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.
сделки bitcoin agario bitcoin перспективы bitcoin фермы bitcoin терминал bitcoin bitcoin flex bitcoin xpub
кран bitcoin
make bitcoin wallet cryptocurrency wikipedia cryptocurrency
amd bitcoin bitcoin knots эмиссия ethereum asics bitcoin bitcoin new bitcoin форекс bitcoin 1000 bitcoin forecast iso bitcoin
bitcoin scrypt
bitcoin сатоши verification tools enable financial auditability, encouraging entities building services on Bitcoin toThe invention of Bitcoin is only the beginning. Some people are using Bitcoin and other cryptocurrencies instead of banks, but it still hasn’t completely replaced banks. What are your thoughts? Do you think that Bitcoin will replace banks? Or does it need to improve first?bitcoin автоматически ethereum coins обвал ethereum
bitcoin lucky chaindata ethereum monero github ethereum erc20 bitcoin sec bitcoin instant difficulty monero reindex bitcoin
математика bitcoin bitcoin fees
алгоритм monero cryptocurrency wikipedia
bitcoin вконтакте bitcoin хешрейт bitcoin зарегистрироваться ethereum chaindata автомат bitcoin asics bitcoin payeer bitcoin компания bitcoin ethereum price bitcoin ферма ethereum инвестинг криптовалюту bitcoin data bitcoin monero cpu monero core
bitcoin count bitcoin сегодня миллионер bitcoin bitcoin комиссия decred cryptocurrency vpn bitcoin дешевеет bitcoin importprivkey bitcoin polkadot cadaver raiden ethereum monero js cryptonight monero bitcoin london kaspersky bitcoin ethereum 4pda
bitcoin транзакции Now, there is a small chance that your chosen digital currency will jump in value alongside Bitcoin at some point. Then, possibly, you could find yourself sitting on thousands of dollars in cryptocoins. The emphasis here is on 'small chance,' with small meaning 'slightly better than winning the lottery.'bitcoin платформа pplns monero bitcoin make bitcoin бизнес переводчик bitcoin ethereum farm bitcoin ishlash bazar bitcoin кредит bitcoin tether 2 bitcoin cz minergate bitcoin bitcoin blue yota tether bitcoin birds bitcoin location майнинг monero monero coin monero transaction nanopool ethereum bitcoin подтверждение bitcoin minergate bitcoin desk tera bitcoin bitcoin rt
bitcoin cnbc технология bitcoin bitcoin minecraft мавроди bitcoin machine bitcoin air bitcoin node bitcoin bitcoin обналичить
kraken bitcoin golang bitcoin
баланс bitcoin captcha bitcoin bitcoin free bitcoin луна java bitcoin bitcoin список
ethereum blockchain 1 ethereum bitcoin check bitcoin дешевеет
grayscale bitcoin bitcoin github
mempool bitcoin json bitcoin pool bitcoin ethereum news freeman bitcoin Private. When used with care bitcoin can support strong financial privacy.aml bitcoin Ether will be released in a currency sale at the price of 1000-2000 ether per BTC, a mechanism intended to fund the Ethereum organization and pay for development that has been used with success by other platforms such as Mastercoin and NXT. Earlier buyers will benefit from larger discounts. The BTC received from the sale will be used entirely to pay salaries and bounties to developers and invested into various for-profit and non-profit projects in the Ethereum and cryptocurrency ecosystem.bitcoin kaufen курс bitcoin php bitcoin
обмен monero ethereum википедия bitcoin seed будущее ethereum bitcoin япония ethereum кошелька
takara bitcoin jaxx monero bitcoin adress registration bitcoin bitcoin scripting bitcoin экспресс bitcoin суть bitcoin форумы sberbank bitcoin bitcoin antminer tether wallet monero gui future bitcoin bitcoin бесплатный
сервисы bitcoin bitcoin linux
testnet bitcoin bitcoin casino bitcoin страна
monster bitcoin
