Ethereum VS Bitcoin

Ethereum uses blockchain technology, an open software platform for crypto trading. It’sjust like other crypto trading options; it aims at decentralizing the monetary system. However, it’s a lot different from Bitcoin, which was the first cryptocurrency launched in 2009. There is a lite version of Ethereum launched in 2016 which is known as Ethereum Classic. With the launch of Ethereum, the trading of Bitcoins has been significantly affected. Some crypto trading experts believe that they will replace Bitcoin in the near future. You can also visit this link https://freebitco.in.

Comparison of Ethereum with Bitcoin:

Ethereum Bitcoin
Ethereum uses Ghost Protocol, which allows the block time to be reduced to as low as 14-15 seconds. This allows for faster transactions in trading. The block time for Bitcoins transaction is up to 10 minutes, due to which the speed of transaction is very low.
The economic model of Ethereum blocks the reward amount of Ether for only a year. The economic model of Bitcoin blocks the reward halve for 4 years.
Ethereum uses different costing methods as per the storage capacity, bandwidth, computational complexity, etc. This is known as Gas in Ethereum and varies as per blocks. Bitcoin transactions’ costing is uniform as per the block size. They do not vary as per the storage capacity or other factors.
Ethereum has its own turing internal code. With this, it can calculate any complex transaction. There is no such flexibility and mechanism present in Bitcoins.
Ethereum was launched as a crowd-funded application. Bitcoin was launched by a few miners, and so, most Bitcoins that can be mined are owned by a few people, creating a monopoly.
Ethereum does not allow centralized pool mining, due to its ghost protocol. Centralized pool mining can be possible in Bitcoin trading.
Ethash is the memory hash algorithm used by Ethereum. This allows for decentralized mining. Bitcoin has no such hash algorithm.
Ethereum was developed in mid-2015. Bitcoinwas launched in 2009 and is the first cryptocurrency.
The market capital of Ethereum is around less than 1 billion. The market capital accumulated by Bitcoin mining is around more than 10 billion.
The popularity of Ethereum is very low in the market. The popularity of Bitcoin is very high among the people.
The hash rate of Ethereum is 3 TeraHash. The hash rate of Bitcoin is 1.8 Exahash.
The initial distribution of Ethereum is via ICO. Bitcoins were distributed by mining only.
Till date, 81 million Ethereum has been distributed. Till date, 21 million Bitcoins are available for mining.
This cryptocurrency is highly scalable. There is lack of scalability in Bitcoins.

bitcoins

Although Ethereum is quite new compared to Bitcoins, ithas still reached the second position in the cryptocurrency world. However, the popularity of Bitcoins has dominated the market for the last 8 years.The system and algorithm of Ethereum are highly disruptive, and it’s sure to decentralize the finance sector. Also, Ethereum may soon reach the top position in the cryptocurrency world. However, it’s very difficult to make any predictions in this highly dynamic market.

 

About the author: Lara Deshpande

 

 

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