Bitcoin vs Ethereum: Which is Better?

Bitcoin vs Ethereum: Which is Better?

Bitcoin and Ethereum are undoubtedly among the most talked about cryptocurrencies, especially after the unprecedented late 2017 bull run pushed prices to unprecedented levels. Despite being among the leading and most popular cryptocurrencies, the technology behind each of them is remote. 

Bitcoin

In simple terms, Bitcoin is a peer-to-peer (P2P) distributed digital currency that can be instantly and securely transferred between two parties, regardless of their current location. You may send it to any other bitcoin user worldwide. Thus, it is essentially digital money. Satoshi Nakamoto, an unidentified person (or group of people), wrote a white paper in October 2008 that served as the basis for the introduction of Bitcoin. The title of the document is “Bitcoin: A Peer-to-Peer.

 BTC is based on blockchain technology. Blockchain represents a public registry that contains all transactions on a given system that have been performed. The log itself is stored across the network, and all need to be updated to update one. This open ledger holds the record of all previous transactions. The purpose of bitcoin mining is to confirm transactions to the rest of the network by adding them in blocks, as opposed to other parties.

This is crucial to understanding bitcoin. A transaction is added to the blockchain after it is sent and contained in a mined block. This cannot be modified or undone once it has happened. It continues to exist in the open ledger and is always available for inspection.

 Ethereum

If Bitcoin is to serve as a digital currency, Ethereum represents a decentralised platform running smart contracts. These are described as applications that run precisely as programmed without the possibility of fraud, censorship, downtime, or third-party interference. When it comes to Bitcoin vs Ethereum, this is one of the fundamental differences. Ethereum is not a currency; it is a platform. It has its digital currency called Ether (ETH).

Introduced in 2015, Ethereum is the largest open, decentralised software platform enabling the creation of distributed applications (dApps) and smart contracts.

The idea for the Ethereum platform came from Vitalik Buterin, a programmer from Toronto, Canada. However, the project in its current form was co-founded by Vitalik Buterin, Mihai Alise, Anthony Di Lorio and Charles Hoskinson. The former published the Ethereum yellow paper, while the latter founded ConsenSys, a company focused on decentralised applications.

Alternatives to Bitcoin

Many alternatives to Bitcoin have grown in value and popularity over the years. Interestingly, Bitcoin Cash (BCH) is the largest of them (in terms of market cap). Bitcoin Cash resulted from a hard fork (network split) on August 1st, 2017. In short, a group of Bitcoin community members wanted to increase the size of the Bitcoin block. The resulting change caused the network to split in two.

Another popular alternative to Bitcoin is Litecion (LTC). It is also a peer-to-peer digital currency that claims to bring instant and cheap payments to people worldwide. Monero (XRM) is another alternative to Bitcoin. It is a cryptocurrency that values security, privacy and the fact that it is said to be untraceable. Of course, there are plenty of other coins to use, but Bitcoin has long since established itself as the dominant market leader, accounting for nearly half of the total coin market cap.

Alternatives to Ethereum

As we have explained, Ethereum is more of a platform than a digital currency. As such, we would look at other designated platforms to enable the creation of decentralised applications. Like Bitcoin and Bitcoin Cash, Ethereum has weathered its internal disagreements. Ethereum Classic (ETC) is perhaps one of the most popular alternatives to Ethereum. It is the result of a hard fork that splits the network in two. Another popular alternative to Ethereum is NEO.

The NEO blockchain is perhaps the first to be launched as a dedicated, open-source blockchain-based project in China and is even commonly referred to as “Chinese Ethereum.”

Conclusion

As you can see, there are many things you should know about Bitcoin and Ethereum. While they are commonly regarded as the top two digital currencies, the truth is quite different. When venturing into cryptocurrency investing, making these fundamental distinctions is essential. Many projects that rank among the best in market cap have their designations, and not all are coins, although users commonly refer to them as such. Bitcoin and Ethereum are just two of the most notable projects in this field, but there are more than 2,000 different ones, and each has its specifications. If you are considering investing in cryptocurrencies, it is essential to conduct thorough due diligence to ensure that you are fully aware of the ins and outs of the project in question and its growth potential, thus justifying your investment in it.

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