Bitcoin vs. Ethereum: What's the Difference?
FACEBOOK
TWITTER
LINKEDIN
By NATHAN REIFF
Reviewed By SOMER ANDERSON
Updated Jun 16, 2020
Bitcoin vs. Ethereum: An Overview
Ether (ETH), the cryptocurrency of the Ethereum network, is arguably the second most popular digital token after bitcoin (BTC). Indeed, as the second-largest cryptocurrency by market cap, comparisons between Ether and BTC are only natural.
Ether and bitcoin are similar in many ways: each is a digital currency traded via online exchanges and stored in various types of cryptocurrency wallets. Both of these tokens are decentralized, meaning that they are not issued or regulated by a central bank or other authority. Both make use of the distributed ledger technology known as blockchain. However, there are also many crucial distinctions between the two most popular cryptocurrencies by market cap. Below, we'll take a closer look at the similarities and differences between bitcoin and ether.
KEY TAKEAWAYS
Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation.
With time, people began to realize that one of the underlying innovations of bitcoin, the blockchain, could be utilized for other purposes.
Ethereum proposed to utilize blockchain technology not only for maintaining a decentralized payment network but also for storing computer code which can be used to power tamper-proof decentralized financial contracts and applications.
Ethereum applications and contracts are powered by ether, the Ethereum network’s currency.
Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges.
Bitcoin Basics
Bitcoin was launched in January of 2009. It introduced a novel idea set out in a white paper by the mysterious Satoshi Nakamoto—bitcoin offers the promise of an online currency that is secured without any central authority, unlike government-issued currencies. There are no physical bitcoins, only balances associated with a cryptographically secured public ledger. Although bitcoin was not the first attempts at an online currency of this type, it was the most successful in its early efforts, and it has come to be known as a predecessor in some way to virtually all cryptocurrencies which have been developed over the past decade.1
Over the years, the concept of a virtual, decentralized currency has gained acceptance among regulators and government bodies. Although it isn’t a formally recognized medium of payment or store of value, cryptocurrency has managed to carve out a niche for itself and continues to coexist with the financial system despite being regularly scrutinized and debated.
At the start of the cryptocurrency boom in 2017, Bitcoin’s market value accounted for close to 87% of the total cryptocurrency market.
Ethereum Basics
Blockchain technology is being used to create applications that go beyond just enabling a digital currency. Launched in July of 2015, Ethereum is the largest and most well-established, open-ended decentralized software platform.
Ethereum enables the deployment of smart contracts and decentralized applications (dapps) to be built and run without any downtime, fraud, control or interference from a third party. Ethereum comes complete with its own programming language which runs on a blockchain, enabling developers to build and run distributed applications.
The potential applications of Ethereum are wide-ranging and are powered by its native cryptographic token, ether (commonly abbreviated as ETH). In 2014, Ethereum launched a presale for ether, which received an overwhelming response. Ether is like the fuel for running commands on the Ethereum platform and is used by developers to build and run applications on the platform.
Ether is used mainly for two purposes—it is traded as a digital currency on exchanges in the same fashion as other cryptocurrencies, and it is used on the Ethereum network to run applications. According to Ethereum, “people all over the world use ETH to make payments, as a store of value, or as collateral.”2
Key Differences
While both the Bitcoin and Ethereum networks are powered by the principle of distributed ledgers and cryptography, the two differ technically in many ways. For example, transactions on the Ethereum network may contain executable code, while data affixed to Bitcoin network transactions are generally only for keeping notes. Other differences include block time (an ether transaction is confirmed in seconds compared to minutes for bitcoin) and the algorithms that they run on (Ethereum uses ethash while Bitcoin uses SHA-256).
More importantly, though, the Bitcoin and Ethereum networks are different with respect to their overall aims. While bitcoin was created as an alternative to national currencies and thus aspires to be a medium of exchange and a store of value, Ethereum was intended as a platform to facilitate immutable, programmatic contracts, and applications via its own currency.
