In the world the cryptocurrency Bitcoin and Ethereum can be considered as the parent of all the cryptocurrency.For now both ETH and BTC works on proof of stake mechanism. But Ethereum will be change to Proof of stake consensus mechanism after some period of time. First the Bitcoin was born followed by Ethereum. Other remaining different type of cryptocurrency was born under their backbone. 2020 can be cosider as an era of cryptocurrency as many up and down is going on out here.
With Bitcoin completing its 3rd halving and Ethereum in the brink of going to the proof of stake. A new chapter of cryptocurrency is going to be started. When compairing the two top coin their difference is more than their similarities. So Here is everything you need to know about Bitcoin and Ethereum. In my first part i will be covering about their
- LANGUAGE USE
- ALGORITHM USED
- MONETARY POLICY
BITCOIN(BTC) was first launched in 2009 when an unknow individual or group under the pseudonym Satoshi Nakamoto published the first white paper. There was no fundraising for this project. So minners had to mined on the bitcoin network to received the first bitcoin. Satoshi is said to had maned about 1 million bitcoin and latter disapper withouth any idendity and without spending any bitcoin he mined
ETHEREUM(ETH) was launched in 2013 by a young genius and a Russian computer programer Vitalik Buterine after publishing a white paper.They undergoes various fund raising program from 2013 to 2014.An ICO followed in 2014 in which a pre minted quantity of ETH was distributed to the investors. Vitalick is still an active participient in the project and has many other leadership co workers namely Anthony Dioria, Charles Hoskinson, Mehail Alisie etc.
BITCOIN(BTC) used a script language keeping it simple . This keeps the code robust but less vulnerable to bugs. On the other hand it can support simple smart contract like multi sig and escrow. More advance smart contract need a second layer or side chain solution. There are project working on it but nothing realy specific is not implemented yet. Even though BTC can handle powerful smart contract its main focus is decentralisation, security and censorship resistance.
ETHEREUM(ETH) support more complex language hence the term turing is given for this. It means to be smart contract/DAPPs platform. Hence there can be wide range of bug in code which is harder to find. Certain bugs lead to the loss of million of dollar in Ethereum token. But new method are still developing to minmised the risk.
BITCOIN(BTC) POW algorithm is called SHA256. This can be mined by ASICs( Application Specific Intregation Circuit). It is mean to do only ine specific type of computational task which is why they dominated general purpose chips like CPU and GPU.Above all BTC ASICs are build for mining the algorithm better than anything else. ASICs provide the Bitcoin network with a ton of hash power which makes the blockchaim extremly secure and would be difficult to make 51% attack. However there are some concern that ASICs would lead to centralisation.
ETHEREUM(ETH) POW algorithm is called Ethash and is designed to make ASICs hard to mine. This feature makes ETH more accessible to GPU present in the computer. Which is a more decentralised process . But less secure. Its long term vision is to change its POW consensus to POS consensun. With POS there will be no longer need of energy and heavy hardware to maintain the network. In this way a bad miner that produce false block will loss the stake.
BITCOIN inflation rate supply is hard coded in the protocol. There will never be more than 21 million BTC in circulation. Currently about 17 million BTC had been mined. Emission rate was 50BTC per block at the initial stage and is reduced to 6.25 BTC per block after the 3rd halving. Every 10 minute produce one block. Wich is estimatedro 37.5 BTC per hour. Every 4 year the block reward is cutbto hald called halving. The next having will be on 2024 which will reduce the block reward to 3.125 BTC per block.
ETHEREUM(ETH) has no maximum threshold for circulation. But it occasionaly reduced during large network upgrade.recently few year back there was reduction of 2 to 3 ETH per block. ETH produce block every 15 second.which equals to 480 ETH per hour. Unlike BITCOIN there is no limited and fix supply of Ethereum.
So these are the first four comparison between ETH and BTC .There are more other comparison like their uses, transaction speed, Network upgrades, transaction model which i will be covering in my next part of the same article. Hope this find helpful to all the beginners as well as those who are into it.