Blockchain is a decentralized peer-to-peer network. Its primary purpose was to serve as a successful alternative for centralized applications. Blockchain technology rose to popularity with the launch of the Bitcoin blockchain. Its popularity and functionality have continued to grow as people realize the technology’s true potential.
Bitcoin is the first blockchain that successfully replaced conventional currency and centralized authorities by creating the world’s first-ever peer-to-peer decentralized digital currency. Bitcoin is the local currency of the Bitcoin blockchain. The Bitcoin blockchain is maintained by a network of nodes (miners) who process the Bitcoin transactions, package them into blocks, and add them to the
Ethereum is one of the most capable blockchains in terms of its features. Ethereum is an upgrade over the existing Bitcoin blockchain. Not only does Ethereum allow cryptocurrency transactions, but it also adds the functionality of adding executable code on its blockchain network in the shape of smart contracts. Adding smart contracts allows Ethereum to power many applications, also known as Dapps.
Both Bitcoin and Ethereum are decentralized peer-to-peer networks. They are two of the most popular blockchains existing today. They follow the fundamental principles of blockchain technology. Even though they are based on the same technology, they have some significant differences in design and implementation.
The differences include the availability of
Features | Bitcoin | Ethereum |
Smart contracts | No | Yes |
Virtual machines | No | Yes |
Consensus algorithm | Proof of Work | Proof of Stake (in Ethereum 2.0) |
Block size | 1 MB | Variable |
Supply limit | 21 million | Unlimited |
Block generation time | 10 minutes | 10-15 seconds |
Use case | Intend as the replacement for traditional currency. | Intended to add the functionality of smart contracts into the blockchain technology. |
Note: Read more about smart contracts here.
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