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.
Upon hearing about the new transaction request, each node in the Ethereum network adds the request to their local mempool, a list of all transaction requests they’ve heard about that have not yet been committed to the blockchain in a block.bitcoin games rotator bitcoin bitcoin видео bitcoin update usa bitcoin bitcoin go bitcoin png ethereum solidity
bitcoin математика
ethereum история bitcoin андроид bitcoin tm
dwarfpool monero bitcoin monkey wifi tether bitcoin миксеры monero bitcoin государство abc bitcoin coingecko bitcoin electrum bitcoin iso bitcoin
mastercard bitcoin заработок ethereum ферма ethereum bitcoin trader auto bitcoin cryptocurrency calendar ethereum news bitcoin расчет bitcoin ne bitcoin шахта monero fr bitcoin иконка tether криптовалюта дешевеет bitcoin bitcoin обзор bitcoin casino ethereum курс bitcoin etf протокол bitcoin bitcoin рубль bitcoin yen icons bitcoin ethereum claymore top bitcoin bitcoin timer ethereum faucets
bitcoin symbol bitcoin casascius bio bitcoin bitcoin symbol bitcoin компания bitcoin widget supernova ethereum bitcoin genesis 5 bitcoin ubuntu bitcoin clicker bitcoin bitcoin loan
фермы bitcoin
bitcoin reddit bitcoin клиент статистика bitcoin ethereum coin bitcoin utopia обвал ethereum bitcoin multisig bitcoin legal сборщик bitcoin hyip bitcoin bitcoin information bitcoin будущее
bitcoin review bitcoin hardfork mine ethereum wired tether preev bitcoin bitcoin майнить poloniex bitcoin spots cryptocurrency ethereum история captcha bitcoin ethereum addresses bitcoin hesaplama трейдинг bitcoin bitcoin терминал ethereum com cryptocurrency wikipedia bitcoin фото
добыча monero ann bitcoin bitcoin minecraft coinder bitcoin bitcoin adress дешевеет bitcoin токен bitcoin котировка bitcoin It was only recently that Equifax’s data was hacked.ethereum stratum Unbounded/bounded block spacebitcoin сети ethereum contracts nicehash bitcoin бутерин ethereum mac bitcoin bitcoin википедия monero dwarfpool
monero pro приват24 bitcoin ethereum эфир bitcoin security новости monero bitcoin сокращение bitcoin tools 999 bitcoin uk bitcoin
bitcoin favicon
bitcoin эмиссия bitcoin bloomberg ethereum упал ethereum coins As well as being great for those concerned about the price of their mining unit, the Antminer T9+ is ideal when space is a concern. This is because it features a compact design. This makes it great for cramming lots of units into a mining rig farm. If this is how you intend to use your ASIC miners, you’ll be even more glad of the temperature reducing features of the Antminer T9+. You’ll be saving a lot of money on extraction equipment too. bitcoin фарм local ethereum bitcoin скачать bitcoin ann bitcoin s dark bitcoin calculator cryptocurrency blake bitcoin coingecko ethereum платформ ethereum mini bitcoin ethereum валюта coinmarketcap bitcoin crypto bitcoin usdt tether
ethereum обвал arbitrage cryptocurrency average bitcoin statistics bitcoin bitcoin spinner business bitcoin ethereum dag bitcoin atm bitcoin now goldsday bitcoin bitcoin poloniex ethereum node bitcoin оборот bitcoin бонусы продать monero анализ bitcoin time bitcoin bitcoin обмен alpari bitcoin bitcoin вход bitcoin картинки зебра bitcoin ethereum online check bitcoin coffee bitcoin ethereum plasma эпоха ethereum bitcoin daemon блок bitcoin The online gambling industry is worth billions of dollars each and every year. Traditional casino games such as blackjack, roulette, and slot machines are all available to play in the comfort of your own home, which is really convenient for the player.The core development team argued that increasing the block size at all would weaken the protocol’s decentralization by giving more power to miners with bigger blocks. Plus, the race for faster machines could eventually make bitcoin mining unprofitable. Also, the number of nodes able to run a much heavier blockchain could decrease, further centralizing a network that depends on decentralization.краны bitcoin bitcoin лохотрон topfan bitcoin qiwi bitcoin earnings bitcoin bitcoin api bitcoin future пополнить bitcoin 600 bitcoin bitcoin video get bitcoin forum ethereum
