Bitcoin, Ethereum, Cryptocurrencies
It’s impossible to not hear about Cryptocurrency related topics nowadays.
Today Bitcoin is being traded at $7600, while Ethereum is being traded at $586. But when it comes to the number of transactions in the blockchain network, Ethereum has dwarfed Bitcoin.
Transactions on the Ethereum blockchain account for more than 50% of the market, with over 800,000 a day.
Ethereum is processing more transactions than all the other coins combined.
Let’s learn about how these cryptos originated and what they’re meant for -
- Launched in 2009, Bitcoin was the first cryptocurrency and the first use of blockchain technology
- Bitcoin is a digital currency
- It aims to fix the problems in global finance, often referred to as the “bank of the people”
- Bitcoin is for P2P transactions and does not require a third party like PayPal or a bank.
- Created to replace regular/fiat currencies (i.e. USD, EUR, JPY etc.)
- Used for regular transactions, like purchasing goods/services or receiving money
- Bitcoin is decentralized and censorship resistant.
- Launched in 2015, Ethereum’s blockchain is widely known as “Blockchain 2.0”
- Ether is its currency and it powers transactions on the Ethereum blockchain
- Ethereum’s transactions take seconds to complete
- Provides a platform to build smart-contract apps and Decentralized applications (known as DApps)
- Provides a programming language, called Solidity, to build smart contracts and DApps
- Smart contracts allow DApps to connect to the blockchain
- Smart contracts allow you to exchange anything of value, while eliminating the need for third parties (in many systems, not just financial systems)
What do transactions look like?
Bitcoin’s transactions look like this:
Jack sends 10 BTC (Bitcoins) to Bill.
When sending transactions on the Ethereum network using a smart contract, a transaction could look like this:
Send 10 ETH (Ether) from Jack to Bill if Jack’s balance is 15 ETH and the date is 12.12.2020.
So while Bitcoin’s transactions are manual and one dimensional, Ethereum’s transactions can be automatic and programmable!
We love numbers, don’t we?
Ethereum is already challenging the superiority of Bitcoin as it is faster, cheaper and more scalable. On the day of writing this article, here are more numbers that favour that “Ethereum is bigger than Bitcoin already” —
- Active Addresses
Bitcoin — ~503k
Ethereum — ~546k
- Average Transaction Fees
Bitcoin — ~1.12 USD
Ethereum — ~0.539 USD
- Transaction Volume (24h)
Bitcoin —~ 189k
Ethereum —~ 832k
- Transaction time
Bitcoin — ~10 minutes
Ethereum — ~14–15 seconds
Data source — BitInfoCharts
While the main aim of creating Bitcoin was to create a more fair alternative to fiat currency, Ethereum is developed with an aim to be a platform that facilitates smart contracts and applications through its own currency vehicle.
While Bitcoin and Ethereum have both successfully implemented strong use cases for blockchain technology, Ethereum’s advanced approach to running applications on the blockchain will continue to fuel its push toward becoming the number one blockchain.
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