Ethereum (ETH) network’s crypto, is currently the second most valued digital currency after BTC. Indeed, comparisons between Ether and BTC are only natural as the second-largest cryptocurrency by market cap.
Similarities between the Ethereum (ETC) and Bitcoin (BTC):
- Both cryptocurrencies are traded via online platforms and deposited in various types of cryptocurrency wallets.
- Both cryptocurrencies are decentralized, meaning a central bank or other authority does not issue or control them.
- Both use the distributed ledger known as blockchain technology.
There are still several critical distinctions per market cap between the two most common cryptocurrencies.
Below are the similarities and disparities between Bitcoin and Ether (Ethereum) that we will take a closer look at:
While both the Bitcoin and Ethereum networks are driven by the distributed ledgers and cryptography concept, the two technologies differ in several respects.
In the case of Bitcoin, a data file is attached to the transaction just for the purpose to keep the details of the transaction. While in the case of Ethereum (ETH), only executable code is attached to the transaction.
Certain variations include block time. The confirmation time for a transaction on Ether crypto takes seconds while in case of bitcoin transaction takes place minutes. The algorithms both crypto uses are also different while Ether operates on Ethash on the other hand Bitcoin uses SHA-256.
Bitcoin and Ethereum cryptocurrencies are distinct in terms of their ultimate goals.
The purpose of creating the Bitcoin is to provide the world with an alternative to the current paper currencies. Ethereum was introduced as a platform for transaction methods for people with its own currency and application. In simple terms Bitcoin (BTC) can be considered as an alternative to the current monetary system while the same can’t be said for the Ethereum (ETH) as a cryptocurrency.
The implementation of the Ethereum Smart Contract and Decentralized Software Network was launched to monetize Ether or Blockchain.
Ethereum uses similar blockchain technology like Bitcoin and technically shouldn’t be compared with Bitcoin. But the technology and market capital share of the Ethereum (ETH) has put this cryptocurrency in direct competition with Bitcoin (BTC).
Since the launch of Ether in mid-2015, this cryptocurrency has been a close competitor of Bitcoin and is second in terms of market cap. Even though the Ethereum ecosystem is somewhat similar to that of Bitcoin its market share is still 10 times less than that of Bitcoin’s market share.
Bitcoin (BTC) or Ethereum (ETH) are based on the same blockchain technology but the purpose for which both of them are created is different from one another. Ethereum provides a variety of alternatives to its users and uses its digital currency to provide platforms for other applications and transactions to use its application to promote a digital safe environment for transactions. Bitcoin was introduced much earlier and enjoys a lot of trust among the investing community, If you want to start bitcoin trading visit bit-trader app.
Even though introduced later than bitcoin, ETH currently holds the second largest market share among the cryptocurrencies market. Both currencies provide their customers with a promising future. It is up to the investors in which digital currency they see a strong potential for future growth and getting their targeted ROI with minimum risk to their investment.