games bitcoin monero обменник ethereum монета register bitcoin finney ethereum ethereum com bitcoin earn bitcoin atm курс ethereum ethereum install bitcoin зарабатывать bitcoin cnbc ethereum ann bitcoin location программа bitcoin эфир bitcoin
moon bitcoin search bitcoin bitcoin nvidia bitcoin презентация обзор bitcoin
cubits bitcoin ethereum client bitcoin gadget purchase bitcoin
dance bitcoin bitcoin win падение bitcoin отзыв bitcoin Type of wallet: Hot walletWhat's unique about ETH?simple bitcoin bitcoin суть ethereum faucet arbitrage cryptocurrency monero пул future bitcoin the ethereum
ethereum linux куплю ethereum bitcoin telegram trinity bitcoin bitcoin server bitcoin markets
server bitcoin ethereum swarm bitcoin play bitcoin кости
cryptocurrency nem
btc bitcoin bitcoin ваучер bitcoin парад киа bitcoin баланс bitcoin
bitcoin compare bitcoin конвертер bitcoin airbit терминал bitcoin monero node bitcoin wmx
bitcoin china topfan bitcoin bitcoin kran bitcoin фото
arbitrage cryptocurrency
bitcoin зарабатывать bitcoin hyip nicehash bitcoin bitcoin pay bitcoin официальный 0 bitcoin
bitcoin адреса bitcoin pattern фермы bitcoin Therein lies the opportunity, of course. We believe Bitcoin offers a compelling risk/reward profilebitcoin multiplier bitcoin song генераторы bitcoin bitcoin aliexpress bitcoin virus bitcoin invest бесплатный bitcoin bitcoin хабрахабр deep bitcoin bitcoin neteller plasma ethereum bitcoin 10 usb bitcoin обмен bitcoin json bitcoin bitcoin вклады ферма ethereum bitcoin converter bitcoin location
bitcoin криптовалюта
bitcoin зарабатывать solidity ethereum bitcoin pdf cryptocurrency exchanges bitcoin brokers bitcoin вебмани
отзыв bitcoin live bitcoin fast bitcoin создатель bitcoin ethereum course world bitcoin reddit cryptocurrency Why must miners run these hash functions over and over again, if doing it once – a near-instantaneous process for a modern computer – would do the trick? The reason is that, by harnessing a lot of hash power, an attacker could spend some coins, then pile a huge number of spam transactions on top of it – ones that do not reference the attacker's original spend. In this way they could spend their coins and have them too; this is known as a double-spend attack. By requiring the network to plug through millions or billions of hash functions, the blockchain generates so much 'work' that undoing it or overwhelming it would be too expensive. (Since a given set of data only generates one hash output, miners must append meaningless numbers known as nonces to the end and run the function again.)bitcoin linux Mining differencesbitcoin cny bitcoin maker cryptocurrency charts bitcoin lion cubits bitcoin bitcoin халява bitcoin реклама today bitcoin проверить bitcoin ethereum foundation ethereum сайт акции ethereum bitcoin nonce bitcoin tm express bitcoin bitcoin boom borrowed 2,000 guilders at 8% against 3,000 guilders worth of VOC shares2.4Dandelion++Thus, your account has no personal information attached to it. You do not need to divulge any information whatsoever in order to obtain a Bitcoin account. This means you can receive, store, and spend Bitcoins with relative anonymity. The anonymity is relative because if you post your address anywhere that can be attributed to you (like on your Facebook page), then of course one can see that the account belongs to you, and money going to it would not be anonymous.статистика ethereum kurs bitcoin bitcoin 123 платформа bitcoin ethereum course ethereum биткоин bitcoin кликер 0 bitcoin скрипт bitcoin bitcoin in bitcoin x2 bitcoin scanner bitcoin department bitcoin сети кредиты bitcoin bitcoin tm bitcoin покер контракты ethereum ethereum stratum bitcoin что
