23 Answers - What Is Ethereum And How Is It Different From Bitcoin?
What is Ethereum and how is it different from Bitcoin? Lets start with what they have in common: Ethereum, however, uses Smart Contracts. Ethereum is like a World Payment System, that can be automated, personalized, but can never be censored. Simply put, Bitcoin can be described as digital money. Bitcoin has been around for eight years and is used to transfer money from one person to another. It is commonly used as a store of value and has been a critical way for the public to understand the concept of a decentralized digital currency. Ethereum is different than Bitcoin in that it allows for smart contracts which can be described as highly programmable digital money. Imagine automatically sending money from one person to another but only when a certain set of conditions are met. For example an individual wants to purchase a home from another person. Traditionally there are multiple third parties involved in the exchange including lawyers and escrow agents which makes the process unnecessarily slow and expensive. With Ethereum, a piece of code could automatically transfer the home ownership to the buyer and the funds to the seller after a deal is agreed upon without needing a third party to execute on their behalf. The potential for this is incredible! Think of the numerous applications that act as a third party to connect you with others based on some set logic (e.g. Uber, Airbnb, eBay). Many of the centralized systems we use today could be built in a decentralized manner on Ethereum. With Ethereum you can make these transactions trustless which opens up an entire world of decentralized applications. Decentralization is important because it eliminates single points of failure or control. This makes internal collusion and external attacks impractical. Decentralized plat Continue reading >>
Is Ethereum Better Than Bitcoin? Why Or Why Not? Is It Like Comparing Apples To Oranges?
Bitcoins sole purpose is to be the virtual currency of the internet, and uses blockchain to do this. Ethereum was created in 2015 by a man called Vitalik Buterin. Vitalik had the vision of not only having a decentralised cryptocurrency (like Bitcoin) but also allowing decentralised applications to be created on the Ethereum blockchain that use Smart Contracts. The whole idea of blockchain is to remove the power from the third parties and allow the user to control their own data. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk. To understand this better, Im going to give an example of how decentralised apps and smart contracts will change the world we live in: Ill use pizza as my example, because everyone can relate to pizza! Say you wanted to order pizza to your house, you have to create an account, enter your banking details and give the app your address to receive your pizza. Many people overlook the risks that are associated with trusting a third party to handle such sensitive data. If this companys serves are hacked into, the hacker will have your bank details and your address Scary stuff. So, you ordered a chicken BBQ pizza, which is everyones favorite, and they turn up with a ham Continue reading >>
Bitcoin Vs Ethereum: Driven By Different Purposes
Bitcoin Vs Ethereum: Driven by Different Purposes Ethereum has received a lot of attention since its announcement at the North AmericanBitcoinConference in early 2014 byVitalikButerin. The natural consequence of its rising popularity has been its constant comparison toBitcoin, the first virtual currency. It is important for investors to understandthe similarities and differences between BitcoinandEthereum. Bitcoin, the first virtual currency, was born seven years back. It introduced a novel idea set out in a white paper by the mysterious SatoshiNakamoto:Bitcoinoffers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government issued currencies . There are no physicalBitcoins , only balances associated with public and private keys. Over these years, the acceptance of the concept of a virtual currency has increased among regulators and government bodies.Althoughit isnt a formally recognized medium of payment or store of value, it has managed a niche for itself and continues to coexist in the financial system despite being regularly scrutinized and debated. The attempts to understandBitcoinmoreclosely resulted in the discovery of blockchain , the technology that powers it. Theblockchainis not just the hottest topic in theFinTechworld but also asought after technology in many industries. Ablockchainis a public ledger of all transactions in a given system that have ever been executed. It is constantly growing as completed blocks are added to it. The blocks are added to theblockchainin linear, chronological order through cryptography, ensuring they remain beyond the power of manipulators. Theblockchainthus stands as a tamper-proof record of all transactions on the network, accessible to all Continue reading >>
