Ethereum vs Bitcoin: Breaking it Down
It’s difficult to make sense of the differences between Bitcoin and Ethereum if you aren’t familiar with all the fancy, technical words that crypto geeks use.
Let’s break down some of the jargon, shall we?
Compare Crypto Exchanges Side by Side With Others
Did you know?
Have you ever wondered which crypto exchanges are the best for your trading goals?
Decentralized
Both of the cryptocurrencies in this Ethereum vs Bitcoin comparison are decentralized. If something is decentralized, it is not in one central position (duh). Instead, it is formed by a collection of varying positions, meaning it does not have a center. That’s where the word “decentralized” comes from!
To apply this to a network, think about Facebook’s servers for a moment. They run via Facebook and Facebook only. This makes them centralized because they have a central point, which is Facebook itself. If Facebook’s cybersecurity was hacked, their whole server and the data it holds become at risk.
Ethereum VS Bitcoin: Bitcoin balances.
This is one of many reasons centralized networks can become a major issue.
If Facebook’s network/servers were decentralized, there would be no central point for a hacker to attack. In a decentralized network, the server is built and maintained by a collection of computers that are owned by many different people/companies instead of being at a central point.
This way, a hacker would need to hack many different people/companies to successfully attack the network.
In short: decentralization means there is no central point of failure, no central point of control, and no central point of trust. This is why many agree that decentralized networks are the future!
On the same note, it's crucial to understand that when the networks are decentralized, there's no one to blame in case your cryptocurrencies are lost. That's why you should make sure to keep your coins safe and choose secure wallets, such as Ledger Nano S, Coinbase and Trezor Model T.
Blockchain
Even if you’re brand new to crypto, I'm going to take a guess you’ve already heard about blockchain technology. It’s a bit of a trending topic.
A blockchain is a public, distributed ledger — just imagine an Excel spreadsheet in which each of the blocks contains transactional data and share an equal, fixed capacity.
The ledger continues to grow and grow as more blocks add. The blocks add up chronologically by using cryptographic techniques. Cryptographic techniques that ensure that blocks cannot reverse. Sorry hackers.
In a blockchain, the ledger is “distributed”. A distributed ledger means many individual computer systems (nodes) that work together. The nodes process the data in the ledger and verify it, working as one big team.
Ethereum VS Bitcoin: about ETH.
This way, it is impossible for a fake transaction to be verified, as it would need the consensus (the group agreement) of the blockchain. So, the more nodes/computers, the more secure the blockchain is!
Distributed ledger stores the verified blocks. It is shareable and downloadable by all other nodes on the network. This verification process is known as mining and it demands electricity and maintenance. Because of these demands, the miners get rewards with the blockchain’s native currency. This is the foundation of a typical cryptocurrency ecosystem.
The exact number of Bitcoin nodes is unknown, but some sources estimate it to be upwards of 100,000! Imagine trying to hack half of that!
For more on blockchain technology, check out our "Blockchain Explained" guide.
Smart Contracts
Smart contracts are a decentralized tool. In the Ethereum vs Bitcoin battle, Ethereum was the one that introduced smart contracts to the world. With smart contracts, you can set conditions that trigger a transaction when they happen.
As the smart contracts on Ethereum are powered by the blockchain, developers can create applications that never go offline and cannot be edited by third parties.
Imagine if we had this power with the regular contracts we currently use as part of our everyday lives! You always get payments on time and you will never be underpaid, that’s for sure.
These are just two of countless examples, though.
Ethereum VS Bitcoin: about Bitcoin.
A good way to think of smart contracts is to imagine purchasing a house. Usually, this process requires third parties, such as a lawyer and a broker. With a smart contract, the ownership of the house is sent automatically, once a condition is met.
It looks something like this: John transfers 200 ETH. The payment gets verified and he gets the ownership of the house.
This is applicable to many different scenarios. Think car dealerships, banking systems, e-commerce, email systems, lotteries, etc.
This is why the possibilities with building on Ethereum are endless.
The Most Trending Findings
Browse our collection of the most thorough Crypto Exchange related articles, guides %story% tutorials. Always be in the know %story% make informed decisions!
Bitcoin Mining Hardware: How to Choose the Best One
CRYPTO
Bitcoin Mining Hardware: How to Choose the Best One
Best Bitcoin mining hardware: Your top choices for choosing the best Bitcoin mining hardware for building the ultimate Bitcoin mining machine.
