Bitcoin vs. Ethereum: What's the
Difference?
INTRODUCTION
Today we discuss about Bitcoin vs. Ethereum: What's the Difference
In this article we have explained in brief that we have done the bare of ethereum we
have also told in the bare of bitcoin.But if you want to know more, then I have
written a separate post for that which is based on bitcoin, the link is given below,
you can read from there.
so without wasting more time let's get started
preface
- ETHEREUM >>VS <<BITCOIN
- INTRODUCTION TO ETHEREUM
- INTRODUCTION TO BITCOIN
- DAPPS ( Decentralized apps )
- ETHEREUM- EXPLAINED
- SMART CONTRACT
- DEFI
- NFTS
ETHEREUM >>VS <<BITCOIN
what is ethereum it's a platform it's not a currency it's a platform on which dapps
can be built wherein smart contracts are an integral part of that and two amazing use cases we talked about it was defi and nfts and a lot about ethereum which i already explained just scroll down the page and you will get it
if you are already aware about bitcoins well and good if you're not aware about
what is a bitcoin you can just check out our another blog post link is given below
and now let's move on with the " distinction of bitcoin versus ethereum " let's
understand this distinction using few points
who is the founder of bitcoin?
technically speaking anonymous but people use the name of
" mr satoshi nakamoto "
who is the founder of ethereum?
there are many co-founders but one of the co-founder is " vitalik buterin "who is
pretty famous
"SUPPLY"
second one if i'm talking about supply is there any limitation on supply the answer
is yes
bitcoin maximum supply is 21 million bitcoins
ethereum maximum supply it's an unlimited supply but maximum new ether
here i should not be using ethereum maximum number of ethers which can enter
into the market are capped at 18 million per year
" Transection "
next one is the transaction time
how much transaction time is required on a bitcoin blockchain ?
" it's roughly 10 minutes per transaction "
how much transaction time is required on a ethereum blockchain ?
" on the ethereum blockchain one transaction can be executed in barely 15 seconds
next one is bitcoin is used as what is the true value
bitcoin is in itself is just a store of value
if talking about ethereum
the value of ethereum lies in its blockchain it can be used for multiple purpose it's
upon you and me it's upon various software engineers and all those geeks how
they can use this blockchain how they can use this knowledge to build various
dapps on this blockchain
next one
what is the application of bitcoin?
it's just used as money
what is the application of ethereum?
ethereum i mentioned about so many applications including two amazing scroll
down the page and you will get it
applications which is " nfts and defi "i already explain how it works scroll down
the page and you will get it
"FEES"
how much fees is given to the miner of bitcoin?
6.25 btc is given as a reward to the miner
how much fees is given to the ethereum?
ethereum it's 280 hour per block crypto asset of your choice just check out the
wazirex they have an amazing feature which is known as the quick buy
so what you have to do is just open the app hit on quick buy select whichever crypto
asset you want to enter the amount and swipe to buy and there you go it's that easy
INTRODUCTION TO ETHEREUM
ethereum is a decentralized open source blockchain system that features
its own cryptocurrency decentralized means what the power is not in the hands
of a single person but power is distributed amongst various nodes or peers second
one is it's an open source what is open source it's available to all it's not secret as
such it's accessible to many third one it's a blockchain system now what is a
blockchain in simple words it's a distributed ledger and that ledger contains a
lot of inter information which is packed into blocks and all these blocks are chained
to each other and that's why it's termed as blockchain right and last word is that it
features its own cryptocurrency which cryptocurrency ethereum so eth is
a cryptocurrency also known as ether then
what is ethereum is ?
ethereum is an open source blockchain system or simply put it's a platform
what what do i do with this platform?
this platform can be used for various dapps which can be deployed by using
smart contracts now two buzzing use cases of these dapps or decentralized apps
are defi and nfts
INTRODUCTION TO BITCOIN
Created in 2009, Bitcoin is a digital asset that leverages a peer-to-peer
network to facilitate the transfer of value without intermediation from banks or
central authority.
Bitcoin is a digital currency, with no physical bitcoins in circulation.
How to use Bitcoins?
We can create bitcoin transactions as we tend to do with our acquainted fiat
currencies. whereas we tend to use Bitcoin, the customer is truly referenced to our
digital signature, that could be a security code encrypted with sixteen completely
different symbols. The customer decrypts the code along with his device to get the
cryptocurrency. thus we will say that cryptocurrency is AN exchange of digital data
that allows U.S. to shop for or sell product and services.
