Bitcoin versus Ethereum – What are the Differences?

Bitcoin and Ethereum are two of the most popular virtual currencies on the web, and are gaining more and more favor across the globe. Know about some of the prime differences between Bitcoin and Ethereum. This Bitcoin versus Ethereum article compares the basics.

Time of Origin

BTC originated in the year 2009 while ETH was born in 2015. Thus, ETH is 6 years newer as compared to BTC. It is more advanced as far the underlying technology goes. BTC makes use of the Blockchain technology while ETH uses Blockchain 2.0 technology.

Concept

Bitcoin represents “digital money” while Ethereum symbolizes “smart contracts”.

Purpose

Bitcoin happens to store value, and is a convenient way to send funds to a person. Ethereum also works as a means of sending money to another individual, but works so only in some cases. Ethereum serves as a platform for building smart contracts or dApps. This lets it send tokens, symbolizing values. Such values can be things different from virtual currencies, which make ETH stand apart from Bitcoin.

Transactions

The type of transactions differs in case of BTC and ETH as seen in Bitcoin versus Ethereum comparison. In transactions related to Bitcoin, things look thus:

Tom sends 10 Bitcoins (BTC) to Jenny.

In case of ETH, transactions operate on smart contracts and appear as:
Send 15 Ether (ETH) from Tom to Jenny in case 20 ETH is Jade’s balance and 12.01.2019 is the date.

Transactions in BTC are manual and transactions in ETH are programmable or automatic. The transaction speed also differs. The transaction speed or block time of ETH is only a few seconds. The block time for Bitcoin takes minutes.

Currencies

ETH fuels the network of Ethereum. It powers transactions similar to gas. As Bitcoin versus Ethereum comparison shows, BTC can be used similar to money and is utilized for real-world transactions just like hard currencies that have value.

Coin supply

There are only 21,000,000 coins of BTC, and the supply is limited – although that is by design. It helps create demand and supply, which is actually healthy for value storage. On the other hand, ETH does not have any limitations in coin supply. There is continuous production of Ether. However, over a period of time, the supply of ETH is likely to slow down much. The founder of ETH, Vitalik Buterin, mentioned that the total supply of ETH coins will not surpass 100,000,000 in the coming years. Thus, Bitcoin versus Ethereum comparison as per coin supply is understandable.

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