Ethereum Vs Bitcoin: The Possibilities In Terms Of Applications

Ethereum

Ethereum is a network totally decentralized , distributed across a platform nestled on the “cloud.” This allows it to work 100% of the time: if one or more nodes were to go out, the others would perform the tasks to be done. Ethereum allows programmers to run their code in an environment anonymous, secure, without intermediaries .

You do not have to buy a server to execute your code: you only need to know the “gas” (essence), which will reward the community in ethers, thus creating a value (not speculative) . One can imagine an infinite number of applications, such as betting platforms, self-executing contracts or social networks without intermediaries. Moreover, Ethereum has its own programming language “Turing complete”: this means that everything can be calculated in this network, if there is enough computing power and time available.

This is not the case with Bitcoin (electrum hard fork bitcoin Lite), which was not designed to run complex applications.

Bitcoin

There is no programming language on the Bitcoin blockchain. Some developers have created “sidechains”: they rely on the main bitcoin blockchain, but do not modify it. Thus, bitcoin applications are much more restricted.

To summarize, Ethereum can do (almost) all that bitcoin can do. It is possible to create your own virtual currency (token ERC-20 ) on the Ethereum blockchain.

But what are the advantages of Bitcoin in the face of the technology proposed by the young Vitalik Buterin?

A currency whose supply is deflationary:

For bitcoin, the maximum offer of tokens is defined in advance. This makes it a very good support for maintaining value, and allows, among other factors, to ensure its liquidity.

A currency already well established:

Bitcoin has a significant advantage: that of being the first cryptocurrency to have been offered on the market. Thus, even if this network suffers from many defects, there is an entire ecosystem that is associated with bitcoin. It is highly unlikely that the currency will be shunned by all investors overnight.

Rather than adversaries, we can consider that these two currencies complement each other. As the democratization of the use of cryptocurrencies continues, more and more people will want to get at least one of them. There is not really a debate “Ethereum Vs Bitcoin”, since the two currencies were thought for different uses.

BlockTime

Blocktime is the speed at which a block can be mined. With Bitcoin technology, a block is mined every 10 minutes, while Ethereum is faster: 14 seconds. However, companies will tend to require at least 30 confirmations from the Ethereum network to secure their transactions. But even with so many confirmations, it’s still faster than on the bitcoin network (electrum hard fork bitcoin Lite). If the two technologies are very different, we must not forget that they are only at the beginning of their development. Even if bitcoin suffers from its limited “blocksize”, there is no reason for users to turn away from it: it plays its role perfectly in transferring value, but also in storing it. What is interesting is to be able to see the concrete applications allowed by these networks.