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How Does Ethereum Differ From Bitcoin

23 Answers - What Is Ethereum And How Is It Different From Bitcoin?

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 >>

Ethereum Vs. Bitcoin, Is One Cryptocurrency Better Than The Other? | Digital Trends

Ethereum Vs. Bitcoin, Is One Cryptocurrency Better Than The Other? | Digital Trends

Cryptocurrencies can be a little confusing. Are they digital money or more like gold? Are they a new way to pay for things online or a way to store value? Those arent easy questions to answer when youre talking about hundreds of different cryptocurrencies, some old, some new, and some very different from the rest. When you focus Ethereum vs. bitcoin, though, there are some stark, obvious differences. Their age is the most obvious, with bitcoin having entered this world as the very first global cryptocurrency in 2009 and Ethereum only showing up in 2015 as a potential alternative. Although it is less proven than its predecessor, Ethereum does have a few nifty features which give it a lot more potential than its older sibling in some key areas. For the purpose of this guide, well look at two shared aspects of the cryptocurrencies: Their ability to act as a store of value and as transactional mediums. Well also take a look at some of the unique features which make them stand apart. If you want a more general look at cryptocurrencies, or the steps for how to buy , sell or trade bitcoin and Ethereum, have a read of some of our other guides. The most successful cryptocurrency for storing value continues to be bitcoin. As the most valuable coin in the world by quite some margin and the progenitor of the entire cryptocurrency revolution bitcoin has proven itself. Its far more recognized than any of its peers, and that makes it easier to buy, store, and sell. Thats not to say that Ethereum and its coin, Ether, have been ineffective. For such a young currency, Ethereum has proved to be one of the most popular. At the time of writing its market value and 24-hour trading volume are second only to Bitcoin. The actual monetary value for a single ETHhowever, is less than five percent Continue reading >>

Why Is Ethereum Different To Bitcoin?

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 >>

How Is Ethereum Different From Bitcoin?

How Is Ethereum Different From Bitcoin?

{{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe Answer by Samantha Radocchia , Emerging Technologies Entrepreneur and Scholar, on Quora : The Primary Difference Between Ethereum And Bitcoin: A Beginners Guide Todays hype surrounding Bitcoin, Ethereum, cryptocurrency, and blockchain technologies rivals the dot-com bubble in the 90s. There is a lot of money pouring into this space, and it doesnt seem to be slowing down anytime soon. Unfortunately, while the masses may be able to say, Yeah, Ive heard of Bitcoin, a large percentage of people still arent quite sure what it isand are even more confused about Ethereum. If youre even remotely interested in this space, consider this your beginners guide. The easiest way to define Bitcoin is to call it a digital dollar. Thats really all it isminus all the formal regulations that come with a bank (which is what makes it such a disruptive concept). Its not a technology. Its not a company. Its your money, held in a digital form. Anyone can create an account to buy and sell Bitcoin through websites like Coinbase. The price of Bitcoin then fluctuates based on supply and demand. However, now people are beginning to convert their Bitcoin into what are called tokens, which companies issue during an ICO, or Initial Coin Offering, which allows people to invest in a company by purchasing tokens with their Bitcoin. Based on the supply and demand of those tokens, their price (just like a share of stock after a company holds an Initial Public Offering, otherwise known as an IPO) goes up Continue reading >>

