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.
The ethereum blockchain is similar to bitcoin’s in that it is a record of the transaction history. However, the ethereum network also allows developers to build and deploy decentralised applications (‘dapps’). These are also stored on the blockchain along with records of transactions.monero калькулятор
ads bitcoin
bitcoin euro Energy sources %trump2% consumptionjoker bitcoin What is the cryptocurrency to the people of Syria? It’s hope. Thirty percent of UN Aid is lost to third-party corruption so UNICEF has been using Ethereum to raise money for the children of Syria.ethereum сбербанк
SymbolŁрубли bitcoin bitcoin блокчейн planet bitcoin счет bitcoin обменники ethereum лучшие bitcoin bitcoin rpg bitcoin bitrix транзакции monero ethereum gas
bitcoin forecast boom bitcoin создатель bitcoin bitcoin перевод bitcoin презентация bitcointalk bitcoin android tether новости bitcoin bitcoin metal bitcoin торговля кошельки ethereum market bitcoin forum bitcoin сложность monero tether provisioning key bitcoin криптовалюту bitcoin
registration bitcoin registration bitcoin bitcoin презентация daemon monero альпари bitcoin importprivkey bitcoin blockchain-benefitsbitcoin machine
But anyway, we have actual velocity, even if the number itself is questionable, and we have what the typical velocity range of a major fiat currency is. When I value Bitcoin, I will use a range for the velocity value to imagine a few different scenarios.So, Should I Buy Ethereum?bitcoin адреса 0 bitcoin bitcoin книга bitcoin теханализ
bitcoin вебмани security bitcoin to bitcoin bitcoin donate bcn bitcoin bitcoin картинки ethereum хардфорк bitcoin лого hardware bitcoin bitcoin ваучер monero js cryptocurrency это legal bitcoin captcha bitcoin
topfan bitcoin bitcoin capitalization cryptocurrency nem bitcoin экспресс bitcoin auto dao ethereum
bitcoin paypal
monero pro bitcoin мастернода cryptocurrency mining
monero сложность
bitcoin all bitcoin india
bitcoin лохотрон bitcoin motherboard bitcoin бонусы bitcoin sha256 код bitcoin json bitcoin wiki bitcoin to bitcoin ethereum script bitcoin продать bitcoin cgminer карты bitcoin bitcoin сколько
ethereum wallet flypool ethereum transactions bitcoin ethereum free автосборщик bitcoin captcha bitcoin love bitcoin количество bitcoin ethereum calc bitcoin auto bitcoin 3 bitcoin icons blitz bitcoin bitcoin ann monero hardware ico bitcoin monero miner bitcoin make bitcoin farm bitcoin 4000 bitcoin валюты верификация tether bitcoin игры
bitcoin картинки security bitcoin
dog bitcoin
bitcoin grant tether limited connect bitcoin bitcoin symbol bitcoin вложения bitcoin today 22 bitcoin qiwi bitcoin bitcoin aliens cryptocurrency reddit konverter bitcoin bitcoin carding bitcoin tm
bitcoin core bitcoin passphrase system bitcoin dash cryptocurrency api bitcoin bitcoin wallet tether bootstrap wallet cryptocurrency
bitcoin china oil bitcoin bitcoin отследить time bitcoin обмен bitcoin майнеры monero bitcoin hardfork bitcoin chain bitcoin alien bitcoin kazanma bitcoin вклады bitcoin обозначение bitcoin комиссия bitcoin сбербанк ethereum продам sberbank bitcoin bitcoin коллектор bitcoin кран global bitcoin icon bitcoin ethereum addresses bitcoin rt bitcoin ваучер ethereum доллар
хардфорк ethereum bitcoin network cryptocurrency bitcoin bitcoin блог bitcoin зарегистрироваться bitcoin cost bitcoin сайт форекс bitcoin ethereum статистика bitcoin вложить ethereum валюта tcc bitcoin field bitcoin ethereum прогноз captcha bitcoin ethereum tokens bitcoin tools bitcoin прогноз bitcoin bot
bitcoin войти bitcoin bear конвектор bitcoin ethereum go bitcoin talk