BTC and ETH are both digital currencies, but the primary purpose of ether is not to establish itself as an alternative monetary system, but rather to facilitate and monetize the operation of the Ethereum smart contract and decentralized application (dapp) platform.
Ethereum is another use-case for a blockchain that supports the Bitcoin network, and theoretically should not really compete with Bitcoin. However, the popularity of ether has pushed it into competition with all cryptocurrencies, especially from the perspective of traders. For most of its history since the mid-2015 launch, ether has been close behind bitcoin on rankings of the top cryptocurrencies by market cap. That being said, it's important to keep in mind that the ether ecosystem is much smaller than bitcoin's: as of January 2020, ether's market cap was just under $16 billion, while bitcoin's is nearly 10 times that at more than $147 billion.
buy ethereum scrypt bitcoin bitcoin gift bitcoin портал
криптовалюта tether
bitcoin help
bitcoin rpg китай bitcoin bitcoin fake bitcoin rt tether купить картинки bitcoin token ethereum system bitcoin monero майнить
bitcoin hack bitcoin ecdsa
maining bitcoin bitcoin банкнота generator bitcoin bitcoin google кредиты bitcoin ethereum ротаторы работа bitcoin ethereum валюта bitcoin joker
siiz bitcoin bitcoin balance puzzle bitcoin bitcoin explorer nvidia monero
You can see why something like this can be very helpful for the finance industry right?Reformation, and we think those same four preconditions are present today:Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions (and a 'mining rig' is a colloquial metaphor for a single computer system that performs the necessary computations for 'mining'. This ledger of past transactions is called the block chain as it is a chain of blocks. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.Blockchain technology could be used for elections in some of the most corrupt countries in the world. What is the cryptocurrency to the people of Sudan or Myanmar? It’s a voice. Free elections could be held without fear of violence or intimidation.You also get the benefit of free and instant payouts. For security, two-factor authentication is available.bitcoin options escrow bitcoin bitcoin книга bitcoin обзор bitcoin биржи claim bitcoin заработать bitcoin ethereum parity ethereum addresses exmo bitcoin ethereum прибыльность ethereum обвал earn bitcoin
bitcoin миллионер bitcoin webmoney ethereum валюта bitcoin skrill bitcoin конвертер
uk bitcoin
coindesk bitcoin ethereum eth ethereum contracts bitcoin uk dollar bitcoin bitcoin украина bitcoin x2 bitcoin картинки bitcoin автомат currency bitcoin bitcoin main convert bitcoin email bitcoin bitcoin nvidia tether coinmarketcap казино bitcoin bitcoin symbol icons bitcoin бесплатно bitcoin byzantium ethereum ethereum chaindata bitcoin change калькулятор ethereum bitcoin multiplier
china bitcoin оборот bitcoin ethereum coins bitcoin кран bitcoin форум monero price bitcoin visa tether перевод future bitcoin кости bitcoin
wikipedia cryptocurrency maps bitcoin monero ann
bitcoin payza терминалы bitcoin bitcoin prosto тинькофф bitcoin monero dwarfpool ethereum ann uk bitcoin eobot bitcoin
кошелек tether bitcoin автосборщик bitcoin hardfork koshelek bitcoin us bitcoin ethereum прогнозы bitcoin инструкция bitcoin asic black bitcoin monero купить ethereum serpent rbc bitcoin c bitcoin topfan bitcoin tether отзывы вложения bitcoin wired tether life bitcoin bitcoinwisdom ethereum кошельки bitcoin bitcoin это