Top 10 Differences Between Bitcoin And Ethereum Blockmatics Medium

Top 10 Differences Between Bitcoin And Ethereum Blockmatics Medium

Co-founder Blockmatics, blockchain director at LOOMIA Top 10 Differences between Bitcoin andEthereum Currency issuance: Bitcoin creates 12.5 new bitcoins every 10min (or 75/hr) while Ethereum creates 3 new ether every 15 seconds (or 720/hr). Currency cap: Bitcoin is limited to 21 million bitcoins, of which 16.7m have been created so far. Ethereum has no hard cap currently, but there are plans to reduce or stop issuance in a year or two. There are currently 96.4m ethers. Bitcoin creates a new block every 10 minutes (on average). Ethereum creates a new block every 15 seconds. While bitcoin has a scripting language built in, its very limited in functionality with only a few dozen operations. Ethereum has a full general-purpose language integrated (known in computer-speak as Turing-complete). Programs written in this built in language are known as smart contracts. Ethereum assigns a cost, known as gas, to every operation or use of storage on the blockchain. Bitcoin transaction costs are based simply on their size. Each block in bitcoin is limited to 1MB in size (or 8BM in the case of Bitcoin Cash). In Ethereum, blocks are capped by the gas-limit, the total overhead of all the operations in the block. In practice bitcoin can process 4 transactions per second, Ethereum roughly 15. Ethereum smart contract code lives at its own address on the blockchain as opposed to being within a transaction as in the case of Bitcoin. Therefore Ethereum has two account types, one to hold user funds, the second to hold computer code. Ethereum includes blocks that are valid but were outpaced by another newly accepted block. These almost-accepted blocks are known as uncles and their incorporation provides added security to the chain and allows Ethereum to have shorter block times. Bitcoins hash Continue reading >>

Introduction To Ethereum: How Is It Different From Bitcoin?

Introduction To Ethereum: How Is It Different From Bitcoin?

Introduction to Ethereum: How is it different from Bitcoin? What is Ethereum? How is it different from Bitcoin? How do you get Ethers? What does the future look like for Ethereum? In this tutorial, Jakob Mayer will answer all these questions and more. What is Blockchain and why is it important to understand what Ethereum is? To understand what Ethereum is and why it is needed, it is important to first define the term Blockchain. To best understand what Blockchain is, the easiest way is to visualize an Excel spreadsheet with the same information on it stored on thousands of computers. Whenever someone changes this spreadsheet, every user has the ability to see this change immediately. The Blockchain database is not just stored on one computer or server, but on thousands of devices. This makes all existing data publicly accessible and easily verifiable. Also, hackers cannot attack a single database due to it being stored on thousands of computers. In short, Blockchain is a decentralized database that is transparent to anyone and less vulnerable to hacker attacks because the database is stored on thousands of computers. Ethereum is an open source software platform based on blockchain technology, enabling software developers to create decentralized applications. SEE ALSO: 62 insane facts about Bitcoin [Infographic] What is the difference between Ethereum and Bitcoin? Ethereum and Bitcoin are both Blockchain-based technologies. The biggest difference between Ethereum and Bitcoin lies primarily in the use of their technologies. Bitcoin only offers a Blockchain-based application. This is namely the ability to send and receive from a digital currency, that being Bitcoin. The Ethereum Blockchain on the other hand, not only provides the ability to receive and send payments but a 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 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

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 >>

Ethereum Vs Bitcoin: What's The Main Difference?

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 >>

What Is Ethereum And How Does It Differ From Bitcoin?

What Is Ethereum And How Does It Differ From Bitcoin?

What is ethereum and how does it differ from Bitcoin? The ethereum cryptocurrencyCredit:Bloomberg Ethereum is a rising star in the cryptocurrency world. It has quickly become the second largest digital currency in just over two years, booming in value and spurring the rise of hundreds of new rivals to Bitcoin. Launched in 2015, the value of ether (ethereum's currency)has increased rapidly. It suffered a set back before Christmas 2017, suddenly dropping from $850 to around $690 -a drop of about 20 per cent. Since then it has continued to show intense volatility, hitting highs of $1400 in January before slumping to less than $560. Last year sawmonths of increase in the price of Ethereum and rival cryptocurrencies like Bitcoin and Litecoin.At the start of 2017, one coin was worth around... Register or log in to view this and other Technology Intelligence articles. It's free and easy to do. Access brilliant stories, features and analysis Sign up to our exclusive Technology Intelligence daily newsletter Become part of our ambitious new Tech networking community Continue reading >>

What Is Ethereum And How Its Different From Bitcoin?

What Is Ethereum And How Its Different From Bitcoin?

