Undeniably, BTC and Ethereum are placed in the first place in the entire crypto market regarding global popularity. It is a fact that BTC is the initial attempt to introduce the concept of cryptocurrency. Still, ETH has the potential to perform different technological activities in the global market. To get an instant sign-up bonus on creating your account and to enhance your trading skill, check out bitcoin-profitapp.com. Therefore, regarding the purpose of these cryptocurrencies, both bitcoin and Ethereum are introduced with a different approach.
Bitcoin is operated as a cryptocurrency or digital money, and it can be sent or received from one user to another through a network. All transactions are recorded in a Blockchain network, run on distributed computer nodes commonly known as decentralized networks.
Bitcoin operates with its network using peer-to-peer technology called a blockchain. Ethereum’s main advantage over Bitcoin is that it supports multiple applications in addition to supporting transactions on its Blockchain. As a result, it makes it more useful for different applications than cryptocurrency.
What is Ethereum?
Ethereum supports applications like ‘smart contracts.’ These smart contracts are programmed so that users can automate legal agreements, and direct interaction of the user with the Blockchain is not required. Users could use it to transfer ownership, securities, digital identity creation, exchange of messages and data, etc. Ethereum is a kind of blockchain network, and the official crypto token of the ethereum network is known as ether. Ether is used to run smart contracts.
Although ether is the primary currency of ETH, it does not have any value by itself. In the ethereum blockchain network, ether works as a fuel to perform activities like running smart contracts. Developers can use Ethereum for developing new applications as well as new cryptocurrencies.
In that case, the ethereum blockchain network can be used as the backbone, and we can code our cryptocurrency using the ethereum blockchain platform. The primary advantage of using the ethereum blockchain is censorship-resistant and decentralized.
What is bitcoin?
Bitcoin was launched in 2009 to transfer money over the internet without any central authority or a third party. It uses blockchain technology to create a transparent public transaction ledger that records all transactions in the network and prevents them from being altered.
Blockchain eliminates the middle-man; therefore, such transactions are secure and verifiable by everyone on the network. Each bitcoin user also has a copy of the Blockchain, which miners can use to verify transactions on their accounts. Furthermore, transactions are irreversible; therefore, it is popular among individuals who prefer privacy.
The interest in bitcoin has constantly been increasing, and the value of bitcoin at a point in time was $20 billion, but the value increases daily. Recently, the price of bitcoin reached an all-time high and touched the $3000 mark. Bitcoin is available in a limited supply which makes it a good investment prospect as its value often raises manifold in a short period.
Why will Ethereum overtake Bitcoin?
There are many reasons to prove that Ethereum will soon surpass Bitcoin in terms of popularity, user base, application development, etc. While Bitcoin was created to create a payments platform, Ethereum was created primarily as a Turing-complete virtual machine so that anyone would be able to execute code. It means that unlike Bitcoin, which can only process simple code,
Ethereum can execute scripts and smart contracts to control digital money flow in any application or industry. Bitcoin’s blockchain network received much attention for increasing its value. However, having less adoption because of a single entity controlling it. Ethereum, on the other hand, has an open-source community, and many large companies are involved in its implementation. Therefore, the above reason is the most reliable statement for the mentioned cause.
Just recently, Amazon Web Services launched their blockchain-as-a-service platform, which allows customers to create their private Blockchain, on top of which they can develop applications. This service is much needed in the Ethereum ecosystem, as many companies want to use it. Still, it cannot do so due to a lack of experienced developers capable of building applications on top of it or knowledge of how Ethereum works.