Bitcoin Vs Ethereum: Cryptocurrency Comparison
Bitcoin VS Ethereum: Cryptocurrency Comparison Last updated on June 14th, 2017 at 08:11 pm Since its release in early 2009, Bitcoin has been the trailblazing leader of the cryptocurrency revolution. Countless imitators have come and gone but Bitcoin remains dominant, despite nearing the current limits of its transactional capacity. Ethereum, created mid-2015, is Bitcoins strongest rival But can Ethereum deliver on the hype surrounding its complicated technology, as well as recover from the recent spectacular failure of the DAO , to usurp Bitcoins primacy? Complimentary or Competing Cryptocurrencies? How valid is the frequent claim that Bitcoin and Ethereum arent direct competitors but rather complimentary aspects of the new, blockchain-based economy? The peaceful coexistence theory holds that the web is vast and deep enough for Bitcoin and Ethereum to carve out their respective niches: Bitcoin specialising in its role as digital gold; offering a dependable monetary system free from unbounded inflation and political intervention. Ethereum evolving into the world computer; a blockchain-based programming language enabling code-based contracts and decentralised applications. In practice, matters are more complex. Given the extensibility of cryptocurrency, neither coin has a clearly defined sphere of operation. There is considerable overlap between their functions and markets, with nothing to prevent user migration. For example, additional layers built upon Bitcoin, such as the Rootstock.io smart contact platform, threaten to trespass on Ethereums playground. Rootstock promises to do everything Ethereum can, with the added security of a two-way peg to the more secure Bitcoin network. Likewise, Ethereum has become a popular trading and investment instrument , infringing upon Continue reading >>
Bitcoin Vs Ether Vs Litecoin Vs Ripple: Differences Between Cryptocurrencies
By now, you've no doubt heard about the massive bitcoin rally this year . And you may also have read about other cryptocurrencies, such as litecoin and Ethereum , surging too. But there are over 1,300 cryptocurrencies in existence. And while bitcoin dominates the market, several other digital currencies are making waves. CNBC has created a brief guide on how the top five cryptocurrencies by market capitalization, or value in the world, have performed so far this year, and what the differences are between each of them. All market cap and year-to-date rise figures are accurate as of December 14. But because of the frenzy around bitcoin, transaction times have spiked, which could go against the original aims of the cryptocurrency. While Nakamoto referred to bitcoin as electronic cash, many experts have called it "digital gold" and said it could be a long-term store of value. At the moment, some retailers in Japan have begun accepting bitcoin as payment and there are even instances of real estate firms accepting it too . But there is little evidence of widespread use of bitcoin for payments. Ethereum is the name of a blockchain company that has created the digital token ether. But Ethereum and ether are now used interchangeably to refer to the cryptocurrency. Ether is backed by a blockchain, much like bitcoin, but the technology is slightly different and aimed at a specific use case: smart contracts. Take a trade finance deal, for example. This relies on each party in the deal having a paper or digital copy of the contract and needing to update it individually. It's arduous and prone to error. But a smart contract is one that is written in code into a blockchain. Once the terms of the contract are met by each party, a deal will be executed. Many major organizations are exp Continue reading >>
Bitcoin Vs Ethereum - We Study Billionaires
To provide a fair comparison between Ethereum and Bitcoin I will start by defining the basics, and expand on how each of them can be used without drilling down too deep into the technical details A transaction is some change of state. This could be the transfer of value from one individual to another, the delivery of a private message, the broadcast of a public message, the creation of an account, or anything else that we do on the internet today. The blockchain is the underlying technology of all crypto-technologies. You can think of it as a ledger that keeps track of all transactions that have ever occurred. The transactions themselves are entirely public but the identities of the individuals participating in the transaction are anonymized. Rather than having a central authority (i.e. government, bank, etc) maintain this ledger, it is maintained through consensus by a distributed set of actors who chose to participate. The blockchain can be downloaded by anyone, and participants are free to leave and join whenever they choose to. Using cryptography, the blockchain can verify the validity of a certain transaction (e.g. Alice indubitably sent Bob $5) and guarantee that previous transactions can never be edited or overwritten.1 A protocol is a set of rules that two parties must strictly adhere to in order to successfully communicate with each other. In modern networking, HTTP is a protocol that runs on top of a different set of protocols called TCP/IP. In crypto, there are many different types of protocols that run on top of the blockchain. If you think of a protocol as a language that we speak, then the blockchain could be vocal sounds we produce. While all humans have the capability to produce the same sets of sounds, more or less, we cannot understand each other unle Continue reading >>
