The Bitcoin network has been running for over 7 years now, and the blockchain technology is still in its infancy. The release of Ethereum a few years ago marked the first significant innovation in this space since Satoshi Nakamoto published his famous white paper.
The public was initially shocked by this new concept, but it didn’t take long to realize that blockchains have enormous potential beyond just digital currencies.
In this article, we shall show you categorically the things that makes Ethereum different from the “all-popular” Bitcoin! Please read on…
What actually makes Ethereum different from Bitcoin?
1. Ethereum is a platform for decentralised applications (DApps) and smart contracts.
2. Ethereum has its own programming language called Solidity, which makes it easier to write smart contracts.
3. Ethereum can be used to create Decentralised Autonomous Organisations (DAOs).
4. Ethereum has a slightly different economic model than Bitcoin – the supply of Ether is not capped at 21 million, but it is expected to be about 18 million with an expected growth in few years to come.
5. Ethereum has a different hashing algorithm than Bitcoin, which makes it incompatible with the specialised mining equipment developed for Bitcoin.
6. Ethereum is currently more expensive to mine than Bitcoin.
The term mining is causing confusion with people who are new to the concept of digital currencies and blockchain technology. The fact is that both Bitcoin and Ethereum have their own versions of mining; however, these processes are quite different from each other.
Ethereum is different from Bitcoin because it is currently more expensive to mine than Bitcoin. The reason this is the case, however, may not be obvious. In fact, there are only few reasons why Ethereum mining costs more than Bitcoin mining at the present.
7. Ethereum is based on a proof-of-work algorithm, which means that miners are rewarded for their work.
8. Ethereum uses a different blockchain technology than Bitcoin – the so-called “Turing complete” one. This allows for more complex contracts to be written into the blockchain.
9. Ethereum has a much faster block generation rate than Bitcoin, which means that transactions can be confirmed more quickly. This is an important feature for many applications of the technology in the real world.
10. Ethereum has a different monetary policy to Bitcoin. The rate of Ethereum issuance is not fixed, but rather decreases exponentially with time. This means that the currency will be more valuable in the future than it is today.
Although Bitcoin and Ethereum are both platforms where ledgers of transactions take place, the two differ in how they operate. While Bitcoin is a platform for payments, Ethereum is a platform for decentralized applications.
So.. Whether you are interested in Ethereum for investing purposes or just want to know more about this cryptocurrency, we strongly encourage you to keep reading our article and check out our website often – especially if you have not subscribe to our news updates.
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