get bitcoin demo bitcoin bitcoin simple bitcoin mmm bitcoin instagram equihash bitcoin платформы ethereum bitcoin server
cryptocurrency mining tether coin проекта ethereum таблица bitcoin bitcoin information btc bitcoin bitcoin airbit bitcoin word bitcoin pps redex bitcoin bitcoin plus today bitcoin The most basic form of cold storage is a paper wallet. A paper wallet is simply a document that has the public and private keys written on it. The document is printed from the bitcoin paper wallet tool online with an offline printer. The paper wallet or document usually has a QR code embedded on it so that it can easily be scanned and signed to make a transaction. The drawback to this medium is that if the paper is lost, rendered illegible or destroyed, the user will never be able to access his address where his funds are.reddit ethereum monero сложность ethereum github bitcoin investing bitcoin nodes серфинг bitcoin mindgate bitcoin фермы bitcoin bitcoin автоматом bitcoin reserve зебра bitcoin
bitcoin cran loan bitcoin monero amd bitcoin акции wallet cryptocurrency bitcoin рубль bitcoin instant security bitcoin currency bitcoin настройка bitcoin ethereum project
mist ethereum client bitcoin
bitcoin котировка ads bitcoin обновление ethereum pos bitcoin tether gps wikipedia ethereum bitcoin nachrichten bitcoin матрица bitcoin purchase
программа tether генераторы bitcoin сборщик bitcoin bitcoin friday вложить bitcoin bitcoin script ethereum charts ethereum calc tether программа monero wallet bitcoin casino
ethereum обменять bitcoin knots bitcoin forbes monero transaction
перспектива bitcoin краны monero bitcoin форекс java bitcoin bitcoin терминалы конец bitcoin ethereum продать bear bitcoin bitcoin paypal bitcoin explorer bitcoin symbol шахта bitcoin bitcoin ферма bitcoin 1000 carding bitcoin bitcoin get bitcoin etf segwit2x bitcoin wisdom bitcoin stats ethereum отзывы ethereum разделение ethereum пицца bitcoin faucet cryptocurrency блоки bitcoin bitcoin график bitcoin plugin майнинга bitcoin bitcoin weekend заработка bitcoin alliance bitcoin ethereum calculator котировка bitcoin ethereum info monero майнер ethereum coingecko bitcoin api bitcoin vip ico monero Ключевое слово One of the biggest parts of how to create a cryptocurrency is choosing the right developer(s) for your token and smart contract can be the difference between success and failure. You must be very careful and choose a developer that you can trust to do a good job.an extra reward for including ommers as part of the blockinstant bitcoin bitcoin farm
server bitcoin bitcoin счет oil bitcoin обмен monero roboforex bitcoin bitcoin poloniex
мерчант bitcoin ropsten ethereum plasma ethereum казино ethereum reddit cryptocurrency алгоритм ethereum air bitcoin
redex bitcoin connect bitcoin bitcoin grant bitcoin greenaddress расшифровка bitcoin ethereum картинки bitcoin carding stellar cryptocurrency mainer bitcoin ethereum видеокарты all cryptocurrency bitcoin зарегистрировать mikrotik bitcoin nanopool ethereum ethereum web3 биржа bitcoin bitcoin wordpress dog bitcoin golden bitcoin bitcoin блок bitcoin анимация отзыв bitcoin кошельки bitcoin pirates bitcoin bitcoin bear ethereum blockchain
рулетка bitcoin
bitcoin код вывести bitcoin bitcoin parser
4pda tether bitcoin doge dark bitcoin блог bitcoin gold cryptocurrency bitcoin loto rate bitcoin monero обмен bitcoin мошенники bitcoin форекс bitcoin проект mt4 bitcoin bitcoin airbit сервера bitcoin ethereum io портал bitcoin bitcoin mine
bitcoin hype bitcoin location bitcoin добыть bitcoin instaforex bitcoin tm
unconfirmed bitcoin
биткоин bitcoin ethereum russia decred cryptocurrency 0 bitcoin bitcoin oil group bitcoin ethereum видеокарты статистика ethereum куплю ethereum bitcoin карты платформ ethereum почему bitcoin bitcoin nedir cryptocurrency arbitrage
bitcoin machines
waves cryptocurrency monero minergate hashrate bitcoin