What is Ethereum and How Its Different from Bitcoin? Ethereum is a great step forward in dealing with immediate, trustless value transferring in decentralised way. It is one of the most promising technologies of the future that already holds a great potential for online business. Any situation when we are exchanging money for some value or service, there is always a risk of some kind of fraudulent activity and it is especially true in case of online transactions when two parties dont trust or even know each other. Ethereum minimises that risk by providing a completely trustless value transferring mechanism based on cryptography rules and the same technology that made Bitcoin so successful - Blockchain. Actually, it does a whole lot more to the online business than just ensuring security of transfers. Ethereum can be described as an evolutionary successor of Bitcoin. Both of these technologies are based on Blockchain which introduced the ability to build internally secure global peer to peer networks for storing account balance information based on common consensus. But what does it really mean? In Bitcoin the consensus comes down to a common agreement on the content of a global ledger which keeps track of all transactions and user account balances. The ledger is practically impossible to forge and the whole idea of digital currency is based upon it. Blockchain is the reason that Bitcoin is a secure and reliable technology and we can all see that by its remarkable expansion in recent years. Now, Ethereum takes advantage of Blockchain even more and brings the whole idea to the next level. Apart from having its own cryptocurrency, called ether, there is one significant difference. While Bitcoin lets users easily and reliably transfer digital currency, Ethereum also adds a Continue reading >>

The Difference Between Bitcoin And Ethereum Explained

The Difference Between Bitcoin And Ethereum Explained

The difference between Bitcoin and Ethereum explained Dan Guido, co-founder and CEO of Trail of Bits, discusses why more people are starting to use Ethereum, and how companies can use it, too. The blockchain2018's most disruptive, innovative, yet confusing technologies. TechRepublic's Dan Patterson met with Dan Guido, co-founder and CEO of Trail of Bits, to explain how Ethereum works, and why the application-based cryptocurrency is rapidly-emerging as a Bitcoin alternative. Bitcoin and Ethereum are based on the same foundational concept of a global distributed ledger that everyone has access to and validates new transactions on. However, Bitcoin is used for value transfer, while Ethereum is a new way to develop applications. Instead of validating and sharing the transfer of tokens between two parties, Ethereum tracks the state between applications, Guido said. That shared state allows developers to write applications instead of providing someone with a token. SEE: The executive's guide to implementing blockchain technology (PDF download) "Within the next year or two, there will be an application that most humans on earth will have interacted with that uses the blockchain behind it," he said. Though it's easy for companies to want to jump into blockchain technology, there are many vulnerabilities and issues that could come along with it. When you embrace a technology like this, you need to understand the risk you are inheriting, Guido said. "Unlike regular applications, you can patch them. With Ethereum applications, you have to get it right on the first try," he added. Once companies implement this technology, they will receive great value from itso it is worth trying. However, companies need to meet with experts early on in their implementation process so they can dis Continue reading >>

Ethereum Vs. Bitcoin: Whats The Difference?

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 >>

What Are The Differences Between Bitcoin And Ethereum?

What Are The Differences Between Bitcoin And Ethereum?

What Are the Differences Between Bitcoin and Ethereum? Over the course of 2017, the price of 1 Bitcoin shot up from $963 to $19,694. Similarly, the price of 1 Ethereum shot up from $8 to $747. People are going crazy over these two cryptocurrencies, and you may be tempted to join in yourself Is There Ever a Safe Time to Invest in Bitcoin or Ethereum? Is There Ever a Safe Time to Invest in Bitcoin or Ethereum? There will always be a measure of risk when "investing" in Bitcoin, Ethereum, or any other form of cryptocurrency. However, that risk can be managed. Here's how to do it. Read More . But arent cryptocurrencies just virtual money? Whats the difference between these two? This article will bring you up to speed enough to understand why Bitcoin and Ethereum are such hot topics right now and why people are so excited about them. This article will not equip you to do any serious Bitcoin- or Ethereum-related development. Bitcoin is a digital currency that aims to be: Decentralized (no organization controls the creation or flow of the currency) Anonymous (ones ability to make transactions isnt tied to identity) Transparent (all transactions can be viewed by anyone at any time) All of this is possible through the blockchain and peer-to-peer networking. The Bitcoin blockchain is just a file that keeps tracks of all valid Bitcoin transactions ever made. Every 10 minutes, all new transactions are recorded together in a block and then added to the end of the file. Hence, blockchain. This means your current Bitcoin balance isnt determined by some value in a database. Instead, your current balance is simply the tracing of all past transactions to the present time. Currency never actually trades hands. Bitcoin doesnt reside on a single server or cluster of servers. Rather, its dis Continue reading >>

Bitcoin Vs Ether Vs Litecoin Vs Ripple: Differences Between Cryptocurrencies

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 >>

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