OVERVIEW OF BITCOIN AND ETHEREUM
Cryptocurrency is an alternative to the traditional investment and trading system. It is a decentralized platform that uses blockchain and cryptography which safeguards your fund and keeps a transparent record of all the transactions made. By using the blockchain, the ledger of your transaction is not in the hands of a central system, instead, it is all over the crypto network which makes it tougher to hack or take down the system. Two of the most popular cryptocurrencies are Bitcoin and Ethereum which are discussed below.
What is Bitcoin?
Bitcoin is the most popular cryptocurrency all around the world launched in 2009 by an anonymous man named Mr. Satoshi Nakamoto. Being a digital currency, it does not have a physical body. It is virtual. Bitcoin is a currency in itself, unlike Ethereum which is also a platform.
The best part of purchasing bitcoin is that, the traditional concept of middlemen is no more involved in it. Bitcoin has been recognized as a mode of payment for luxuries products and as a part of the investment for many companies. As the days go by, the value of bitcoin is increasing. Bitcoin has helped to speed up your transactions. For example, A transfers money to B by using the traditional transfer through the bank. Here, if the bank’s server is down, and the transaction fails, it causes hindrance in the process where the bank acts as the middle man. The same transaction is done by using Bitcoin speeds up to process without any interruption.
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When a transaction is made using Bitcoin there should be someone to verify the transaction, Miners play a role here. A miner is a person who verifies the transactions which are in a coding language and as a reward mines Bitcoin for himself. Mining Bitcoin is not easy as
It comes with a demand of high configuration hardware, high usage of electricity, and time. To mine 1 Bitcoin, it takes huge time.
What is Ethereum?
Ethereum is the second-largest cryptocurrency after Bitcoin. It was proposed in 2013 and announced in 2014 by Mr. Vitalik Buterin. He was the co-founder of Bitcoin Magazine. Ethereum is actually a platform where you can create your decentralized Dapps, also known as
decentralized apps. The programming language of Ethereum is known as Solidity. By using Solidity, you can code and program your own Dapps. Ethereum is a completely decentralized platform with thousands of computers running it.
All the programs and code run through these computers, also known as Nodes to execute it in the right manner.
Since Ethereum is not a currency but a platform, the currency that is uses is called Ether, which is used to incentivize the platform. Ethereum aims at completely decentralizing the internet as today all the platforms and networks like Google, Facebook, Amazon, and other giants that control most of the World Wide Web may act as an intermediary in all your activities.
‘Smart contracts’ are being written using the programming language Solidity. It is the logic running the Dapps. The developers write the conditions for the Dapp and Ethereum executes it. While talking about the price of Ethereum, people refer to Ether. It is used to make payments for deploying smart contracts. Smart contracts are contracts that can execute themselves. In 2014 Ether was distributed in 40 cents, today one Ether is valued in hundreds of dollars.
Bitcoin vs Ethereum
● Bitcoin is a currency whereas Ethereum is a platform on which can create Dapps.
● The supply Cap of Bitcoin is limited to 21 million, whereas the supply cap of Ethereum is infinite.
● Bitcoin is itself a store of value, whereas the value of Ethereum lies in Blockchain.
● Transaction in Bitcoin takes approximately 10 minutes, whereas, transaction in Ethereum takes a maximum of 5 mins.
● Mining fees per block in Bitcoin is 6.25 BTC(Bitcoin) and in Ethereum is 2 ETH(Ether).
Investors investing in the crypto market recommended purchasing both Bitcoin as well as Ethereum. You can purchase them using the app Bitcoin Era. Bitcoin and Ethereum are extreme sometimes which means you can earn a huge amount of profit or have a terrible loss. You need to be extremely careful while investing in the crypto market.