Bitcoin and Ethereum are the most popular Cryptocurrencies, at present. On the market capitalization side, Bitcoin is far beyond Ethereum, but on the development side, Ethereum is considered as potential as Bitcoin. Although both are based on Blockchain architecture, each has own differences. Let’s find out what are the differences between Ethereum and Bitcoin.
What makes Ethereum and Bitcoin different?
Firstly, you need to notice that ‘Ethereum is not only a digital currency‘. It represents a premium Blockchain that is called Smart Contract, provides the EVM miner system and its currency unit is Ether.
ETH’s Smart Contract use the Blockchain technology to store information of users’ transactions. Blockchain provides spaces to keep these contracts in hierarchies in order to monitor and execute immediately when needed. This classify ability make these contracts cannot be faked. This kind of smart contract is much more secure than the traditional contract.
So, The specific differences between Bitcoin and Ethereum are:
Bitcoin and Ethereum have many differences, little differences, but the huge number. The most significant point is the Block creating time, Bitcoin’s time is much slower than Ethereum. While Bitcoin needs 10 minutes to create a Block, Ethereum needs only 12 seconds. The faster Block creating time means the faster transaction time. However, this also means there are more Orphan Blocks.
One other main difference is the number of coins. The total amount of Bitcoins is fixed and two-thirds of Bitcoins have already been in circulation. In contrast, Ethereum suppliers are not fixed, however, this would not make Ethereum inflate in future. In fact, this is the strategy of Vitalik Buterin who founded Ethereum. According to the strategy, half of Ethereum suppliers will be exploited when Ethereum reaches the age of five.
The transaction costs of Bitcoin and Ethereum are quite different as well. The Ethereum’s cost is called ‘Gas‘ and depends on the holding demand, the complication and the value of transactions. Whereas, Bitcoin transactions are all limited in each Block size, and are all equal.
Moreover, Ethereum has a feature that Bitcoin doesn’t have. This feature is “Turing complete” which could allow Ethereum to determine the consuming time and electric, so as to save time and energy. Bitcoin doesn’t have this feature, this is one of Bitcoin’s disadvantage. But it also is not really a strength of Ethereum, even might be a weakness due to the attack on DAO fund.