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Why Ethereum Is Different

Bitcoin Vs. Litecoin Vs. Ethereum: The Difference In The Cryptocurrencies | Inverse

Bitcoin Vs. Litecoin Vs. Ethereum: The Difference In The Cryptocurrencies | Inverse

Here are the key differences between the three. The original. First outlined in a 2008 white paper published to the P2P Foundations website by a mysterious figure known only as Satoshi Nakamoto, Bitcoin introduced a number of key ideas that have underpinned several other cryptocurrencies since. This includes the blockchain , the public ledger that enables communities to share a decentralized cryptocurrency without fear of doubling over on transactions. In terms of price, Bitcoin has exploded over the past few months, with a price of $2,000 in May skyrocketing to almost $8,000 in November, and reaching $14,000 in December . Introduced in 2013 by then 19-year-old Vitalik Buterin, on the surface Ethereum seems a lot like Bitcoin. Its better to think about it as a software platform, though. One where decentralized apps or dApps use the blockchain to undertake transactions. At the time of writing, one ether is worth $676.63. Ethereum can run what are called smart contracts, which are best thought of as simple instructions that can move the ether cryptocurrency around. Its a bit like an instruction to the bank, except its instant and handled by computers . This allows for ambitious sets of instructions; insurance firm AXA has experimented with smart contracts that trigger a payment request if a flight is delayed by two or more hours. Created by Charlie Lee, a former director of engineering at Coinbase, Litecoin is all about transfer speed improvements. At the time of writing, one litecoin is worth $321.20. Bitcoin uses the SHA-256 algorithm to mine new coins, leading to giant setups that use tons of specially designed mining hardware to crank out more coins. Litecoin, on the other hand, uses Scrypt, which demands memory instead of processor resources. That stops these giant 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 >>

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 >>

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 >>

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 >>

Understanding The Difference Between Ethereum & Ether

Understanding The Difference Between Ethereum & Ether

Understanding The Difference Between Ethereum & Ether By: Sudhir Khatwani In: Ethereum Last Updated: Innumerable times have I been asked personally, and we have also received the questions on our blog How to buy Ethereum & Ether?Before I answer this, I would say that this question in itself is wrong and thats why it is my motivation to write today. First thing first, Ethereum and Ether are different,even though it may deceive you and force you to think they are similar.If someone has read my previous detailed write-up on Ethereum , it is easy to understand the key difference between the two. For all those who have not, here is the link to the article: Ethereum Cryptocurrency: Everything A Beginner Needs To Know To put it in the simplest of terms, Ethereum is a blockchain-based platform and Ether is the cryptocurrency that actually is the fuel of this blockchain based platform.I know some of you might not agree with me and say thatEthereum is listed as Ethereum on the CoinMarketCap . Yeah! thats true but that is just a denomination which is sometimes or rather mostly used synonymously with the name Ether, which creates unnecessary confusion. Now that you know a bit about their differences lets move ahead and dive into specifics of both of them. Vitalik Buterin a Russian programmer and a college dropout from the University of Waterloo invented Ethereum in mid-2013. Vitalik presented the Ethereum white paper in 2014 at the North American Bitcoin Conference in Miami, USA. Ethereum is a new platform for writing autonomous smart contracts and decentralized apps which are self-executed when certain coded conditions are met. To make it easier to understand, consider this example: Bob has given a contract of 10 ETH to Alice for website development. Bob has hardcoded the require Continue reading >>

What Is Ethereum Classic? Ethereum Vs Ethereum Classic

What Is Ethereum Classic? Ethereum Vs Ethereum Classic

What is Ethereum Classic? Ethereum vs Ethereum Classic Angel Investors, Startups & Blockchain developers... If you have been involved with cryptocurrency , then there is no way that you dont have an opinion on this. The battle between Ethereum and Ethereum Classic is both an ethical and ideological one. Before we start explaining the basic difference between the two and drawing our own conclusions, it is important for us to know a little bit of history. A lot of things needed to happen for us to arrive in this conjecture. So, lets dial back the clocks and check out some of the most critical points in not just Ethereum history, but cryptocurrency in general. The entire ecosystem of Ethereum works on the basis of smart contracts. For the uninitiated, smart contracts are basically how things get done in the Ethereum eco-system. To put it in layman terms, smart contracts are automated contracts that enforce and facilitate the terms of the contract itself. The DAO aka the Decentralized Autonomous Organization was a complex smart contract which was going to revolutionize Ethereum forever. It was basically going to be a decentralized venture capital fund which was going to fund all future DAPPS made in the eco-system. The way it worked was pretty straightforward. If you wanted to have any say in the direction DAPPS that would get funded, then you would have to buy DAO Tokens for a certain amount of Ether. The DAO tokens were indicators that you are now officially part of the DAO system. So, how were DAPPS going to get approved and built? Well, firstly they need to get whitelisted by the curators, who have basically known figureheads in the Ethereum world. After getting their stamp of approval, they will get voted on by the DAO token holders. If the proposal gets a 20% approva Continue reading >>

How Ethereum Is Different From Bitcoin?

