcoin’s a digital currency
- This seeks to address issues in global finance, also referred to as the People’s Bank
- Bitcoin does not require third parties, such as PayPal or a bank
- Designed as an alternative to regular / fiat currencies
- Used for manual transactions, such as purchasing goods/services or receiving money.
- It’s highly liquid, which means you can easily convert Bitcoin into cash.
- It takes only minutes to complete a bitcoin transaction.
Primary Differences Based on
Ether is built to fuel Ethereum’s network and power transactions, while Bitcoin is known to be the currency of real-world operations.
Think of digital currency when you think of Bitcoin. Speak of smart contracts when you talk about Ethereum. This is the trouble-free way to understand and remember the main difference between Bitcoin and Ethereum.
Bitcoin is a store of cash and a way to transfer money to someone else. Ethereum is also a way to give money to others, but only when certain events happen.
Ethereum also differs in that it serves as a building platform for dApps / smart contracts that allow it to submit value-representing tokens. Such values can be anything other than digital currencies, making them separate from bitcoin.
Ethereum is six years older and more advanced than Bitcoin.
The transactions of Bitcoin look like this:
John sends out 10 BTC (Bitcoins) to Lily.
The transactions of Ethereum run on smart contracts and look like this:
Send 10 ETH (Ether) from John to Lily if the balance of John is 20 ETH, and the date is 25.10.2019.
So, bitcoin transactions are manual, and the Ethereum transactions are automatic/programmable!
- Speed of Transaction
The time of the Ethereum block or transaction speed is only seconds. The block time of Bitcoin, however, is minutes.
- Coin Suppliance
Bitcoin is limited to 21 million coins. It provides a balanced supply and demand for a store of inventory. Ethereum, however, is not limited to this. Ether’s output is continuous. But the supply of Ether will slow down a lot over time. Many blockchain experts have claimed that the total number of coins would not be more than 100,000,000 ETH in the immediate future.
Who is Better, Ethereum Better or Bitcoin?
There are benefits of using both Bitcoin and Ethereum. Bitcoin has a smaller supply of coins and is more liquid than Ethereum, but Ethereum has better infrastructure and more applications than Bitcoin does. Based on the fact that Ethereum has more cases of usage than Bitcoin and thus serves a higher purpose, a conclusion can be drawn that it is a more robust overall Bitcoin alternative. It may not be the best bitcoin alternative, though, as other cryptocurrencies have the same intend as bitcoin and run on brand new technology and protocols. This is not to suggest that these other alternatives are better than Ethereum. It just means that if they’re more like Bitcoin, one of them may be the better bitcoin substitute. This doesn’t automatically mean that they’re a better alternative to Ethereum!
Who Has Better Technology?
The development of Blockchain is also in its early years. That’s why Ethereum and Bitcoin are getting continuous updates. Ethereum, however, is already a clear winner, as we saw above.
Can Ethereum and Bitcoin Co-Exist?
It is clear from the concept of Ethereum that it does not intend to be an alternative to Bitcoin. Alternatively, it runs alongside it as it runs after a particular target. With all this said, it is essential to note that although Ether is not supposed to be a store of value, it has become one. Here are a few examples of daily life:
- Tradable just like all other cryptocurrencies.
- Mining Ethereum vs. Bitcoin has become much closer to rivalry. Ether is being mined by more and more miners every day, which means that it is a highly coveted commodity.
- Businesses use the money to pay for their workers. Some firms embrace Ether as a form of payment, like Microsoft and Intel.
Bitcoin and Ethereum have very different objectives. Even if you’re not a severe crypto investor/trader, you’re not going to go wrong with buying BTC or ETH tokens. Both add tremendous value to the Crypto culture.
The best way to learn about Ethereum or to become a certified bitcoin expert is to toggle through courses available on our website blockchain council.