Cryptocurrency is the current hot topic and talk of the town nowadays. Every enthusiast has come across the term Bitcoin and Ethereum because of the rapidly growing fame and engagement of the currencies. In the next few minutes, you would get introduced to and understand more about how these cryptocurrencies work? What’s the difference between them that we must be acquainted with? Which is a better option to open an account? The article is the answer to these questions.
But first, what exactly is Blockchain?
Think of it as a database of encrypted blocks of data and then chains them one after another. Both Ethereum and Bitcoin run on the technology called a blockchain. To explain in brief, blockchain is like a decentralized ledger of all the transactions in a particular currency. The validity and authenticity of every transaction are ensured by all the records.
Bitcoin was the very initial sincere cryptocurrency and has marked its beginning since 2009. Digital currency has created a means to transfer money between two people irrespective of their location globally. It also killed the possibility of users sending or receiving fake Bitcoin. Repeating the transaction of the same coin to another was also prohibited. The value of Bitcoin reached almost $65,000 In April 2021, starting from almost nothing in 2009.
Ethereum is a considerably newer evolution in this field, introduced in 2015. Ethereum varies in technology than others; Ethereum’s coin worth is attributed to as “Ether,” and its is bought and sold similar to Bitcoin and also utilized by investors to purchase into ICO opportunities. The Enterprise Ethereum Alliance is in agreement to unitedly study and build upon Ethereum’s blockchain technology, the “smart contract”.
Ethereum vs. Bitcoin
The distinction between Ethereum and Bitcoin is that:
Bitcoin is only a digital currency
But Ethereum is more of a ledger technology
A ledger technology means that many new programs are created by businesses with this technology.
One can say that Ethereum is more powerful than Bitcoin as it is much faster. It is unexpectedly swifter and quicker compared to Bitcoin. Its ability to finish the transaction in seconds which would take minutes in the case of Bitcoin.
Bitcoin shines as a peer-to-peer system of payments, decentralized.
However, Ethereum is excellent at developing distributed applications as well as smart contracts. While still blockchain-based, it is a step further and operating as a reserve of value; its supporters and preachers see it as a platform for distributed computing, with its built-in currency, called Ether.
The bitcoin blockchain can be portrayed as a database of statements(or wallets) with an amount of money collected in all. Still, Ethereum is a network blockchain, and its more sophisticated construction, intelligent, stores computer codes.
Bitcoin and Ethereum both have distinct networks.
While bitcoin was produced as a replacement for national currencies and thus strived to be a medium of exchange and a repository of value, Ethereum was designed as a network for irreversible, programmatic contracts and applications using its currency.
Both are different from others in some way, And selecting a better Bitcoin and Ethereum is entirely up to you.