The cryptocurrency marketplace has a huge market cap. Cryptocurrencies and decentralized finance are potential enough to revolutionize the entire financial segment. There are more than 9000 cryptocurrencies present in the global market. Regardless, only two cryptocurrencies are outplaying most of the currencies.
These two currencies are bitcoin and Ethereum; bitcoin is the leading cryptocurrency in the list to top 10 cryptocurrencies in terms of store value and market ca. In addition, both Ethereum and bitcoin have a gigantic market cap.
The market capitalization of bitcoin is nearly $800 billion, and the market cap of Ethereum is nearly $400 billion. There are platforms like Bit-Qt Bitcoin Bot which can help you in getting profitable results in your bitcoin venture. Most of the cryptocurrencies are a clone of bitcoin as bitcoin was the first-ever cryptocurrency.
However, both Ethereum and bitcoin are very different from each other. From technology to the market behavior of both of these currencies, you will notice significant differences. Below mentioned are some of the jaw-dropping differences between bitcoin and Ethereum. So, without wasting any further ado, let’s have a glance.
The primary difference between Ethereum and bitcoin
As mentioned ahead, bitcoin differs from Ethereum in many ways; here are some fundamental differences between bitcoin and Ethereum.
Satoshi Nakamoto, the inventor of bitcoin, released bitcoin as an electronic cash system and a currency. However, Vitalik Buterin, the inventor of Ethereum, invented Ethereum as a blockchain-based. There is a massive misconception amongst cryptocurrency enthusiasts that Ethereum is a cryptocurrency. Ethereum is not a cryptocurrency but has a token called ether which acts as a cryptocurrency.
As mentioned ahead, Satoshi Nakamoto, a Japanese programmer, released bitcoin. However, three programmers invented Ethereum: Gavin, Vitalik, and Joseph. Out of these three programmers, Vitalik Buterin is one of the most popular. Vitalik Buterin recently made some massive donations in the health care industry of India. In the first place, he donated 4.3 crores; later, he donated $1.1 billion in the form of Shiba Inu coin.
Ethereum has an unlimited supply which means Ethereum miners can produce as many Ethereum they want. However, the supply of bitcoin is restricted. The limit of bitcoin is 21 million BTC. If most users and investors vote in increasing supply, the bitcoin algorithm will increase the supply.
Technological Differences between Ethereum and Bitcoin
Undeniably there are many differences between Ethereum and bitcoin in terms of technology. But the basic concept of Ethereum is just similar to bitcoin. Both bitcoin and Ethereum underlie the technology of a blockchain and a peer-to-peer network.
The differences between Ethereum and bitcoin include securing the hash function, upcoming technologies, and supply aspects.
Ethereum complex utilizes the ET hash function. On the other hand, the bitcoin complex uses the SHA-256. SHA-256 stands for securing hash algorithm 256, which falls under the category of SHA-250. SHA256 is a one-way hash function that can convert any message to a hash function. Once SHA-256 hashed a piece of information, no one can reverse it. Thus, SHA-256 is one of the primary reasons that the information present on the blockchain is irreversible.
Ethereum and bitcoin differ from each other in terms of transaction speed. For example, the Bitcoin complex can process seven transactions per second, whereas the Ethereum complex can process 24 transactions per second.
Will Ethereum 2.0 Outplay Bitcoin?
Ethereum 2.0, the upgraded model of Ethereum, is going to have some unusual features. For example, Ethereum 2.0 will be able to process 10000 transactions in a single second. All the more, Ethereum 2.0 works on the proof of stakes model rather than the proof of work model.
Proof of work is responsible for massive electricity consumption in the bitcoin mining and Ethereum mining progression. However, proof of stakes is a much better technology than proof of work. As proof of stakes will divide the work between miners, not every miner will contribute computing or processing powers in the mining process.
Ethereum 2.0 is a robust model as per the rich sources, but it cannot outplay bitcoin. As the store value of bitcoin is very high, no currency can beat bitcoin in terms of store value.