The difference between Bitcoin and Ethereum
The difference between Bitcoin and Ethereum

Many people who do not deal with cryptocurrencies think that all this has to do with Bitcoin. This is normal because it is the most popular and most expensive part. However, there are many digital currencies that compete with Bitcoin for its position and leadership, the most important of which is undoubtedly Ethereum.

The way cryptocurrency works is based on blockchain technology. It is a completely decentralized and secure technology. Thus, it is not possible to trace bitcoins or transactions with them.

Although the concepts and techniques used are similar, Ethereum is very different from Bitcoin in many ways, and the reasons for creating the two currencies are different.

Bitcoin as a digital currency

Bitcoin and Ethereum are used for the same task, which is to make fast and secure payments. However, the reasons for the introduction of these two currencies are different.

Bitcoin was founded by Satoshi Nakamoto as a digital currency for payments, purchases and transactions. There are no intermediaries or parties other than the sender and receiver. On the other hand, you can think of Ethereum as a network of cryptocurrencies. and application player.

Bitcoin is obtained by mining with a high-end computer. Since it is secure, easy to use and recover, it has got users covered all over the world. It also influenced villains, made them famous, and provoked opposition from governments in many countries.

Currently, this coin is the most widely accepted and accepted by sellers and even Tesla and other organizations. Even fast food restaurants and auctions.

Nasdaq said in 2021 that more than 45 million US citizens own bitcoin and more than 15,000 sellers or institutions accept it as a form of payment.

The currency experienced tremendous price and financial growth. This makes it "digital gold". With a worldwide limited number of 21 million pieces, the price should continue to go up. This is why some consider it a long-term investment.

Ethereum as a digital network

Ethereum Coin was launched in 2015 and is run by a free community based on open source software. The transaction amount is processed according to its smart contract and other functions, and the Ethereum transaction does not force users to stop or wait at any time, it has anti-fraud functions and prevents third-party interference.

In addition to its use in transactions, it is also the base of security software for many decentralized applications (also known as dapps, short for decentralized applications).

All these different applications are based on the same Ethereum blockchain, so they are completely secure and cannot track the transactions made through them. Of course, most decentralized applications are financial applications.

One of the main uses of the Ethereum network is decentralized finance. It is a financial system that does not suffer from discrimination or system failure. DeFi can be used in the same way that financial products and services can be used to send or receive money, to borrow and to earn interest.

Previous Post Next Post