Definition |
Bitcoin (abbreviation: BTC; sign: â‚¿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. |
Ethereum is a decentralized global software platform powered by blockchain technology. It is most commonly known for its native cryptocurrency, ether (ETH). |
History |
The word bitcoin was defined in a white paper published on 31 October 2008. The currency began use in 2009. |
Ethereum was conceived in 2013 by programmer Vitalik Buterin, and then went live on 30 July 2015. |
Purpose |
The purpose of bitcoin was to replace national currencies during the financial crisis of 2008. |
The purpose of Ethereum was to utilize blockchain technology for maintaining a decentralized payment network and storing computer code. |
Smart Contracts |
Although bitcoin do have smart contracts, they are not as flexible or complete as Ethereum smart contracts. Smart contracts in Bitcoin does not have all the functionality that a programming language would give them. |
Ethereum allows us to create smart contracts. Smart contracts are computer codes that is stored on a blockchain and executed when the predetermined terms and conditions are met. |
Smart Contract Programming Language |
Smart contracts on Bitcoin are written in programming languages like Script, Clarity. |
Smart contracts on Ethereum are written in programming languages like Solidity, Vyper, etc. |
Transactions |
Generally, bitcoin transactions are only for keeping notes. |
Ethereum transactions may contain some executable code. |
Hash Algorithm |
Bitcoin runs on the SHA-256 hash algorithm. |
Ethereum runs on the Keccak-256 hash algorithm. |
Consensus Mechanism |
The Proof-of-Work (PoW) is the consensus mechanism used by the Bitcoin network. |
The Proof-of-Stake is the consensus mechanism used by Ethereum. |
Block Time |
The block time of bitcoin is 10 minutes. |
The block time of Ethereum is 14 to 15 seconds. |
Block Limit |
The bitcoin blockchain has a block limit of 1 MB. |
The Ethereum blockchain does not have a block limit. |
Popularity |
Bitcoin is the most popular digital currency in the market to date. |
Ether, native currency of Ethereum is the second-largest cryptocurrency after bitcoin to date. |
Energy Consumption |
Energy consumption is very high. |
Energy consumption is very low as compared to bitcoin |
Energy Consumption rate |
Energy consumption rate of bitcoin mining system 3.2 Million household. |
Energy consumption rate of bitcoin mining system 1.2 Million household. |
Structure |
Structure of bitcoin is simple and robust. |
Structure of Ethereum is complex and feature rich |
Rewards |
Miner got nearly 6.25 BTC on successfully adding new block in network. |
Miner got nearly 5 BTC along with same additional rewards on successfully adding new block in network. |
Assets |
Assets of Bitcoin is BTC. |
Assets of Ethereum is Ether. |