Ethereum and Bitcoin are two of the most popular digital currencies. There is a massive hype about both of them all over the world. If you have some spare funds, you must invest them in any one of them. If you want to become a champion in bitcoin trading, you must visit https://bitcoinsuperstar.app. There are some crucial aspects about both of the cryptocurrencies that you need to know about.
What is Ethereum?
Ethereum is one of the most popular cryptocurrencies launched in 2015. It is designed by Vitalik Buterin. It is a cryptocurrency that works with its own currency known as Ether. Ethereum is a whole network, and Ether is the cryptocurrency used in it. It is used by developers to build a decentralized application over blockchain technology. Moreover, Ethereum can also be used as a payment method as it is used for paying for services such as electrical power required to add a block to the blockchain before a transaction is completed. The structure and design of Ethereum are highly inspired by bitcoins, but it has a bit diverse application.
What is Bitcoin?
Bitcoin is a decentralized cryptocurrency based on blockchain technology. It was created in 2009 by Satoshi Nakamoto. It is the perfect alternative to fiat currency as you can use bitcoins to make transactions all over the world without paying any extra charges. It allows you to make transactions without involving any third party, such as a bank, as it is based on a peer-to-peer network that enables direct and instant transactions anytime and anywhere. The transaction charges imposed on bitcoin are minimal, which makes it highly affordable. Bitcoin is accepted all over the world, so you can use it to make payments in any part of the world.
History of the currencies
Bitcoin is older than Ethereum as it is the first cryptocurrency introduced to the world. It was released in 2009 by a mysterious person Satoshi Nakamoto. No one has seen or met him, and no one even knows if he is alive or dead. If we talk about Ethereum, it was designed after taking inspiration from Bitcoin’s structure, and it was created in 2015. The same technology of blockchain is used in Ethereum, but it was created to provides the users with a platform with advanced functions and features. It is mainly used for smart contracts and application development over the blockchain.
If we talk about the working concepts of Bitcoin and Ethereum, there are numerous differences that you can easily spot. Bitcoin focuses on peer-to-peer transactions and allows you to receive and send funds to any user over the Bitcoin network in any part of the world. It resolves all the issues faced by the user while using fiat currency and other traditional payment methods for making transactions. It involves no third party, which offers excellent freedom to the users and allows them to make payments without asking for any approval from the bank.
Ethereum is also based on peer-to-peer transactions, but it also provides the users with a platform where they can build an application using smart contracts and exchange a wide range of valuable things such as property, shares, stocks, etc.
Mining is an essential aspect of every cryptocurrency as it is the process through which new cryptocurrency is issued in the market as there is no government institution that has the authority to issue it. Bitcoin mining is the process of solving complex mathematical problems and adding new blocks to the blockchain. Bitcoin miners work on the basis of Proof of work wherewith Ethereum is Proof of stake that is more important.
If we talk about bitcoin mining, the miner gets 12.5 bitcoins as a reward for adding a block to the blockchain. The reward amount is halved every four years. An Ethereum miner gets 3 Ether for adding a single block to the blockchain. The best thing about mining Ethereum is that the reward amount never gets halved.
Bitcoin transactions involved minimal charges that depend on the platform that you are using to make the transaction. Bitcoin transactions are almost free of cost, but if you want your transaction to be verified quickly, you can pay some extra amount to the miner to focus on your transaction at priority. However, you need to pay some ether to complete an Ethereum transaction.