Bitcoin Vs Ethereum Vs Ripple: Comparing The Cryptos
Bitcoin vs Ethereum vs Ripple: Comparing The Cryptos The cryptocurrency niche is becoming somewhat crowded, and increasingly defined by a Bitcoin vs Ethereum vs Ripple war! These three cryptos can be considered the market leaders, with Bitcoin the most established, Ethereum the major challenge to its supremacy, and Ripple having made a big splash in a short period of time. Although each of these products has generated a significant amount of noise in their short lifespans, many people still only have a sketchy understanding of the differences between the major crypto players. So here ValueWalk gives a rundown on the differences between the three, and assesses how the Bitcoin vs Ethereum vs Ripple battle is shaping up . When making the Bitcoin vs Ethereum vs Ripple comparison, there are four key areas to look at. The first of these is scalability; namely, how many transactions can be conducted by the cryptocurrencies every second. It is in this area that we can instantly see a massive difference between the three, and begin to understand how Ripple has indeed made such a Ripple! While both Ethereum and Bitcoin are scalable, the latter achieves a maximum number of transactions of 7 per second, while Ethereum can deliver nearly double this with around 15 per second. These figures may sound as if they hand Ethereum a major advantage, but Ripple absolutely blows both of the major players out of the water in this department. Ripple is capable of delivering a staggering 1,500 transactions every second, providing it with a huge advantage over Bitcoin and Ethereum. It is this above all else which has led to the early prominence of Ripple, and which could play a major part in the development of the cryptocurrency sector. Another major front in the Bitcoin vs Ethereum vs Ripple b Continue reading >>
Ethereum Vs Bitcoin Comparison 2018 | Who Will Be The Big Winner?
As an investor, an initial aim is to create success in all potential investments that you would like to undertake. For many years, financial investment companies have always managed to control the progress of financial success of investors especially by managing their portfolios and charging high fees. The revolutionary invention of cryptocurrency managed to break these barriers and surrender investment control to the investors directly. Bitcoin and Ethereum (ETH) are currently recognized to be the two largest cryptocurrencies in the world as Bitcoin (BTC) takes the lead. Ethereums performance in the past few years has opinionated the possibility of taking on the lead in the near future. However, bitcoin is observed to maintain a steady and higher performance in spite of the volatile market trends in 2017. Bitcoin being the mother of founding cryptocurrencies has led to the innovative gesture of new digital coinage globally such as Ethereum its current major competitor. No matter how similar they may seem, you would be concerned with analyzing the major differences between Ethereum and Bitcoin. Recognizing these difference would help you in the process of decision making while choosing the best cryptocurrency to invest in. ETH vs BTC has stirred an instrumental structure of allowing the larger audience to learn more about the differences between both digital assets. Along these guidelines, investors possessing either one of the assets or even both at the same time will be able to enlist the benefits and the limitations of each asset. The comparison of these benefits and limitation forms the foundation of stirring up the debate of Bitcoin versus Ethereum. As a new investor, you will need to be aware of the market tendencies that ensure solid investment ventures that are Continue reading >>
Bitcoin Vs Ethereum Comparison - Btc/eth Cryptocurrency Comparison Charts - 1 Day
Dash vs Litecoin Ripple vs TRON Rise vs bitEUR Monero vs Zcash Ethereum vs Litecoin Ardor vs IOTA Vertcoin vs VeriCoin Lykke vs Tao Zoin vs Lykke FairCoin vs Newbium EOS vs Litecoin Dogecoin vs Ripple Ripple vs IOTA NAV Coin vs Litecoin BitSend vs GAIA EOS vs IOTA Bitcoin Cash vs Litecoin Bitcore vs Bitcoin Cash Ripple vs EOS IOTA vs EOS Continue reading >>
Why Is Ethereum Different To Bitcoin?