How Ethereum Is Different From Bitcoin?

Apart from Bitcoin there is a huge impact and interest in the crypto market with every small or big announcement regarding Ethereum. Being an Ethereum developer, for me, its very easy to understand the reason behind this. But for other developers or non-developers, it bit hard them to figure out the reason behind it. Since both are based on Blockchain technology and both are built on peer to peer model. Lets see what makes Ethereum different from Bitcoin. Bitcoin was invented by a mysterious anonymous person Satoshi Nakamoto . In the backdrop of 2008 Financial Crisis, the white paper promise of financial system different than traditional online payment mechanisms which needed Banks and a trusted intermediary to verify the transactions and hence controlled the free movement of money. But Bitcoin operates as a peer to peer network where transactions are verified by a decentralized network of mining modes who not only verify but also mine new Bitcoin, unlike government issued authority. It was made to ease the process of the digital financial payment system. Ethereum came with a different vision as the distributed platform which enables Smart Contracts and Distributed Applications (Apps) to be built and run without any downtime, control or interference from a third party. Its a platform where people can build and publish their distributed apps like we make an android app and put it on Google Play Store. Both are open source projects. But, to build a new token personally, I will always choose Ethereum because token creation is baked into its on-chian smart contract functionality. To build any DApp or Tokens in Bitcoin one has to look at a layer 2 platform like Colored Coins, RSK or Omni layer which are complicated solutions in their current forms. Ethereum has EVM whereas 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 >>

Ethereum Classic Vs Ethereum: Whats The Difference?

Ethereum Classic Vs Ethereum: Whats The Difference?

A first look at any crypto market spreadsheet will show two different types of Ethereum, one being Ethereum (ETH) and the other being Ethereum Classic (ETC). The two cryptocurrencies not only share the same name, but also share an interesting story that is one of the most pivotal events in all cryptocurrency history. The battle between Ethereum and Ethereum Classic is one of ethics and ideologies. Before there were the two different Ethereums we see now, there was only one Ethereum. Since then, $50 million was stolen by an unknown hacker or hackers, and this resulted in two distinct camps of people in the cryptocurrency world being formed. Heres how Ethereum as we now know it came to be, and how it compares to Ethereum Classic. In broad strokes, both Ethereum and Ethereum Classic are platforms on which various applications can be built. A smart contract is a contractual state that is stored in the blockchain, and it executes when certain conditions are met. They are controlled and enforced by the blockchain, which serves as an objective and unbiased third party to the transaction. These smart contracts essentially run the entire ecosystem of Ethereum. Since these contracts are automated and enforced, transactions and applications that run on the Ethereum platform have become very appealing to all sorts of different applications. These applications, referred to as DAPPs (decentralized apps) have a wide variety of functionalities and purposes, all using the Ethereum platform to function. To get an idea for the myriad of different DAPPs out there, take a look at the State of the Dapps . The most pivotal moment in the Ethereum vs. Ethereum Classic split has to do with an organization known as the Decentralized Autonomous Organization, or the DAO. The DAO was essentially a 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 >>

What Are The Differences Between Bitcoin Blockchain And Ethereum Blockchain?

What Are The Differences Between Bitcoin Blockchain And Ethereum Blockchain?

What are the differences between Bitcoin blockchain and Ethereum blockchain? Ethereum has been debated in the bitcoin ecosystem and was criticized. In order to understand better both projects, what are the main differences between BTC and ETH regarding the blockchain composition? The short answer is that Ethereum is an application platform. Blockchain technology is useful for far more than keeping track of a currency's balances, and Ethereum lets developers build applications without having to build their own blockchain. These applications can interact with each other on the blockchain, so a library of useful functionality will gradually build up. Ethereum has shorter block times, which makes some applications more feasible. The Ethereum blockchain will transition from proof-of-work to proof-of-stake, which will affect the security of the blockchain and the value of ether. The long answer is the full Design Rationale . From this slide presentation from Ethereum's Developer Conference 2015, Ethereum is an application platform for "Not just money! Asset issuance, crowdfunding, domain registration, title registration, gambling, prediction markets, internet of things, voting, hundreds of applications!" The rest of the video presentation offers further introduction to differences from Bitcoin, such as Ethereum's Virtual Machine, code execution, gas fees and limits, transactions, mining algorithm, fast block times, and Merkle trees. For more information, the Ethereum White Paper was the beginning. The Yellow Paper is the technical specification. The Design Rationale explains principles and details. Putting aside some of the internals, which can easily distract from the big picture, the key difference as illustrated here is the ability of the Ethereum Blockchain to store arbi 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 >>

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