Bitcoin Blockchain Vs. Ethereum Blockchain
Posted On May 25, 2023
Bitcoin Blockchain and Ethereum Blockchain are the two giants of the cryptosphere right now. Even though both of them work on the same basic principle of Blockchain. They have a lot of differences in their applications as well as functions.
For instance, the more advanced calculating features of Ethereum make it more vulnerable to cyber-attacks. As compared to the simpler complexity of Bitcoin. In fact, both of them are meant for different purposes. Bitcoin Blockchain is all about providing a stable digital currency. Whereas Ethereum is more about the applications of Smart Contracts and DApps.
In other words, Ethereum can be considered as the more generalized concept of Bitcoin. That is also why the costing of Ethereum Blockchain is dependent on bandwidth usage. Storage needs and complexity, while the costing of Bitcoin Blockchain depends on the block size.
Differences between Bitcoin blockchain and Ethereum blockchain
The Bitcoin Blockchain also has a block limit of 1MB. This limits the mining of Bitcoins and creating a new block on Bitcoin takes about ten minutes. On the other hand, the Ethereum Blockchain does not have a limit on the number of blocks mined.
It takes around twelve to fourteen seconds to mine a block. The miners are free to decide the size of the block. Of course, it is much faster to mine Ethereum blocks than Bitcoin. But this also implies that there are more Ether crypto than Bitcoins.
Due to the hard cap at Bitcoin mining at twenty one million blocks, it is more valuable. Bitcoin also has a built in scripting language, but its limited use gives advantage to Ether holders. Ethereum’s full general-purpose language integrated into the software makes writing the programs called smart contracts possible.
This is because of Ethereum Virtual Machine or EVM. It also makes Ethereum much more generalized for application in the real world. EVM is use to write code, or smart contracts, to automate and execute real world agreements. These are record in an immutable ledger.
Ethereum Account Types
Ethereum has two account types- one holds the user funds and the other for holding the computer codes. It is also called the programmable Blockchain. Ether is used for buying computation power or ability which runs these programs of Smart Contracts.
In simple words, sectors and industries like trade and finance, supply chains, securities and derivatives. As well as banking make use of Smart Contracts in order to have greater mining decentralization. As the Ethereum hashing algorithm is memory intensive.
Ethereum also tackles the problem of scalability by the process of sharding. As this is not possible for Bitcoin Blockchain. Sharding is the process, which breaks up the Ethereum Blockchain into many interconnected sub-Blockchain.
Ethereum also seems to be moving away from mining altogether by changing the consensus algorithm to Proof-of-Stake (PoS) from the previously used Proof-of-Work (PoW). PoS create blocks based on the token holdings of the nodes rather than computational power.
These are the major reasons for the differences between these two crypto giants. They are not competitors; rather they are both useful Blockchain tokens for different industries with their own area of expertise.