Updated: Apr 15
Many people have been talking about the differences between Bitcoin and Ethereum, and there are many. If you think that Bitcoin and Ethereum are the same, you would be partially correct, but it is the differences that set the two of them apart.
Let's take a closer look into both and see what makes blockchain such an attractive investment and also, a functioning piece of advanced technology.
Bitcoin is the decentralized and digital storage of value, for example, money.
The Bitcoin blockchain can be viewed as big and clunky, sort of low tech, in a way
That is its beauty and why it will most likely outlast any other form of currency we have ever had.
It is within Bitcoin’s unchangeable “clunky” code, the proof of work tech, that makes it ultra-secure. In fact, many say it is the most secure way to store value ever developed. Plus, there will only ever be 21 million Bitcoin mines over the next 150 years, which makes Bitcoins scarce.
Ethereum, on the other hand, was designed in 2015 when it was realized that you could attach nodes to which smart contracts could be applied in the same, no-tamper way that Bitcoin functioned, and Ethereum was born.
Unlike Bitcoin, Ethereum allows other blockchains to connect through these nodes to the Ethereum blockchain, itself. This works in much the same way that mobile phone companies can exponentially network their systems to provide unlimited phone data and connectivity.
Ethereum allows developers to produce their own blockchains and then power them through Ethereum and get paid for use of their contracts via Eth, which is Ethereum tokens or money.
What Are the Benefits of Ethereum?
The beauty of Ethereum is that anyone can own Eth and create and run their own smart contracts on the Ethereum platform. When you own a piece of the company, it incentivizes you to do well.
Basically, it’s the same as if anyone who bought products through Amazon would then get to own a piece of the company, too. The better Amazon does, the more money everyone connected with it will make, as well. Moreover, the more products you purchase, the more ownership, or shares you would receive.
That is how Ethereum works, and every transaction is on a public ledger shared on thousands of computers simultaneously, the same as Bitcoin.
Unlike Bitcoin’s proof of work process, which involves mining Bitcoin and can get expensive per transaction, Ethereum works on a proof of work system which uses less energy and potentially lowers the cost per transaction, even when the system is under high demand from users.
What Are the Benefits of Bitcoin?
The biggest benefit of Bitcoin is that it is a secure place to store value that will appreciate over time as more people get into crypto currencies and Bitcoin, instead of centralized banking.
Once you own Bitcoin, you should store it offline in a cold wallet, and enjoy being a part of true change, the likes of which we have never seen before in history.
Bitcoin technology is free from infiltration by hackers and, more importantly, it is unable to be changed or coerced into benefiting some people over others.
Owning Bitcoin protects your assets in a way that gold and paper money never could. It is the next evolution of currencies and how we interact with each other in a civilized society that offers the same level playing field for all.
Wrapping This Up!
Although Bitcoin and Ethereum are similar in nature, they are very different entities within the crypto currency world.
Remember that Bitcoin is the gold standard of crypto currency storage and financial investments in 2021 and beyond.
Ethereum offers the most secure, cutting-edge platform in which we can add smart contracts, programs, NFTs, and anything else that we develop to run on blockchain technology in the days to come.