Bitcoin VS Ethereum.
We’d bet our bottom dollar that you are reading this article because you are crypto-curious and have heard the names Bitcoin and Ethereum more times than once.
These two are the most famous and widely accepted cryptocurrencies in the present world. The truth is that other cryptocurrencies are closer in comparison to Bitcoin and Ethereum than Bitcoin and Ethereum compare to each other. For example, Litecoin is more like Bitcoin than Ethereum is. And NEO is a lot more like Ethereum than Bitcoin.
Bitcoin is what comes to mind when you hear the words ‘blockchain’ or ‘crypto’. The blockchain makes it difficult for Bitcoin to be stolen or tampered with. Since all computers on the decentralized network need to agree on the terms of any transaction. The idea of a virtual, decentralized money has been more and more popular among authorities over time.
There are just balances linked to a public ledger that has been cryptographically safeguarded; there are no real bitcoins. To get Bitcoin, you can either become a miner and get rewarded in Bitcoin for contributing to the blockchain or you buy on the open market. There can only ever be 21 million Bitcoins, this supply is regulated by halving events, which often create market volatility.
Ethereum was born from the need to use blockchain technology beyond cryptocurrencies. Starting with Smart Contracts and decentralized applications (Dapps). Soon there was the need for a single currency belonging to the platform that could be trusted in line with their protocols. This led the Ethereum Foundation, to create a cryptocurrency mined in the same manner as Bitcoin, but unlike Bitcoin, Ethereum miners can charge a fee for confirming a transaction.
Also, there is no limit to the amount of Ether that can be released. This removed the perceived scarcity that may be a factor in Bitcoin’s higher valuation. Ether is the recognized currency that can be used across the Ethereum network but is not widely accepted elsewhere. On the same note, Bitcoin can not be used as a recognized currency on the Ethereum platform.
Difference Between Bitcoin And Ethereum.
They are both cryptocurrencies developed with blockchain technology. This means that independent computers volunteer to keep a list of transactions globally, allowing each currency’s history to be checked and confirmed.
They are both virtual currencies used for services, contracts, and as a store of value.
Their decentralized nature is a transition from traditional currencies, but they are not yet accepted everywhere. While Bitcoin is accepted more widely and viewed as an international digital currency, Ether is only accepted for transactions and Digital Applications (Dapps) that run on the Ethereum network.
Another difference will be the method of reward. Instead of rewarding miners for creating blocks validators will earn a transaction fee for each transaction and the smart contract they validate.
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