Ethereum blockchain and Bitcoin blockchain, what are the differences? While many people think that the Ethereum blockchain and the Bitcoin blockchain are the same, the reality is that they are very different projects with different intentions. Bitcoin has emerged as a digital currency, while Ethereum wants to include more, with a component such as smart contracts applications. With currency's based on the bitcoin blockchain we talk about coins, currency's on the Ethereum blockchain we talk about Tokens.
Bitcoin VS Ethereum
Although Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not the only one. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its extra features and applications. And we notice that too, the ICO's are mushrooming and most of them are based on Ethereum blockchain.
The first thing about Ethereum is that it's not just a digital currency. It's a blockchain-based platform with many aspects. It includes smart contracts, the Ethereum Virtual Machine (EVM) and using currency ether for peer-to-peer contracts. Ethereum's smart contracts use a blockchain application for contract negotiation and facilitation. The advantage of these contracts is that the blockchain offers a decentralized way to verify and secure them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum's smart contracts are designed to offer more security than traditional contracts and to reduce the associated costs. Because here too there is a big difference, sending bitcoins can sometimes be a few euros while Ethereum's price is around 80 cents.
A peer to peer network is a network where no servers are used. The computers are interconnected and can exchange files but also a currency.
ICO
A great feature of Ethereum is that it gives developers a means to collect money for various applications. For a new project you can draw up a contract and ask for commitments from the community. The money raised is held until the goal is reached or until an agreed date. In other words, the ICOs, which were still growing at an alarming rate last year. The question now is, how many of these will survive?
There are also much smaller aspects that differ between the two blockchain-based projects. Bitcoin's average block time is about 10 minutes, while Ethereum wants to be 12 seconds. This fast time is made possible by Ethereum's GHOST protocol. A faster block time means that confirmations are faster. However, there are also more floating blocks.
The reward for mincing bitcoins halves approximately every four years and is currently valued at 12.5 bitcoins. Ethereum rewards miners based on the proof-of-work algorithm called Ethash, with 5 ether for each block. Ethash is a memory-hash algorithm with memory that encourages decentralized mining by individuals, rather than using more centralized ASICs as with Bitcoin.
Sending with GAS
Bitcoin and Ethereum also cost their transactions in different ways. In Ethereum this is called gas and the costing of transactions depends on their storage needs, complexity and bandwidth usage. In Bitcoin, transactions are limited by block size and compete equally with each other.
Ethereum has its own internal Turing code, which means that anything can be calculated with sufficient computing power and sufficient time. Bitcoin does not have this capability. While there are certainly benefits to the Turing Complete, its complexity also brings with it security complications that have contributed to the DAO attack that has already taken place.
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