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 >>
Is Ethereum Mining Profitable And Worth It In 2017?
Is Ethereum Mining Profitable and Worth it in 2017? As the price of Ethereum hovers around $300, you may be wondering to yourself whether or not its worthwhile to begin mining. Like Bitcoin, Ethereum is a proof-of-work coin that uses miners to confirm network transactions. The profitability of mining varies from person to person and changes over time usually becoming less profitable as the coin matures. There are three important factors to consider when figuring out if Ethereum mining will be profitable for you: Putting it simply, your mining rig needs to solve a mathematical algorithm to mine Ethereum. The mining difficulty of the network is a measurement of how difficult this algorithm is to solve. The higher the difficulty, the less Ethereum you receive for each unit of energy the GPU on your mining rig expends. As more miners join the network, this difficulty increases. The Ethereum mining difficulty had been steadily increasing since July but recently dropped from a high of ~3,000T to ~1,500T. This dip was caused by the Byzantine fork but isnt as advantageous as it seems. Even though the difficulty decreased, the block reward also decreased from 5 ETH to 3 ETH effectively canceling out any benefit from the difficulty change. You can view the past and current difficulty on the Ethereum network at CoinWarz . The hash rate is the speed in which your mining rig can solve the mathematical algorithm needed to validate a transaction. New miners are constantly entering the market with better and faster hash rates. Theres more to buying a miner than just picking the one with the highest hash rate, though. Miners with a high hash rate usually come with a high price tag. On top of that, they also typically use more electricity as they operate which could further drive your c 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 >>
Bitcoin Mining Vs Ethereum Mining, How Does It Differ?
Bitcoin mining vs Ethereum mining, How does it differ? I have understood how Bitcoin mining is done and what exactly the miner solves during the mining process and adding a new block on bitcoin blockchain, I failed to get any information on what ethereum miners have to solve in order to mine ether and create a new block to be added to ethereum blockchain, please share a link or details if possible Introduction The word mining originates in the context of the gold analogy for crypto currencies. Gold or precious metals are scarce, so are digital tokens, and the only way to increase the total volume is through mining it. This is appropriate to the extent that in Ethereum too, the only mode of issuance post launch is via the mining. Unlike these examples however, mining is also the way to secure the network by creating, verifying, publishing and propagating blocks in the blockchain. Mining Ether = Securing the network = verify computation So what is mining anyway? Ethereum Frontier, like all blockchain technologies uses an incentive-driven model of security. Consensus is based on choosing the block with the highest total difficulty. Miners produce blocks which the others check for validity. Among other well-formedness criteria, a block is only valid if it contains proof of work (PoW) of a given difficulty. Note that in Ethereum 1.1, this is likely going to be replaced by a proof of stake model. The proof of work algorithm used is called Ethash (a modified version of Dagger-Hashimoto) involves finding a nonce input to the algorithm so that the result is below a certain threshold depending on the difficulty. The point in PoW algorithms is that there is no better strategy to find such a nonce than enumerating the possibilities while verification of a solution is trivial and c Continue reading >>
Bitcoin, Ethereum Or Litecoin: Which Is Best For You?
Bitcoin, Ethereum or Litecoin: Which is best for you? A primer on the most visible cryptocurrencies. Before you jump into this overview of a few cryptocurrency alternatives, check out our first two articles in this series, Bitcoin, explained and Buying and selling bitcoin . Bitcoin has spawned hundreds of cryptocurrencies. Bitcoin was the first. Since its release in 2009, it's become the most famous, established and valuable cryptocurrency. But it's not the only game in town . Litecoin followed in 2011. Created by Charles Lee, an engineer who later helped build Coinbase , the leading cryptocurrency exchange, Litecoin is based on the same code as bitcoin but with a few tweaks designed to address two of its predecessor's limitations: transaction speed and access to the mining process. And in 2015, Ethereum made its debut, incorporating bitcoin's basic blockchain premise and Litecoin's pursuit of faster transaction speed, but adding a few of its own twists -- including the ability to process little chunks of code, called "smart contracts" -- and on its virtual peer-to-peer network as opposed to a dedicated server or mining rig. Ripple's market cap now exceeds $40 billion. Coinbase's support for bitcoin, Litecoin and Ethereum -- as well as Bitcoin Cash , a new branch of the bitcoin blockchain created in August 2017 -- helped install and keep them among the most visible and well-capitalized cryptocurrencies. Rounding out the top 10, in terms of market capitalization, is a dynamic shortlist that has included established coins and upstarts like Ripple , Cardano , Neo , Stellar , Eos and IOTA . For the purposes of introducing some of the prevailing concepts behind the growing population of cryptocurrencies, we'll take a closer look at the technologies behind Litecoin and Ether 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 Ethereum Which One Is Better?
