Ethereum and bitcoins do not need an introduction if you have been following the crypto space very intently. However, if you have just started your venture in here, you may wonder what is the big difference? Both are blockchains and are a decentralized digital ledger.
Meanwhile, let’s have a quick glance over how to set up your cryptocurrency using blockchain technology
We shall throw some light into this question – Ethereum vs Bitcoin in this blog.
Bitcoin – The First Cryptocurrency
Bitcoin is a new world currency and a very innovative one too!
Bitcoin is the brainchild of Satoshi Nakamoto and is the first decentralized and fully functional cryptocurrency in the world.The process used is a peer to peer electronic cash system that is an alternative to fiat currency.
Network nodes in cryptography helps in validating the transactions of bitcoins and recorded on a blockchain, which is a public distributed ledger.. Well, this is relatively simple and solves the problems associated with double spending. Seems Satoshi wanted things very simple!
Proof of Work system helps in obtaining Bitcoin by means of mining. It is a very complex process that involves solving complex mathematical equations and solves block enters the blockchain and the entire community validates the transaction. A large infrastructure involving GUPs and processors are essential for the mining activities along with a huge power supply, since mining a single coin.
bitcoin wallets are made use of, to store, sent and receive bitcoin. Anyone can create a bitcoin wallet and you don’t need to give away any information about you like your name, address, age, nothing! You can be as discreet as you like. The only thing that matters is the Wallet address that is used for the transfer of the bitcoin. The whole transaction happens in just seconds to anyone in any part of the world.
Read more about Bitcoin Wallet Development – A Complete Guide
So, to sum it all up, censoring is not possible on Bitcoin or its Blockchain as it is purely money.
Ethereum – A Cryptocurrency and much more
Ethereum is the brainchild of Vitalik Buterin, a Russian-Canadian Cryptocurrency researcher. ETH is an open source platform based on blockchain technology. The platform enables developers to build and deploy a decentralized application.
It is not purely digital currency like Bitcoin. It can handle accounts and transactions like Bitcoin’s blockchain. In addition to that, it can also store and execute programmable logic.
Let us illustrate this aspect with the help of an example.
We consider the transaction of $500 between A and B based on certain conditions. A can exchange $500 from A’s account to B’s if A has more than $1000 in his account. Else, this transfer shall not take place. Codes of such kind are written, executed and stored on the Ethereum blockchain for future reference.
The transactions executed as per the above terms and conditions on Ethereum is called Smart Contracts.
Read more about Smart Contract Development
Ethereum can also be used for creating DApps. All these functionalities are executed using Ethereum Virtual Machine and codes of Smart Contracts and DApps are written in Ethereum’s native programming language called Solidity.
All of this is made on Ethereum Virtual Machine (EVM) with the aid of Ethereum’s native programming language Solidity. After that, the cryptocurrency asset called Ether helps in executing these apps and contracts.
For this reason, Ethereum also called programmable money.
In brief, it is not just a blockchain for transacting money. It is a decentralized programmable blockchain-based software platform that is coupled with its cryptocurrency asset called Ether – ETH which runs on the Ethereum network.
Ethereum realizes the true vision of decentralization. Currently, the world runs on third-party agencies. We place so much trust in them for enforcement of transactions and execution of contracts that it is almost unimaginable of a world where there will be absolutely no third party to ensure the proper execution of the business. They charge so much for their services so that they end up earning a major share of the profit.
Ethereum eliminates the need of such third parties and eliminates the possibility of a single point of failure or control. The whole system becomes faster and the cost of business will be reduced to a great extent.
The Ultimate Comparison – Ethereum VS Bitcoin
Here, we draw out a comparison between Ethereum vs Bitcoin on the basis of a few general criteria.
|Founder||Vitalik Buterin||Satoshi Nakamoto|
|Release date||30th July 2015||9th Jan 2009|
|Release method||Presale||Genesis Block mined|
|Blockchain||Proof Of Work(Planning the switch to POS)||Proof of Work|
|Usage||Smart Contract Digital Currency||Digital Currency|
|Blocks Time||12-14 seconds||10 minutes|
|Scalable||Yes||Not as of now.|
Well, to conclude we can say that they are not rivals in the first place. They address different purposes and work on the solutions in a very different manner. Bitcoins and Ethereum coexist in the crypto space and makes the system better each day.
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