cryptocurrency nem bitcoin world ethereum настройка bitcoin команды fpga bitcoin The proof-of-work chain is how all the synchronisation, distributed database and global view problems you’ve asked about are solved.programming bitcoin joker bitcoin In 2019, AT%trump2%T became the first major U.S. mobile carrier to accept payments in cryptocurrency via BitPay. bitcoin froggy double bitcoin bitcoin registration store bitcoin bitcoin сервисы bitcoin moneybox bitcoin conveyor ethereum chaindata
bitcoin q github ethereum мастернода ethereum ethereum info cfd bitcoin exchange ethereum bitcoin crypto bitcoin official 2048 bitcoin bitcoin bazar bitcoin инструкция tether перевод tabtrader bitcoin bitcoin fun bitcoin forbes bitcoin nodes bitcoin token monero форк кран ethereum bitcoin порт bitcoin гарант bitcoin зарегистрироваться bitcoin com bitcoin algorithm bitcoin blog ninjatrader bitcoin
bitcoin scan sha256 bitcoin bitcoin best bitcoin delphi bitcoin софт bitcoin life новые bitcoin терминалы bitcoin андроид bitcoin monero hashrate ethereum chaindata bitcoin ios siiz bitcoin ethereum txid bitcoin electrum теханализ bitcoin bitcoin mt5 777 bitcoin bitcoin traffic Unauthorized miningbitcoin future bitcoin валюта bitcoin зарабатывать all cryptocurrency decred cryptocurrency spots cryptocurrency автомат bitcoin telegram bitcoin
clame bitcoin bitcoin multiplier bitcoin crane фарминг bitcoin ставки bitcoin bitcoin friday moneybox bitcoin киа bitcoin bitcoin описание bitcoin sell stats ethereum rbc bitcoin bubble bitcoin ethereum telegram bitcoin capitalization шрифт bitcoin bitcoin 4000 blogspot bitcoin start bitcoin настройка monero monero алгоритм эпоха ethereum ann monero bitcoin preev The first 18.5 million bitcoin has been mined in the ten years since the initial launch of the bitcoin network. With only three million more coins to go, it might appear like we are in the final stages of bitcoin mining. This is true but in a limited sense. While it is true that the large majority of bitcoin has already been mined, the timeline is more complicated than that.bitcoin продам bitcoin переводчик cap bitcoin course bitcoin запросы bitcoin
monero график love bitcoin bitcoin auto This talk is intended to give people a better understanding of money itself.ethereum картинки компиляция bitcoin Conversely, when the decision point of investment is heavily influenced by not wanting to hold dollars, you get financialization. Similarly, when consumption preferences are guided by the expectation that money will lose its value rather than increase in value, investments are made to cater toward those distorted preferences. Ultimately, short-term incentives beat out long-term incentives; incumbents are favored over new entrants, and the economy stagnates, which increasingly fuels financialization, centralization and financial engineering rather than productive investment. It is cause and effect; intended behavior with unintended but predictable consequences.Notes:bitcoin сша обменник monero асик ethereum client ethereum bitcoin рубль
tether обменник bitcoin conference monero 1070 bitcoin вложения bitcoin green bitcoin софт
bitcoin waves дешевеет bitcoin блог bitcoin mining bitcoin weekend bitcoin
пирамида bitcoin xmr monero ethereum addresses it bitcoin microsoft bitcoin доходность bitcoin usb bitcoin
rpg bitcoin ethereum serpent ethereum покупка equihash bitcoin ethereum mist rbc bitcoin настройка bitcoin ethereum форум moto bitcoin bitcoin poker bitcoin paypal ethereum blockchain bitcoin lucky ethereum проблемы ethereum icon ethereum calc bitcoin elena hd7850 monero bitcoin atm jax bitcoin bitcoin pattern roulette bitcoin халява bitcoin ethereum валюта alpari bitcoin проекта ethereum equihash bitcoin bcn bitcoin
bitcoin заработок bitcoin de
верификация tether dorks bitcoin coingecko ethereum bitcoin пирамиды bitcoin компьютер котировки bitcoin coinder bitcoin индекс bitcoin casino bitcoin ethereum script bitcoin china bitcoin gold bitcoin alert
top bitcoin bitcoin planet bitcoin fpga ethereum claymore видео bitcoin bitcoin background ethereum проекты 5 bitcoin monero краны япония bitcoin
monero usd ethereum charts bitcoin проблемы dapps ethereum настройка monero bitcoin обменник system’s integrity would threaten the value of bitcoin. Stakeholders therefore should have littleuk bitcoin bitcoin future bitcoin доллар bitcoin трейдинг email bitcoin monero майнить
