Bitcoin (BTC) and Ethereum (ETH) are arguably the two most popular cryptocurrencies out there and have greatly contributed to the sector’s growth. Bitcoin was the first cryptocurrency ever to be created and is seen as digital gold or “gold 2.0,” while Ethereum can be seen as a decentralized computer for the world.
Bitcoin is seen as digital gold because it is scarce and durable like the precious metal, but it can be easily stored and divided. Ethereum is seen as a decentralized computer for the world because the network is used to run decentralized applications (DApps), meaning applications that aren’t under the control of a central authority.
- Founded 2009
- Store of value / medium of exchange
- Block time 10 minutes
- Max supply 21 million
- Founded 2015
- Platform for immutable programmable smart contracts
- Block time 12 - 14 seconds
- Unlimited supply
Bitcoin was launched in January 2009 as a peer-to-peer digital currency by an anonymous developer using the pseudonym Satoshi Nakamoto. The impetus for a decentralised currency that could not be manipulated by governments or large financial institutions came out of the 2008 global financial crisis.
Bitcoin is intended to be a global currency that anyone can use to transfer money and pay for goods and services. But its high price volatility against fiat currencies has attracted investors using it as a form of “digital gold” to diversify their portfolios and traders looking to speculate on price swings.
The bitcoin cryptocurrency coin runs on the Bitcoin blockchain, a network of computers and servers that processes transactions and stores the data on a decentralised ledger.
Blockchain networks like ethereum or bitcoin do not require an intermediary to process transactions, unlike the traditional system that uses banks as intermediaries to facilitate transactions.
The Bitcoin blockchain operates a PoW consensus algorithm, in which miners verify transactions and add them to the chain in new blocks by solving cryptographic calculations. Miners receive bitcoins as a reward for their work at a rate that reduces by half every four years in a process known as “halving”.
The maximum supply of bitcoin has been capped at 21 million, so a slower rate of new coin creation limits supply while demand is expected to increase as adoption grows.
Some market observers have become critical of Bitcoin, as bitcoin mining has become somewhat centralised among large groups of mining pools that have set up extensive installations of expensive computer equipment. As the number of bitcoin miners grows, the difficulty of the cryptographic calculations increases, requiring more processing power. This results in bitcoin consuming massive volumes of electricity.
What is the difference between bitcoin and ethereum? The Ethereum blockchain, with ether as its native cryptocurrency coin, was launched in 2015 by a group of developers including Vitalik Buterin. following an initial coin offering (ICO) in 2014. The ICO raised financing to develop the project, which Buterin had outlined in a whitepaper in 2013.
One of the key differentiators between Bitcoin vs Ethereum is that while Bitcoin is designed as a digital currency platform, Ethereum is an application development platform, with ether used to enable operations and transactions. Thousands of cryptocurrency token projects have emerged in recent years that run on the Ethereum blockchain, adhering to the ERC-20 compatibility standard.
The Ethereum blockchain can store and execute automatic smart contracts, which enables project developers to create decentralised applications (dApps), including decentralised finance (DeFi) products and services as well as non-fungible tokens (NFTs). Although other smart contract platforms have gained prominence, Ethereum remains the most popular choice for dApp developers.
The Ethereum blockchain has run a PoW algorithm since its launch, but has long planned to shift to a PoS mechanism as part of the introduction of its Ethereum 2.0 upgrade. The upgrade aims to enable the Ethereum blockchain to scale up to accommodate more and faster transactions while increasing efficiency and reducing high transaction costs, known as gas fees.
Stanley Ng (Stan) 黄宝明
Stan is a trainer, consultant, and coach for the past 15 years and has personally trained, consulted, and coached over 5,000 professionals from 45 fortune 500 companies. Stan is currently an active VMware Certified Instructor and Google Cloud Authorised Trainer delivering authorised IT trainings. Started his career as an IT engineer in 2005. By 2007, he led a team of 27 professionals from 5 countries managing large projects of over 10,000 users. From 2008 onwards, he started delivering training for fortune 500 companies.
- WSQ Advanced Certificate in Training & Assessment (ACTA)
- VMware Certified Instructor (VCI)
- VMware Certified Professional Data Center Virtualization (VCP-DCV)
- VMware Certified Professional Cloud Management Automation (VCP-CMA)
- VMware Certified Professional Network Virtualization (VCP-NV)
- VMware Certified Professional Digital Workspace (VCP-DW)
- EC-Council Certified Instructor (CEI)
- EC-Council Certified Ethical Hacker (CEH)
- Microsoft Certified Technology Specialist (MCTS) Hyper V
- Certified Commvault Instructor (CCI)
- CompTIA Certified Cloud+ & Mobility+
- Cisco Certified Network Associate (CCNA)
- Juniper Network Certified Instructor (JNCI)
- CompTIA Certified Instructor
- Symantec Certified Instructor
- Google Cloud Authorised Trainer
- AWS Certified Cloud Practitioner
Clients That I've Personally Worked With...
What New Skill Do You Want To Learn Today?
On-Demand Training Videos to Build Your Skills, Accelerate Your Expertise & Advance Your Career
What Are Students Saying About Our On-Demand Training…