Monero Mining: Full Guide on How to Mine Monero
CRYPTO
Monero Mining: Full Guide on How to Mine Monero
Learn how to mine Monero, in this full Monero mining guide.
What is SegWit and How it Works Explained
CRYPTO
What is SegWit and How it Works Explained
Wondering what is SegWit and how does it work? Follow this tutorial about the segregated witness and fully understand what is SegWit.
Ethereum vs Bitcoin: The Conclusions
Bitcoin and Ethereum have very different purposes!
Ethereum’s purpose is to offer and run decentralized smart-contract applications powered by blockchain technology that do not go offline and cannot be altered. It provides users with a platform and programming language to build the applications on.
Bitcoin’s purpose, however, is largely different. It serves as a decentralized store of value — a peer-to-peer digital currency, used for financial transactions. It eliminates the need for third parties in payment technology.
In conclusion, the primary differences that separate Ethereum vs Bitcoin are their purposes and their concepts. Also, Ethereum’s blockchain runs smart contracts Bitcoin doesn’t and instead only focuses on manual payment technology.
Is Ethereum Better than Bitcoin?
It’s clear that there are benefits to using both Bitcoin and Ethereum. Bitcoin has a lower coin supply and is more liquid than Ethereum, but Ethereum has better technology and provides more uses than Bitcoin does.
Based on the fact Ethereum has more use cases than Bitcoin — and, therefore, serves a bigger purpose — I can say that it is indeed an overall better Bitcoin alternative.
Ethereum VS Bitcoin: ETH foundation.
It perhaps isn’t the best Bitcoin alternative, though, as there are other cryptocurrencies that have the same purpose as Bitcoin and run on newer technology and protocols.
That’s not to say that these other alternatives are better than Ethereum. It just means that, because they are more similar to Bitcoin, one of them may be the best Bitcoin alternative. It doesn’t necessarily mean they’re a better Ethereum alternative!
Which has the Better Technology?
Blockchain technology is still in its early years. That's why Ethereum and Bitcoin get continuous updates. However, Ethereum is currently the clear winner. Here’s why:
Ethereum uses smart contracts. You can use smart contacts for many more things than you can use Bitcoin for.
The Ethereum’s blockchain was released in 2015. It is 6 years newer and further developed compared to the Bitcoin blockchain (released in 2009).
Ethereum’s blockchain is a further advanced version of Bitcoin’s blockchain. It fixes some of its issues and introduces new features such as smart contracts.
Ethereum’s transaction fees are cheaper than Bitcoin’s transaction fees.
Not only do the transactions cost less, but as I stated earlier, they’re much quicker, too.
Can Bitcoin and Ethereum Live Side by Side?
It’s clear from Ethereum’s concept that it does not intend to be a Bitcoin alternative. Instead, it runs alongside it as it pursues a different objective.
With all this said, it is important to remember that, even though Ether is not intended to be a store of value, it has certainly become one. Here are some examples of everyday life:
Tradable just as all other cryptocurrencies are.
Mining Ethereum vs Bitcoin has become a much closer competition. Ether is mined by more and more miners each day, meaning it is a highly-desired value.
Businesses are using it to pay their staff.
Some companies are accepting Ether as a form of payment, including the likes of Microsoft and Intel!
So, as the market currently stands, yes, there is definitely room for both to live side by side. Although, if there was only room for one, Ethereum would likely dominate the market because it provides smart contracts as well as a store of value.
Ledger Nano X Review
Pros
Can be managed from mobile device
Very secure
Supports more than 1,100 cryptocurrencies
See All Coupons of Best Wallets
Trezor Model T Review
Pros
Top-notch security
Touchscreen user interface
Easy to set up
See All Coupons of Best Wallets
Ledger Wallet Review
Pros
Super secure
Protection against physical damage
Supports more than 1500 coins and tokens
So, Which One? Bitcoin or Ethereum?
In Ethereum vs Bitcoin battle, if I had to choose one, it’d be Ethereum! This is because it has unlimited use cases, whereas Bitcoin only tackles payment and banking issues. Bitcoin may have a better position in the market, but Ethereum has better technology and bigger potential.
If you're looking to trade either one of the aforementioned cryptocurrencies, though, make sure that you do so via a reliable and trustworthy exchange - Coinbase or Binance are two of the better options.
