There are nearly 10,000 different types of cryptocurrencies on the market today. Bitcoin, however, retains its top spot as being at forefront of the cryptocurrency market being the first true cryptocurrency in circulation.
Many other cryptocurrencies have arrived since Bitcoin’s inception in 2009. Of which is the second most popular cryptocurrency token today: Ethereum.
Digital currencies are no longer a futuristic concept, but you may be wondering what is the difference between Bitcoin and Ethereum? Continue reading to find out more about these two popular cryptocurrencies.
Bitcoin is synonymous with digital currency and is the most recognizable form of crypto within the cryptocurrency system today.
The token operates outside of any traditional corporate or governmental control. But what is Bitcoin and how does Bitcoin work? The coin itself is traded through an online exchange and stored online in a digital wallet.
As with all cryptocurrencies, Bitcoin is essentially a complex algorithm. We can find out who owns one Bitcoin due to the output of each algorithm. This is known as a blockchain, and you can think of a blockchain as a digital ledger system. You can learn more here about digital Bitcoin transactions.
So, what is Ethereum? Much like Bitcoin, Ethereum exists as a blockchain platform and uses its own programming language on said platform. It was launched just a few years after Bitcoin in the summer of 2015.
The Ethereum software platform operates on a decentralized and open-ended basis. Ethereum can be used to make payments or purchases, much like Bitcoin. In addition, Ethereum can allow for the creation of other digital tokens distributed on public or private blockchains.
Difference Between Bitcoin and Ethereum
Bitcoin and Ethereum tend to have more differences than they share similarities. For example, Bitcoin functions mainly as a form of digital currency. You can buy, store or transfer Bitcoin on the network or even at an ATM.
Ethereum, on the other hand, functions more like an app store. The Ethereum blockchain network has the capability to store applications or smart contracts. The use of these smart contracts varies from enabling payment systems to authorizing a transfer of ownership for paid goods.
Bitcoin lags behind in processing speed as well. Ethereum transactions can take seconds to settle. Bitcoin transaction speed lags behind with transactions sometimes taking minutes to settle.
Invest In the Future
The difference between Bitcoin and Ethereum can be summed up in the fact that these blockchain technologies each serve a separate purpose. As titans in the crypto world, they’ve both put digital currencies on the map within the last few years.
If you’re interested in investing in Bitcoin or investing in Ethereum, now is a great time to look into doing so as they are increasingly becoming accepted forms of currency. If you’re interested in additional technology or investing trends, be sure to check out our Business & Finance section for more information.