How Ethereum Differ from Bitcoin?by HashGain Mining Bitcoin Cloud Mining Both the cryptocurrencies - Bitcoin and Ethereum are among the top 10 cryptocurrencies in the market. Though Bitcoin is a dominant cryptocurrency; however it is not alone. The second well-known cryptocurrency, Ethereum is also attracting a plenty of investors owing to its applications and unique features. People want to invest in Ethereum mining and be a part of this multi-Billion Dollar industry. Continuing the discussion, here is a blog post that explains how Ethereum is different from the topmost cryptocurrency – Bitcoin. Read on!
1. Ethereum is More than Money
The foremost thing that differentiate Ethereum from Bitcoin is that it is more than a cryptocurrency. The blockchain-based platform of Ethereum features Ethereum Virtual Machine (EVM) and use Ether for making peer-to-peer payments. Smart contracts of Ethereum make use of blockchain applications for facilitation and negotiation of contract. Decentralization of network makes it more popular among people and its smart contracts provides excellent security in comparison to traditional contracts.
Ether and other crypto-assets in Ethereum Mining Wallet allows miners to make use of smart contracts. According to New York Times – ““a single shared computer that is run by the network of users and on which resources are parceled out and paid for by ether.”
2. Use Smart Contracts with Cryptocurrency
Ethereum helps in creation of crypto or digital tokens that are used to represent assets, virtual shares, and proof of membership. Smart contracts are reconcilable with exchanges and any wallet that make use of API. Ethereum tokens can be used for various purposes, such as forms of voting, shares representation, and fundraising. Depending on predetermined rules, you can witness a fluctuating or fixed tokens in circulation.
3. No Need to Kickstart
Ethereum’s best feature is that it helps developers in raising funds for different applications. In order to start a new project, you have to make a contract and become a part of the cryptocurrency community. The funds will be returned to contributors, in case goal or aim is not achieved of the project. Kickstarter means there is no third party is involved, so some fees will be charged (around 10% of the project).
4. Finer Details
There are various aspects that differs Ethereum and Bitcoin Mining. The first one is average block time of Bitcoin that takes around 10 minutes for confirmation; whereas Ethereum average block time is only 12 seconds. The fast block time means quick transactions. The second difference between both these cryptocurrencies is monetary supply. At present, around two-third of Bitcoins are already mined; however Ethereum has increased its launch capital and around only half coins are mined in its fifth year.
When talking about the reward for Bitcoin mining, it get half in every four years and at present it is around 12.5 Bitcoins. In Ethereum mining, block rewards for miners is based on Proof-of-Work algorithm known as Ethash and that is 5 Ether for mining each block. The memory hashing algorithm, Ethash encourages decentralized Ethereum mining, instead of centralized ASICs. Additionally, Ethereum and Bitcoin also cost the transactions differently.
Most of the people compare Bitcoin and Ethereum; however in reality, they both vastly differ from each other and have different aspects too. Bitcoin is stable digital currency and Ethereum is aiming for more along with Ether.
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Created on Nov 4th 2017 02:00. Viewed 356 times.
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