What’s The Main Difference?
While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone.
Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its additional features and applications.
Bitcoin
The traditional banking system is already established, and payments from all major debit/credit cards and cash are accepted almost everywhere although must be exchanged in different countries. Use of cash does not also require an internet connection or any other technology. Manipulation in the banking system has caused incidents such as the financial crash of 2008, bitcoin actually being created due to the manipulation of the banking system and the need for something in the control of the people. The creator left a clue of this intention embedded in the very first block of transactions on the bitcoin ledger.
Bitcoin is used by simply using bitcoin wallet software. This generates your wallets public address and the private key that goes with it. This private key must be secured, most wallets typically use a password and allow backup of the private key. This is what allows bitcoins to be spent from an address and is the only proof of ownership the network rules recognise. You can have a wallet on your own computer, phone, tablet or even a web based wallet or wallets on USB sticks.
Ethereum
The first thing about Ethereum is that it is not just a digital currency. It is a blockchain-based platform with many aspects. It features smart contracts, the Ethereum Virtual Machine (EVM) and it uses its currency called ether for peer-to-peer contracts.
Ethereum’s smart contracts use blockchain stored applications for contract negotiation and facilitation. The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum’s smart contracts aim to provide greater security than traditional contracts and bring down the associated costs.
The smart contract applications are powered by ether, Ethereum’s blockchain based cryptocurrency. Ether, as well as other crypto-assets, are held in the Ethereum Wallet, which allows you to create and use smart contracts. The system has been described by the New York Times as..
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