The dealing is secured and created trustworthy by running it on a peer-to-peer
network that's akin to a file-sharing system.
want to know brief details about bitcoin
DAPPS ( Decentralized apps )
let's understand what are dapps or decentralized apps for
example of only app
simple example can be of shadi.com or any other matrimonial app what
happens there is mr xyz and miss abc whatever and just just that they can meet
each other over various apps there is one app here now what this app does is that
the main thought process is just to do matchmaking and are they going to
earn some commission in between these apps have complete
centralized authority this single entity controls so much part of our life now if
this centralization is taken away then what so that's where comes in the picture that
there is no centralization in simple words there is decentralization of apps so
no single entity is going to control that and that app is not going
to earn commission just for the matchmaking purpose
step number one just understand how the
decentralization works
step number two just write a code that
mimics the same behavior
and step number three just get a huge
network of computers to run this code
ETHEREUM- EXPLAINED
ethereum is not a currency a platform that provides us the infrastructure that has
thousands of independent computers that is nodes which are running well once a
program is deployed over this network it will ensure that it gets executed as written
well now if i want to create my own decentralized application i have to ensure that
no single person controls this to controlling this we need to know solidity which is
the coding language of ethereum now once coding is done using solidity
all i have to do is deploy it on evm what is evm ethereum virtual machine
which is a blockchain based software ethereum provides the developers with
various tools that can be used to make dapps or decentralized apps
what is the connection between these two array ?
on the ethereum network there are thousands of computers who are either
approving or disapproving transactions are they doing this for free no these nodes
need to be incentivized incentivized using currency eth or ether
in previous
number one i talked about dapps
number two i use the word diy and
number three i use the word smart contract now
i hope you are aware about what's a dap "decentralized app " not a single person
is going to control that right second one is diy diy is " do it yourself "
SMART CONTRACT
so either you can learn the language solidity or you can hire engineers
so smart contracts "smart contracts are nothing but
contracts which can execute themselves " in simple words smart contracts
are contracts which have a lot of ifs and dents now what is this for example
google drive wherein there is absolute centralization everything is in
the hands of google now i say i don't want g-drive i want our drive that " our drive
app is not a centralized app it's a decentralized app " so it is going to control that
me no thousands of nodes thousands of computers are going to control the decision
making here.
now what happens understand the coding in this app is done in such a way
that if you want us a part of the drive space on rent you are going to pay me and
i'm going to give that space on rent to you
so in the "smart contract " if i receive money then you will get the space on rent
what will happen in real world there'll have to be a person who passes the
accounting entry who will actually take the money will actually give the dry space to
you but here who is going to do that the " contract itself is going to execute "
that's why it's known as a smart contract here no human intervention as such
the contract itself is going to execute itself wherein
" ifs and dense " are the main thing
DEFI
let's try and understand -
what is defi?
so take an example let's understand this case that
" there's mr a and mr b, mr a has excess money and mr b is in need of money
who is going to do the matchmaking it's a bank but your bank is a centralized
authority entire power is concentrated hands of a bank can this bank go away
and can there be a platform on which some decentralized app is built which
can directly connect mr a and mr b so this can be an example of centralized finance
or decentralized finance if they are getting directly connected with each other that
will be an example of decentralized finance
i'll give you one more example
" okay mr a mr b they want to do trading now if i'm talking about trading of
shares i need a central authority again which is a central authority nsc or it could be
bsc all powers are concentrated in the hands of whom on in the hands of the
exchange now instead of this if there is again a platform a platform on which a
dapp is built with wherein this person and this person are directly connected with
each other
wherein they can trade with each other?
answer is yes
and this is also an example of defi now are there some websites which i can show
example for the banking on i can give you
the example of aave.com it is very clearly mentioned
are they is an open source i've talked about this word open source non-custodial
liquidity platform for earning interest on deposit and borrowing assets
so if you just scroll down here in this website you can see i'll give you an example of
a stable coin which is usdt coin what can you do you can either borrow
this or you can deposit this even rate of interest is also given this is a classic
example of defi
now i'll show you another example website instead of an exchange for trading
is uni swap what is given here it's a decentralized trading protocol and it's running
so what is given here it's a guaranteed liquidity for millions of users and
hundreds of ethereum applications so well i can go on talking about this it's again
an example of defi where there is no centralized authority there's just a
platform on which a dap is built which directly connects to people
NFTS
nfts are digital assets and ownership of which is recorded publicly on a blockchain
for example now a picture or a caricature was gifted to me by one of my friends
now what could happen potentially let us understand once i upload this people will
immediately start doing copy paste copy paste copy paste and a lot of replicas of this
same image will be created and everyone can say i did this i'm the true owner of
this now if my friend were to tell that hey i am the og creator of this specific
photograph what could he have done he could have uploaded this photograph
as a digital asset on a blockchain and he would have recorded that hello i am the
original person who created this now does he only know about this or now
the world knows about it now the world knows about it because it's on a
blockchain so that is why this specific photograph becomes original it becomes
non-replaceable that is nothing but non-fungible so i hope you have understood
very nicely
CONCLUSION
so the conclusion is ethereum haveing more profitable then bitcoin if you want to
invest on crypto market i would suggest ethereum ethereum comes with
unlimited supply but in case of bitcoin there is limited supply return is high in
present and may be in future it will progres more then bitcoin
note - Whatever we tell here, financial tips or tricks, we put this post only after
doing a lot of analysis, if you have to face loss in the market due to these tips, then
we will not be responsible for it.
FAQ
what is ethereum is ?
ANS-: ethereum is an open source blockchain system or simply put it's a platform
how much fees is given to the miner of bitcoin?
ans-: 6.25 btc is given as a reward to the miner
who is the founder of ethereum?
- who is the founder of bitcoin?
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