Ethereum is a decentralized network based on blockchain technology. It allows users to create and manage their own digital assets. It provides an open-source, smart contract platform that enables developers to create decentralized applications (dapps) and run them on the blockchain. Ethereum’s smart contracts aren’t subject to regulation, since they are written in a programming language called Solidity and interact with the external world via a network of computers (located in the “world computer”).
Bitcoin is a digital currency that operates peer-to-peer without central control. The blockchain technology used by bitcoin uses cryptographic methods to record all transactions between users. Bitcoin was conceived in 2008 by pseudonymous developer Satoshi Nakamoto, who published the whitepaper Bitcoin: A Peer-to-Peer Electronic Cash System in 2009.
What is Ethereum?
Bitcoin and Ethereum are both cryptocurrencies, which are digital currencies developed to provide a transparent and secure method of exchange between parties. The first cryptocurrency to make use of blockchain technology, Bitcoin was developed in 2009 by an anonymous programmer under the name Satoshi Nakamoto.
Bitcoin is most famous for enabling people to exchange currency with each other without the need for a middleman, although there are many others using other methods of transacting. It is an open source platform that allows anyone to easily create their own decentralized applications on its network.
In contrast, Ethereum (ETH) is a platform designed to host decentralized applications (dApps). The platform was created by Vitalik Buterin and launched in July 2015 via an Initial Coin Offering (ICO), which raised approximately $18 million through the sale of ether tokens.
Ethereum is the first public blockchain used by Ethereum dApps. The network aims to facilitate and expand use cases beyond those enabled with bitcoin or cryptocurrency systems.
What is Bitcoin?
Bitcoin is the currency of the internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is quite appealing to those who appreciate a currency with more benefits than just being able to exchange money.
Bitcoin is a cryptocurrency (a form of online money), created and held by its users. Unlike fiat currencies such as the dollar and euros, Bitcoin does not come from governments or banks.
Bitcoin is not an investment—it can’t be traded for foreign currencies or purchased from financial institutions like stocks and bonds—it’s something special; it has value because of people’s willingness to use it.
Bitcoin vs. Ethereum: What’s the Difference? Bitcoin is one of the oldest and most popular cryptocurrencies, currently accounting for more than 85% of all cryptocurrency transactions. Bitcoin is a decentralized digital currency, which runs on peer-to-peer networks and is completely secure by default. It was invented in 2009 by Satoshi Nakamoto, who disappeared from the public eye in early 2011. Bitcoin’s decentralized nature makes it very difficult to track users’ activity and make them accountable to anyone but themselves.
Ethereum is a second generation cryptocurrency that is more similar to Bitcoin than any other mainstream digital currency, being more decentralized and user-friendly. Ethereum was first developed in 2015 by Vitalik Buterin. He wanted to create a platform with smart contracts that can be used as an alternative to Bitcoin or any other centralized or non-centralized digital currency system. Ethereum has applications in finance, real estate and even gaming and entertainment industries; however its main use cases are still mostly in the tech industry.