Bitcoin and Ethereum are highly recognized cryptocurrencies globally, however many people still have doubts about their main differences. Starting with the exit of Ethereum in 2014, there has always been a comparison with respect to Bitcoin, below we will talk about its most notable similarities and differences:
Its operation is through decentralized networks and a Blockchain, which is based on the non-participation of third parties, and having a guaranteed guarantee by a server and teams that guard all the information, in addition to having access to the records permanently, as if it were virtual accounting.
Both currencies use Wallets in order to save their cryptocurrency (they even have a Wallet in common for the two networks). The two cryptocurrencies are currently very popular and accepted, especially in recent years. It is observed how users and companies increasingly value these networks, which has significantly increased their purchase price. With both, transactions can be made with Smart Contracts, with the difference that Bitcoin requires other software to create it, while in the case of Ethereum, its platform is its “own software” to run its Smart Contracts, which is why it does so more efficient.
Smart contracts and cryptocurrencies
Ethereum is a platform that runs thanks to a cryptocurrency created as a kind of fuel that makes it possible for everything to move around it. This network is used for the development, creation, commerce and publication of the applications, whose operations are based on Smart Contracts that are tailored to the business that is carried out. On the other hand, Bitcoin is based on its own cryptocurrencies, possessing a network in which its operations run regardless of the business for which it is used.
Decentralization of commerce vs. decentralization of the web
Bitcoin is created in order to decentralize trade and to create a currency free from controls by regulatory bodies such as the government and banks. For its part, Ethereum is created to decentralize the web, so that transactions are made between one party and the other, and likewise, eliminate the participation of third parties, in addition to offering multiple tasks added to the transactions themselves.
Different cryptocurrency subdivisions
When it comes to dividing the value of the integer part into decimals, Bitcoin reaches 8 decimals, Bitcoin’s small units are Milli Bitcoin, Micro Bitcoin, and Satoshi, the smallest fraction of all. While Ethereum, its division reaches 18 decimal places, the Ether currency is divided into Finney, Szabo, Shannon, Babbage, Lovelaces and Wei.
When it comes to security, both networks are very secure for transactions, they use a similar type of code, it is a form of an algorithm. For its part, Ethereum uses an algorithm called EtHash, while Bitcoin’s security algorithm is called SHA-256d.
Transaction confirmation speed
The time each one takes to carry out the transactions is also very important and well-differentiated, Bitcoin takes approximately 10 minutes to confirm the operation, while in Ethereum said confirmations are much faster since they take between 12 and 17 seconds.
What do you think about this topic? Do you know of any other differences between Ethereum and Bitcoin?
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