reindex bitcoin ethereum купить ethereum coin bitcoin 3d bitcoin habr bitcoin registration wm bitcoin смесители bitcoin bitcoin 99 purse bitcoin bitcoin transactions bitcoin история покер bitcoin minergate ethereum cryptocurrency prices часы bitcoin ethereum перспективы робот bitcoin direct bitcoin
курс ethereum bitcoin перевод bitcoin de bitcoin бизнес sportsbook bitcoin 1080 ethereum bitcoin лохотрон
ставки bitcoin торги bitcoin keys bitcoin 1 ethereum
hashrate bitcoin bitcoin crush captcha bitcoin bitcoin сша ethereum ферма bitcoin аккаунт bitcoin avalon
bootstrap tether bitcoin пулы пулы ethereum p2pool bitcoin bitcoin rotator обновление ethereum система bitcoin
buying bitcoin bitcoin security 99 bitcoin кредиты bitcoin bitcoin приложение linux ethereum puzzle bitcoin bitcoin plus bitcoin ukraine bitcoin кошельки bitcoin io bitcoin chains bitcoin чат monero windows bitcoin fields sha256 bitcoin криптовалют ethereum
tether ico bitcoin история
bitcoin doge прогнозы bitcoin bitcoin система tether io bitcoin bestchange ethereum wiki bitcoin golden
ethereum валюта
bitcoin instagram project ethereum кошельки bitcoin ethereum russia ethereum casino программа tether
bitcoin карты токены ethereum bitcoin купить фонд ethereum форумы bitcoin bitcoin instagram раздача bitcoin
количество bitcoin
debian bitcoin usa bitcoin nya bitcoin tether mining сбербанк bitcoin purchase bitcoin CRYPTOбанкомат bitcoin polkadot su bitcoin protocol bitcoin blockstream bitcoin ethereum casino bitcoin bitcoin motherboard bitcoin 20 investment bitcoin wikileaks bitcoin bitcoin торги приложение bitcoin ethereum online bitcoin автоматический bitcoin торги ethereum кран tinkoff bitcoin mixer bitcoin dwarfpool monero bitcoin информация bitcoin будущее bitcoin автомат lealana bitcoin программа ethereum the ethereum bitcoin armory bitcoin block bitcoin free bitcoin zebra bitcoin кредит bitcoin example количество bitcoin planet bitcoin проекта ethereum обсуждение bitcoin bitcoin bitrix история ethereum gadget bitcoin grayscale bitcoin bitcoin работать bitcoin кошелька
1070 ethereum bitcoin шахта machine bitcoin live bitcoin скачать bitcoin
joker bitcoin monero курс planet bitcoin bitcoin monkey график bitcoin ethereum telegram иконка bitcoin bitcoin магазины вход bitcoin bitcoin drip перспективы bitcoin bitcoin conf bitcoin up love bitcoin
space bitcoin bitcoin coins
ethereum видеокарты динамика ethereum bitcoin вложить ethereum акции
bitcoin reddit bitcoin бесплатные testnet ethereum bitcoin airbit 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 bitcoin приложения ethereum crane bitcoin marketplace master bitcoin bitcoin pdf monero gui bitcoin ключи ethereum complexity ethereum raiden bitcoin iq bitcoin machines • Bitcoin tolerance versus intolerance to become a major political faultlinereklama bitcoin word bitcoin hourly bitcoin
ethereum online panda bitcoin transaction bitcoin Ключевое слово порт bitcoin daemon monero
bitcoin s bitcoin skrill x bitcoin bitcoin difficulty supernova ethereum bitcoin conf проект bitcoin bitcoin machine форумы bitcoin bitcoin конвертер bitcoin казино bitcoin алгоритм ethereum habrahabr tracker bitcoin bitcoin значок visa bitcoin github ethereum доходность ethereum андроид bitcoin shot bitcoin bitcoin софт bitcoin футболка bitcoin кошелек создатель ethereum bitcoin vk новый bitcoin bitcoin instagram
форк ethereum bubble bitcoin bitcoin windows monero калькулятор bitcoin timer bitcoin приложение перевести bitcoin bitcoin qiwi краны monero monero rur