Bitcoin vs Ethereum Which one is Better? Bitcoin vs Ethereum Which one is Better? JP Buntinx June 7, 2017 Comparison , Reviews With all of the commotion going on in the world of cryptocurrency, some interesting questions arise. A lot of people still feel they need to choose between Bitcoin or Ethereum, because one of them has to be better than the other. That is not the case by any means, as both ecosystems are trying to do things entirely. However, there are some aspects of both currencies which can be referred to as being better than its counterpart. On paper, one could argue Bitcoin is better than any other cryptocurrency, token, or digital asset because those other offerings would not be around, were it not for Bitcoin. In this regard, the popular cryptocurrency has a leg up over any other currency in existence. Bitcoin will always be the first major cryptocurrency, and it has been around for 9 years now. Ethereum, on the other hand, only came to market a few years ago. That being said, Ethereum offers some interesting pieces of technology. Smart contracts have been quite a revolutionary technology, although the same concept will be part of the Bitcoin protocol soon. Bitcoin has a disturbing lack of decentralized application possibilities, which makes Ethereum seem better in this regard. Then again, there is no major decentralized application in existence to be embraced by mainstream society either. Ethereum has a technological edge over Bitcoin, but until it is used by the masses, it is a matter of semantics. When we look at the available supply of currency, Bitcoin is clearly more scarce than Ethereum. In fact, Bitcoin has a hard coin supply cap of 21 million BTC. Ethereum has over 92 million coins in circulation, with more being mined every day. Even when Ethere Continue reading >>
Bitcoin Vs Ethereum: Differences Between Ether And Bitcoin
Bitcoin vs Ethereum: Differences between Ether and bitcoin Bitcoin vs Ethereum: Differences between Ether and bitcoin BITCOIN and Ethereum have both soared in value over the past 12 months, securing the top two spots in the cryptocurrency market. But what is the difference between bitcoin and Ether? Bitcoin (BTC) is the biggest and best-known cryptocurrency on the planet, but many experts are now tipping its main rival Ethereum to start challenging it for pole position in 2018. Ethereums digital currency, known as Ether (ETH), has soared in value over the past 12 months, appreciating by nearly 12,500 percent. This time last year, a single Ether token was worth less than ($10), compared to more than ($1,240) today (January 12). Despite its remarkable rise, Ethereum still trails far behind bitcoin, which is now worth more than ($14,000) per coin. Bitcoins market capitalisation is also almost twice as much as Ethers - ($227billion) compared to ($120billion). For those new to cryptocurrency, here is a handy guide outlining the main differences between bitcoin and Ethereum. What is Ethereum? Second largest cryptocurrency SOARS Whats the difference between bitcoin and Ether? Both bitcoin and Ether are digital currencies based on blockchain technology that can be used to send money across borders without the need for a traditional bank. The cryptocurrencies can also both be mined, unlike Ripple tokens, meaning users can earn bitcoin and Ether from home - provided they have the right equipment. Click on the following link for more information on bitcoin mining: HOW TO MINE BITCOIN However, bitcoin and Ethereum have fundamentally different purposes. Bitcoin climbed back above $10,000 Thursday for the first time in two weeks Bitcoin was created back in 2009 as an alternative to 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 - 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 >>
Should You Mine Ethereum Instead Of Bitcoin?
Should you mine Ethereum instead of bitcoin? Of the two most popular cryptocurrencies, have you wondered whether you should mine Ethereum or bitcoin? You most probably have, and I suggest mining bitcoin over Ethereum, and here are three reasons before my verdict. Now lets look at how much money you can make in a month and year by mining either Ethereum or bitcoin. To do so, we must look at a hypothetical example. I looked on eBay and found a high-end Ethereum mining rig worth $3,000, with about $1,500 in shipping costs. Lets even forego the shipping cost and assume this is an American miner who didnt have to fork out that much for shipping. With a hashing power of 150MH/, a 900W power consumption and average cost of $0.12 per KW/h, the cryptocompare mining calculator generated this result. As you can see, this miner would make $2,192 in a year, while the mining rig itself cost $3,000. Now lets run the same test, this time while mining bitcoin. I also found a $3,000 bitcoin mining rig, but you can even find a used one at about $2,500. It has a hashrate of 14TH/s and power consumption of about 1,350W. In this case, the miner would make $6,389 in a year, more than triple what the Ethereum miner would make that year. Cryptocurrency mining should increase in difficulty over time in order to reduce the number of coins in circulation. However, the difficulty to mine Ethereum has become so high lately that it has become unprofitable, at least to the small miner. Proof-of-work is the method by which you mine Ethereum and most other cryptocurrencies today. This method of mining requires that your computer or mining rig perform some complex calculations, and the first to solve the puzzle is rewarded. However, the Ethereum network is working on a hard fork labelled Casper, which i Continue reading >>
How To Choose A Bitcoin Or Ethereum Mining Contract!
