Differences between Ethereum and Bitcoin network

Ethereum and Bitcoin are both decentralized digital currencies, but they have some key differences. Lets dig the differences between Ethereum vs Bitcoin in the following topic.

Bitcoin, the pioneer decentralized cryptocurrency, was brought into existence in the year 2009 by an anonymous individual or a group of individuals who used the pseudonym Satoshi Nakamoto. The main goal of Bitcoin is to provide a decentralized and secure way for individuals to store and transfer value. The Bitcoin network is based on a blockchain, which is a distributed ledger technology that records every transaction on the network.

Ethereum, on the other hand, was created in 2015 by Vitalik Buterin. Unlike Bitcoin, which is primarily used as a store of value and a medium of exchange, Ethereum is a decentralized platform that enables the creation of decentralized applications (dApps) and smart contracts. The Ethereum network also uses a blockchain, but it is more advanced than the one used by Bitcoin.

One of the main differences between Ethereum and Bitcoin is the type of transactions they can handle. While Bitcoin can only handle basic financial transactions, Ethereum can handle more complex transactions, such as the execution of smart contracts. A smart contract is a programmable contract that automatically executes when certain conditions are met. This allows for a wide range of applications, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).

Another difference between the two is the way they handle their coin supply. Bitcoin has a maximum coin supply of 21 million, while Ethereum has no fixed maximum coin supply. Instead, Ethereum uses a consensus algorithm called “Proof of Stake” (PoS) which rewards validators for their contribution to the network.

In terms of the speed of transaction, Ethereum is faster than Bitcoin. Bitcoin’s block time is around 10 minutes while Ethereum’s block time is around 15 seconds. Due to this, transactions on the Ethereum chain are confirmed much quicker than on the Bitcoin network.

Ethereum also has a more active and diverse developer community compared to Bitcoin. It has a large number of developers who are actively working on building and improving the Ethereum ecosystem. This has led to the creation of a wide range of decentralized applications and projects built on top of the Ethereum network.

In conclusion, the key difference between Ethereum vs Bitcoin are decentralized digital currencies, they have distinct characteristics and use cases. Bitcoin is primarily used as a store of value and a medium of exchange, while Ethereum is a decentralized platform for the creation of decentralized applications and smart contracts. Ethereum’s faster transaction time and active developer community make it more versatile and open to new possibilities.

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