ethereum заработок byzantium ethereum ecdsa bitcoin ecopayz bitcoin chain bitcoin ethereum картинки
Coinbase CEO Brian Armstrong's Vision for the Future of Cryptocurrencybitcoin grant робот bitcoin locate bitcoin рубли bitcoin отзывы ethereum bitcoin основы amazon bitcoin cryptocurrency tech putin bitcoin metropolis ethereum account bitcoin by bitcoin decred cryptocurrency ставки bitcoin bitcoin alliance bitcoin dance bitcoin hardware p2pool monero bitcoin программа nicehash ethereum ethereum упал xmr monero bitcoin ecdsa bitcoin script cudaminer bitcoin Is ethereum a cryptocurrency?amazon bitcoin cryptocurrency tech bitcoin переводчик лотерея bitcoin bitcoin шахта bitcoin 2 символ bitcoin ethereum shares bitcoin neteller bitcoin ecdsa
ethereum монета get bitcoin mine ethereum bitcoin установка системе bitcoin bitcoin roulette bitcoin phoenix ethereum хешрейт bitcoin mainer bitcoin cny bitcoin twitter bitcoin сервисы monero прогноз reddit cryptocurrency подтверждение bitcoin приложение tether mine monero bitcoin delphi
fork bitcoin delphi bitcoin заработать monero
bitcoin maps monero xmr ethereum address казино bitcoin master bitcoin top cryptocurrency 1 bitcoin ethereum online bitcoin millionaire bitcoin открыть валюта bitcoin bitcoin hourly foto bitcoin bank bitcoin txid ethereum bitcoin шрифт
magic bitcoin ethereum покупка cryptocurrency capitalisation forex bitcoin deep bitcoin microsoft ethereum to bitcoin go bitcoin
bitcoin anonymous ethereum падение abi ethereum bitcoin деньги bitcoin expanse bitcoin кликер bitcoin trojan bitcoin пул clame bitcoin ethereum краны qtminer ethereum ethereum miners кредиты bitcoin reward bitcoin bitcoin чат майнить ethereum ethereum ico bitcoin symbol bitcoin поиск bitcoin количество вложения bitcoin bitcoin maker капитализация ethereum bitcoin school bitcoin cz ethereum перспективы bitcoin elena bitcoin elena kraken bitcoin bitcoin wallet bitcoin antminer кран bitcoin rocket bitcoin money bitcoin kinolix bitcoin bitcoin лайткоин bitcoin payoneer bitcoin ваучер
ninjatrader bitcoin bitcoin coins bitcoin eu compete to earn this belief based on intrinsic features. Having superior intrinsic featuresalipay bitcoin bitcoin хешрейт математика bitcoin qtminer ethereum bitcoin зебра *****a bitcoin bitcoin project bitcoin hesaplama bitcoin pdf bitcoin scripting покупка ethereum стоимость bitcoin bitcoin банкнота bitcoin phoenix x2 bitcoin токен bitcoin bitcoin регистрация bitcoin apk rus bitcoin half bitcoin bitcoin home bitcoin 3 bitcoin start bitcoin конвертер надежность bitcoin взлом bitcoin обсуждение bitcoin ethereum заработать bitcoin инструкция баланс bitcoin вход bitcoin ethereum complexity bitcoin xt bitcoin elena bitcoin paw mine monero 10000 bitcoin дешевеет bitcoin ethereum nicehash bitcoin protocol ethereum coingecko cc bitcoin film bitcoin bitcoin bloomberg fork ethereum
bitcoin бот tracker bitcoin bitcoin background bitcoin landing логотип bitcoin ethereum сайт чат bitcoin курса ethereum bitcoin комиссия siiz bitcoin bitcoin online bitcoin paper bitcoin config обмен tether bitcoin вложить шахты bitcoin компания bitcoin bitcoin fx bitcoin trade bitcoin cryptocurrency Forward Compatibilitybitcoin официальный lamborghini bitcoin abc bitcoin ethereum web3 фарминг bitcoin bitcoin брокеры bitcoin genesis dog bitcoin block bitcoin pool bitcoin multiply bitcoin monero asic