Ethereum differs from Bitcoin in 7 main ways: 1. In Ethereum the block time is set to 14 to 15 seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by using the Ghost protocol. 2. Ethereum has a slightly different economic model than Bitcoin Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum. 3. Ethereum has a different method for costing transactions depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other. This is called Gas in Ethereum and is limited per block whilst in Bitcoin, it is limited by the block size. 4. Ethereum has its own Turing complete internal code... a Turing-complete code means that given enough computing power and enough time... anything can be calculated. With Bitcoin, there is not this form of flexibility. 5. Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five . 6. Ethereum discourages centralised pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation. Continue reading >>
What's Wrong With John Oliver's Bitcoin-beanie Baby Comparison
What's Wrong With John Oliver's Bitcoin-Beanie Baby Comparison Mar 12, 2018 at 21:55 UTC|UpdatedMar 13, 2018 at 10:46 UTC Most of John Oliver's send-up of cryptocurrency was spot on. On Sunday night's episode of " Last Week Tonight, " the HBO host poked fun at bitcoin community icons and reminded viewers to exercise caution when investing. "The important thing to remember here is this is a brand-new, very complicated space and literally nobody knows how it's going to develop, so you need to be careful," he said. Oliver's explanations of blockchain technology and the nascent cryptocurrency industry were generally accurate, and the notes of caution were appropriate. Speaking of notes, guest star Keegan-Michael Key's parody ofCarlos Matos, the exuberant Bitconnect promoter, drove the point home when he bellowed: "Re-spon-si-bility!" But in one important respect, Oliver missed the mark by a long shot. In his efforts to relate the story to a broad audience, the comedian trotted out a tired analogy, comparing bitcoin's volatile price to a $15,000 Beanie Baby, the plush toys that drove Americans into a buying frenzy circa the late 1990s. He also described buying cryptocurrency as pure gambling, not investing - an oversimplification, to say the least. It's worth nothing that it's been two decades since the Beanie Baby craze of the 1990s, and that some of the toy animals still sell for thousands of dollars online. Rare-toys appraiser Bruce Zalkin, for example, told The Wall Street Journal a trio of Beanies that sold for roughly $1,299 in 1998 would probably fetch $50 today. This devaluation highlights what makes Beanies fundamentally different from cryptocurrencies. Beanies didn't introduce any new technology to the collectibles market. Aside from unique traits such as color, t Continue reading >>
Ethereum Vs Bitcoin: What's The Main Difference?
12/20/2016 08:56 am ETUpdatedDec 06, 2017 Ethereum Vs Bitcoin: What's The Main Difference? While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its additional features and applications. The first thing about Ethereum is that it is not just a digital currency. It is a blockchain-based platform with many aspects. It features smart contracts, the Ethereum Virtual Machine (EVM) and it uses its currency called ether for peer-to-peer contracts. Ethereum's smart contracts use blockchain stored applications for contract negotiation and facilitation. The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum's smart contracts aim to provide greater security than traditional contracts and bring down the associated costs. The smart contract applications are powered by ether, Ethereum's blockchain based cryptocurrency. Ether, as well as other crypto-assets, are held in the Ethereum Wallet, which allows you to create and use smart contracts. The system has been described by the New York Times as.. "a single shared computer that is run by the network of users and on which resources are parceled out and paid for by ether." Implement Smart Contracts With Your Own Cryptocurrency Ethereum allows you to create digital tokens that can be used to represent virtual shares, assets, proof of membership and more. These smart contracts are compatible with any wallet, as well as exchanges that use a standard coin API. You can copy the code from Ethereum's website and then use your tokens for many purposes, including the repr Continue reading >>
This Giant Infographic Compares Bitcoin, Ethereum, And Other Major Cryptocurrencies
