What is the difference between Bitcoin and Ethereum?

Since Vitalik Buterin announced Ethereum at the Bitcoin North American 2014 conference, he has gained considerable popularity and, in general, compared to Bitcoin. However, despite the similarities, the Ethereum is indirect in competition with Bitcoin. The brief description of each one will give you a better understanding.

Bitcoin.

Bitcoin is the first virtual currency. The purpose of Bitcoin is to provide alternative exchange media that compete with the FIAT currency. This is based on the accounting system that is distributed without central authorities, such as the Central Bank or the Government. Bitcoin promises lower transaction costs than ordinary online payment mechanisms. There is no physical Bitcoin, but only a balance associated with a particular public and personal key (wallet).

Bitcoin and Blockchain: Relationship

Blockchain is a technology that moves Bitcoin. It is impossible to discuss Bitcoin without mentioning the block of blocks. Actually, 'Bitcoin' (uppercase) is sometimes used to refer to the Bitcoin block block while 'Bitcoin' (lowercase) refers to the digital currency itself.

Blockchain is a public book of all transactions carried out in certain systems. Transactions are packaged in blocks and continue to aggregate to the existing block chain, which makes it larger with each transaction. These blocks are added to Blockchain chronologically through cryptography, so it is almost impossible to manipulate.

Ethereum.

Ethereum is a network of virtual machines that you can use to execute distributed applications (DAPPS). Computer programs are designed to automatically execute contracts when certain conditions are met. Ethereum has a decentralized public block chart used to store cryptographic contracts, execute and protect. This is possible thanks to distributed computer networks each unloading a small virtual machine to synchronize with the Blockchain penelerium and execute the contract if necessary. This distributed computer network provides reliability, safety and computer energy needed to perform the designed configuration. Blockchain Ethereum admits many applications that are often known as Blockchain 2.0.

Ethereum and digital currency

Unlike Bitcoin, Ethereum is not only a digital currency. The digital currency that runs on the Etherum Blockchain is called ether. The ether is used in the ETHEREM application that is running to monetize the work. However, he has gained popularity as a digital currency and was negotiated in an exchange of digital currencies, such as the other cryptomacean.

The difference

Although Bitcoin and Ethereum are based on the principles of distributed big books and cryptography, they have a difference. These differences are based techniques and purposes. Technically, while Bitcoin Blockchain uses a programming language based on the stack, Ethereum uses finished turns. Its basic buildings are also different, with Ethereum using ETHASH and Bitcoin using SHA-256, a safe hash algorithm. In terms of block blocks, Bitcoin's transactions are confirmed in minutes, while the Ethereum is confirmed in seconds.

Source techbullion.com