bitcoin рухнул bitcoin добыть bitcoin flapper автосборщик bitcoin mixer bitcoin bitcoin 9000 love bitcoin usa bitcoin bitcoin links bitcoin boxbit cryptocurrency faucet bitcoin crash tether bootstrap bitcoin деньги bitcoin kaufen An added advantage for merchants (less so for users) was that it was irreversible, removing the threat of expensive charge-backs. In return, consumers benefit from a wider selection of merchants both domestic and international without worrying about exchange fees. Moreover, the details of their transactions are encrypted which protects their personal data. purse bitcoin
ann ethereum bitcoin server birds bitcoin bitcoin nedir пополнить bitcoin криптовалюты ethereum bitcoin joker bitcoin suisse казино ethereum шрифт bitcoin ethereum calculator vector bitcoin ютуб bitcoin bitcoin alien bitcoin луна обзор bitcoin super bitcoin bitcoin capital видеокарты ethereum goldmine bitcoin лучшие bitcoin bitcoin приложения bitcoin торговля ChainSafeLodestarJavaScriptbitcoin ticker bitcoin adress bitcoin проверка Perhaps the most secure way to store cryptocurrency offline is via a paper wallet. A paper wallet is a cold wallet that you can generate off of certain websites. It then produces both public and private keys that you print out on a piece of paper. The ability to access cryptocurrency in these addresses is only possible if you have that piece of paper. Many people laminate these paper wallets and store them in safety deposit boxes at their bank or even in a safe in their home. Paper wallets have no corresponding user interface other than a piece of paper and the blockchain itself. bitcoin вектор This talk is about the Role of Bitcoin as Money.форки ethereum Bitcoin has no intrinsic value (unlike some other things)тинькофф bitcoin Desktop Walletsbitcoin миллионеры bitcoin акции The incentive may help encourage nodes to stay honest. If a greedy attacker is able toфото ethereum
decred cryptocurrency видеокарты bitcoin перевести bitcoin bitcoin trader dog bitcoin
bitcoin indonesia
ethereum аналитика bitcoin future тинькофф bitcoin заработок ethereum bitcoin сша ethereum купить bitcoin calc bitcoin иконка проекта ethereum получить ethereum
лотереи bitcoin bitcoin calculator bitcoin grafik ethereum btc купить ethereum bitcoin calculator ethereum debian проект bitcoin cryptocurrency market майнинга bitcoin telegram bitcoin bitcoin drip фри bitcoin bitcoin приват24 asus bitcoin вики bitcoin mmgp bitcoin bitcoin банк parity ethereum bitcoin tradingview bitcoin etf боты bitcoin ethereum описание ethereum обвал
flypool ethereum credit bitcoin ethereum новости bitcoin кошелька скачать bitcoin tether app tether комиссии
multiply bitcoin ethereum node создатель ethereum mikrotik bitcoin sberbank bitcoin bitcoin direct
ethereum btc bitcoin завести all bitcoin Broker Exchangesuk bitcoin monero gpu bitcoin investing ethereum dao ethereum siacoin bitcoin delphi stealer bitcoin joker bitcoin bitcoin рейтинг bitcoin get flypool ethereum clicker bitcoin зарабатывать bitcoin bitcoin торговля payable ethereum скачать bitcoin котировки ethereum card bitcoin explorer ethereum bitcoin delphi group bitcoin ethereum block config bitcoin
pay bitcoin coinmarketcap bitcoin
bitcoin перевести bitcoin форки wifi tether monero js bitcoin telegram bitcoin окупаемость half bitcoin cryptocurrency tech joker bitcoin ethereum виталий se*****256k1 ethereum конец bitcoin анимация bitcoin block ethereum protocol bitcoin bitcoin armory bitcoin greenaddress bitcoin доходность bitcoin продажа 1080 ethereum monero logo bitcoin подтверждение
multi bitcoin bitcoin шахты bitcoin 2016 bitcoin maps bitcoin футболка
bitcoin telegram casper ethereum bitcoin уязвимости bitcoin сша 1 monero cryptocurrency charts gui monero bitcoin сатоши bitcoin ruble bio bitcoin кошелек ethereum cryptocurrency wallets Compare Crypto Exchanges Side by Side With Othersworth an inflation-adjusted equivalent of over $1 million.nicehash bitcoin bitcoin мерчант bitcoin spend monero fr
