Bitcoin vs Ethereum

Article bySayantan Mukhopadhyay
Reviewed byDheeraj Vaidya, CFA, FRM

Differences Between Bitcoin and Ethereum

The programming language of Bitcoin is C++, where the transactions take minutes to get confirmed. In contrast, in the case of Ethereum, the solidity programming language is used. As a result, it takes seconds to ensure any transaction.

The principle of distributed ledgers and cryptography dictates Bitcoin and Ethereum, but the two differ technically.

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What is Bitcoin?

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What is Ethereum?

Most people do not know about Ethereum because it is not a digital currencyDigital CurrencyDigital currency is a currency found only in an electronic form as it is used for trading over the internet. They are famous for allowing transparent and secured digital payments. Although their popularity is constantly growing, their adoption as a reliable alternative to physical money is nowhere close. Some of the popular digital currencies are Ethereum, Bitcoin, and Litecoin.read more. Ethereum is completely built on blockchain technology with many variations. It helps build smart contractsSmart ContractsSmart contracts are digital transaction protocols that verify, control, and self-execute an agreement, embedded in computerized codes on a blockchain, if parties meet predefined rules. Unlike traditional (physical) ones, these contracts occur among anonymous parties and are enforced automatically without the involvement of any third party. read more and the revolutionary Ethereum Virtual Machine (EVM). In addition, Ethereum has a currency called Ether that helps in creating peer-to-peer agreements.

Bitcoin vs Ethereum Infographics

Let us see the top differences between Bitcoin and Ethereum.

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Key Differences

  • While both are mostly compared for their cryptocurrencies, one of the main differences is that bitcoin is a more stable currency if we compare them. However, Ethereum promises to enclose a wider range of applications with Ether.
  • Although bitcoin and Ethereum charge fewer transaction costs, they still charge transactions differently. The strangest thing is when you use Ethereum; you need to take care of three factors to reduce the cost – bandwidth usage, storage needs, and transaction complexity. In addition, the block size limits the transactions, and each transaction competes with the other.
  • More than two-thirds of all the available bitcoins have been mined, and the rest choose the early miners. In comparison, around 50% of Ethereum coins have been mined.

Bitcoin vs Ethereum Comparative Table

Basis of comparison Bitcoin Ethereum
What is it? A currency. A token.
Basic Build Ethash. 0053 Secure hash algorithm, SHA-256
Programming Language Used C++ Solidity.
Issuance Time The transaction is completed in approximately 10 minutes. The transaction is conducted in 10 to 20 seconds.
Supply Type Deflationary (one can make a finite amount of bitcoin). Inflationary (like fiat currency, where one can make more tokens over time).
  Utility Bitcoins help buy products or services and help store their value. So, for example, we can speak about gold and how we use it. Ethereum helps in making decentralized applications that are also called DApps.

Final Thoughts

Both operate on “blockchain” technology. However, Ethereum is far more robust, allowing decentralized applications to be built on top. Ethereum is an advancement based on the principle of the blockchain that supports bitcoin but with a purpose that does not compete with bitcoin.

Recommended Articles

This article is a guide to Bitcoin vs Ethereum. We discuss the top differences between bitcoin and ethereum, infographics, and a comparison table. You may also have a look at the following articles for gaining further knowledge in finance: –