Most of the people are only aware of the crypto currency market or Bitcoin but they are not familiar with ethereum which is also known as ETH. There are numbers of cryptocurrencies that are issued in the market, some are useless and some have so much value and from that ETH is the second largest cryptocurrency in the digital market at present. Ethereum is the digital platform, in which ether is the term that is used for the cryptocurrency wallet but the word ethereum is used for both the platform and cryptocurrency, so may buy and sell its currency in the name of ethereum.
Now, let’s talk about the similarities between the ethereum and Bitcoin and these are:
- Ether and Bitcoin have similar features of decentralized currency which means that they are not in control of any central authority, central banks, or any other banks, organizations or any third party. No one has control over the transactions of it.
- Ether and Bitcoin are subjected for buying and selling through online mode and kept in crypto digital wallets.
- Ether and Bitcoin both use the blockchain method which means subdivided ledger technology for every particular crypto wallet.
Thus, there are some key differences between Ethereum and Bitcoin and these are:
- Bitcoin was first launched in the year 2009 by satoshi nakamoto who created this digital currency as per the reports while Ethereum was launched in the year 2015 to process all the monetary transactions by the method of blockchain and other applications through its own digital currency which makes it more popular and effective in the world of digital market. If you are a crypto trader and want to enhance your trading skills, then you must read this review from where you can boost your trading skills.
- Bitcoin is mainly concerned with gold but ETH is mainly concerned for the buying and selling process through its technology. Thus, ethereum is a blockchain technology that helps to create other programs in the system.
- Bitcoin’s limitation is up to 21 million and whenever that expands, the investors cannot use the currency whereas ETH has no coin limits; the investors can buy and sell currency from their wallet at any time.
- Bitcoin was first launched on the digital platform than ethereum. That’s why Bitcoin has the largest market capitalization which is $147 billion rather than Ethereum’s market value which is $16 billion according to the reports.
- Block time is the sum total of time that is essential for the validation of the existing cryptocurrency in the system and creating a new block into the blockchain system. The ETH takes only 12 seconds whereas Bitcoin takes 10 minutes.
- However, there are some other key differences between ETH and Bitcoin and these are the transactions that are involved on the ethereum network which contains executable codes in the system whereas Bitcoin usually maintains network transactions which is generally for keeping notes. They both use algorithms for their network where ETH runs and commands by ethic whereas Bitcoin runs or commands by SHA-256.
- Bitcoin and ethereum have different network programmes with respect to their goals. On one hand, Bitcoin was created to become and operate as a national currency which includes “medium of exchange and storage of values” on the other hand, ethereum was created for the “programmatic contracts, and other applications” by its own currency.
- The crypto market cannot be easily predictable and it is not wrong to say that ether may become the main digital currency in the coming time that can overrule the Bitcoin currency in the digital market. So, if the investors are concerned about investing either in ETH or Bitcoin, they should consider all the risks attached to it and other key points.