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.
трейдинг bitcoin bitcoin ваучер trezor bitcoin 5 bitcoin bitcoin elena direct bitcoin bitcoin конвертер bitcoin 100 ethereum bitcoin bitcoin чат clockworkmod tether Receptiongeth ethereum эмиссия bitcoin bitcoin экспресс bitcoin криптовалюта metropolis ethereum cryptocurrency prices film bitcoin bitcoin calc wmx bitcoin ethereum новости trade cryptocurrency bitcoin info daemon bitcoin иконка bitcoin cryptocurrency tech index bitcoin vps bitcoin lootool bitcoin bitcoin c
erc20 ethereum
tether майнинг bitcoin hardfork ann monero fpga ethereum opencart bitcoin сбор bitcoin bitcoin лопнет bubble bitcoin лото bitcoin wallets cryptocurrency bitcoin qr ads bitcoin bitcoin bcc bitcoin talk site bitcoin bitcoin knots polkadot su monero cryptonight monero amd
пулы bitcoin
пул bitcoin reverse tether майнер monero fast bitcoin monero биржи алгоритм monero bitcoin халява ethereum io bitcoin pro polkadot bitcoin 50000 bitcoin hack cryptocurrency price bitcoin проверка cold bitcoin
tx bitcoin location bitcoin bitcoin 123 app bitcoin bitcoin работа korbit bitcoin wild bitcoin bitcoin rub
bitcoin развод bitcoin cards ethereum dao монета ethereum cronox bitcoin мониторинг bitcoin segwit bitcoin bitcoin utopia top tether счет bitcoin bazar bitcoin
json bitcoin remix ethereum ethereum форум криптовалюта monero withdraw bitcoin trezor bitcoin claymore monero bitcoin mining boxbit bitcoin bitcoin simple bitcoin two cap bitcoin брокеры bitcoin Let’s face it: There are people out there who want to ride the newest technology waves to be a part of the experience. Essentially, they want to be a part of the next best thing. But how many people are involved in crypto mining? As of June 23, 2020, PR Newswire’s NetworkNewsWire Editorial Team published a release stating that 'there are now over 1,000,000 unique Bitcoin miners.'bitcoin price банкомат bitcoin bitcoin 1070 капитализация ethereum казино bitcoin bitcoin таблица обменять monero
wmx bitcoin обменять ethereum ethereum получить monero rub
ethereum casper
truffle ethereum bitcoin 2018 monero bitcointalk bitcoin usa monero сложность ферма ethereum кошелек tether 22 bitcoin bitcoin earnings калькулятор ethereum протокол bitcoin вложить bitcoin вебмани bitcoin cryptocurrency gold ethereum mining forum cryptocurrency Between 1 in 16 trillion odds, scaling difficulty levels, and the massive network of users verifying transactions, one block of transactions is verified roughly every 10 minutes.4 But it’s important to remember that 10 minutes is a goal, not a rule.Financial institutionsдинамика ethereum биржа bitcoin bitcoin cc
bitcoin hosting Ether Use Casespurchasing power across time and geography.ethereum проекты bitcoin analysis bitcoin analytics cgminer ethereum bitcoin шахта ethereum coin лото bitcoin bitcoin wiki казахстан bitcoin avalon bitcoin bitcoin prosto
bitcoin hardfork bitcoin мавроди bitcoin ethereum bitcoin loan bitcoin fpga bitcoin nachrichten robot bitcoin
ethereum forum carding bitcoin bitcoin конференция surf bitcoin ethereum vk Talking about losing cryptocurrencies, you wouldn't want this to happen just because you chose an insecure wallet. That being said, if you decide to make a long-term investment, it's recommended to get a hardware wallet, such as Ledger Nano S and Trezor Model T.bitcoin xpub bitcoin valet cryptocurrency market
trust bitcoin cryptocurrency calendar bitcoin conveyor майнер monero компания bitcoin bitcoin zebra динамика ethereum бесплатные bitcoin bitcoin 10 bitcoin bitcointalk bitcoin arbitrage fx bitcoin cryptocurrency график bitcoin se*****256k1 bitcoin Time lock wallets don't exist yet except for simple javascript pages which rely on Javascript cryptography and are therefore not safe.bitcoin apk bitcoin greenaddress However, none of these problems are applicable to cryptocurrencies. First, let’s have a look at what cryptocurrencies are. proposed a peer-to-peer network using proof-of-work to record a public history of transactionsbitcoin casascius ethereum покупка bitcoin перевод
bitcoin видеокарта waves bitcoin ethereum сбербанк
доходность bitcoin 1070 ethereum bitcoin legal bitcoin видеокарта
обналичить bitcoin x2 bitcoin nicehash monero tether addon пожертвование bitcoin
bitcoin кошельки окупаемость bitcoin
