Ethereum vs. Bitcoin – Similarities And Differences

Cryptocurrency is turning out to be the tomorrow of financial transactions. Whenever you discuss Cryptocurrency, two names flash out, Ethereum and Bitcoin.

They are of equal calibre, and both are big shots in the realm of Crypto trading. You can call them the Coke and Pepsi of Cryptocurrency; the Real Madrid and Barcelona of La Liga.

Both of them have their similarities and dissimilarities. So making a comparative study will be interesting.

By the way, which one do you support? Whatever you do, make sure that you trade with the assistance of the bitcoin loophole.

This software helps you safely manage your Crypto trading. So, let’s do a comparative study of the currencies in this section.

Ethereum vs Bitcoin

As mentioned above, both Ethereum and Bitcoin have their own similarities and differences. So let’s do a study of the similarities and dissimilarities that you have with Cryptocurrency. Let’s start with the similarities.

Similarities

Here are some of the similarities traced both with Ethereum and Bitcoin. Let us see and understand them here.

1. Decentralised

Cryptocurrencies are decentralised. With decentralisation, you have control of the developers and no external agencies. Decentralisation ends currency monopoly. Both Bitcoin and Ethereum are powered by decentralisation.

2. Use Of Blockchain

If you make payments using Bitcoin or Ethereum, you get secured payments. This is because both cryptocurrencies use blockchain.

Here the transactions are safeguarded in a decentralised ledger across a network of multiple computers. So the hackers will not be able to corrupt one system and get their work done.

3. Faster Payment

If you make payments with some third-party payment system like debit or credit card, it takes time to process.

According to a finding, it takes almost five days for the processing of payment. But with Cryptocurrencies like Ethereum and Bitcoin, you can process payment within 24 hours.

4. Lower Transaction 

Making a transaction using a third-party payment system takes around 2% to 3% of the entire payment. But Ethereum and Bitcoin charge a nominal amount. You save with both of them.

Dissimilarities

Now let’s discuss some striking differences between both cryptocurrencies here in this section.

1. Block Limits

Block limits for Bitcoin are different from that of Ethereum. It takes around ten minutes to mine a new block on the Bitcoin blockchain.

Due to this slow pace, Bitcoin produces only three transactions per second. But the scenario is completely different with Ethereum. Ethereum Blockchain has no limitations with  Block limits. Here the number of transactions to be put into  the block comes under the discretion of the miners,

2. Blockchain Design 

Blockchain design is also one of the ideas where both Ethereum and Bitcoin differ completely. The Blockchain of  Ethereum is completely programmable.

It is designed to have multiple Defi uses. This is not the case for Bitcoin. For Bitcoin, the blockchain cannot be programmable.

3. Decentralised Payments Vs Decentralised Software

Bitcoin was originally developed with the aim of reducing any intermediaries between both parties. Hence you can say that it is developed for making digital payments. But this is not the same with Ethereum.

Ethereum developed itself as a distribution platform. Using this platform, you could  run some decentralised software. This is understood as Smart Contracts. With smart contracts, contract A can enter into an agreement with B.

4. Other Differences

Apart from the difference discussed above, there are a few other differences between Bitcoin and Ethereum. While Ethereum was founded in the year 2015, bitcoin came into existence much earlier, in the year 2009.

In terms of Market dominance, they also have some differences. Bitcoin has around  42% of the market capture. Bitcoin is undisputedly the leader of the Cryptocurrency world. Ethereum has a market capture of 18%. It has yet to cover some distance. But if there is something after Bitcoin, it has to be  Ethereum.

Conclusion

In order to bring the matter to a close, it can be said that Bitcoin and Ethereum have their own similarities and differences. But there is no question about their advantage and efficacy in facilitating business opportunities. Both of them are undisputed rules in the reign of Cryptocurrency. No matter why businessmen across the UK and the US use both this Crypto.