Bitcoin and Ethereum: The Two Giants – An Overview
Bitcoin and Ethereum: The Two Giants – An Overview
Bitcoin(BTC)
Introduced in 2008 by Satoshi Nakamoto is a decentralized virtual currency builtto replace traditional currency. While making payments through bitcoins, any third-party influence is absolutely eliminated. The sophisticated and complex system of Cryptocurrencies Enhance Global Development allows a huge network of individuals worldwide to record these transactions in an open ledger known as mining.
It is not the first cryptocurrency to come into existence, but it is undoubtedly the most successful crypto as of now. As of May 2022, it is trading close to $40,000 USD per unit. One BTC is divisible to 8 decimal places, and its smallest unit is known as Satoshi.
It is an integral part of the Blockchain network, which has several users worldwide, rather than a whole network of them whose job is to verify the transactions block by block.
Ethereum(ETH)
Ethereum was introduced in 2015 by Vitalik Buterin. Ethereum is powered by blockchain technology. Scalability, programmable, secure, and decentralizedare the basic features of Ethereum. The way we go about our daily lives and the way things operate in an industry is subject to change when it comes to Ethereum’s vision.
For many reasons, Ethereum is considered to be a better prospect. Ethereum has a dual role to play. Moreover, its faster speed of transaction execution makes it a much more viable option as compared to Bitcoin.
Its vision is to go beyond just being a payment method. It facilitates the creation of smart contracts and Decentralised Applications or dApps. These can be built resistant to fraud, downtime, or third-party control. Developers can build or run distributed applications as it runs on their own language that runs on Blockchain.
Similarities between BTC and ETH
The vision of the two might differ, but there are a number of similarities between the two.
- They are both traded on crypto trading platforms and can be stored in the same wallet
- They are both decentralized
- They both use Blockchain for it to operate
- They are both powered by the principle of cryptography
- They both use the same consensus protocol, which is proof of work(PoW)
BTC VS ETH
Even after all the points of similarities between the two, there are differences between the two. The following section takes you through the details of the same:
- The block time that ETh takes is in seconds, while BTC takes minutes to confirm the transaction
- Executable notes can be added with ETH. On the other hand, data affixed with BTC are for keeping notes generally.
- They used to work on the same consensus protocol, but in 2022, ETH plans to move on Proof of Stake(PoS) as their consensus protocol as part of their Eth2 upgrade.
- The primary aim or vision of the two differs as well. ETH focuses on facilitating digital contracts and dApps, while BTC was born to replace traditional currency by acting as a store of value and medium of exchange.
Why is BTC compared to Gold and ETH to Silver?
Bitcoin has the highest market share. 19 Million is said to be in the market as of now, and the rest is to be mined, which makes it similar to the characteristics of gold.
On the other hand,ETH is compared to silver because, just like silver, it is right below BTC in the market cap and has various applications.
Wrapping it up !!!
Both Bitcoin and Ethereum can be considered to be the most successful cryptocurrencies considering their market capitalization. These two coins are widely trusted, and the investors have high hopes for them because of their practical usage features. They both have a lot of differences but are similar as their basic principle is the same. They both belong to the same class. It is still quite soon to say which one is the better investment option as there is still a lot to be discovered, but investing in either of them does not seem to be a bad idea.
If you are looking forward to investing in either of them or any other cryptocurrency, then you may visit the Bitcoin Era as traders are widely using it due to its reliability and credibility in the market.