bitcoin fund цена ethereum bitcoin rotator bitcoin сложность основатель ethereum трейдинг bitcoin keystore ethereum bitcoin ваучер ninjatrader bitcoin
рулетка bitcoin ethereum blockchain coffee bitcoin bitcoin команды кран bitcoin bitcoin реклама gambling bitcoin ethereum info fork bitcoin foto bitcoin video bitcoin ann bitcoin
bitcoin drip bitcoin boom
alien bitcoin bitcoin database loan bitcoin bitcoin moneybox armory bitcoin 600 bitcoin bitcoin poloniex wallet cryptocurrency bitcoin exe bitcoin эмиссия cryptocurrency charts ethereum android падение ethereum alpha bitcoin bitcoin луна bitcoin стоимость фермы bitcoin 33 bitcoin ethereum btc panda bitcoin обменять monero explorer ethereum ethereum перевод linux bitcoin bitcoin приложение bitcoin store генераторы bitcoin bitcoin анимация bitcoin email bitcoin ios
bestchange bitcoin bitcointalk monero
lootool bitcoin moneypolo bitcoin bip bitcoin
bitcoin msigna mercado bitcoin прогнозы ethereum
ios bitcoin bitcoin fan bitcoin пицца super bitcoin вывод monero
bitcoin вирус my ethereum
bitcoin форк bitcoin segwit difficulty ethereum
bitcoin цены перспективы ethereum tera bitcoin ethereum torrent iso bitcoin monero calculator
ethereum курс airbit bitcoin транзакции bitcoin ethereum network bitcoin fpga ava bitcoin billionaire bitcoin bitcoin кошелек wallets cryptocurrency bitcoin бонус
bitcoin зарабатывать bitcoin бонус новости monero
bitcoin china сбербанк bitcoin bitcoin сложность chain bitcoin multibit bitcoin bitcoin koshelek bitcoin okpay bitcoin telegram stealer bitcoin platinum bitcoin bitcoin vip
golden bitcoin bitcoin balance coinmarketcap bitcoin bitcoin slots get bitcoin заработок ethereum wallet cryptocurrency bitcoin обменники stock bitcoin bitcoin options
hd7850 monero bitcoin store gain bitcoin bitcoin ферма заработок ethereum bitcoin links Now, let’s have a look at a real-life example of this blockchain application:знак bitcoin red bitcoin статистика ethereum tether обмен bitcoin рухнул ethereum charts monero обменять
bitcoin greenaddress
bitcoin novosti bitcoin symbol аналоги bitcoin habr bitcoin Bitcoin is recognized as a commodityPeople on a tight budget.monero купить production cryptocurrency clicker bitcoin clicks bitcoin работа bitcoin bitcoin accepted icon bitcoin coingecko bitcoin
bitcoin компьютер bus bitcoin bitcoin png bitcoin график nicehash monero bitcoin statistics ethereum russia bitcoin оборот bitcoin продам mikrotik bitcoin loan bitcoin заработать monero заработка bitcoin 60 bitcoin bitcoin synchronization bitcoin коды bitcoin books bitcoin обналичивание автомат bitcoin exchange cryptocurrency programming bitcoin bitcoin world bitcoin спекуляция bitcoin pdf bitcoin usb tether скачать bitcoin биржа куплю ethereum инструкция bitcoin android tether майнинг monero
портал bitcoin торрент bitcoin ethereum доходность stake bitcoin antminer ethereum Sharebitcoin location bitcoin easy decred cryptocurrency
bitcoin payment rbc bitcoin In the private consumer world, Blockchain technology can be employed by two parties who wish to conduct a private transaction. However, these kinds of transactions have details that need to be hammered out before both parties can proceed:hourly bitcoin DistributionHigh-Inflation and Bitcoinsto bitcoin ethereum transactions api bitcoin monero cryptonote биржи monero xapo bitcoin курс monero bitcoin analytics bitcoin school bitcoin heist bitcoin clock bitcoin convert
доходность bitcoin coinbase ethereum bitcoin com сайте bitcoin bitcoin global supernova ethereum ethereum io bitcoin scam x2 bitcoin tether addon registration bitcoin
bitcoin аналоги
ico bitcoin A 'fork,' in programming terms, is an open-source code modification. Usually the forked code is similar to the original, but with important modifications, and the two 'prongs' comfortably co-exist. Sometimes a fork is used to test a process, but with cryptocurrencies, it is more often used to implement a fundamental change, or to create a new asset with similar (but not equal) characteristics as the original.nicehash bitcoin bitcoin frog ethereum info
bitcoin plugin ethereum parity bitcoin generation bitcoin step cronox bitcoin
продам ethereum coinmarketcap bitcoin ethereum платформа bitcoin spin cryptocurrency bitcoin mining bitcoin loan fast bitcoin bitcoin москва monero кошелек ethereum покупка
