Earlier today i had published an article about a precise comparison between Bitcon and Ethereum titled "Bitcoin Vs Ethereum Part 2| Everything you ned to know". Their i had compared about the Origin, algorithm used, language, and monetary policy of both BITCOIN and ETHEREUM. Now this is a follow up article . And here i am talking about their final comparison regarding
- USES AREA
- TRANSACTION SPEED
- NETWORK UPGRADES
- TRANSACTION MODEL
AREA OF USES
BITCOIN is designed to be a peer to peer transfer of value and store of value. It was optimised for this function and nothing else.Bitcoin is also the native currency on the network that facilitates this function. The fees in bitcoin for transaction is based on the data size of each transaction
ETHEREUM native coin is called ETHER. It was not designed to be a digital dollar like Bitcoin but rather as a fuel for wide range use of transaction. The function of Ethereum is more of a utility type that pay for running code. Its main aim is to be adecentralised super computer called Ethereum virtual machicne(EVM). Which is distributed all over the node in the network. It can also host smart contract where DAPPs can be utilized to function. It aslo enable ERC20 token with different function and own apps. Current notable DAAPs includes decentralised finance and gaming platform. But still people are using ETHEREUM as a digital currency though it is not the real purpose.
BITCOIN perform 4 transaction per second and its on chain transaction speed is very limited due to decentralised POW network. The bitcoin second layer lightening network should enable million of transaction per second.
ETHEREUM perform 15 transaction per second. It has a simillar limitation with Bitcoin in term of speed. But Ethereum have other like Sharding,POS, and Raiden( simillar to lightening in BTC).
BITCOIN upgrade through a process called fork . Where a different crypto simillar to bitcoin gave birth with a slight change in potocol. Fork is of two type hard fork amd soft fork. Most fork in bitcoin are soft fork which means it has backward compatibility and can still run if if their nodes doesn't upgrade. And their network statistic is still intact. But there are some controversial upgrade in hard fork like BSV(Bitcoin SV) , BCD (Bitcoin Diamond). This are created by a splitbin block size and sigwit disagreement.
ETHEREUM on the other hand upgrades mainly by hardfork. This process could increase the chance of chain split. Because this are not backward compatible like in softfork and users have to upgrade it. Nodes that dont upgrades won't be part of the network. But luckily hardfork does'nt lead to chain splitbin Ethereum world.
BITCOIN works under a transaction model called Unspent transaction output model(UTXO). The bitcoin blockchain does not keep track of account it only transact from address to address. Hence wallet aggregate the address controlled by the same private key and show total balance. UTXO model increase pseudonemous nature of BTC transaction which means user know their address but doesn't have to give any of its idendity. But this doesn't provide full prvacy because of chain analysis software.
ETHEREUM on the other hand uses an Acount model which is less complex. Ethereum used only one ETH address which work simillar to any account wallet. And it doesn't create new address for every new transaction. This model is also a less privacy and anonimity because history of entire users account is viewable since the addresa is tied to users idendity.
These are the brief and precise conparison between Bitcoin and Ethereum everyone shoud know. From the comparison it has came to know that BTC and ETH are more different then expected but this does'nt mean superiority of one another. Most of feature have to do with different application . Their difference in design and development also reflect their different goal. Finally both ETHEREUM and BITCOIN are not competing but attempting to service in different needs.