Bitcoin And Etherium, What Is The Difference Between Them?
Bitcoin and Etherium are currently making waves as the best (in value) in the cryptocurrency world. While Bitcoin was the first to roll out and has been dominating the crypto scene, Etherium which launched a little over two years ago is tenaciously following behind it. Though both are powered by the blockchain technology, they are entirely different packages. The very nature of this blockchain makes it possible to create different cryptocurrencies to serve different real-life purposes.
Before choosing to invest in either Bitcoin or Etherium, it is important to understand the basic characteristics that set these two cryptocurrencies apart.
- Bitcoin was designed to act as a secure medium for payment. For example, you can easily purchase items with bitcoin on eBay, Amazon and other online marketplaces. Bitcoins could also be used to transfer money, without limits, across national borders. You could say it is an alternative to regular physical money, and that is all it is.
Etherium on the other hand is not just a currency, it was designed to be much more than a system of payment. This is the single most important difference between the two. Etherium has a feature called SmartContracts which are blockchain stored applications that run exactly as programed without the possibility of third party interference, censorship or downtime. These applications facilitate peer-to-peer contractnegotiations with greater security while bringing down the cost. Ether (ETH) is Etherium’s currency and it is the medium of payment within the Etherium platform. Unlike Bitcoin which can be used on any blockchain platform, Ether is only used on Etherium blockchain platform.
- Bitcoins are released into circulation through mining alone. And mining can be done by anyone who has the skills and the right tools. Bitcoin miners are rewarded in Bitcoins, and presently at 12.5 Bitcoins per block of transaction added to the blockchain. This reward is halved after every 210,000 blocks have been successfully added, or every four years. This means that most of the bitcoins in circulation are owned by miners, especially the early ones when the reward was bigger.
Etherium prior to launching organized an Initial Coin Offering (a form of fundraising) in which they sold around 60 million Ether, raising around $18.5 million. Additional Ether are released through mining. But unlike Bitcoin, the reward per block is fixed at 5 Ether.
- Bitcoin has a block time of 10 minutes. Etherium, by using its Ghost protocol has a faster block time of between 14 to 15 seconds, and they are aiming to reduce this further to 12 seconds. This makes it possible to have faster transaction times in Ether than in Bitcoins.
- Bitcoin is written in C++ programming language. Etherium is written in Turing complete language
The difference between these two cryptocurrencies are much and cannot be exhausted here. However, care was taken to highlight the major differences that will aid investment choices. However, while Bitcoin is striving to make transactions secure and fast, Etherium is focused on much more. Therefore, in as much as more SmartContracts and distribution applications are built, Etherium’s popularity and Ether’s value will continue to increase.