Ethereum Vs Bitcoin

Although Ethereum has only been around a few years, the cryptocurrency is gaining attention. Both Bitcoin and Ethereum run on distributed ledgers and use cryptography to power them, but the similarities end there. Ethereum uses an open-source software platform that was built to act similarly to the blockchain. However, where Bitcoin is a form of digital currency, Ethereum is a smart contract between two individuals, which makes them dramatically different.

Ethereum Vs Bitcoin
Image Credit: Hero Images/Hero Images/GettyImages

Ethereum Vs Bitcoin

Before Ethereum, the cryptocurrency field faced a few challenges, primarily that they were all designed to only facilitate peer-to-peer financial transfers. Ethereum was designed with more flexibility built in, which means developers can create applications that run on a blockchain network, rather than being forced to conform to another entity's requirements. This allows transactions like loans to be completed the same way bitcoins are transacted.

When Was Ethereum Launched?

Although it launched July 30, 2015, its conception began several years before. Founder Vitalik Buterin became interested in Bitcoin in 2011, writing hundreds of articles about the technology for an online news site he co-founded called Bitcoin Magazine. In the process, he began conceptualizing an idea of a platform that would work similarly to Bitcoin but could handle more than the transacting of funds. In 2013, he introduced the concept of Ethereum in a white paper, which inspired similar white papers, including one by Dr. Gavin Wood, who would go on to become one of Ethereum's co-founders.

Can You Buy Ethereum?

As with Bitcoin, you can buy Ethereum through one of the exchanges. Coinbase is one of the most popular, but there are also Kraken, Bitstamp and Gemini, among others. To buy Ethereum on Coinbase, you'll start by signing up for an account on Coinbase.com. You can also download the Coinbase app, which is available for iOS and Android devices. Once you're in, you'll connect a bank account, debit card or credit card, then go through the verification process. After a payment method is attached to your account, you can either buy or sell Ethereum directly through your Coinbase account. You'll see the current exchange rate before you make a purchase.

Ethereum Vs Bitcoin Mining

With Bitcoin, miners verify each transaction with specialized software before it is added to the distributed ledger. Mining also applies to Ethereum, although in a different way. In addition to recording transactions to the centralized ledger, mining also creates five ether tokens per mined block. As with Bitcoin, mining helps track transactions while often keeping the blockchain secure. In that sense, mining is crucial to operations for both currencies.

Who Is the Founder of Ethereum?

Vitalik Buterin, Ethereum's founder, was only 19 years old when he first came up with the idea for Ethereum. He was a programmer in Toronto working to create applications for the Blockchain when he began to notice its limitations. He imagined a future in which applications could be built on the blockchain that did more than move money from one person to the next. He started with alternate coins based on the Bitcoin codebase and gradually began introducing his concept to the cryptocurrency community.

When Did Bitcoin Start?

Unlike Ethereum, the founder of Bitcoin is still unknown. In fact, it isn't even known whether the fictional founder name "Satoshi Nakamoto" belongs to one person or a group of people. In June 2008, Neal King, Vladimir Oksman and Charles Bry filed for a patent for a secure communication technology, leading some to speculate that they may be the hidden founders. Two months later, someone secured the Bitcoin.com domain and on Jan. 8, 2009, Bitcoin was announced. Mining began soon after and the rest is history.

references