How to choose a Bitcoin or Ethereum Mining contract! Choosing a cloud mining contract can be difficult - knowing how to price it or whether its a good deal and even if its legit - there are pitfalls left right and center. But here at CryptoCompare we've tried to make the process as seamless and easy as possible by creating a set of metrics to give you an idea of exactly how an ethereum , bitcoin or litecoin mining contract works. You can buy a cloud mining contract with Hashflare or Genesis Mining . Compare Bitcoin, Ethereum and Litecoin Cloud Mining Contracts We try to make it as easy as possible for you to compare bitcoin, Ethereum and litecoin mining contracts by ranking them and using live data to give you all the metrics you need to make a decision. If we don't think the contract provider is legit - we say so - and if the stats say the contract makes no sense - we let you know that it isn't profitable. You can rank and filter by companies and return by day or reviews in our mining contract list. You can filter by what you want to mine or how long the contract will last. Some contracts aren't even profitable with present market rates. We calculate the profitability by seeing how many days the contract takes to pay back the money invested. We do this by working out the daily return given the present hashrate of your contract and the network and then subtracting the appropriate fee if necessary. The figures we use can be found at the bottom of the page as shown in the picture below. We also give a wealth of other information - such as the expected return per year - the 174% above means the contract will pay you back your initial investment of $899 dollars and give you a return of 74% on top. We also show you the cost per MH/s, the return per week, month and year - al Continue reading >>
Which Mining Would You Suggest, Bitcoin, Litecoin, Ethereum, Or Another? Which One Is More Profitable For Beginners?
Which mining would you suggest, Bitcoin, Litecoin, Ethereum, or another? Which one is more profitable for beginners? Mining cryptocurrencies is a constantly changing game and what most miners dont seem to take into account is that mining cryptocurrency is a business. In order to be profitable, you need to constantly find new ways to increase your profit or reduce your overhead. Cryptocurrencies are incredibly volatile (especially the smaller market caps) so the price of different cryptocurrencies can swing large percentages in minutes or hours. It isnt uncommon for several different currencies to be the most profitable for a couple hours in the morning and a completely different set of currencies to be the most profitable in the afternoon or evening. You should always be mining what is worth the most. The complexity of the hash rate of any given currency is always changing which either increases or decreases the difficulty of mining any given cryptocurrency which has a direct effect on how much you mine. This means that it is often more profitable to mine one currency in the morning, a different one in the afternoon and yet another different one in the evening. If you would like to know what currencies are the best to mine at the current hash rates and with different hardware types, visit the site, CoinWarz . They are the best site online for comparing the profitability of different cryptocurrencies against each other and with different hardware. It is no longer possible to mine profitably without hardware specifically made for the task. Even with that hardware the margin is very thin, and you will probably not come out ahead unless you know what your doing, dont have any issues, and have cheap or free electricity. If you want to try that hardware can be purchased here 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 >>
Ethereum Vs. Bitcoin: Whats The Difference?
Ethereum vs. Bitcoin: Whats the Difference? In 1999,economics Nobel Prize winner Milton Friedman said, I think the internet is going to be one of the major forces for reducing the role of government. The one thing thats missing, but that will soon be developed, is a reliable e-cash. Ten years later, the digital currency Bitcoin was born. And for some time, this cryptocurrency dominated the market as Bitcoin rose to become the largest blockchain network. But recently, a new player entered the scene: Ethereum. The founder of this blockchain technology, Vitalik Buterin , envisioned a different path one that would include cryptocurrency but wouldnt be limited to it. But first, lets back up. What are Bitcoin and Ethereum and, more importantly, what are the differences between the two? At first glance, they might look pretty similar, but if you dig a little deeper, there are some major differences between the two technologies. Bitcoin was created by Satoshi Nakamoto, which is thought to be a group of people rather than a single person. The group first published a white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System , which described exactly what Bitcoin is and how it works. Then, during 2009, the cryptocurrency Bitcoin was launched as an open-source software. At its launch, the exchange rate for Bitcoin was $1 for every 1,309.02 Bitcoins. The rate was created by figuring out the cost of electricity for running the computers that were generating Bitcoins. The first Bitcoin transaction that is known in the crypto community was for two Papa Johns pizzas. A man in Florida named Laszlo Hanyecz completed the transaction for 10,000 bitcoin (about $30 at the time) in exchange for those savory slices. 10,000 bitcoin is now worth about $10 million, to put that into perspe Continue reading >>