Bitcoin vs. Ethereum: What's the Difference?
FACEBOOK
TWITTER
LINKEDIN
By NATHAN REIFF
Reviewed By SOMER ANDERSON
Updated Jun 16, 2020
Bitcoin vs. Ethereum: An Overview
Ether (ETH), the cryptocurrency of the Ethereum network, is arguably the second most popular digital token after bitcoin (BTC). Indeed, as the second-largest cryptocurrency by market cap, comparisons between Ether and BTC are only natural.
Ether and bitcoin are similar in many ways: each is a digital currency traded via online exchanges and stored in various types of cryptocurrency wallets. Both of these tokens are decentralized, meaning that they are not issued or regulated by a central bank or other authority. Both make use of the distributed ledger technology known as blockchain. However, there are also many crucial distinctions between the two most popular cryptocurrencies by market cap. Below, we'll take a closer look at the similarities and differences between bitcoin and ether.
KEY TAKEAWAYS
Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation.
With time, people began to realize that one of the underlying innovations of bitcoin, the blockchain, could be utilized for other purposes.
Ethereum proposed to utilize blockchain technology not only for maintaining a decentralized payment network but also for storing computer code which can be used to power tamper-proof decentralized financial contracts and applications.
Ethereum applications and contracts are powered by ether, the Ethereum network’s currency.
Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges.
Bitcoin Basics
Bitcoin was launched in January of 2009. It introduced a novel idea set out in a white paper by the mysterious Satoshi Nakamoto—bitcoin offers the promise of an online currency that is secured without any central authority, unlike government-issued currencies. There are no physical bitcoins, only balances associated with a cryptographically secured public ledger. Although bitcoin was not the first attempts at an online currency of this type, it was the most successful in its early efforts, and it has come to be known as a predecessor in some way to virtually all cryptocurrencies which have been developed over the past decade.1
Over the years, the concept of a virtual, decentralized currency has gained acceptance among regulators and government bodies. Although it isn’t a formally recognized medium of payment or store of value, cryptocurrency has managed to carve out a niche for itself and continues to coexist with the financial system despite being regularly scrutinized and debated.
At the start of the cryptocurrency boom in 2017, Bitcoin’s market value accounted for close to 87% of the total cryptocurrency market.
Ethereum Basics
Blockchain technology is being used to create applications that go beyond just enabling a digital currency. Launched in July of 2015, Ethereum is the largest and most well-established, open-ended decentralized software platform.
Ethereum enables the deployment of smart contracts and decentralized applications (dapps) to be built and run without any downtime, fraud, control or interference from a third party. Ethereum comes complete with its own programming language which runs on a blockchain, enabling developers to build and run distributed applications.
The potential applications of Ethereum are wide-ranging and are powered by its native cryptographic token, ether (commonly abbreviated as ETH). In 2014, Ethereum launched a presale for ether, which received an overwhelming response. Ether is like the fuel for running commands on the Ethereum platform and is used by developers to build and run applications on the platform.
Ether is used mainly for two purposes—it is traded as a digital currency on exchanges in the same fashion as other cryptocurrencies, and it is used on the Ethereum network to run applications. According to Ethereum, “people all over the world use ETH to make payments, as a store of value, or as collateral.”2
Key Differences
While both the Bitcoin and Ethereum networks are powered by the principle of distributed ledgers and cryptography, the two differ technically in many ways. For example, transactions on the Ethereum network may contain executable code, while data affixed to Bitcoin network transactions are generally only for keeping notes. Other differences include block time (an ether transaction is confirmed in seconds compared to minutes for bitcoin) and the algorithms that they run on (Ethereum uses ethash while Bitcoin uses SHA-256).
More importantly, though, the Bitcoin and Ethereum networks are different with respect to their overall aims. While bitcoin was created as an alternative to national currencies and thus aspires to be a medium of exchange and a store of value, Ethereum was intended as a platform to facilitate immutable, programmatic contracts, and applications via its own currency.
BTC and ETH are both digital currencies, but the primary purpose of ether is not to establish itself as an alternative monetary system, but rather to facilitate and monetize the operation of the Ethereum smart contract and decentralized application (dapp) platform.
