What makes Bitcoin and Ethereum differ from each other?
Bitcoin and Ethereum are, without doubts, the most popular and known cryptocurrencies in the world. In this article we will take a closer look at these 2 projects, so you can understand better their core functions and differences.
What are the differences between Bitcoin and Ethereum?
Bitcoin creators had a clear goal - make a currency that doesn't depend on any institutions. They came with blockchain technology a that stores information about all transactions and uses cryptography to make sure nobody can hack them.
Ethereum , on the other hand, was made more as a payment method than just a plain currency. You see, Etherereum's main feature are Smart Contracts. They help to make transactions that need certain condition to happen. If, for instance, you want to sell a car, a buyer creates transaction "Once we sign agreement, send money from my wallet to that guy's address".
Obviously, it is just simple example but you can imagine how useful it is for companies trading with each other. Automatization possibilities are enormous! In the same situation, Bitcoin network would require buyer to manually send funds to provided wallet address every single time and that's way less convenient.
Is Ethereum faster than Bitcoin?
Ethereum network can finalize transactions in a matter of seconds, compared to minutes in BTC blockchain. Also, since the mechanisms are a bit different, Ethereum can handle few times more transactions per second.
Is Bitcoin more secure than Ethereum?
That's one of the main drawback when it comes to comparison of those two currencies. Bitcoin network was made to be extremely secure and has strong base that's almost unbreakable (which is assured by making any attack completely unprofitable). Ethereum is faster but also has more potential break in points. It doesn't mean that Ether is insecure, it's just that in case of any attempt trying to take over crypto industry, ETH is more likely to be the target.
Is Bitcoin or Ethereum more stable?
Calling any cryptocurrency stable is, in general, an act of bravery. If you take a look at the plots showing current price of any currency you can see that there are huge changes even in the last 24 hours. This makes crypto great for trading, because you can make profit any time the price oscillates, but it also scares potential long-term investors. If we compare just BTC and ETH, the latter is considered less stable as it's more dependent on market conditions and demand in a given second.
Is Ethereum better than Bitcoin?
Many people are convinced that indeed, Ethereum has way brighter future than Bitcoin since its capabilities make ETH far more competitive. You need to keep in mind though, that Bitcoin is being updated constantly and Lightning can be the key for this crypto to enter the mainstream faster. Obviously, it’s not going to be easy since Ethereum is also being improved and its main drawback, poorer security, is going to be vanished.
Will Ethereum be the new leader of crypto world?
I know that some people really wish so, but Bitcoin position is quite unbreakable at the moment. Great marketing, strong security algorithms and wider than Ethereum usage can be hard to overcome. Ethereum however has some tricks up its sleeve and tries to gain customers by faster transactions and automatization capabilities. We will see how the fight between them goes and whatever the result is going to be, the safer and more convenient those networks are, the better it is for everyone.