Bitcoin and Ethereum are the two best known and most valuable cryptocurrencies on the market. However, they serve different purposes and use different technologies to achieve their goals. Let's see.
Bitcoin, the first and largest cryptocurrency by market cap, was launched in 2008/9. Its primary goal is to be a censorship-resistant, decentralized form of exchange that allows individuals to transact without the need for a central intermediary. To this day he has fulfilled it. To do this, it uses blockchain technology and a proof-of-work (PoW) system known as a consensus protocol to secure its network.
Its finite supply of 21 million BTC has been highly regarded as a safe way to store value against fiat or other cryptocurrencies whose total issuance is undefined, or infinite, i.e. inflationary rather than deflationary (as BTC is). ).
Ethereum, for its part, launched in 2015, is a decentralized platform for smart contracts and development of decentralized applications (DApps). Like Bitcoin, it also has its native currency, Ether (ETH), which is used as âgasâ to pay fees for transactions that take place on the network and in smart contracts.
Starting from the freedom that Bitcoin proposes to be able to store and transmit value without the need for intermediaries, Ethereum wanted to take it a step further, offering the possibility of creating smart contracts and DApps that work on its network and do not depend on a central host for its operation. . It offers an internal scheduling tool for the creation of these contracts (the most used by blockchain developers around the world), uses a proof-of-stake (PoS) system to secure its network, and has no fixed maximum bid. All this, without neglecting blockchain technology.
Each of the currencies has its advantages and disadvantages, taking into account that they are oriented to different objectives:
Bitcoin is less versatile than Ethereum in terms of its use cases. It is designed solely to store and send value, it also has a lower transaction speed and charges (generally) higher fees than Ethereum, while, on the other hand, by having a defined maximum emission it presents greater predictability of its long-term value. term.
Ethereum, on the other hand, has a more developed ecosystem of decentralized applications and projects based on its platform. Also, the consensus system that it uses, PoS or Proof of Stake, is considered by many users to be more insecure than PoW, since it is argued that it can become more centralized in fewer users with greater economic capacity compared to PoW, and that for this reason can be much more vulnerable to attacks of the 51% type (a hotly discussed topic within the crypto community).
In summary, both blockchain networks represent the most secure projects in the entire ecosystem, since they have withstood the test of time, with different strengths and weaknesses. There will always be a debate for one or the other, but really both contribute and have contributed an unquestionable value so that this technology is a reality today.