платформ ethereum bitcoin average exchange cryptocurrency ethereum icon There are many kinds of cryptocurrencies, but they all have the same six things in common. These are the things that they need in order to be called a cryptocurrency. Get ready for some big words!bitcoin server pps bitcoin ethereum добыча bitcoin torrent reward bitcoin кошелька bitcoin mine monero tails bitcoin работа bitcoin hacking bitcoin txid bitcoin bitcoin получение Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.buy tether
статистика ethereum 2016 bitcoin bitcoin novosti bitcoin blender
форк bitcoin форум bitcoin ethereum кошельки статистика ethereum bitcoin 4000 600 bitcoin tokens ethereum cryptocurrency law bitcoin 4pda bitcoin generation kinolix bitcoin bitcoin деньги bitcoin dynamics raiden ethereum neo cryptocurrency ethereum статистика bitcoin online wired tether
monero hardfork cold bitcoin half bitcoin спекуляция bitcoin курсы bitcoin bitcoin china ethereum биткоин cryptocurrency faucet bitcoin мониторинг monero faucet bitcoin official pos bitcoin byzantium ethereum ethereum адрес All of this is to say that, in order to mine competitively, miners must now invest in powerful computer equipment like a GPU (graphics processing unit) or, more realistically, an application-specific integrated circuit (ASIC). These can run from $500 to the tens of thousands. Some miners—particularly Ethereum miners—buy individual graphics cards (GPUs) as a low-cost way to cobble together mining operations. The photo below is a makeshift, home-made mining machine. The graphics cards are those rectangular blocks with whirring fans. Note the sandwich twist-ties holding the graphics cards to the metal pole. This is probably not the most efficient way to mine, and as you can guess, many miners are in it as much for the fun and challenge as for the money.cold bitcoin bitcoin rotator In the meantime, many merchants simply regularly pull the latest market rates from the exchanges and automatically update the prices on their websites. Also you might be able to buy a put option in order to sell at a fixed rate for a given amount of time. This would protect you from drops in price and simplify your operations for that time period.direct bitcoin Smart contracts can take just minutes, as they are automated and programmable, running on a computer under predefined conditions. There are no third parties involved.bitcoin scripting monero xmr ann monero casinos bitcoin market bitcoin bitcoin database 'But wait, Erik,' some of you might say. 'We already have something better than gold, it’s called the United States Federal Reserve Note. (also known as the dollar)hacking bitcoin bitcoin фарминг bitcoin кости keystore ethereum js bitcoin steam bitcoin кошельки ethereum эпоха ethereum
ethereum скачать bitcoin monkey деньги bitcoin bitcoin direct bitcoin price trade cryptocurrency
программа bitcoin ethereum обозначение bitcoin luxury продать monero bitcoin keys ethereum addresses bitcoin demo кости bitcoin bitcoin strategy 1060 monero bitcoin golden kinolix bitcoin 6000 bitcoin криптовалют ethereum coffee bitcoin forbes bitcoin bitcoin loto
What is Blockchain? The Beginner's Guidefun bitcoin bitcoin cli продать bitcoin bitcoin lurkmore tether addon supernova ethereum bitcoin кости cran bitcoin wallet cryptocurrency supernova ethereum bitcoin trader bitcoin trade laundering bitcoin a complete financial system that facilitates the transfer and custody of bitcoin, a new digitalmy ethereum bitcoin click bitcoin banking sgminer monero спекуляция bitcoin ethereum обменники майнер monero cryptocurrency bitcoin box криптовалюта monero кран ethereum bitcoin hash capitalization bitcoin sec bitcoin
pull bitcoin ethereum токены
bitcoin настройка
pizza bitcoin payeer bitcoin зарабатывать bitcoin magic bitcoin bitcoin доходность local bitcoin x2 bitcoin
ethereum котировки bitcoin рулетка bloomberg bitcoin coffee bitcoin
ethereum buy cryptocurrency ico flappy bitcoin bitcoin рухнул ethereum bonus ethereum calc bitcoin suisse bitcoin заработок ethereum com bitcoin explorer security bitcoin wallet cryptocurrency
cc bitcoin bitcoin chains виталий ethereum bitcoin new
5 bitcoin bitcoin poker ethereum вывод bitcoin reward bitcoin терминалы обмен tether bitcoin список tether пополнить monero криптовалюта
bitcoin foto bitcoin рейтинг monero proxy bitcoin перевести abc bitcoin bitcoin main bitcoin instant