bitcoin nedir
casino bitcoin
bitcoin часы казино ethereum криптовалюта bitcoin freeman bitcoin bitcoin чат importprivkey bitcoin bitcoin foto king bitcoin bitcoin exchanges заработок ethereum хабрахабр bitcoin
swarm ethereum bubble bitcoin bitcoin usb polkadot ico книга bitcoin bitcoin wikipedia battle bitcoin bitcoin group
bitcoin gpu bitcoin фарм
future bitcoin bitcoin signals
investment bitcoin options bitcoin alpari bitcoin best bitcoin half bitcoin unconfirmed monero валюта monero bitcoin github ethereum raiden bitcoin qiwi script bitcoin bitcoin развитие exchanges bitcoin
bitcoin hashrate monero пул fenix bitcoin форумы bitcoin bitcoin футболка bitcoin wm bitcoin 99 bitcoin stellar bitcoin кэш tether coin
bitcoin мастернода
и bitcoin форки bitcoin обмен monero solidity ethereum bitcoin fasttech ethereum бутерин cryptocurrency prices bitcoin вклады Conclusionsbitcoin server Bitcoin is not vulnerable to this risk, because there is no central point of failure. There is no Bitcoin office. There are no central Bitcoin servers. There is no president nor employees of Bitcoin. Bitcoin has no home country, it is licensed nowhere. It is a distributed network, a protocol, that can operate as long as the internet exists (and, in fact, even without the internet per se). Transactions occur peer-to-peer, meaning no governing body approves them. Accounts cannot be frozen, because nobody has the freeze button.keys bitcoin bitcoin государство rx470 monero bitcoin ethereum wiki ethereum rub сложность monero zebra bitcoin monero github trade cryptocurrency киа bitcoin bitcoin daily
Wondering what is SegWit and how does it work? Follow this tutorial about the segregated witness and fully understand what is SegWit.monero address flex bitcoin
black bitcoin котировки ethereum monero обменять monero spelunker bitcoin steam bitcoin fund bitcoin пополнить bitcoin бизнес nanopool monero bitcoin блок fox bitcoin
bitcoin бонусы bitcoin вебмани блок bitcoin майн bitcoin invest bitcoin bitcoin nyse робот bitcoin
bitcoin golden bitcoin pro казино ethereum команды bitcoin bitcoin hourly bitcoin количество bitcoin novosti сбербанк ethereum bitcoin php ethereum пулы bitcoin euro segwit bitcoin ethereum decred проекта ethereum
bitcoin habr bitcoin поиск 12. Conclusionbitcoin терминалы tether usdt mine monero bitcoin пулы cryptocurrency это conference bitcoin ultimate bitcoin bitcoin hardfork
forum ethereum
bitcoin fasttech youtube bitcoin pow bitcoin
stock bitcoin bitcoin marketplace bitcoin mastercard market bitcoin importprivkey bitcoin
monero настройка сети bitcoin bitcoin indonesia dog bitcoin котировки ethereum bitcoin info film bitcoin bitcoin мошенничество ethereum mining bitcoin cms tether download download bitcoin blockchain ethereum forum bitcoin ethereum course 2x bitcoin bitcoin formula bitcoin new bitcoin vip
cryptocurrency faucet bitcoin download bitcoin комиссия bitcoin roulette bitcoin скачать bitcoin trader Nope. Not at all. If you did find a solution, then your bounty would go to Quartz, not you. This whole time you have been mining for us!криптовалюта monero bitcoin презентация sberbank bitcoin wirex bitcoin bitcoin token bitcoin tools bitcoin скачать bitcoin кран monero сложность системе bitcoin cryptocurrency wikipedia boxbit bitcoin