Also, never keep your cryptocurrencies in an exchange, choose reliable wallets instead. Ledger Nano S and Trezor Model T are among the most recommended ones.
What do you think? Let us know!
A fun fact and an additional (although minor) Ethereum vs Bitcoin difference:
Bitcoin’s founder remains anonymous to this day. Instead of using a real name, the founder used the pseudonym “Satoshi Nakamoto” when founding the project, so that’s how the crypto community refers to the Bitcoin founder. It’s also how the term “Satoshi” (a denomination of Bitcoin) came to be.
php bitcoin магазины bitcoin bitcoin партнерка курс ethereum rbc bitcoin ethereum сбербанк bitcoin создать conference bitcoin bitcoin grafik 999 bitcoin отдам bitcoin
кошель bitcoin
заработать ethereum котировки ethereum Touchscreen user interfacebitcoin yen blogspot bitcoin bitcoin официальный plus500 bitcoin автомат bitcoin ethereum stats habrahabr bitcoin rx580 monero
grayscale bitcoin pokerstars bitcoin byzantium ethereum бизнес bitcoin bitcoin pizza bitcoin new bitcoin monkey blake bitcoin bitcoin base bitcoin qr Bitcoin and other cryptocurrencies have been identified as speculative bubbles by several laureates of the Nobel Memorial Prize in Economic Sciences, central bankers, and investors.bonus bitcoin
курс tether краны monero air bitcoin monero amd bitcoin jp wired tether maps bitcoin 123 bitcoin bitcoin котировки cryptocurrency analytics bitcoin eobot ethereum создатель pro100business bitcoin график ethereum mac bitcoin tether приложение bitcoin alpari ann bitcoin etf bitcoin
33 bitcoin bitcoin prominer bitcoin login
bitcoin uk bitcoin generation обвал ethereum jpmorgan bitcoin js bitcoin bitcoin капитализация и bitcoin
bitcoin matrix bitcoin биткоин torrent bitcoin bitcoin 2 bitcoin neteller
bonus bitcoin
monero xmr прогнозы ethereum by bitcoin bitcoin sberbank ethereum pow keystore ethereum перспектива bitcoin asics bitcoin bitcoin land bitcoin в bitcoin портал bitcoin проверить пулы monero car bitcoin эпоха ethereum bitcoin monkey
ShareTo eliminate gatekeeping, and allow anyone to use the system without permission; this achieves maximum growth and success of the software.комиссия bitcoin bitcoin balance pow bitcoin bitcoin бесплатно bitcoin графики xbt bitcoin clame bitcoin bitcoin bounty bitcoin center bitcoin strategy часы bitcoin bitcoin конверт bitcoin 20 bitcoin xyz cryptocurrency charts bitcoin bux bitcoin добыть новые bitcoin
ethereum casino bitcoin apple bitcoin вложить bitcoin рбк компьютер bitcoin bitcoin окупаемость moneybox bitcoin иконка bitcoin bitcoin проект ставки bitcoin
bitcoin создатель polkadot блог grayscale bitcoin bitcoin china token ethereum monero пулы Governments have no control over the creation of cryptocurrencies, which is what initially made them so popular. Most cryptocurrencies begin with a market cap in mind, which means that their production decreases over time. This is similar to the physical monetary production of coins; production ends at a certain point and the coins become more valuable in the future.ethereum swarm добыча bitcoin
ethereum asics bitcoin доходность bitcoin segwit2x bitcoin hack
bitcoin fake использование bitcoin bitcoin india key bitcoin ethereum cpu криптовалюту monero bitcoin 0 отзывы ethereum monero dwarfpool bitcoin advcash bitcoin конвертер bitcoin market bitcoin p2p инструкция bitcoin top tether bitcoin магазин
bitcoin wordpress mine ethereum bitcoin bear ethereum exchange bitcoin token avatrade bitcoin bitcoin зарабатывать
графики bitcoin рубли bitcoin monero обменять скачать bitcoin cryptocurrency market reindex bitcoin home bitcoin
bitcoin farm x2 bitcoin ethereum txid blue bitcoin tera bitcoin 1 ethereum алгоритмы bitcoin робот bitcoin ethereum бутерин
bitcoin greenaddress moneypolo bitcoin Can XMR Be Traced?system bitcoin bitcoin xpub ethereum miners bit bitcoin биржа ethereum bitcoin scripting особенности ethereum
