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

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

Cryptocurrency will not just appear on your wallet from thin air. There has to be an initial transaction to bring bitcoin into the wallet. There are several ways, but the simplest is to exchange currency dollars, euros, or rupees for a few cryptocurrencies to fiat. Think of these exchanges like a stock market for crypto. 

The marketplace is still new and it is not bound by the 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 cryptocurrencies, regulated and approved money 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. Among the biggest bitcoin exchanges, Mt. Gox had a number of its bitcoin 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 initial exchange, a great bet is Coinbase, a U.S.-based cryptocurrency exchange with over 8 million users, operating in 32 countries around the world. Then next in the line is Binance.

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 less control on any cryptocurrency you've on any crypto exchanges. There are many other exchanges such as Binance, Kraken etc. These exchanges support a larger number of cryptocurrencies. 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 that 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.
Uses BlockChain
Uses BlockChain

Uses C++ language
Uses Turing complete language

'bitcoin' lowercase term refers to currency
‘ether’ is the currency

'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

Block time 10 minutes
Block time 14 seconds for faster transactions

Uses proof-of-work concept to create and add those bitcoins to open ledger
Ethereum operates using the proof-of-work algorithm called ethhash. Ethereum working towards a proof-of-stake model

BitCoin rewards are halved every four years. 25 Bitcoin per block; Reward halves every 210,000 blocks. 
Ethereum rewards 5 ether per mining block.

The cost of a transaction are limited by block-size and compete against each other
The 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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