View a high resolution version of this graphic Comparing Bitcoin, Ethereum, and Other Cryptos View the high resolution version of todays graphic by clicking here . Unless youve been hiding under a rock, youre probably aware that were in the middle of a cryptocurrency explosion . In one year, the value of all currencies increased a staggering 1,466% and newer coins like Ethereum have even joined Bitcoin in gaining some mainstream acceptance. And while people like Jamie Dimon of J.P. Morgan and famed value investor Howard Marks have been extremely critical of cryptocurrencies as of late, many other investors are continuing to ride the wave. As weve noted in the past, the possible effects of the blockchain cannot be understated, and it could even change the backbone of how financial markets work . However, even with the excitement and action that comes with the space, a major problem still exists for the layman: its really challenging to decipher the differences between cryptocurrencies like Bitcoin, Ethereum, Ethereum Classic, Litecoin, Ripple, and Dash. For this reason, we worked with social trading network eToro to come up with an infographic that breaks down the major differences between these coins all in one place. Here are descriptions of the major cryptocurrencies, which make up 84% of the coin universe. Bitcoin is the original cryptocurrency, and was released as open-source software in 2009. Using a new distributed ledger known as the blockchain, the Bitcoin protocol allows for users to make peer-to-peer transactions using digital currency while avoiding the double spending problem. No central authority or server verifies transactions, and instead the legitimacy of a payment is determined by the decentralized network itself. Bottom Line: Bitcoin is the original c Continue reading >>
Bitcoin Vs. Ethereum
A smart contract is a type of autonomous decentralized application. Autonomous. Its automatic and can run itself. Decentralized. Its not held in any one place or owned by any one person. Instead, its part of the blockchain. This implies its tamper-proof and very reliable. Smart contracts are one of the reasons everyones so excited about cryptocurrencies and the blockchain. Its like having a robot that can do things automatically and cant be hacked or tampered with. For example, someone could put $500 into an account guarded by a smart contract and set it up to send $5 to someone each year for their birthday over the next 100 years. They can do this with 100% certainty that the money will be sent exactly as programmed, and 100% certainty that no one can ever tamper with that program or steal the money. Without smart contracts, youd have to give the money to someone else and then trust them to send it onwards, even after youre gone. The blockchain is common to both bitcoin and Ethereum, as well as (almost) all cryptocurrencies. The decentralization of the blockchain system is what makes it 100% reliable and tamper-proof. But being able to program various functions into the blockchain, like sending $5 a year for 100 years, is the smart contract in action. Thats what Ethereum added. As you can imagine, smart contracts have enormous implications for businesses in almost any industry. A lot of the new cryptocurrencies being created these days are offering built-in smart contract technology. There are a lot of similarities other than the programming. Both coins are valuable: At the time of writing, bitcoin and Ethereum are the No. 1 and 2 coins, respectively, in terms of market cap. Theyre the worlds biggest and most valuable cryptocurrencies. Both coins are popular: Even wit Continue reading >>
What Is The Difference Between Bitcoin And Ethereum?
What Is The Difference Between Bitcoin and Ethereum? Opinions expressed by Forbes Contributors are their own. Last year, thanks to stratospheric rises in value, lots of people became aware of the existence of Bitcoin, as well as another often-cited up-and-coming cryptocurrency, Ethereum. By market cap they are the two most valuable cryptocurrencies as of writing (and please note that these numbers fluctuate quite a lot), the total value of all the Bitcoin in existence is $143 billion, while Ethereum sits at $88 billion. For perspective that means Bitcoin is currently held at around the same value as Unilever, whereas Ethereum has around the same market value as Starbucks or Walgreens Boots Alliance. I know that you cant really compare a digital currency to a company but it gives some perspective. Also, before we go any further I just want to reiterate that investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. While to many Bitcoin and Ethereum are both simply examples of cryptocurrencies digital money transfer systems which use blockchain technology and encryption there are subtle differences in how they work and what they can be used for. If you are looking to invest for speculative reasons, or even more so if you are considering using either platform for business its important to understand those differences, because they could be the deciding factor in which coin (if either) goes on to become a widely accepted standard, and which will disappear into obscurity and worthlessness. Continue reading >>