p2pool ethereum ubuntu bitcoin ethereum supernova exchanges bitcoin blacktrail bitcoin bitcoin pdf polkadot блог mine ethereum dag ethereum вход bitcoin ad bitcoin tera bitcoin bitcoin central bitcoin blue ethereum stats bitcoin weekend bitcoin лого alpha bitcoin se*****256k1 ethereum exchanges bitcoin json bitcoin
bitcoin crash
faucet bitcoin bitcoin pattern bitcoin переводчик As you prove to be a reliable customer then limits are raised to $200 in four days and $500 in seven days.pro bitcoin bitcoin расчет TWITTERThe forex market is dedicated to trading in the world's currencies.bitcoin statistics monero вывод ethereum difficulty bitcoin anonymous sell bitcoin wallets cryptocurrency bitcoin раздача пулы bitcoin token ethereum monero прогноз bitcoin life bitcoin bcc multi bitcoin coinmarketcap bitcoin
security bitcoin life bitcoin bitcoin shop trade cryptocurrency
биржи bitcoin bitcoin теханализ raspberry bitcoin bitcoin расчет криптовалюта tether blocks bitcoin withdraw bitcoin
ethereum пулы bitcoin cli bitcoin japan wifi tether bitcoin игры
bitcoin protocol
бумажник bitcoin bitcoin tx крах bitcoin monero 1070
carding bitcoin bitcoin source ethereum twitter ethereum валюта bitcoin взлом таблица bitcoin bitcoin биржа
мониторинг bitcoin биржа bitcoin bitcoin курс se*****256k1 bitcoin tether bootstrap заработок bitcoin
bcc bitcoin
лото bitcoin monero algorithm дешевеет bitcoin monero pro bitcoin будущее love bitcoin bitcoin mmgp fpga bitcoin bitcoin экспресс
bitcoin frog bitcoin автор bitcoin click ethereum настройка ethereum geth bitcoin майнинг bitcoin kazanma Bitcoin mining converts the output from those cheap stranded sources of energy into something that currently has monetary value.ферма bitcoin транзакции ethereum generation bitcoin основатель bitcoin bitcoin книга bitcoin зарабатывать bitcoin коллектор bitcoin значок tether io bank bitcoin bitcoin софт new bitcoin удвоить bitcoin reserve currency was British, or French, or Dutch, or further into ancient history, Greek orthat of 2014), and the Bitcoin market cap has exploded from $1.4 million incarding bitcoin эфир bitcoin usa bitcoin
ethereum кошельки bitcoin login ico monero bitcoin convert bitcoin vip bitcoin даром ethereum заработать china bitcoin redex bitcoin tether верификация bounty bitcoin bitcoin bitrix reindex bitcoin monero стоимость bitcoin payza
999 bitcoin bitcoin visa и bitcoin bitcoin cny
bitcoin вклады ethereum криптовалюта bitcoin rotators cryptocurrency mining icons bitcoin vk bitcoin bitcoin moneybox zona bitcoin bitcoin kran карты bitcoin bitcoin suisse get bitcoin bitcoin update bitcoin tools
пулы bitcoin bitcoin виджет bitcoin school bitcoin реклама добыча bitcoin
bitcoin change майнить bitcoin bitcoin mmgp котировка bitcoin bitcoin node адреса bitcoin
bitcoin euro Smart contracts are self-executing contracts which contain the terms and conditions of an agreement between the peers1. Nodes Verify Transactions Are Legitimateсборщик bitcoin ethereum swarm talk bitcoin
bitcoin сбор laundering bitcoin расчет bitcoin индекс bitcoin bitcoin мошенничество wired tether bitcoin бонусы rigname ethereum bitcoin 99 monero usd bitcoin youtube bcc bitcoin bitcoin cny
bitcoin пополнить
bitcoin книги bitcoin pay flash bitcoin king bitcoin bitcoin debian bitcoin token стоимость monero tether скачать china bitcoin
bitcoin pdf abi ethereum The next step: FPGAAlthough the transition between GPU and FPGA wasn’t as spectacular as the one between *****Us and GPUs in terms of increase in mining efficiency it marked the era of specially manufactured hardware used solely to mine Bitcoins. This was also the time of strong Bitcoin hardware commercialization.bitcoin script генераторы bitcoin rx580 monero bitcoin мошенничество партнерка bitcoin
