Ethereum and Bitcoin are two of the most popular cryptocurrencies in the world that are increasingly accepted as an important means of payment. Nevertheless, despite many similarities, they are completely different cryptocurrencies. What is the difference between Bitcoin and Ethereum?
What is the difference between Bitcoin and Ethereum?
First of all, Ethereum and Bitcoin were created for a different purpose. The popular Bitcoin was created as an alternative to traditional cash. In contrast, states and financial institutions have no influence on it, it allows you to bypass intermediaries and conclude private and safe transactions.
The situation is the same with Ethereum, but unlike Bitcoin, it is not only a cryptocurrency, but also an extensive platform that allows users to create so-called smart-contracts and the creation of decentralized applications. In other words, the main difference between Ethereum and Bitcoin is the purpose for which they were created.
Ethereum and Bitcoin - is it an alternative?
Ethereum is a platform that allows you to create decentralized applications that, like the currency itself, are based on blockchain technology. In other words, the way they work depends on the software created, which cannot be changed! Additionally, no entity can gain control over an already created application. So Ethereum takes the next step to creating a surveillance-free and secure web space.
In addition, it is also worth emphasizing the essence of the so-called smart-contracts. It is a kind of contract between two entities operating on the basis of deterministic software. This software can perform predetermined actions on the blockchain network, if the appropriate conditions are met!
Thanks to this, you can be sure that the two interacting entities will fulfill the provisions of the contract, otherwise it will never enter into force. So, smart-contracts and the ability to create decentralized applications are a great answer to why Ethereum is better than Bitcoin.