Three Differences Between Bitcoin And Ethereum
Bitcoin and Ethereum stand as two of the most valuable cryptocurrencies in the crypto market; their market cap is $120,570,137,286 and $29,214,512,873 respectively. Bitcoin currently has one of the largest coin markets since its inception, while Ethereum has provided it with a strong rival.
Each is part of a decentralized network and is free from control from a centralized entity. Further, each is equipped with similar features, including anonymous transactions.
On the other hand, there some start differences between the two as well. For example, Ethereum is more than just a digital currency – it also supported by a blockchain based system. Ethereum also features an Ethereum Virtual Machine, smart counters, and peer-to-peer contracts. Alternatively, Bitcoin has lower transaction fees, no physical bitcoin, but simply balances that are associated with a private key.
Even though both coins are managed by cryptography principles and distributed ledger, there are three major differences between them, including:
Purpose Of Coin
First, both coins were created with different goals. Bitcoin is meant to substitute fiat currency and as a result, it used as a mode of payment transactions and as a store of value. Ethereum is a platform created to promote peer-to-peer contracts and its main goal is to help developers build and run distributed applications.
Bitcoin has a currency cap limited to 21 million bitcoins and of that number, 17 million have been created. Ethereum has no hard currency cap – even though there seem to be plans to halt or reduce issuance in the next few years.
Bitcoin block creation takes 10 minutes, while an Ethereum block is created every 15 seconds – though the goal is to get that number down to 12 seconds. Ethereum seems to have the upper hand because the faster block creation leads to quicker rates of confirmation.