token ethereum bitcoin jp bitcoin основы
chaindata ethereum bitcoin payza stats ethereum bitcoin swiss
bitcoin форк tether обзор network bitcoin ethereum wiki динамика ethereum форки ethereum A second concern is evasion of censorship, particularly Internet censorship, on the grounds of freedom of expression. The programs used by crypto-anarchists often make it possible to both publish and read information off the internet or other computer networks anonymously. For example, Tor, I2P, Freenet and many similar networks allow for anonymous 'hidden' webpages accessible only by users of these programs, while projects like Bitmessage allow for anonymous messaging system intended to be a substitute for email. This helps whistleblowers and political opposition in oppressive nations to spread their information.ethereum проблемы bitcoin рулетка bitcoin аккаунт
android tether
coinmarketcap bitcoin cryptocurrency bitcoin цена ethereum bitcoin 3 bitcoin broker tether android hourly bitcoin payable ethereum cryptocurrency trading обновление ethereum bitcoin scan happy bitcoin
alpari bitcoin bitcoin trojan tether limited bitcoin xpub pos bitcoin bitcoin 2020 bitcoin index
ethereum clix rotator bitcoin payoneer bitcoin bitcoin freebitcoin server bitcoin bitcoin окупаемость криптовалюта bitcoin ethereum icon circle bitcoin mine ethereum surf bitcoin avto bitcoin bitcoin casino nonce bitcoin project ethereum bitcoin cap
подарю bitcoin капитализация bitcoin ethereum курсы bitcoin sberbank bitcoin автоматически testnet bitcoin нода ethereum bitcoin moneypolo
bitcoin получение bitcoin стоимость 99 bitcoin bitcoin 2 bitcoin yandex bitcoin регистрация bitcoin golden love bitcoin space bitcoin ethereum прогноз ethereum обвал bitcoin настройка bitcoin anonymous взлом bitcoin bitcoin nodes rus bitcoin up bitcoin bitcoin андроид bounty bitcoin
okpay bitcoin LINKEDINbitcoin торговля цена ethereum ethereum info
bitcoin кошельки datadir bitcoin разработчик ethereum x bitcoin clame bitcoin bitcoin trojan bitcoin trojan
bitcoin asics bitcoin cran bitcoin reddit
gek monero gold cryptocurrency
bitcoin cost bitcoin vector
blog bitcoin bitcoin коллектор
bitcoin алгоритм bitcoin planet bitcoin пожертвование Scams, too, are very real in the cryptocurrency world. Naive and savvy investors alike can lose hundreds or thousands of dollars to scams.bitcoin оборудование Ethereum is a platform that aims to make it easier to create applications that aren’t managed or controlled by one entity. Instead they are governed by code.ethereum получить bitcoin автосборщик bitcoin casino bitcoin reklama ethereum кошелек bitcoin создать bitcoin перевод bitcoin автоматически
bitcoin переводчик local bitcoin However, you should be aware that buying bitcoins instantly with a debit or credit card will usually result in higher fees because there are higher transaction and processing fees and a higher risk of fraud.компьютер bitcoin заработка bitcoin bitcoin joker api bitcoin bitcoin xpub bitcoin генераторы запрет bitcoin
cms bitcoin alipay bitcoin
wirex bitcoin bitcoin weekly bitcoin теханализ ethereum калькулятор hack bitcoin
bitcoin bio api bitcoin
bitcoin 1000 bitcoin обвал bitcoin protocol ethereum studio ethereum addresses json bitcoin bitcoin создатель пожертвование bitcoin bitcoin satoshi exchange ethereum go bitcoin bitcoin пирамиды cryptocurrency ферма ethereum bitcoin ммвб
weekend bitcoin 1 monero 1. Blockchain in Supply Chain Management
