Bitcoin and Ethereum are both digital currencies that allow users to transact directly with each other without the need for a third party. Bitcoin is the first and most well-known cryptocurrency, while Ethereum is a newer platform that allows for more complex smart contracts.
Both bitcoin and Ethereum have been designed to counter some of the perceived flaws in older financial networks. These decentralized currencies are not regulated by the state or the banking systems.
These difference sets it apart and resulted in various debates stating that BTC and ETH should compete. Bitcoin and Ethereum are two of the most popular cryptocurrencies available on the market today. Bitcoin was launched in 2009, while Ethereum began trading in 2015. Both have their strengths and weaknesses, but which one is right for you? This blog post will help answer that question by breaking down the key differences between bitcoin and Ethereum.
The basics diffrences
Bitcoin is the first and most well-known cryptocurrency, while Ethereum is a newer platform that allows for more complex smart contracts.
When it comes to market cap, Bitcoin is the most popular cryptocurrency. There are currently over 800 alternate cryptocurrencies, but Bitcoin makes up the biggest chunk of the entire market cap for all digital currencies. Ethereum is a distant second.
Bitcoin transactions are irreversible, while Ethereum’s can be reversed under certain circumstances – but there is no risk of fraudulent chargebacks like with credit cards. Both currencies allow users to remain somewhat anonymous if they choose, though some exchanges require customers to undergo KYC (know your customer) verification.
Speed and fees
As cryptocurrencies, both bitcoin and Ethereum are designed to be used as digital money around the world – so the speed is a major consideration for both currencies. Bitcoin is significantly faster than its rival, averaging about seven transactions per second (TPS) compared to just two TPS on Ethereum. This means that you’re more likely to get your Bitcoin transactions confirmed quickly.
The Bitcoin network also has lower fees than Ethereum. The average fee for a Bitcoin transaction is currently around $0.30, while the average fee for an Ethereum transaction is closer to $50-100. However, Ethereum’s network is growing faster than Bitcoin’s and its fees are expected to decline in the coming months.
The key difference between Bitcoin and Ethereum is their use of smart contract technology. A smart contract is essentially an agreement (in the form of a program written in code) that facilitates, verifies, or enforces the negotiation of a contract – all without third-party intervention. This allows for more secure transactions with lower costs than traditional contracts.
Bitcoin uses a scripting language to implement its smart contract technology, while Ethereum’s programming languages are Turing complete and allow for any type of programming logic. This means that developers can create decentralized apps (Dapps) on the Ethereum blockchain in almost any computer language – including C++, Go, Python, Haskell, etc.
Since Ethereum’s launch in 2015, it has become the platform of choice for developers looking to create Dapps. Over 500 different Dapps are currently in development on the Ethereum blockchain, compared to just a handful on Bitcoin.
Bitcoin vs Ethereum: Conclusion
At the end of the day, which cryptocurrency you choose depends on what you want to use it for. Bitcoin is faster and has lower fees, while Ethereum allows for more complex smart contracts. If you’re looking to invest, Bitcoin is currently the more popular option but Ethereum’s growth suggests that it may catch up in the future.