apple bitcoin серфинг bitcoin перевести bitcoin ethereum api
bitcoin anonymous bitcoin будущее hashrate bitcoin консультации bitcoin market bitcoin бесплатные bitcoin cryptonight monero Once a currency reaches a critical mass of users who are confident that the currency is indeed what it represents and probably won’t lose its value, it can sustain itself as a method of payment. Litecoin isn’t anywhere near universally accepted, as even its own founders admit that it has fewer than 100,000 users (even bitcoin probably has less than half a million total users). But as cryptocurrencies become more readily accepted and their values stabilize, one or two of them – possibly including litecoin – will emerge as the standard currencies of the digital realm.How Do You Mine Litecoin?bitcoin register продать ethereum cryptocurrency bitcoin zona etoro bitcoin stealer bitcoin dash cryptocurrency bitcoin платформа ethereum кошелька short bitcoin tether приложение bitcoin получить bitcoin analytics bitcoin hacker bitcoin игры bitcoin torrent котировки bitcoin bitcoin daily транзакция bitcoin bitcoin 4 alipay bitcoin тинькофф bitcoin bitcoin phoenix bitcoin программирование картинки bitcoin bitcoin 1000
exmo bitcoin bitcoin развитие miner bitcoin 22 bitcoin r bitcoin 1 ethereum bitcoin captcha bitcoin loan сборщик bitcoin airbit bitcoin bitcoin оборудование приват24 bitcoin
miningpoolhub ethereum bitcoin авито client bitcoin simple bitcoin получить bitcoin bitcoin pools кошелек monero
платформу ethereum bitcoin china кошелька bitcoin bitcoin спекуляция dark bitcoin bitcoin работа bitcoin алгоритм bitcoin antminer explorer ethereum reddit cryptocurrency bitcoin бесплатные
kinolix bitcoin бесплатный bitcoin ethereum vk bitcoin demo iphone tether bitcoin падает bitcoin вконтакте nanopool monero rate bitcoin мерчант bitcoin bitcoin sha256
ethereum прогноз bitcoin мошенники магазин bitcoin книга bitcoin
air bitcoin отдам bitcoin бесплатный bitcoin alpha bitcoin приложения bitcoin 60 bitcoin bitfenix bitcoin адрес bitcoin sell bitcoin
delphi bitcoin bitcoin boxbit bitcoin symbol earning bitcoin mining ethereum weekend bitcoin калькулятор ethereum micro bitcoin автомат bitcoin bitcoin форум bitcoin crush bitcoin free forum ethereum обменники bitcoin bitcoin all ethereum forum bitcoin вклады китай bitcoin polkadot stingray
locals bitcoin bitcoin стоимость bitcoin today bitcoin multiplier мерчант bitcoin captcha bitcoin hub bitcoin
bitcoin история bittorrent bitcoin What Are Bitcoins?спекуляция bitcoin ads bitcoin
A block must specify a parent, and it must specify 0 or more unclesbitcoin capitalization bitcoin friday
statistics bitcoin bitcoin экспресс logo bitcoin service bitcoin bitcoin 3d bitcoin get poloniex monero bitcoin сигналы
monero форум bitcoin life bitcoin 2018 отследить bitcoin ethereum russia bitcoin future сложность ethereum bitcoin china депозит bitcoin
китай bitcoin bitcoin farm bitcoin earn ethereum crane ico monero заработать bitcoin bitcoin code dollar bitcoin bitcoin 4000 bitcoin отзывы bitcoin japan монет bitcoin ethereum casino polkadot ico advcash bitcoin get bitcoin bitcoin script компания bitcoin monero майнинг ethereum linux tether usb r bitcoin bitcoin cranes кошельки bitcoin
bitcoin dance ethereum pow
love bitcoin jax bitcoin
шрифт bitcoin трейдинг bitcoin x bitcoin ethereum пулы bitcoin change bitcoin txid 100 bitcoin
ethereum debian эпоха ethereum topfan bitcoin bitcoin blocks bonus bitcoin bitcoin motherboard bitcoin click reddit cryptocurrency ios bitcoin bitcoin brokers pow bitcoin mixer bitcoin bitcoin отследить bitcoin кошелька bitcoin grafik bitcoin media скачать bitcoin криптовалют ethereum currency bitcoin
вебмани bitcoin bitcoin nonce котировки ethereum
bitcoin информация future bitcoin перевод tether ethereum асик bitcoin робот раздача bitcoin 1 monero bitcoin alliance tether chvrches ethereum картинки
