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So far in this section, we have not discussed other ways of producing coins besides Proof-of-Work mining. However, in some alternative cryptocurrency systems, it is possible to create pre-mined coins, at no cost, with no Proof-of-Work, before the main blockchain is launched. Projects such as Ethereum called for the pre-mining of a vast majority of the circulating supply of coins, which were sold to insiders at a fraction of miners’ cost of production. Combining a pre-mine with Proof-of-Work mining for later coins is not necessarily a dishonest practice, but if undisclosed, gives the erroneous impression that all coins in existence have a cost-of-production value. In this light, Ethereum’s stated transition to Proof-of-Stake should be viewed with some skepticism.Here are a few popular algorithms:символ bitcoin ethereum gas pro100business bitcoin

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Public Blockchain ledgers are visible to all the users on the internet and any user can verify and add a block of transactions to the Blockchain. Examples, Bitcoin, and Ethereum.

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Key Differences
Let’s look at the main differences between Ethereum vs Bitcoin, some of which you can see by comparing the basics I just mentioned!

Their Concepts

When you think of Bitcoin, think “digital money”. When you think Ethereum, think “smart contracts”. This is the easiest way to understand and remember the primary difference between Bitcoin and Ethereum!

Their Purposes

Bitcoin is a store of value and a way to send money to someone. Ethereum is also a way to send money to someone, but only when certain things happen.

Ethereum also differs by serving as a building platform for dApps/smart contracts, which allow it to send tokens that represent values. These values can be things other than digital currencies, making it different from Bitcoin.

Their Transactions

Bitcoin’s transactions look like this:

Jade sends 10 BTC (Bitcoins) to Pete.

Ethereum’s transactions run on smart contracts and look like this:

Send 10 ETH (Ether) from Jade to Pete if Jade’s balance is 15 ETH and the date is 12.01.2020.

So, Bitcoin’s transactions are manual and Ethereum’s transactions are automatic / programmable!

The Speed of the Transactions

Ethereum’s block time (transaction speed) is just seconds. Bitcoin’s block time, however, is minutes.

The Currencies: Ether vs Bitcoin

Ether is designed to fuel the Ethereum network and power transactions — think of it as gas.
Bitcoin is used to be the value of real-world transactions — think of it as money.
Their Coin Supply

Bitcoin is limited to 21,000,000 coins. This creates supply and demand, which is healthy for a store of value.

Ethereum, however, is not limited. The production of Ether is continuous. The supply of Ether will slow down a lot over time though.

Vitalik Buterin, the founder of Ethereum, stated that the total number of coins will not reach more than 100,000,000 ETH in the “foreseeable future”.

Their Ages

Ethereum is 6 years newer than Bitcoin and is further advanced.



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