difference in bitcoin with ethereum
difference in bitcoin with ethereumOleh: Muh. Sabri Rahman Pada 2015-12-28 20:53:14
What is Ethereum?
Ethereum is actually very similar to Bitcoin. Ethereum is a public peer-to-peer network or blockchain with its own digital currency called Ether. Ethereum was created by Vitalik Buterin in 2014 and the purpose of Ethereum is to become a platform where smart contracts can be created and implemented.
Simply put, the purpose of Ethereum is to become a world computer.
Bitcoin is intended to keep a list of balances and transactions on the blockchain, while the Ethereum blockchain is designed to store various types of data. This data can be accessed and used by computer programs running on the blockchain Ethereum. These programs are called decentralized applications, or dapps.
Developers around the world can build and run decentralized applications on the blockchain Ethereum. The aim is to improve the financial industry, store personal information, governance with various other uses by using the transparent nature of the blockchain.
Where did Ethereum come from?
Ethereum was first called in 2013 in a whitepaper by Vitalik Buterin, a developer who was working on Bitcoin at the time.
Buterin believes that Bitcoin must be made more easily "adjusted". He believes that Bitcoin must be used further than just as a store of wealth and the smart contract feature can be used to automatically determine when payments are made, for example. This project is not intended for Bitcoin, therefore Buterin created Ethereum in 2014 for this purpose.
Ethereum was the forerunner of what was known as an initial coin offering (ICO), sold to initial investors around 60 million Ether tokens when the project was still under development. It is a great journey to develop and continue to promote the Ethereum ecosystem while paying costs for the realm of legality and development.
Since then, Ethereum has grown rapidly. Several other projects have been launched, and the development of the Ethereum platform has begun, with varying degrees of success.
Ethereum and Bitcoin share many similarities. In this article, we will try to highlight the most fundamental differences between the two.
The biggest difference is the main goal of this project.
Bitcoin aims to become a medium for storing wealth, digital gold, and eventually becomes a globally adopted currency that can repair or replace conventional money to a certain extent. The purpose of Ethereum is to be a platform that can be used by smart contracts and decentralized applications.
Another important difference is the amount. The number of Bitcoin is limited to 21 million, but the number of Ethereum is not limited to a certain amount. Bitcoin and Ethereum are produced in a process called mining. There are plans to shift Ethereum's production to a proof of stake model, which should be more environmentally friendly than mining / mining. More information about this can be found at the link below.
There are some technical differences in technology that supports the Bitcoin and Ethereum platforms, but in the initial stages of this project, both of them are more or less the same. Because these projects will grow further, later the differences may become far more real and can affect the direction of their respective goals.