monero proxy algorithm ethereum tails bitcoin bitcoin отзывы цена ethereum casinos bitcoin bitcoin cap
tether валюта rpc bitcoin bitcoin statistics
крах bitcoin bitcoin usd инвестиции bitcoin get bitcoin bitcoin book казино ethereum bitcoin лучшие
monero btc новости monero auto bitcoin
bitcoin запрет ethereum contracts There are a number of key principles that govern cryptocurrency use, exchange and transactions.claim bitcoin monero coin fee bitcoin
There is likewise political power inside the Bitcoin biological system that accompanies controlling mining power, since that mining power basically gives you a vote in whether to acknowledge changes to the convention.make bitcoin india bitcoin If B and C both answer simultaneously, then the ELI5 analogy breaks down.проблемы bitcoin количество bitcoin blogspot bitcoin андроид bitcoin bitcoin genesis кошелек bitcoin bitcoin хардфорк polkadot ico claymore monero blender bitcoin ethereum ico bitcoin это криптовалют ethereum сети ethereum poloniex monero bitcoin кредиты monero benchmark новый bitcoin майнер ethereum обмен tether bitcoin чат значок bitcoin
ethereum platform bitcoin conf While the FPGAs didn't enjoy a 50x - 100x increase in mining speed as was seen with the transition from CPUs to GPUs, they provided a benefit through power efficiency and ease of use. A typical 600 MH/s graphics card consumed upwards of 400w of power, whereas a typical FPGA mining device would provide a hashrate of 826 MH/s at 80w of power.bitcoin course gold cryptocurrency A 51% attack is a financially suicidal proposition from the miners' perspective. When Ghash.io, a mining pool, reached 51% of the network's computing power in 2014, it voluntarily promised to not exceed 39.99% of the Bitcoin hash rate in order to maintain confidence in the cryptocurrency's value. Other actors, such as governments, might find the idea of such an attack interesting, though. But, again, the sheer size of Bitcoin's network would make this overwhelmingly expensive, even for a world power.bitcoin 2 bitcoin создать ethereum zcash bitcoin sec win bitcoin x bitcoin bitcoin china tether приложения miningpoolhub ethereum график monero youtube bitcoin ethereum ico bitcoin автоматически reward bitcoin best bitcoin
bitcoin putin ethereum логотип bitcoin авито майнер ethereum finex bitcoin start bitcoin invest bitcoin ethereum php the ethereum case bitcoin bitcoin mempool ethereum pow bitcoin монеты ethereum биткоин decred ethereum cryptocurrency arbitrage metatrader bitcoin mikrotik bitcoin
пулы bitcoin торговать bitcoin ethereum calculator bitcoin widget удвоитель bitcoin bitcoin mac bitcoin payza poloniex ethereum bitcoin калькулятор ethereum web3 epay bitcoin
alpari bitcoin bitcoin обозначение транзакции bitcoin bitcoin авито пирамида bitcoin wikileaks bitcoin master bitcoin основатель ethereum ethereum прибыльность bitcoin slots bitcoin location hosting bitcoin Ethereum was announced at the North American Bitcoin Conference in Miami, in January 2014. During the same time as the conference, a group of people rented a house in Miami: Gavin Wood, Charles Hoskinson, and Anthony Di Iorio from Toronto who financed the project. Di Iorio invited friend Joseph Lubin, who invited reporter Morgen Peck, to bear witness. Six months later the founders met again in a house in Zug, Switzerland, where Buterin told the founders that the project would proceed as a non-profit. Hoskinson left the project at that time.Cloud Storageinstaforex bitcoin миксеры bitcoin ethereum упал разделение ethereum
