Bitcoin vs Ethereum: Which One is Better?

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You guys may already have the hint on what this video is about! And yes! Today we’re going to compare bitcoin and ethereum. If you guys want to know which one is the best then settle down to know as we are going to go straight into the concepts.  

So what exactly is cryptocurrency?

Virtual currencies, or crypto currencies, function similarly to “real” currencies like the euro, dollar, yen, pound, rupee and other. A central authority like a bank or government does not have control over crypto currencies, which is the main distinction between them and fiat currencies.

Bitcoin?

Bitcoin, a digital currency that permits immediate global payments, was released in 2009 by an anonymous individual or group using the name Satoshi Nakamoto. Cryptographic methods like Bitcoin’s ensure that all monetary exchanges are secure. Bitcoin’s most appealing quality is its capacity to keep users’ financial transactions private.

Ethereum?

Vitalik Buterin introduced Ethereum, a crypto currency that issues tokens called ether, in 2015. That’s analogous to and on par with Bitcoins in that network. Decentralized apps, whose server-side code is spread across a peer-to-peer network, are built and deployed using Ether. This is not like a typical app, where the server-side code is stored in one convenient location.

Ether is also used to pay for transaction fees and the processing power needed to add a block to the block chain.

Ether is a decentralized digital currency that functions similarly to Bitcoin and may be exchanged directly between users. One more thing it’s good for is making smart contracts.

VS

Arguments around Bitcoin and Ethereum have been getting more and more focus recently. Bitcoin has quickly risen to prominence as one of the most well-known and widely used crypto currencies.

The cryptocurrency also has the largest market capitalization of all existing digital currencies. Bitcoin is the undisputed king of digital currencies at the moment. Contrarily, there’s Ethereum. Ethereum’s founder used what he learnt from Bitcoin and expanded on its concepts to create a platform that, while not revolutionary, offers a number of advantages. Now it is the second most valuable cryptocurrency.

Concepts

Bitcoin facilitates transactions directly between users. It fills the role of fiat currency but without the drawbacks of the latter. There are no hefty costs associated with Bitcoin transactions, and the currency is not governed by any one entity.

Ethereum not only facilitates P2P exchanges, but also serves as a development environment for distributed apps and smart contracts. Using a smart contract, users can trade virtually any asset, including currency, real estate, and stocks.

Mining

Proof of work is a method used by Bitcoin miners to verify transactions. Indeed, Ethereum faces the same problem. To be the first to add a new block to the blockchain, miners from all over the world compete to solve a difficult mathematical challenge known as proof of work. Proof of stake is a different method of transaction validation that Ethereum is attempting to adopt.

The amount of coins one holds determines how many transactions in a block they may mine using proof of stake. One’s ability to participate in mining operations is proportional to the number of coins he owns.

However By November 2021, the Bitcoin mining reward per block added to the network will have stabilized at 6.25 bitcoins. The reward for adding a block to the Etherium network is set at 3 ether per miner and will never decrease by half.

Fees

Bitcoin’s transaction fees are purely voluntary. Paying the miner additional money will get his undivided attention as you conduct your business with him. But the exchange will still go place if you choose not to pay the charge.

However, in order to complete a transaction on Ethereum, you will need to pay a fee, which is denoted in ether. Your contribution of ether will be transformed into gas. The calculation that adds your transaction to the blockchain is powered by this gas.

Which one is Better?

Now, at last, we’ve arrived at our destination. When deciding between Bitcoin and Ethereum, the answer to the issue of which cryptocurrency is better lies only within your needs. Ethereum is better suited for the development of distributed applications and smart contracts, while Bitcoin excels in peer-to-peer transactions. Comment here with your verdict on which cryptocurrency is superior, Bitcoin or Ethereum.


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