Posted: 01.07.2021 | 09:50
What are the differences between Bitcoin and Ethereum?
BITCOIN vs ETHEREUM
Ethereum is similar to Bitcoin in many ways. It is also public, connects people, and has its own cryptocurrency called “Ether”. Ethereum was created by Vitalik Buterin in 2014.
WHAT ARE THE DIFFERENCES?
Undoubtedly, the most important difference is the final goals and objectives they envisage in the projects. Bitcoin aims to be a storage medium like digital gold and eventually become a strong substitute for traditional currencies by being accepted all over the world. Ethereum, on the other hand, aims to be a platform where decentralized applications and smart contracts are written.
Another important difference between Bitcoin and Ethereum is the amount of supply. While Bitcoin is limited to 21 million; There is no limit to the production amount of Ethereum. Ethereum and Bitcoin are released by mining in the same way. However, there are also plans for Ethereum to switch to a different business model and be produced in a more environmentally friendly way.
Ethereum and Bitcoin have some differences in terms of technology. As more people contribute to these technologies, it is natural for these technologies to turn to different areas and the differences to grow.
Bitcoin, with its limited supply source, supply-demand economy and mass decentralization thanks to the money economy, other asset forms that exist in the world today; For example, fiat currencies such as US dollars and Euros, precious metals such as gold and silver or other assets take them to a whole new dimension. In addition, it changes the payment systems with its use as a payment tool.
So, in this case, what does Ethereum change or where does it show its difference?
In its simplest form, we can say that Ethereum changes legal contracts. Ethereum; It covers all of the contracts that individuals, institutions, organizations, courts, even government institutions and those who make contracts with these use to buy. This is because Ethereum is built with a different set of features, specifically because it is a programmable blockchain. Thus, open source and truly smart contracts can be written and stored.
Ethereum; With its programmability, audience size and talented developers, it ranks first in the smart contracts market with programmable blockchains such as NEO, EOS and TRON. While Bitcoin is best-in-class in payments and store of value; Ethereum, on the other hand, is programmable, extensible, and best-in-class in its capacity to build on it.
Think of Bitcoin like a tiger and Ethereum like a shark.
If you take a tiger and bring it into the water, the shark will easily win the battle. But if you take that shark and drag it ashore, the tiger will easily win this battle.
When you sit back and let both the tiger and the shark live in their natural habitat, you realize that they never actually come into contact with each other and both win. Similarly, we can say that Bitcoin and Ethereum will both maintain their dominance in their respective markets for a long time to come.