The Major differences between Bitcoin and Ethereum Network

badmus-official (74)in PussFi 🐈 • 5 days ago

Hello, everyone. How are you doing? I'd like to welcome you again to my blog in the PussFi 🐈 community.

The Key Differences between Bitcoin and Ethereum

Their Main Purpose:

Bitcoin: Its main purpose is to enable peer-to-peer transactions without the use of middlemen, while it was initially meant to serve as a store of value and digital currency, which, as we can see, has advanced greatly over the years.

While

Ethereum: is here to serve as a hub for decentralised application platforms which has performed better over the years, it enables developers to design decentralised applicationss (DApps) and smart contracts that can run faster using smart contracts.

Technology Differences

Bitcoin: Its programmability is limited compared to Ethereum because it uses a basic scripting language for transactions and serves mainly as a ledger for monitoring cash transactions.

Freepik

while

Ethereum offers a more advanced and adaptable programming language that makes smart contract development possible and visible, and this makes it possible for many uses beyond just direct transactions.

Their differences in terms of consensus mechanism

Bitcoin: Uses the PoW to validate transactions and protect the network and by doing this the Proof-of-Work (PoW) consensus mechanism sort of uses a lot of energy, and is a little bit over the edge for consumer usage.

while

Ethereum: At the start of the network, Ethereum also uses Proof-of-Work (PoW), but along the line and the initiator with Ethereum 2.0, it is switching to Proof-of-Stake (PoS), which helps to increase scalability and lower energy usage.

Limitations Of Supply (Scarcity)

Bitcoin is kind of limited, like gold, whereby it has a limitation of 21 million coins, which makes it scarce

while

Ethereum's supply process has changed over time, particularly with the launch of EIP-1559, which incorporates a fee-burning mechanism and does not have a fixed supply cap.

Their Development Since their Creation

Bitcoin - Bitcoin prioritizes security and stability more, and it is more cautious in its development methodology.

while

Ethereum is like a center for DeFi (decentralized finance) because of its big and vibrant developer community, which is always coming up with new ideas and applications, this is not just hearsay as we have seen some interesting developments in it, such as non-fungible tokens (NFTs) and other blockchain-based initiatives.

Freepik

Fees and Transaction Speed:

Bitcoin: The Bitcoin network transaction speeds are kind of slower than any other network and also have expensive gas fees, especially during periods of strong network usage.

while

Ethereum: The Ethereum network usually provides faster transaction speeds; however, when the network is congested, it may cause expensive gas fees during periods of strong demand, which is usually during the weekdays.

Conclusion

Here comes our conclusion on the topic regarding the key differences between Bitcoin and the Ethereum network.

Ethereum and Bitcoin are both fundamental to the blockchain (crypto) ecosystem as a whole, but they have different usage and are based on different technological systems.

#steemexclusive #creativewriting #steemalliance #crypto #puss #promotion