There are many types of cryptocurrencies, such as Bitcoin and Ethereum. Both of them are the most popular among other cryptocurrencies.
The largest capitalization holder is still Bitcoin, which is around $1.135 trillion of the total $2.1 trillion. Or around more than 50%. Meanwhile Ethereum holds 11.8% or $248.5 billion.
Bitcoin is also much more senior than Ethereum. The first Bitcoin trades took place in 2009, while Ethereum did not appear until six years later.
However, in a number of aspects, the two currencies have quite basic differences. The following is the difference between Bitcoin and Ethereum, summarized from various sources, Monday (19/4/2021).
Bitcoin
Its mysterious creator, Satoshi Nakamoto, released the project’s objectives in a whitepaper. He mentions Bitcoin as a peer-to-peer electronic version of tuna cash.
Satoshi said Bitcoin for online payments, by sending it from one person to another. The transaction was carried out without passing through financial institutions.
Bitcoin runs on a technology called Blockchain, which is a ledger for recording indestructible activity. Because the concept is decentralized, there is no central authority that regulates Bitcoin.
There is the term ‘miner; with a high-powered computer to verify transactions via complex cryptography.
The development of Bitcoin has also shifted the term from e-cash and now as digital gold by a number of experts. According to them it can also be long term storage.
A number of major companies in the world have now accepted Bitcoin as a means of payment.
Meanwhile, Voyager Digital CEO and founder Steve Ehrlich called Bitcoin the most stable cryptocurrency. Its performance has also been good over the last 10 years.
“Bitcoin is a digital currency and holds a rare value. Despite its volatility, it is one of the most stable cryptocurrencies with a long history, and has been the most consistent and well-performing investment asset over the past 10 years,” he explained.
Ethereum
Technically, a cryptocurrency that uses Ethereum transactions is like ether. However, it is more famous as Etherreum.
Just like Bitcoin, Ethereum also runs on the Blockchain. But the difference is that Ethereum uses a concept called smart contracts.
For example, want to take a financial deal. However, usually cooperation with paper or digital copies of contracts has difficulties and is prone to errors, which need to be updated one by one.
Meanwhile smart contracts are written with code on the blockchain. When the terms of cooperation are met, the agreement will be implemented.
Several Companies Have Tried This Concept
A number of large companies have also tried this concept. The consortium called Enterprise Ethereum Alliance contains names such as Microsoft and JPMorgan, developing smart contracts.
Meanwhile from mining not those who have the strongest computing power will win. However here it is those who have the largest shareholding that will be granted rights.
According to Coinflip CEO and founder, Daniel Polotsky, this ownership will eliminate electricity and software costs. So less Ethereum will be sold but will be at stake to increase its value.
“Ethereum has been updated to create a new ETH through a process called Proof of stake (PoS). With this, users can force a collateral or ‘stake’ in the form of ETH to become a validator on the network. More ETH will be higher in value because there is less ETH circulating, ” he said.
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