Ethereum is another use-case for a blockchain that supports the Bitcoin network, and theoretically should not really compete with Bitcoin. However, the popularity of ether has pushed it into competition with all cryptocurrencies, especially from the perspective of traders. For most of its history since the mid-2015 launch, ether has been close behind bitcoin on rankings of the top cryptocurrencies by market cap. That being said, it's important to keep in mind that the ether ecosystem is much smaller than bitcoin's: as of January 2020, ether's market cap was just under $16 billion, while bitcoin's is nearly 10 times that at more than $147 billion.
multiplier bitcoin
bitcoin комментарии купить tether bitcoin generate bitcoin reserve обмен tether bitcoin wmz monster bitcoin bitcoin trade заработок ethereum client bitcoin
конвертер monero bitcoin код bitcoin wmz bitcoin c bitcoin теория coingecko ethereum masternode bitcoin decred cryptocurrency PoW is just one example of how a blockchain reaches consensus. There are many others and I have listed some of them below (there are lots more)!boom bitcoin ethereum txid Financial applications are popularly known as DeFi applications, short for 'decentralized finance.'If it’s knowledge you’re hungry for, several private and public universities as well as a couple of New York preschools accept bitcoin.How to invest in Ethereum: the IDEX exchange.16 bitcoin bitcoin markets ethereum логотип ethereum новости blacktrail bitcoin bitcoin motherboard credit bitcoin golang bitcoin pokerstars bitcoin tether верификация bitcoin окупаемость monero gpu bitcoin nodes monero *****uminer 3 bitcoin
san bitcoin ethereum обмен Ethereum developers are projected to enact some sweeping changes over the coming years, however. Ethereum 2.0, which began rolling out on Dec. 1, 2020, will upgrade how Ethereum works, especially its proof-of-work backbone.micro bitcoin In many ways, the Bitcoin project is similar to forerunners like Mozilla. The fact that the Bitcoin system emits a form of currency is its distinguishing feature as a coordination system. This has prompted the observation that Bitcoin 'created a business model for open source software.' This analogy is useful in a broad sense, but the devil is in the details.bitcoin co forum ethereum explorer ethereum ethereum pool monero hashrate Regulationкости bitcoin торрент bitcoin сложность monero курс monero time bitcoin bitcoin лучшие monero продать bitcoin брокеры
0 bitcoin bitcoin завести bitcoin talk monero обмен monero faucet андроид bitcoin abi ethereum putin bitcoin bitcoin is ethereum 4pda ethereum foundation настройка monero bitcoin scripting is bitcoin mikrotik bitcoin logo ethereum ethereum картинки анонимность bitcoin bitcoin traffic ethereum alliance *****a bitcoin bitcoin department bitcoin selling
r bitcoin
global bitcoin
mine monero bitcoin таблица In summary: the invention of Bitcoin represents the discovery of absolute scarcity, or absolute irreproducibility, which occurred due to a particular sequence of idiosyncratic events that cannot be reproduced. Any attempt to introduce an absolutely scarce or diminishing supplied money into the world would likely collapse into Bitcoin (as we saw with the Bitcoin Cash fork). Absolute scarcity is a one-time discovery, just like heliocentrism or any other major scientific paradigm shift. In a world where Bitcoin already exists, a successful launch via a proof-of-work system is no longer possible due to path-dependence; yet another reason why Bitcoin cannot be replicated or disrupted by another cryptoasset using this consensus mechanism. At this point, it seems absolute scarcity for money is truly a one-time discovery that cannot 'disrupted' any more than the concept of zero can be disrupted.cryptocurrency trading bitcoin virus takara bitcoin bitcoin автоматический bitcoin buying bitcoin king bitcoin ann bitcoin презентация 6000 bitcoin
bitcoin virus invest bitcoin jaxx monero token bitcoin вклады bitcoin cryptocurrency wikipedia moto bitcoin bitcoin fields bounty bitcoin bitcoin python ethereum контракты лотереи bitcoin invest bitcoin bitcoin yen qiwi bitcoin bitcoin gambling payza bitcoin биржа ethereum time bitcoin bitcoin book bitcoin удвоить hyip bitcoin flappy bitcoin invest bitcoin bitcoin visa billionaire bitcoin ethereum стоимость халява bitcoin bitcoin комбайн полевые bitcoin cudaminer bitcoin ethereum addresses ad bitcoin bitcoin mempool перспективы bitcoin bitcoin дешевеет google bitcoin bitcoin проект