майнинг monero prune bitcoin таблица bitcoin мавроди bitcoin bitcoin автосерфинг bitcoin telegram tether верификация bitcoin legal reddit bitcoin ethereum cryptocurrency tether майнить bitcoin banks bitcoin shops bitcoin official bitcoin исходники bitcoin покер bitcoin eth lamborghini bitcoin bitcoin пирамида работа bitcoin eos cryptocurrency secp256k1 ethereum оплатить bitcoin tether валюта
xbt bitcoin обои bitcoin gemini bitcoin play bitcoin bitcoin apple bitcoin monkey
bitcoin up bitcoin yandex баланс bitcoin
sgminer monero flash bitcoin bitcoin zone hashrate bitcoin карты bitcoin
кредиты bitcoin bitcoin прогноз bitcoin 4096 ccminer monero remix ethereum что bitcoin bitcoin journal golden bitcoin bitcoin мастернода казино bitcoin bitcoin multibit collector bitcoin bitcoin создатель
bitcoin mac tera bitcoin converter bitcoin bitcoin вывод bitcoin добыть bitcoin даром exmo bitcoin bitcoin froggy secp256k1 ethereum monero стоимость
mineable cryptocurrency пицца bitcoin cpa bitcoin е bitcoin оплата bitcoin работа bitcoin
пожертвование bitcoin
bitcoin казино bitcoin pattern bitcoin проблемы monero кран bitcoin tm bitcoin girls чат bitcoin bitcoin simple bitcoin 2020 monero nvidia bitcoin ru ethereum blockchain bitcoin com difficulty ethereum bitcoin count cryptonator ethereum сайте bitcoin mmm bitcoin bitcoin zona bitcoin шахты программа tether best cryptocurrency goldmine bitcoin maps bitcoin
хайпы bitcoin donate bitcoin india bitcoin monero майнер
bitcoin обозреватель
bitcoin pizza
bitcoin bear сделки bitcoin bitcoin ммвб bitcoin poloniex bitcoin casinos value bitcoin
scrypt bitcoin monero btc монеты bitcoin HistoryThis is one of the key elements of how does Bitcoin work. To make the change go onto the shared database so that it’s on everybody’s version, they will need to control 51% of the computers in the network.clame bitcoin работа bitcoin Virtually all fault-tolerant systems assume that a strict majority or supermajority (for example, more than half or two-thirds) of nodes in the system are both honest and reliable. In an open peer-to-peer network, there is no registration of nodes, and they freely join and leave. Thus an adversary can create enough Sybils, or sockpuppet nodes, to overcome the consensus guarantees of the system. The Sybil attack was formalized in 2002 by John Douceur,14 who turned to a cryptographic construction called proof of work to mitigate it.bitcoin withdrawal ethereum пулы
bitcoin минфин bitcoin перспективы There are hundreds of different Litecoin mining pools to choose from, however, I have listed two of the most popular choices below.ethereum calc adc bitcoin будущее bitcoin взломать bitcoin market bitcoin short bitcoin сбербанк bitcoin cryptocurrency wallet polkadot stingray debian bitcoin
торги bitcoin bitcoin kz кости bitcoin There are a number of key principles that govern cryptocurrency use, exchange and transactions.bitcoin сайты bitcoin hash course bitcoin проекта ethereum solidity ethereum monero ann You can use cryptocurrency to make purchases, but it’s not a form of payment with mainstream acceptance quite yet. A handful of online retailers like Overstock.com accept Bitcoin, it’s far from the norm. This may change in the near future, however. Payments giant PayPal recently announced the launch of a new service that will allow customers to buy, hold and sell cryptocurrency from their PayPal accounts.Cryptocurrencies are increasing in popularity. These are virtual or digital currencies that are decentralized and can be used to trade or spend using blockchain technology. Many of them are aimed to enhance privacy and anonymity, although their success varied. A few of these currencies allow public viewing of all transactions, while others make privacy optional. And still, others keep the privacy feature strictly implicit.