BitCoin Vs Ethereum

BitCoin Vs Ethereum

Bitcoin and Ethereum are some of the most popular cryptocurrencies out there. Bitcoin being first on the run has a massive advantage but Ethereum is not that far behind in the race. There are hundreds of cryptocurrencies available for trade. Get the list of all cryptocurrencies here.

We already covered the basics of blockchain in our previous post viz. 10 Things You Should Know About Blockchain and it's a quick primer for the technology that backs Bitcoin.

If you've seen Bitcoin, Ethereum's upward momentum, together with cryptocurrencies, you've also contemplated getting in on the activity. Thus out of so many cryptocurrencies, Ethereum, and Bitcoin, maybe the way to transact on the internet. Nevertheless, the rise of cryptocurrencies is a moment for technology. When you wish to purchase Bitcoin or Ethereum, it is worth knowing how cryptocurrencies all work. 

Bitcoin or Ethereum will not just appear in the wallet from thin air. There has to be an initial transaction to bring Bitcoin and Ethereum into the wallet. There are several ways, but the simplest is to exchange your fiat currency such as dollars, euros, or rupees for a few bitcoin or ethereum. We can think of these bitcoin exchanges a like a stock market for crypto. 

The bitcoin and ethereum marketplaces are still new and called crypto exchanges. These Bitcoin exchanges are not bound by any laws and regulations as the stock exchange. So there is a risk and it is a barter trade just like ancient days except that in order to buy bitcoin or ethereum, regulated fiat currency needs to be exchanged. The cryptocurrency markets have matured in the latest years, but there is still a lot that may go wrong. 

There's always the potential for user error that may send out your cryptocurrency to unknown address. Among the biggest bitcoin exchanges, Mt. Gox had lost almost 750,000 of its customers' bitcoins, and around 100,000 of its own bitcoins, and it went bankrupt. A crypto market crash due to the security breach at Mr. Gox exchange caused Bitcoin to lose it's 70% of its value.

If you're searching for your bitcoin and ethereum exchange, a great bet is Coinbase, a U.S.-based cryptocurrency exchange. It serves over 8 million users, operating in 32 countries around the world though it is not avilable in India. Then next in the line is Binance crypto exchange.

The basic requirement to access cryptocurrency in any wallet is a cryptographic key. On crypto exchange accounts, you cannot access your cryptographic keys, and hence there is a less control on any cryptocurrency address at crypto exchanges. There are many other exchanges such as Binance, Kraken etc. These exchanges support a larger number of cryptocurrencies including Bitcoin and Ethereum. You choose how much money you would like to spend, and which cryptocurrency you would like to purchase. Before you open an account and purchase your first cryptocurrency, you have to think hard and long why you need it, to begin with. All cryptocurrencies are incredible of value and grow very quickly, but being ready to lose a large proportion as there is a risk you have to take if you are intrigued in trading. 

There are various mobile wallets, like Coinomi, that support a lot of cryptocurrencies.

Having said enough about cryptocurrencies let's dive into the side-by-side differences of Bitcoin Vs Ethereum. 

NOTE: The page contents will be progressive in nature. We will update the contributor column if there are any distinct corrections/additions notified in the comments below.

Sr. No.
Bitcoin is claimed to be first cryptocurrency leveraging Blockchain
Ethereum leverages Blockchain to support non-currency usages though ethereum token is traded and just second to Bitcoin in terms of marketcap.

Bitcoin uses C++ language
Ethereum uses Turing complete language

'bitcoin' lowercase term refers to currency and represented with BTC symbol
Ethereum's currency is "ether" and represented with ETH symbol.

'Bitcoin' term refers to the protocol
Ethereum is the protocol

bitcoin's intention is to deal with value/money and meant to act as a currency
Ethereum's intention is to support decentralized applications such as smart contracts

Bitcoin's blockchain network block time 10 minutes
Ethereum's blockchain network block time 14 seconds for faster transactions

Bitcoin leverages proof-of-work concept to create and add those bitcoins to open ledger
Ethereum operates using the proof-of-work algorithm called ethhash. 

Ethereum is also working towards a proof-of-stake model

Bitcoin rewards are halved every four years. 

Ethereum rewards 5 ether per mining block.

Bitcoin's cost of a transaction are limited by block-size and compete against each other
Ethereum's cost of a transaction is called GAS and depends on storage needs, complexity, and bandwidth usage.            

Are there any distinct differences between BitCoin Vs Ethereum? Notify everyone in the comments below and will be updated with the contributor's name in the above table.

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Mandar Pise Opinions expressed by techsutram contributors are their own. More details

Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.

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