bitcoin golden bitcoin coins tether download ethereum ann ads bitcoin bitcoin history car bitcoin total cryptocurrency roboforex bitcoin cryptocurrency market bitcoin double
bitcoin сервер bitcoin galaxy amazon bitcoin bitcoin руб
bitcoin mine bitcoin cache ethereum siacoin bitcoin 4 mine ethereum bitcoin development ethereum asics bitcoin китай ethereum bitcointalk кредит bitcoin bitcoin ruble
metropolis ethereum collector bitcoin bitcoin apple tether wifi new bitcoin bot bitcoin суть bitcoin bitcoin падение bitcoin torrent bitcoin swiss миксер bitcoin bitcoin получить cryptocurrency wallet monero wallet
bitcoin linux ethereum валюта bitcoin alien
обменять monero обмена bitcoin кредиты bitcoin
bitcoin novosti курс bitcoin bitcoin transaction ethereum stats ethereum price nonce bitcoin bitcoin 2010 bitcoin agario bitcoin s
bitcoin криптовалюту bitcoin reserve fee bitcoin bitcoin crypto tether обменник bitcoin core bitcoin ledger debian bitcoin
grayscale bitcoin вход bitcoin серфинг bitcoin monero продать rise cryptocurrency порт bitcoin tether limited bitcoin pdf
bitcoin отзывы bitcoin стратегия download bitcoin bitcoin birds bitcoin 100
статистика ethereum транзакции ethereum bitcoin курс bitcoin data 1000 bitcoin bitcoin earnings bitcoin icons bitcoin основатель bitcoin information bitcoin dice bitcoin окупаемость индекс bitcoin captcha bitcoin
bitcoin genesis bitcoin okpay
ethereum создатель tp tether proxy bitcoin nanopool ethereum
bitcoin cache wikipedia cryptocurrency The loss, theft, or destruction of the hard drive where the bitcoins are storedbitcoin elena bitcoin xl ethereum токены
токен bitcoin bitcoin air bitcoin grant store bitcoin криптовалют ethereum cryptocurrency gold bitcoin book waves bitcoin bitcoin обозреватель bitcoin аналоги ethereum geth магазины bitcoin bitcoin лайткоин AlgorithmsSimilaritiesethereum block okpay bitcoin reverse tether bitcoin miner кошелька bitcoin что bitcoin bitcoin prosto
token ethereum pull bitcoin пожертвование bitcoin
bitcoin payoneer bitcoin вложить programming bitcoin ethereum доллар bitcoin generate tracker bitcoin bitcoin usa monero cryptonote
bitcoin hardfork асик ethereum bitcoin 50000 bitcoin коллектор кредит bitcoin This essay is intended as a high-level primer for investors, to answer these questions and more. It does not labor over deep technical descriptions of Bitcoin’s inner workings, nor does it discuss the anthropology of money and Bitcoin’s place in that tradition; those topics have been well-covered elsewhere. Where helpful for the non-technical reader, simple explanations of key technical concepts may appear, in order to more accurately describe Bitcoin’s function as a coordination mechanism that can organize highly technical work at zero cost.Historical Background On The Phenomenoncryptocurrency top bitcoin зарегистрировать
bitcoin hardfork bitcoin check
fox bitcoin maps bitcoin bistler bitcoin биржа bitcoin запросы bitcoin plus bitcoin bitcoin metatrader bitcoin аккаунт bitcoin проект rx560 monero in bitcoin
обменники ethereum bitcoin reindex bitcoin деньги ethereum pow bitcoin логотип bitcoin birds
coinder bitcoin rx560 monero plasma ethereum bitcoin форекс казино ethereum direct bitcoin tether перевод
криптовалюта tether
bitcoin java currency bitcoin daemon bitcoin bitcoin analytics bitcoin xapo bitcoin register bitcoin usd topfan bitcoin security bitcoin konvert bitcoin
china cryptocurrency bitcoin casino bitcoin future bitcoin instant monero client tether майнинг
bitcoin demo tether gps froggy bitcoin
bitcoin anonymous bitcoin 2020 bitcoin отзывы reverse tether bitcoin kurs ethereum markets
bitcoin технология
pps bitcoin bitcoin planet pizza bitcoin раздача bitcoin платформа ethereum s bitcoin bitcoin сигналы bitcoin desk перевести bitcoin ethereum calculator is bitcoin
production cryptocurrency birds bitcoin
q bitcoin
apple bitcoin bitcoin pool bitcoin приложения bitcoin лотереи tether скачать bitcoin pools bitcoin принцип ethereum mine добыча bitcoin раздача bitcoin tp tether p2pool ethereum транзакции bitcoin bitcoin кошелек checker bitcoin mikrotik bitcoin tether скачать ethereum foundation With the concept of zero, artists could create a zero-dimension point in their work that was 'infinitely far' from the viewer, and into which all objects in the painting visually collapsed. As objects appear to recede from the viewer into the distance, they become ever-more compressed into the 'dimensionlessness' of the vanishing point, before finally disappearing. Just as it does today, art had a strong influence on people’s perceptions. Eventually, Nicholas of Cusa, a cardinal of The Church declared, 'Terra non est centra mundi,' which meant 'the Earth is not the center of the universe.' This declaration would later lead to Copernicus proving heliocentrism—the spark that ignited The Reformation and, later, the Age of EnlightenmentHardware wallets are the best balance between very high security and ease of use. These are little devices that are designed from the root to be a wallet and nothing else. No software can be installed on them, making them very secure against computer vulnerabilities and online thieves. Because they can allow backup, you can recover your funds if you lose the device.coffee bitcoin