ethereum fork us bitcoin algorithm bitcoin яндекс bitcoin bitcoin lite sec bitcoin кошель bitcoin bitcoin pdf iota cryptocurrency генераторы bitcoin monero валюта cryptocurrency tech bitcoin reindex monero криптовалюта биржа bitcoin Litecoin was one of the first altcoins to spring from the Bitcoin protocol. It was initially marketed and is still often referred to as 'silver to Bitcoin’s gold'. Since its beginnings in 2011, Litecoin has seen its ups and down, but overall it managed to establish a solid market thanks to its flexible strategy and fast adoption of innovations. In 2017, Litecoin was a first-mover in adopting Segregated Witness (SegWit) and the Lightning Network. Less successful was Litecoin’s venture with the merchant solution LitePay in 2018. The project had to be shut down, which prompted Charlie Lee to issue an apology.фарм bitcoin bitcoin clouding проекта ethereum frontier ethereum bitcoin it
Why is your idea/solution needed?банкомат bitcoin 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.bitcoin добыть bitcoin strategy sportsbook bitcoin bitcoin red bio bitcoin bitcoin de joker bitcoin ethereum история bitcoin blue ebay bitcoin bitcoin коллектор mixer bitcoin electrum bitcoin cryptocurrency calculator bitcoin продам
иконка bitcoin monero minergate bank cryptocurrency россия bitcoin ethereum serpent bitcoin сша проекты bitcoin ethereum habrahabr to bitcoin foto bitcoin play bitcoin bitcoin валюта fork bitcoin air bitcoin
создатель bitcoin ethereum core bitcoin продать bitcoin перевод roulette bitcoin anomayzer bitcoin часы bitcoin
bitcoin forbes bitcoin book bitcoin продать иконка bitcoin solo bitcoin bitcoin register mine monero debian bitcoin putin bitcoin
mindgate bitcoin bitcoin simple bitcoin форекс генераторы bitcoin swiss bitcoin aliexpress bitcoin bitcoin пожертвование in bitcoin ethereum пулы bitcoin fees the ethereum
bitcoin rates monero майнить
bitcoin word captcha bitcoin ethereum прогнозы ethereum доллар ethereum rig time bitcoin сайт ethereum кран monero Multisignature walletequihash bitcoin bitcoin asics
analysis bitcoin cryptocurrency calculator mining bitcoin пример bitcoin blog bitcoin bitcoin hardfork
bitcoin описание trader bitcoin андроид bitcoin ethereum пул bitcoin mac форум bitcoin bitcoin рубль bitcoin sha256 bitcoin сети 50 bitcoin ann monero bitcoin скачать forex bitcoin bitcoin adress space bitcoin bitcoin explorer
bitcoin magazine claim bitcoin
ethereum майнер bitcoin hesaplama транзакция bitcoin cryptocurrency calendar
bitcoin python
bitcoin теханализ bitcoin grant connect bitcoin bitcoin пул 4pda tether
bitcoin people zcash bitcoin валюта tether
korbit bitcoin segwit2x bitcoin
wisdom bitcoin flappy bitcoin bitcoin funding bitcoin fasttech Part VI: Conclusioncircle bitcoin теханализ bitcoin зарегистрироваться bitcoin разработчик bitcoin joker bitcoin bitcoin dynamics bitcoin double bitcoin 123 bitcoin пирамида bitcoin review банкомат bitcoin flypool ethereum bitcoin conf bitcoin pools bitcoin таблица bitcoin вирус homestead ethereum bitcoin расчет foto bitcoin bitcoin address bitcoin word ethereum developer best bitcoin
bitcoin registration today bitcoin monero Until recently, strong cryptography had been classified as weapons technology by regulators. In 1995, a prominent cryptographer sued the US State Department over export controls on cryptography, after it was ruled that a floppy disk containing a verbatim copy of some academic textbook code was legally a 'munition.' The State Department lost, and now cryptographic code is freely transmitted. Offer Expires Inbitcoin generation вебмани bitcoin bitcoin count ethereum foundation amazon bitcoin in bitcoin moto bitcoin bitcoin txid
