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Bitcoin and Ethereum. What Is Better ?

by Alex Peter I am Digital Marketer
When you start diving into the world of cryptocurrencies, you will definitely have a question, which is better, Ethereum or Bitcoin. We can compare them with Apple and Microsoft. But, unlike Apple and Microsoft, they are completely different. Both have different aims.

Basic concepts

Bitcoin is a blockchain-based payment system. BTC or bitcoin is the name of the coin that is used in this payment system.

Ethereum is a platform for creating decentralized applications and at the same time a blockchain-based payment system. ETH or Ether is the name of the coin that is used on this platform.

Similarities

Both projects are decentralized and operate on blockchain using cryptography. Both projects have their own coin - a cryptocurrency mined by miners. Coins have a value that depends on supply and demand and is volatile. Crypto wallets with private keys are required to buy and sell coins. Both coins are traded on most well-known exchanges. Transactions are irreversible and confirmed by miners. Otherwise, these are two fundamentally different sites that use different technologies.

Distinctive features

The Bitcoin blockchain exists for the sake of the coin itself, which people can buy, sell, use to pay for goods and services. Bitcoin was created by Satoshi Nakamoto in 2009. The number of coins that can be mined through mining is limited.

Ether is the second most popular currency, but Ethereum's blockchain is more than just a payment system. This is a platform that has many other features besides ensuring the functioning of the cryptocurrency.

Ethereum uses smart contracts. These are digital, self-executing protocols created and operated using mathematical algorithms. They can prescribe contracts and obligations between the parties, program the terms and conditions for the transfer of cryptocurrency, property rights, goods, services and other assets. That is, you can conduct not only transactions with ether, but also any other.

There is a virtual machine - Ethereum Virtual Machine (EVM). It allows executing smart contracts, applications and programs in different languages.

Decentralized applications (DApps) can be created. These applications allow for direct interaction between users and suppliers of any goods and services. DApps are open source, they use a public blockchain database - all this contributes to user confidence. Data protection mechanisms in the blockchain make DApps as reliable as possible.

Anyone can create their own application, token or coin based on the Ethereum blockchain, which is what many startups and firms are successfully doing.

Ethereum was created by Vitaly Buterin and Gavin Wood in 2013. The number of coins that can be mined through mining is not yet limited.

Which is better: Bitcoin or Ethereum?

Asking what is better - bitcoin or ethereum is pretty pointless. Each of these currencies has its own specifics. In comparison 1 btc to eth is 32,01

Bitcoin certainly dominates the cryptocurrency market today and is the better-known coin, but many believe that Ethereum can become a competitor to Bitcoin that will eventually surpass it. However, since each of the platforms is geared towards different things, there is no doubt that there is room for both of them in the cryptocurrency industry.

It's also safe to say that all industries - from advertising to music to banking to pharmaceuticals - are now exploring how they can use blockchain to track goods, validate and optimize supply chains. We can already see that the future of blockchain technology will undoubtedly be very bright.


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About Alex Peter Innovator   I am Digital Marketer

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Joined APSense since, May 13th, 2019, From New Jersey, United States.

Created on Dec 21st 2020 05:23. Viewed 52 times.

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