In this post we will compare Bitcoin and Ethereum.
Similarities Between Bitcoin and Ethereum
Both Bitcoin and Ethereum are decentralized and do not issue stores of value through a government or other central authority. They are both built on distributed ledger blockchain, which is ideally tamper-proof (tech experts with outrageously expensive gear can work around platform protections).
Differences Between Bitcoin and Ethereum
|Founded||Bitcoin is a digital currency that was created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto. 1 The identity of the person or persons who created the technology is still a mystery.||Ethereum was proposed in 2013 by programmer Vitalik Buterin. Development was crowdfunded in 2014, and the network went live on 30 July 2015, with an initial supply of 72 million coins. The platform allows developers to build and operate decentralized applications that users can interact with.|
|Network||The bitcoin network is a peer-to-peer payment network that operates on a cryptographic protocol. Users send and receive bitcoins, the units of currency, by broadcasting digitally signed messages to the network using bitcoin cryptocurrency wallet software. Transactions are recorded into a distributed, replicated public database known as the blockchain, with consensus achieved by a proof-of-work system called mining. Satoshi Nakamoto, the designer of bitcoin, claimed that design and coding of bitcoin began in 2007. The project was released in 2009 as open source software.
The network requires minimal structure to share transactions. An ad hoc decentralized network of volunteers is sufficient. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will. Upon reconnection, a node downloads and verifies new blocks from other nodes to complete its local copy of the blockchain.
|The Ethereum network is first and foremost a blockchain-based distributed computing system compromised of Ethereum’s software and a peer-to-peer network consisting of those who run the software.|
|Purpose||The purpose of Bitcoin is to remove the need for a single company (banks, PayPal, etc.) having control over your money. Instead, with Bitcoin, you have full control. All Bitcoin transactions are confirmed on a trustless shared network that isn’t owned by anyone.||The purpose of Ethereum is to become a platform upon which smart contracts and decentralised apps can run.|