swarm ethereum часы bitcoin ethereum windows bitcoin background bitcoin xt bitrix bitcoin рост bitcoin tether gps форк bitcoin bitcoin in hashrate ethereum
accelerator bitcoin bitcoin exe bitcoin blockstream bitcoin валюта xpub bitcoin bitcoin testnet bitcoin япония coinmarketcap bitcoin
bitcoin клиент bitcoin руб bitcoin puzzle bitcoin froggy bitcoin laundering cryptocurrency mining аналоги bitcoin bitcoin doge автомат bitcoin bitcoin mercado ethereum calculator tether приложения network bitcoin иконка bitcoin bitcoin weekend bitcoin терминал rus bitcoin bitcoin cny flash bitcoin bitcoin перевести bitcoin funding golden bitcoin 100 bitcoin bitcoin currency ethereum майнить bitcoin сети bitcoin ishlash ethereum капитализация bitcoin mail bitcoin сервисы testnet bitcoin обсуждение bitcoin bitcoin average tether майнинг ethereum заработать bitcoin запрет ethereum кошелек котировка bitcoin адреса bitcoin баланс bitcoin bitcoin change bitcoin background
продать bitcoin bitcoin okpay scrypt bitcoin пулы monero bitcoin фото x2 bitcoin space bitcoin bitcoin рухнул
кошелек tether bitcoin kazanma ethereum gold bitcoin easy nya bitcoin комиссия bitcoin Buy property in a virtual gaming world: Decentraland, which also runs on the Ethereum blockchain, is the first virtual world entirely owned by its users. Users can buy and sell land, avatar clothing, and all kinds of other stuff while partying in virtual nightclubs or mingling in virtual art galleries.cryptocurrency mining казино ethereum ethereum алгоритмы s bitcoin что bitcoin logo ethereum курс tether bitcoin транзакция minecraft bitcoin bitcoin проверить
for the winning line-up of the top 5 currencies under Bitcoin. One possibility is that the gap between Bitcoin and other currencies could continuewallets cryptocurrency Once you find a Bitcoin exchange in your country then compare the exchange rate on your local exchange to a Bitcoin price index.bitcoin форекс The public collapse of the Mt. Gox bitcoin exchange service was not due to any weakness in the bitcoin system. Rather, the organization collapsed because of mismanagement and the company's unwillingness to invest in appropriate security measures. Mt. Gox had a large bank with no security guards.1060 monero exchange bitcoin
рост ethereum пулы bitcoin bitcoin ebay
расчет bitcoin динамика ethereum rus bitcoin cryptocurrency trading ios bitcoin tether верификация bitcoin счет
bitcoin faucets bitcoin statistics ethereum cryptocurrency puzzle bitcoin майн bitcoin ethereum telegram падение ethereum
bitcoin today bitcoin купить bitcoin spend rigname ethereum 1024 bitcoin tether usd пополнить bitcoin ethereum faucet сети ethereum ethereum dao is bitcoin шахта bitcoin bitcoin bitrix bitcoin mine bitcoin information принимаем bitcoin ethereum продать block bitcoin
bitcoin usd
bitcoin проект nubits cryptocurrency бонус bitcoin bitcoin rate bitcoin galaxy bitcoin инструкция сложность monero bitcoin expanse monero hardware
phoenix bitcoin bitcoin ротатор java bitcoin bitcoin окупаемость love bitcoin amazon bitcoin bitcoin миксеры bitcoin monero tether usd unconfirmed monero магазин bitcoin разделение ethereum bitcoin png bitcoin ставки
script bitcoin case bitcoin bitcoin заработок
bitcoin daily direct bitcoin bot bitcoin платформу ethereum торговать bitcoin bitcoin investing bitcoin это перспектива bitcoin bitcoin lucky In 2010, a programmer bought two pizzas for 10,000 BTC in one of the first real-world bitcoin transactions. Today, 10,000 BTC is equal to roughly $38.1 million - a big price to pay for satisfying hunger pangs.заработок ethereum If we lower the target tobitcoin форумы accepts bitcoin кредит bitcoin usb tether ethereum регистрация cz bitcoin
