Bitcoin is the pioneer in cryptocurrencies. However, Ethereum has become quite popular when it comes to the usage of the blockchain. As a result, there is a constant comparison between Bitcoin and Ethereum. Instead of comparing them head-on, it is a much better idea to look into the uses of both. Only when you are able to look into the uses, it will become easier for you to understand which one is better.
One thing which you cannot take away from Bitcoin is that it is the pioneer cryptocurrency. It was launched in 2008. As a result, it is one of the most popular cryptocurrencies still date. Also, it is widely used all over the world as well. The usage of Bitcoin is much more than any other cryptocurrency. That is why Bitcoin is gaining a lot of traction. In addition to that, it has become almost synonymous to cryptocurrencies.
The blockchain is the technology which is powering the cryptocurrencies. With the help of blockchain, blocks of data can be easily verified. As a result, the transactions can be verified. That is why each and every cryptocurrency works on the blockchain technology. This is where the usability of blockchain technology increases. It is not just useful in verifying the transactions which can be used for the variety of other purposes. As a result, you can use it to execute the smart contracts as well.
Ethereum is making use of the blockchain. Moreover, it is advancing its blockchain such that it can be used for the decentralized applications. The execution of the smart contracts is also made possible with the help of Ethereum. This is the reason why Ethereum is gaining such a lot of traction. In addition to that, the developers will be able to develop the decentralized applications quite easily. When the decentralized applications are developed, the users will increase as well.
Bitcoin vs. Ethereum:
When you’re comparing both of them, you will realize that Bitcoin is actually used more as a currency. Ethereum, on the other hand, is used for its blockchain powers. This is the reason why even though both of them are cryptocurrencies but the usage which they both have is completely different. As the traction of blockchain is increasing, the usability of Ethereum will increase even more in the future. That is why, if you’re looking to invest for a longer period of time, you should definitely look at Ethereum. When you look at Ethereum, automatically you will realize that the potential is plenty.
It is time that you start looking at Ethereum for a longer term investment. The blockchain of Ethereum is pretty versatile. This is the reason why you should always look at Ethereum for a longer term investment. Keyword: Ethereum, Bitcoin, blockchain, bitcoin vs ethereum reddit, bitcoin vs ethereum price, ethereum vs bitcoin investment, bitcoin vs ethereum chart, bitcoin vs ethereum vs litecoin, ethereum vs bitcoin mining
Ethereum Vs Bitcoin: What’s The Main Difference?
While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its additional features and applications.
Ethereum: More Than Just Money
The first thing about Ethereum is that it is not just a digital currency. It is a blockchain-based platform with many aspects. It features smart contracts, the Ethereum Virtual Machine (EVM) and it uses its currency called ether for peer-to-peer contracts.
Ethereum’s smart contracts use blockchain stored applications for contract negotiation and facilitation. The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum’s smart contracts aim to provide greater security than traditional contracts and bring down the associated costs.
The smart contract applications are powered by ether, Ethereum’s blockchain based cryptocurrency. Ether, as well as other crypto-assets, are held in the Ethereum Wallet, which allows you to create and use smart contracts. The system has been described by the New York Times as..
“a single shared computer that is run by the network of users and on which resources are parceled out and paid for by ether.”
Implement Smart Contracts With Your Own Cryptocurrency
Ethereum allows you to create digital tokens that can be used to represent virtual shares, assets, proof of membership and more. These smart contracts are compatible with any wallet, as well as exchanges that use a standard coin API. You can copy the code from Ethereum’s website and then use your tokens for many purposes, including the representation of shares, forms of voting and also fundraising. You can either have a fixed amount of tokens in circulation or have a fluctuating amount based on predetermined rules.
You Don’t Need Kickstarter When You Have Ethereum
One great feature of Ethereum is that it gives developers a means to raise funds for various applications. For your new project, you can set up a contract and seek pledges from the community. The money that is raised will be held until the goal is reached or until an agreed upon date. The funds will be released back to the contributors if the goal is not met, or go on to the project if it is successful. Kicking out Kickstarter means that the third party is taken out, along with their rules, and also the fees they charge (when you include processing fees, Kickstarter can take up to 10% of a project’s budget).
Skip the Traditional Management Structure With Democratic Autonomous Organizations
Not only can Ethereum help you source funding, but it can also help to provide the organizational structure to get your idea off the ground. You can collect proposals from the people who backed your project and then hold votes on how you should proceed. This means that you can skip the expense of a traditional structure, such as hiring managers and doing paperwork. Ethereum also protects your project from outside influences, while its decentralized network means that you won’t face downtime.
The Finer Details: Differences Between Ethereum and Bitcoin
There are also many smaller aspects that differ between the two blockchain-based projects. Bitcoin’s average block time is about 10 minutes, while Ethereum’s aims to be 12 seconds. This quick time is enabled by Ethereum’s GHOST protocol. A faster block time means that confirmations are quicker. However, there are also more orphaned blocks.
Another key difference between them is their monetary supply. More than two-thirds of all available bitcoin have already been mined, with the majority going to early miners. Ethereum raised its launch capital with a presale and only about half of its coins will have been mined by its fifth year of existence.
The reward for mining Bitcoin halves about every four years and it is currently valued at 12.5 bitcoins. Ethereum rewards miners based on its proof-of-work algorithm called Ethash, with 5 ether given for each block. Ethash is a memory hard hashing algorithm, which encourages decentralized mining by individuals, rather than the use of more centralized ASICs as with Bitcoin.
Bitcoin and Ethereum also cost their transactions in different ways. In Ethereum, it is called Gas, and the costing of transactions depends on their storage needs, complexity and bandwidth usage. In Bitcoin, the transactions are limited by the block size and they compete equally with each other.
Ethereum features its own Turing complete internal code, which means that anything can be calculated with enough computing power and enough time. Bitcoin does not have this capability. While there are certainly advantages to the Turing-complete, its complexity also brings security complications, which contributed to the DAO attack in June.
Ethereum and Bitcoin: Two Very Different Beasts
While many will compare the cryptocurrency aspect of both Ethereum and Bitcoin, the reality is that they are vastly different projects and have different intentions. Bitcoin has emerged as a relatively stable digital currency, while Ethereum aims to encompass more, with ether just a component of its smart contract applications.