Is Ethereum Better Than Bitcoin?

Is Ethereum Better Than Bitcoin?

If you have been part of the world of cryptocurrencies, then you may have asked this question yourself at some point: What's the difference between Bitcoin and Ethereum? Many people see Ethereum and Bitcoin as the Apple and Microsoft of the crypto world as they are the biggest ones. These two cryptocurrencies have become increasingly popular in recent years for a variety of reasons. Ethereum had gained a lot of attention since the announcement in 2014 at the North American Bitcoin Conference. Ever since the rising popularity of these two cryptocurrencies, they have been constantly compared to each other. So, is Ethereum better than Bitcoin?

Ethereum vs Bitcoin: The Basics

Bitcoin was the first digital currency and it was originated back in 2008. It was initially introduced as a novel idea that was set out in a white paper by the mysterious Satoshi Nakamoto. Bitcoin promised the reduction of transaction fees, when compared to traditional online payment systems and also operated with a decentralised authority, which is different from government-issued currencies. Bitcoin has no physical notes or coins, only balances linked with public and private keys. In addition to this, the acceptance of the concept of digital currencies have taken more interest among regulators and government bodies.

Ethereum was launched in 2015 and is the largest open-ended decentralised software platform that allows distributed applications (ĐApps) and smart contracts to be created. This is all expected to run with no downtime, fraud, disturbance or control by a third party. In addition to this, Ethereum helps developers to build and publish distributed applications as it is a programming language that runs on the blockchain. Ethereum latent applications are extensive and they run on its platform-specific cryptographic token, Ether. Ether is similar to a vehicle that roams around within the Ethereum platform and is also required by developers that are seeking to develop and run applications within Ethereum.

Ether is commonly used for two purposes, one is trading it as a digital currency exchange like other cryptocurrencies. In addition to this, it is used within Ethereum to run applications and even monetized work.

Ethereum vs Bitcoin: Facts

Facts about Bitcoin

Facts About Ethereum

  • It was the first cryptocurrency that was launched in 2009 and the first use of blockchain technology.
  • Bitcoin doesn’t need a third party like PayPal or a bank.
  • Bitcoin is a digital currency.
  • It is an alternative to a fiat currency.
  • Mainly used for manual transactions like buying goods and services or even receiving money.
  • Ethereum’s blockchain was launched in 2015.
  • The transactions are completed through a smart contract program.
  • By having a smart contract, it can eliminate the necessity of third parties in many systems.
  • The currency is called Ether, it powers the transaction on the Ethereum blockchain.
  • The transactions only take seconds to complete.

Ethereum vs Bitcoin: Key Differences

  • Bitcoin and Ethereum have different purposes, bitcoin is a way to send money to someone and store money. While Ethereum is also sending money to someone but can only be completed when certain things occur.
  • Ethereum also varies when serving as a building platform for smart contracts and distributed application (ĐApps),which enables the users to send tokens that represent values. In addition to this, the values can be other things than just digital currencies, therefore making it different to Bitcoin.
  • Bitcoin and Ethereum also have different transaction speeds. Bitcoin can take minutes for the transaction to be completed. While Ethereum only takes seconds for the transaction to be completed.

Ethereum vs Bitcoin: The Bottom Line

Ethereum and Bitcoin are both powered by the principle of distributed ledger DLT and cryptography, however, many people claim that the two differ in many ways. For example, Ethereum programming language could be considered ‘turing complete’ whereas Bitcoin is within a stack-based language. There also minor differences such as their basic builds are different and Ethereum uses ethash compared to Bitcoin using a secure hash algorithm, SHA-256.

Nonetheless, from an overall point of view, Ethereum and Bitcoin differ in purpose. Since Bitcoin creation is to develop an alternative to traditional currency and a medium of payment transaction. While Ethereum is developed as a platform to facilitate peer-to-peer contracts and applications. Both Ethereum and Bitcoin are digital currencies, however, the main purpose of Ether is not to be acknowledge as a payment alternative unlike Bitcoin, but to monetize and facilitate the function of Ethereum to allow developers to build and run distributed applications (ĐApps).

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About the Author

Sam Deering

Sam Deering

Sam is a blockchain and cryptocurrency enthusiast, crypto trader, web developer, entrepreneur and also the founder of Crypto News Australia.