Differences Between Bitcoin and Ethereum
The differences between Bitcoin and Ethereum are talked about a lot because they are popular crypto coins. In this guide, we’ll take a look at the differences and similarities between Ethereum and Bitcoin.
Bitcoin and Blockchain technology, invented by Satoshi Nakamato in 2008, whose real identity is still unknown, was the beginning of the crypto money world. With the inspiration that Bitcoin gives to developers, thousands of crypto coins, which we call ‘altcoins’ today, produce new values with Blockchain technology. Bitcoin has maintained its popularity and functionality despite the emergence of so many crypto coins after itself and is the crypto money with the highest volume, which is the main focus of interest of crypto money investors for crypto coins today.
Developed by Vitalik Buterin in 2015, Ethereum is the second most interested cryptocurrency for cryptocurrency investors after Bitcoin. It draws attention with its new smart contract technology that it has brought to blockchain technology.
You may be interested: How to Buy Ethereum?
Let’s examine what are the differences between Bitcoin and Ethereum, where crypto money investors invest the most and shape the financial world with their technologies.
Concept:
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Bitcoin allows the transfer of Bitcoin between parties to take place securely through the blockchain.
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While Ethereum makes it possible to transfer between parties, it also enables transfers to be made between two parties when predetermined conditions are met thanks to the smart contract technology it has developed.
Mining:
- Transfers made in Bitcoin are confirmed by miners with ‘proof of work’.
- Ethereum uses the same method. It will move to a ‘proof of stake’ system that has been developed for a long time and with Ethereum 2.0. In this way, a party will be able to approve the transaction as much as the amount of crypto money it holds.
Awards:
- Bitcoin rewards miners with 6.25 Bitcoins at the end of each block. This award is halved every 210,000 blocks, about every 4 years. Thus, the supply of Bitcoin is limited.
- In Ethereum, miners or those who confirm the transaction with Ethereum 2.0 receive a reward of 3 Ether for each block. As with Bitcoin, this reward is not halved after the block.
Transfer Fees
- The fee paid for sending Bitcoin is left to the decision of the sender. The party who wants a transaction to process much faster can easily attract the attention of miners who will confirm the transaction by increasing the sending fee.
- In Ethereum, shipments are made with fixed fees, also known as ‘gas’ fees.
Block Creation
- With Bitcoin, it takes 10 minutes to add a block to the blockchain.
- The block creation time for Ethereum is between 10-15 seconds.
Supply Quantities
- Currently, approximately 18.5 Million Bitcoins are in circulation. The total amount of Bitcoin that can be created is limited to 21 Million.
- Approximately 111 million units of Ethereum are on the market. There is no set supply limit.
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