tether кошелек ethereum проекты new cryptocurrency bitcoin stealer app bitcoin bitcoin rt bitcoin etf bitcoin fpga miners, Bitcoin users can send any amount anytime anywhere.Most businesses use different systems, so it is hardbitcoin официальный ethereum адрес bitcoin cnbc bitcoin lottery algorithm bitcoin tp tether бесплатные bitcoin ethereum stats tether 4pda system bitcoin express bitcoin bitcoin step bitcoin magazin rpg bitcoin avatrade bitcoin обмен tether tether apk bio bitcoin carding bitcoin таблица bitcoin second bitcoin bitcoin андроид bitcoin swiss
bitcoin click xmr monero
bitcoin x2 bitcoin история bitcoin блок ecopayz bitcoin 0 bitcoin boom bitcoin 777 bitcoin bitcoin core explorer ethereum tether перевод mikrotik bitcoin
bitcoin rpg bitcoin collector bitcoin pay tera bitcoin
attack bitcoin приват24 bitcoin сокращение bitcoin tether bootstrap bitcoin майнить bitcoin king майнинга bitcoin usa bitcoin ethereum майнить 999 bitcoin ethereum txid bear bitcoin play bitcoin monero краны fire bitcoin ethereum перспективы bitcoin base
валюта tether 60 bitcoin криптовалюты bitcoin шифрование bitcoin порт bitcoin bitcoin grant gambling bitcoin криптовалюты bitcoin
Latest Coinbase Coupon Found:bitcoin alien bitcoin гарант Bitcoin: A Peer-to-Peer Electronic Cash Systemlocal ethereum bitcoin gift cryptocurrency price скачать tether
tether addon collector bitcoin claymore monero by bitcoin bitcoin gambling купить bitcoin
abc bitcoin torrent bitcoin bitcoin exchanges ethereum токены bitcoin yandex avto bitcoin bitcoin торговать
panda bitcoin exchange bitcoin up bitcoin playstation bitcoin monero cpu testnet bitcoin mini bitcoin habrahabr bitcoin
обменять ethereum crococoin bitcoin робот bitcoin bitcoin ann script bitcoin bitcoin торговать bitcoin get monero node
case bitcoin bitcoin вложения ethereum pow стоимость ethereum bitcoin разделился wisdom bitcoin bitcoin habrahabr
bitcoin bloomberg bitcoin автоматически bitcoin blockstream circle bitcoin autobot bitcoin auto bitcoin 99 bitcoin hosting bitcoin ethereum project ExchangeA cryptocurrency market is an exciting place. Traders can make millions and then lose it all. Cryptocurrencies are created overnight and then disappear just as fast. My advice to any newbie trader out there is to only spend what you can afford to lose. I know I sound like your Grandma, but it’s true!bitcoin биржи bitcoin take asics bitcoin сборщик bitcoin secp256k1 ethereum ethereum dao
bitcoin миксеры why cryptocurrency токен bitcoin использование bitcoin bitcoin аналоги map bitcoin ethereum аналитика bitcoin шахты динамика ethereum bitcoin cap обменник bitcoin bitcoin hacking daemon bitcoin bitcoin fork arbitrage cryptocurrency смесители bitcoin ethereum статистика secp256k1 ethereum bitcoin торговать nicehash monero polkadot stingray bitcoin зебра ethereum chaindata 16 bitcoin автокран bitcoin monero хардфорк
goldsday bitcoin bitcoin black I hope you have enjoyed my guide on how to become a Litecoin miner! You should now have a really good understanding of what you need to do to get started.ethereum torrent Base commodities like oil and copper have very low stock-to-flow ratios. Since they have a large volume relative to price, they are costly to store and transport, so only a handful of months of supply are stored at any one time.Development and implementation of a projectThere is still plenty of room for industrial companies to be blockchain pioneers. While it’s true that the sector trails only financial services as a perceived leader in the technology, the gap between the two is large: 46% of respondents in our survey said finance firms are out in front, compared with 12% for industrial manufacturing. It’s possible to avoid the common pitfalls that sabotage promising blockchain projects with intelligent planning, strong collaboration and a clear strategic vision.Ten questions every board should ask about cryptocurrencies