Generally we see both Bitcoin and Ethereum as a crypto currency. But Bitcoin is a Cryptocurrency and Ethereum is a decentralized blockchain computing platform for smart contracts and application. Let’s see in details what is difference between Bitcoin and Ethereum.
|BITCOIN ( BTC )||ETHER ( ETH )|
|1. Bitcoin is the first decentralized crypto currency based on Block chain technology / Cryptography.||1. Ethereum is a decentralized blockchain computing platform for smart contracts and application. Ether is the token you get from this technology which you can use.|
|2. It was launched on January 2009||2. It was launched in July 2015|
|3. It has Market Cap of $ 990 Billion U.S. Dollar or in INR 64 Cr.||3. It has market Cap of $ 400 Billion Dollar or in INR 29 Cr.|
|4. Till date 18,749,318.75 BTC is in circulation.||4. Till date 117,477,321 ETH is in circulation.|
|5. Bitcoin has limited supply of 21 Million Coins and around 90% of that is already mined.||5. Ether has unlimited supply.|
|6. Estimated processing time it need is 40 minute to validate one transaction with 4 confirmations.||6. It just need estimate time of 5 Minute to validate one transaction with 20 Confirmations.|
|7. Real life application of BTC is very difficult.||7. It was successfully tested using in Healthcare, Security, Self Driving Cars and Elections.|
Before we start to talk about Bitcoin and other crypto currency, let me tell you about the Block Chain technology. Block chain is a very advance technology which is root of every crypto currency. It has a distributed leger which is publicly accessible. Though it can be accessible by anyone, buyer and seller identity not reveled in this.
- Bitcoin is the very first crypto currency based on this block chain technology.
- It was launched by Satoshi Nakamoto in January 2009.
- Because bitcoin is a decentralized currency which can’t be control by any government or authority.
- As it has limited supply by it’s founder, to make it rare and to create high value. So, the total number of bitcoin can be mine is 21 Million and around 90% of that is in circulation today. Also the technology designed as the time passes, mining speed of bitcoin decrease. Last bitcoin will estimated to mine in year 2140.
Bitcoin Mining and Transfer
- You may wonder, how bitcoin is mined? It is a very complex process in itself but in simple words, bitcoin is reward of solution for a complex mathematical calculation. Every time a giant computer system solve an equation, it mine a bitcoin. Mining process need bitcoin mining farms with so many giant computers that works 24 hr day.
- This bitcoin need a bitcoin wallet to store a coin after mining. It can be a digital wallet or a computer or a hard drive. Biance is a example of Crypto wallet and trading platform.
- BTC has a very lengthy time consuming verification process of transfer. It is estimated that for a single transaction, it takes up to 40 minutes. A transfer conduct 4 confirmations of different type meanwhile.
- In blockchain, reverse or delete of a entry is not possible. Every transaction is block and once a block add in the blockchain, it can’t be erase.
- Because of a very time consuming process and high volatility in price, there is no real life application till date. People used to buy it as a investment option.
- Bitcoin is very popular in crypto trading too.
Ethereum is a blockchain technology same as bitcoin but it is more advanced that overcome the flaws of bitcoin. So, Ether is the token based on Ethereum which we use as a cryptocurrency.
- It was launched by Vitalik Buterin in July 2015.
- Ethereum Blockchain is a next gen advance technology.
- This blockchain technology based on a smart contract which generates automatically between A and B person after a transaction. And this transaction add as a block in blockchain or distributed leger.
- As bitcoin was the first cryptocurrency so all other crypto currency known as Alt Coins or Alternative coins. So, Ethereum is a Alt coin.
Ethereum Mining and Transfer
- Ethereum mining is same as any other crypto currency. You will get a Ether token or ETH Coin after as reward of a successful solution.
- It has unlimited supply. So, miners can mine it for so long as per the requirement. Approximately 12 Million ETH is in circular today.
- Ether just need estimate time up to 5 minute to validate one transaction. Although it conduct 20 different confirmations.
- Same as any cryptocurrency, Ethereum wallet is needed to store a Ether.
- Ethereum technology has successfully tested in Healthcare, Security system and self driving vehicles. So, no wonder if we will see use of this in upcoming years.
- An African country name Sierra Leone conducted a state election by using this technology. In which every vote add as a block and identity of voter kept hidden.
At last, thanks for reading. Let me know your views by comment on this and how you see future of Cryptocurrencies?