Ethereum vs Bitcoin: What is the difference between both? Find Out In This Article

As you enter the new and exciting world of crypto, one of the first things you will ask yourself will be about the differences between Ethereum vs Bitcoin. It’s quite baffling, right?

You may think of Bitcoin and Ethereum, as a lot of us do, as Apple and Microsoft of crypto. However, unlike Apple and Microsoft, they are completely different from one another. Both have very different objectives in mind.

Ethereum vs Bitcoin: The basics

Here I will look at some of the features and facts of Bitcoin and Ethereum.

Bitcoin

• Launched in 2009, Bitcoin was the first cryptocurrency and the first use of blockchain technology

• Bitcoin is a digital currency

• It aims to fix the problems in global finance, often referred to as the “bank of the people”

• Bitcoin does not require a third party, such as PayPal or a bank.

Ethereum

• Launched in 2015, Ethereum’s blockchain widely known synonym is “Blockchain 2.0”

• Smart contracts program the transactions (which I will explain further in this guide)

• Its smart contracts eliminate the need for third parties in many systems, not just financial systems

• It provides a platform to build smart-contract apps (known as dApps)

Here Are Their Key differences.

Let’s look at the main differences between Ethereum vs Bitcoin, some of which you can see by comparing the basics I just mentioned!

Their concepts
When you think of Bitcoin, think “digital money”. When you think Ethereum, think “smart contracts”. This is the easiest way to understand and remember the primary difference between Bitcoin and Ethereum!

Their purposes
Bitcoin is a store of value and a way to send money to someone. Ethereum is also a way to send money to someone but only when certain things happen. 

Ethereum also differs by serving as a building platform for dApps/smart contracts, which allow it to send tokens that represent values. These values can be things other than digital currencies, making it different from Bitcoin.

The currencies: Ether vs Bitcoin

• Ether is designed to fuel the Ethereum network and power transactions — think of it as gas.

• Bitcoin is used to be the value of real-world transactions — think of it as money.

Thank you for reading