Ethereum VS Bitcoin

Espen Moen KvellandFintech Comments

Ethereum  

Ethereum is both a digital currency and a blockchain based platform, which uses smart contracts. It’s crypto currency is called Ether. The currency Ether is 3 years old, both Ethereum and Bitcoin use open source, and are built to make anonymous transactions in internet based context. Ether has become the second most valuable of the digital currency and has increased around 2800% in 2017. Both Ethereum and Bitcoin are powered by blockchain technology, which makes sure that the transactions cannot be copied or defrauded.  

Ethereum deals with more than crypto currency – Ethereum decentralized applications, called Dapps which work on their own and together with the smart contracts in the platform.

Ether uses a smart contract, unlike Bitcoin which uses a distributed contract. In the smart contract, transactions will not only tracked but also programmed. The smart contract is more secure than the more widely used digital contracts and less expensive. The transactions are fast, and it keeps the associated costs low.  

Bitcoin  

Bitcoin was the first crypto currency and was created in 2009, as the digital gold. It has increased from 0.03 dollars pr. Bitcoin in 2010 to 32 dollars in 2013 – and now around 4300 dollars pr. bitcoin in September 2017. The developer wanted a reliable system in line with other currencies, but free of inflation, political intervention, and physical limits. There will be no more than 21 mill Bitcoins mined(created), so Bitcoins do not acquire the same risk of inflation as other currencies. 

Benefits of the contracts are that blockchain offers a decentralized way to verify and control the transactions. The decentralized aspect makes it almost impossible to defraud the system.  

By using Ethereum is it possible to create new digital tokens, that can represent virtual stocks.  

Ethereum has its own “Turing complete” programing language, which is a code that gives the ability to implement sophisticated logic. Bitcoin is not that flexible.  

Ethereum’s blockchain is designed to be programmable, it’s similar to Bitcoin’s blockchain, but it is created to make it easy to program information in the contract. The contracts can solve computational problems in the system.   

Bitcoin was invented by an unknown programmer and released, Ethereum is crowd funded.    

Benefits  

Bitcoin Benefits: Known, popular and widespread, no inflation, only a digital currency, high security. 

Ethereum Benefits: Advanced blockchain that can be expanded, complete computer language, fast transfer.  

The two crypto currencies are based on the same technology. Bitcoin is designed to be robust, while Ethereum more flexible. 

Ethereum provides smart contracts that perform automatic transfers, but flexibility and smart contracts can be a weakness for Ethereum too. The smart contract technology adds vulnerability to the system which could be attacked. 

References:  

Coindesk Bitcoin (USD) price hentet 08.09.2017  fra https://www.coindesk.com/price/  

Ethereum Vs Bitcoin: What’s The Main Difference? 06.09.17 fra  

https://steemit.com/bitcoin/@therationalfish/ethereum-vs-bitcoin-what-s-the-main-difference 

Ethereum Vs Bitcoin: What’s The Main Difference? 06.09.17 Fra http://www.huffingtonpost.com/ameer-rosic-/ethereum-vs-bitcoin-whats_b_13735404.html  

What is Ethereum, the technology Gimli platform is built on, and what makes it revolutionary? 

https://medium.com/gimli-project/what-is-ethereum-the-technology-gimli-platform-is-built-on-and-what-makes-it-revolutionary-a18b5f9d5962 

What are the benefits of Ethereum decentralized Platform?  

https://steemit.com/ethereum/@techminer/what-are-the-benefits-of-ethereum-decentralized-platform 

 

 

 

 

 

 

 

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