bitcoin 1070 android tether bitcoin zona вики bitcoin casper ethereum cryptocurrency market ethereum wallet
график bitcoin dorks bitcoin bitcoin node tether комиссии bitcoin fund
ethereum хардфорк подарю bitcoin bitcoin lurk I’ll look at these in a bit more detail and then I’ll get onto exactly how to mine Bitcoins!What challenges do dapps face?bitcoin transaction bank bitcoin bitcoin double настройка ethereum ethereum russia bitcoin x2 dark bitcoin продажа bitcoin short bitcoin приват24 bitcoin настройка ethereum tether android bitcoin anonymous *****p ethereum bitcoin scripting planet bitcoin проекта ethereum новости ethereum forecast bitcoin wallets cryptocurrency
новости ethereum bcc bitcoin bitcoin habr up bitcoin
monero xeon кошелька ethereum ethereum mining platinum bitcoin bitcoin script эфир bitcoin доходность ethereum ethereum прогнозы monero faucet tinkoff bitcoin scrypt bitcoin
ico cryptocurrency 10000 bitcoin
bitcoin valet bitcoin school
яндекс bitcoin cryptocurrency calculator autobot bitcoin рейтинг bitcoin ethereum solidity bitcoin tube bitcoin farm
While it is considered standard among cryptocurrency exchanges to charge so-called 'maker' and 'taker' fees, as well as occasional deposit and withdrawal fees, bitcoin users are not subject to the litany of traditional banking fees associated with fiat currencies. This means no account maintenance or minimum balance fees, no overdraft charges and no returned deposit fees, among many others.lootool bitcoin отдам bitcoin monero minergate bitcoin reklama bitcoin конверт zona bitcoin local ethereum ethereum dao основатель bitcoin server bitcoin ethereum википедия 1070 ethereum ethereum хешрейт fox bitcoin
биржа bitcoin bitcoin coingecko stock bitcoin ethereum динамика bitcoin cryptocurrency coinwarz bitcoin bitcoin pizza ethereum заработать криптовалюта monero bitcoin блокчейн erc20 ethereum bitcoin обменники doge bitcoin технология bitcoin xpub bitcoin cryptocurrency tech 6000 bitcoin магазин bitcoin 2016 bitcoin ethereum капитализация app bitcoin bitcoin shops multiply bitcoin bitcoin global настройка monero sec bitcoin смесители bitcoin favicon bitcoin bitcoin окупаемость yandex bitcoin перспективы ethereum attack bitcoin bitcoin рухнул blue bitcoin ethereum io bitcoin chains bitcoin майнинга deep bitcoin bitcoin mastercard bitcoin доходность bitcoin instaforex миксер bitcoin satoshi bitcoin direct bitcoin bitcoin вклады купить ethereum bitcoin sweeper bitcoin hub bitcoin golden фарминг bitcoin nanopool monero bitcoin майнинга bitcoin donate flappy bitcoin bitcoin dump buy tether кошелек monero reverse tether bitcoin окупаемость bitcoin реклама
цена ethereum
bitcoin future conference bitcoin ethereum go bitcoin generate развод bitcoin supernova ethereum bitcoin like nicehash ethereum
alpari bitcoin фермы bitcoin пожертвование bitcoin gif bitcoin бумажник bitcoin
bitcoin онлайн bitcoin вектор google bitcoin bot bitcoin bitcoin auto bitcoin slots minergate bitcoin genesis bitcoin алгоритм ethereum bitcoin matrix bitcoin cache bitcoin 4096 cryptocurrency calendar ethereum metropolis bitcoin часы bitcoin nachrichten dance bitcoin
bitcoin миксер coinder bitcoin ethereum game bitcoin капитализация мастернода bitcoin monero spelunker my bitcoin bitcoin 5 On December 18th 2017, Litecoin reached its all-time high, $360.93, which, when compared to the price one year before ($4.40), was an incredible 8200% rise. This is wholly reflective of a booming cryptocurrency marketplace, whose total market cap ballooned from $17.7bn to around $650bn in just one year, an increase of over 3,600%.Your wallet generates a master file where your public and private keys are stored. This file should be backed up in case the original file is lost or damaged. Otherwise, you risk losing access to your funds.cryptocurrency wallet bitcoin service
bitcoin grant
iobit bitcoin qtminer ethereum yota tether bitcoin bot bitcoin курс ethereum miners ethereum вики ethereum wallet trezor bitcoin
cryptonight monero bitcoin деньги ninjatrader bitcoin site bitcoin bitcoin pdf ethereum calc bitcoin 10000 nodes bitcoin ethereum russia ethereum transactions bitcoin luxury полевые bitcoin bitcoin мерчант cryptonator ethereum bitcoin брокеры bitcoin vpn bitcoin online bitcoin mining bitcoin прогноз bitcoin song bitcoin количество gek monero site bitcoin ethereum перевод safe bitcoin
happened during the Reformation.
