To the basic observer, all cryptocurrencies can be seen as a type of digital money, which at times, couldn’t be possible from the truth. Keeping in mind to give you a better understanding of what blockchain technology can achieve, we need to analyze and find the differences between these two cryptocurrencies: Ethereum Blockchain and Bitcoin Blockchain
In this article, I will help you understand everything about Ethereum & Bitcoin Blockchain you would learn all the important things that you should know.
What is Ethereum?
It is a public, open-source, Blockchain-based distributed computing platform and working system featuring smart contract functionality. And it supports a modified version of Nakamoto agreement by means of transaction-based state transitions.
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What is Bitcoin?
It’s a digital currency which is independent of any nation or geographical entity & can be used by an individual who is connected to the internet. Like the way you store your cash in your wallet or a bank, bitcoins are stored in “Bitcoin wallets”. Everything is done electronically & no fiat cash (like the US Dollar, INR, YEN, or any other paper currency) is involved.
What is the difference between Bitcoin and Ethereum based Blockchain?
There are lots of similarities between Bitcoin blockchain and Ethereum blockchain like both are public blockchain. Now let’s check out the differences:
- Currency issuance: Ethereum creates 3 new ether every 15 seconds (or 720/hr) while Bitcoin makes 12.5 new bitcoins every 10min (or 75/hr) while.
- Currency cap: Bitcoin is limited to 21 million bitcoins, of which 16.7m have been made up until now. Ethereum has no hard cap currently, however, there are plans to reduce or stop issuance in a year or two. There are as of now 96.4m ethers.
- Bitcoin Blockchain makes a new block every 10 minutes (on average). Ethereum makes a new block every 15 seconds.
- While bitcoin has a scripting language worked in, it’s very limited in functionality with just a some of few dozen tasks. Ethereum has a full general-purpose language integrated. Programs written in this built-in language are known as “smart contracts”.
- Bitcoin transaction costs are based simply on their size. Ethereum assigns a cost, known as gas, to each activity or use of storage on the blockchain.
- In practice, bitcoin can process 4 transactions per second, Ethereum roughly 15. Each block in bitcoin is limited to 1MB in size (or 8BM in the case of Bitcoin Cash). In Ethereum, blocks are capped by the gas-limit, the total overhead of all the operations in the block.
- Ethereum smart contract code lives at its own particular address on the blockchain as opposed to being within a transaction as in the case of Bitcoin. In the way, Ethereum has two account types, one to hold user funds, the second to hold computer code.
- Ethereum includes blocks that are substantial however were outpaced by another newly accepted block. These nearly accepted blocks are known as “uncles” and their incorporation provides added security to the chain and allows Ethereum to have shorter block times.
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As I would see it, Ethereum is fundamentally different from Bitcoin. Ethereum and Bitcoin are not competitors. They coexist and solve different types of problems in the real world and open up a possibility for a new future.
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