satoshi bitcoin free.is bitcoin bitcoin kurs view bitcoin bitcoin avto monero pro bitcoin crash dark bitcoin bitcoin сети ethereum стоимость tether приложение bitcoin sberbank ethereum linux bitcoin future explorer ethereum system bitcoin bitcoin ethereum bitcoin virus cryptocurrency ethereum ethereum classic alpha bitcoin аналитика bitcoin bitcoin usd bitcoin зарабатывать Now, let’s keep it a bit simpler by not worrying about monetary velocity. Let’s just compare cryptocurrency adoption compared to fiat currencies as a rough order of magnitude sanity check.Even though Bitcoin is decentralized, it is not private. Monero, however, is both decentralized and private. Monero’s technology allows all transactions to remain 100% private and untraceable.cap bitcoin рост bitcoin bitcoin strategy phoenix bitcoin monero benchmark
store bitcoin chaindata ethereum bitcoin фарминг ethereum ico
tether обменник bitcoin switzerland monero прогноз ethereum это cryptocurrency law bitcoin книги bitcoin grafik apple bitcoin ultimate bitcoin registration bitcoin eobot bitcoin кликер bitcoin abi ethereum майнить monero bubble bitcoin bitcoin help bitcoin faucets bitcoin кредиты ethereum russia bitcoin pdf банкомат bitcoin bitcoin symbol ethereum miners bitcoin pro
эпоха ethereum bitcoin get bitcoin cap master bitcoin ethereum курсы альпари bitcoin
bitcoin statistics reverse tether ethereum пулы
bitcoin crush бесплатный bitcoin bitcoin database 99 bitcoin THE HIDDEN RISKS OF A TRADITIONAL INVESTMENT PORTFOLIOEnergy SupplyFinancial crises stress the limits of existing systems and can highlight the need for new ones.ethereum swarm криптовалюту monero 6. Pool Fee Structureтерминалы bitcoin ethereum монета
planet bitcoin ethereum decred cryptocurrency calendar bitcoin foundation
galaxy bitcoin bitcoin rotator
пулы monero
bitcoin отзывы
spots cryptocurrency nanopool ethereum пополнить bitcoin майнеры monero forum ethereum pixel bitcoin bitcoin сервисы bitcoin стратегия bitcoin сатоши gadget bitcoin talk bitcoin теханализ bitcoin Dynamic block-size: the blocksize cap is a function of the past block sizes which results in greater blocksize, containing more transactions when network activity picks up. Conversely, when the network activity slows down, the blocksize cap will decrease. Wikimedia / Public Domainbitcoin linux trezor bitcoin ethereum доходность deep bitcoin
ethereum serpent чат bitcoin wired tether space bitcoin
bubble bitcoin отследить bitcoin reindex bitcoin халява bitcoin
addnode bitcoin bitcoin орг
bitcoin cards bitcoin отзывы система bitcoin mastering bitcoin mixer bitcoin bitcoin терминал importprivkey bitcoin
перспективы ethereum bitcoin лохотрон
bitcoin переводчик bitcoin миксеры finney ethereum взлом bitcoin перевод bitcoin bitcoin рублей pay bitcoin bitcoin de bitcoin statistics bitcoin icon all bitcoin bitcoin отслеживание bitcoin okpay ethereum dark bitfenix bitcoin future bitcoin оплата bitcoin bitcoin рублей download bitcoin bitcoin dynamics bitcoin valet прогнозы ethereum casper ethereum space bitcoin bitcoin gift film bitcoin bitcoin казахстан bitcoin live bitcoin tm развод bitcoin обменник ethereum get bitcoin darkcoin bitcoin maps bitcoin капитализация ethereum bitcoin client ethereum dao api bitcoin bitcoin упал кошелька ethereum bitcoin swiss kinolix bitcoin bitcoin usa bitcoin оборудование bitcoin help cryptocurrency news сайт ethereum ava bitcoin world bitcoin
bitcoin получение moneypolo bitcoin bitcoin torrent decred ethereum nya bitcoin bitcoin plugin iota cryptocurrency bitcoin bitminer bitcoin formula bitcoin wordpress рулетка bitcoin abc bitcoin фермы bitcoin ru bitcoin bitcoin cli monero криптовалюта bitcoin quotes стоимость bitcoin bitcoin отзывы
ethereum pool half bitcoin usa bitcoin cryptocurrency это bitcoin покер bitcoin cloud ethereum icon 50 bitcoin
bitcoin hashrate clicks bitcoin bitcoin neteller 500000 bitcoin $142.9 billion 